ASSIGNMENT

Name Gaganpreet Singh

1. W
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Roll No. 520946919 do

Course MBA-Semester-III

Subject Research methodology

Subject Code Mb0034 Set-1

LC Code 02971
you mean by research? Explain its significance in social and business
sciences.

MB 0034 SET 1
Meaning and Definition of Research

Research simply means a search for facts – answers to questions and solutions to problems. It is a
purposive investigation. It is an organized inquiry. It seeks to find explanations to unexplained
phenomenon to clarify the doubtful facts and to correct the misconceived facts.
The search for facts may be made through either:
 Arbitrary (or unscientific) Method: It’s a method of seeking answers to question consists of
imagination, opinion, blind belief or impression. E.g. it was believed that the shape of the earth
was flat; a big snake swallows sun or moon causing solar or lunar eclipse. It is subjective; the
finding will vary from person to person depending on his impression or imagination. It is vague
and inaccurate. Or
 Scientific Method: this is a systematic rational approach to seeking facts. It eliminates the
drawbacks of the arbitrary method. It is objective, precise and arrives at conclusions on the basis
of verifiable evidences.
Therefore, search of facts should be made by scientific method rather than by arbitrary method. Then
only we may get verifiable and accurate facts. Hence research is a systematic and logical study of an
issue or problem or phenomenon through scientific method.
Young defines Research as “a scientific undertaking which, by means of logical and systematic
techniques, aims to:
 Discover of new facts or verify and test old facts,
 Analyze their sequences, interrelationships and causal explanations,
 Develop new scientific tools, concepts and theories which would facilitate reliable and valid
study of human behaviour.
 Kerlinger defines research as a “systematic, controlled, empirical and critical investigation of
hypothetical propositions about the presumed relations among natural phenomena.
Research is a scientific endeavour. It involves scientific method. “The scientific method is a systematic
step-by-step procedure following the logical processes of reasoning”. Scientific method is a means for
gaining knowledge of the universe. It does not belong to any particular body of knowledge; it is
universal. It does not refer to a field of specific subject of matter, but rather to a procedure or mode of
investigation.
The scientific method is based on certain “articles of faith.” These are:
Reliance on Empirical Evidence:
The answer to a question is not decided by intuition or imagination. Relevant data are collected
through observation or experimentation. The validity and the reliability of data are checked carefully
and the data are analyzed thoroughly, using appropriate methods of analysis.
Use of Relevant Concepts:
We experience a vast number of facts through our sense. Facts are things which actually exist. In
order to deal with them, we use concepts with specific meanings. They are symbols representing the
meaning that we hold. We use them in our thinking and communication. Otherwise, clarity and correct
understanding cannot be achieved.
Commitment of Objectivity: Objectivity is the hallmark of the scientific method. It means forming
judgement upon facts unbiased by personal impressions. The conclusion should not vary from person
to person. It should be the same for all persons.
Ethical Neutrality: Science does not pass normal judgment on facts. It does not say that they are
good or bad. According to Schrödinger “Science never imposes anything, science states. Science
aims at nothing but making true and adequate statements about its object.”
Generalization: In formulating a generalization, we should avoid the danger of committing the
particularistic fallacy, which arises through an inclination to generalize on insufficient or incomplete
and unrelated data.
This can be avoided by the accumulation of a large body of data and by the employment of
comparisons and control groups.
Verifiability: The conclusions arrived at by a scientist should be verifiable. He must make known to
others how he arrives at his conclusions. He should thus expose his own methods and conclusions to
critical scrutiny. When his conclusion is tested by others under the same conditions, then it is
accepted as correct.
Logical reasoning process: The scientific method involves the logical process of reasoning. This
reasoning process is used for drawing inference from the finding of a study or for arriving at
conclusion.
Significance of Research in Social and Business Sciences

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According to a famous Hudson Maxim, “All progress is born of inquiry. Doubt is often better than
overconfidence, for it leads to inquiry, and inquiry leads to invention”. It brings out the significance of
research, increased amounts of which makes progress possible. Research encourages scientific and
inductive thinking, besides promoting the development of logical habits of thinking and organization.
The role of research in applied economics in the context of an economy or business is greatly
increasing in modern times. The increasingly complex nature of government and business has raised
the use of research in solving operational problems. Research assumes significant role in formulation
of economic policy, for both the government and business. It provides the basis for almost all
government policies of an economic system. Government budget formulation, for example, depends
particularly on the analysis of needs and desires of the people, and the availability of revenues, which
requires research. Research helps to formulate alternative policies, in addition to examining the
consequences of these alternatives. Thus, research also facilitates the decision making of policy-
makers, although in itself it is not a part of research. In the process, research also helps in the proper
allocation of a country’s scare resources. Research is also necessary for collecting information on the
social and economic structure of an economy to understand the process of change occurring in the
country. Collection of statistical information though not a routine task, involves various research
problems. Therefore, large staff of research technicians or experts is engaged by the government
these days to undertake this work. Thus, research as a tool of government economic policy
formulation involves three distinct stages of operation which are as follows:
 Investigation of economic structure through continual compilation of facts
 Diagnoses of events that are taking place and the analysis of the forces underlying them; and
 The prognosis, i.e., the prediction of future developments
Research also assumes a significant role in solving various operational and planning problems
associated with business and industry. In several ways, operations research, market research, and
motivational research are vital and their results assist in taking business decisions. Market research is
refers to the investigation of the structure and development of a market for the formulation of efficient
policies relating to purchases, production and sales. Operational research relates to the application of
logical, mathematical, and analytical techniques to find solution to business problems such as cost
minimization or profit maximization, or the optimization problems. Motivational research helps to
determine why people behave in the manner they do with respect to market characteristics. More
specifically, it is concerned with the analyzing the motivations underlying consumer behaviour. All
these researches are very useful for business and industry, which are responsible for business
decision making.
Research is equally important to social scientist for analyzing social relationships and seeking
explanations to various social problems. It gives intellectual satisfaction of knowing things for the sake
of knowledge. It also possesses practical utility for the social scientist to gain knowledge so as to be
able to do something better or in a more efficient manner. This, research in social sciences is
concerned with both knowledge for its own sake, and knowledge for what it can contribute to solve
practical problems.

2. What is meant by research problem? And what are the characteristics of a

good research problem?

Research really begins when the researcher experiences some difficulty, i.e., a problem demanding a
solution within the subject-are of his discipline. This general area of interest, however, defines only the
range of subject matter within which the researcher would see and pose a specific problem for
research. Personal values play an important role in the selection of a topic for research. Social
conditions do often shape the preference of investigators in a subtle and imperceptible way.
The formulation of the topic into a research problem is, really speaking the first step in a scientific
enquiry. A problem in simple words is some difficulty experienced by the researcher in a theoretical or
practical situation. Solving this difficulty is the task of research.
R.L. Ackoffs analysis affords considerable guidance in identifying problem for research. He visualizes
five components of a problem.
a. Research-consumer: There must be an individual or a group which experiences some
difficulty.

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 b. Research-consumer’s Objectives: The research-consumer must have available, alternative
means for achieving the objectives he desires.
c. Alternative Means to Meet the Objectives: The research-consumer must have available,
alternative means for achieving the objectives he desires.
d. Doubt in Regard to Selection of Alternatives: The existence of alternative courses of action in
not enough; in order to experience a problem, the research consumer must have some doubt
as to which alternative to select.
e. There must be One or More Environments to which the Difficulty or Problem Pertains: A
change in environment may produce or remove a problem. A research-consumer may have
doubts as to which will be the most efficient means in one environment but would have no
such doubt in another.

Characteristics of Good research Problem

Horton and Hunt have given following characteristics of scientific research:
 Verifiable evidence: That is factual observations which other observers can see and check.
 Accuracy: That is describing what really exists. It means truth or correctness of a statement
or describing things exactly as they are and avoiding jumping to unwarranted conclusions
either by exaggeration or fantasizing.
 Precision: That is making it as exact as necessary, or giving exact number or measurement.
This avoids colourful literature and vague meanings.
 Systematization: That is attempting to find all the relevant data, or collecting data in a
systematic and organized way so that the conclusions drawn are reliable. Data based on
casual recollections are generally incomplete and give unreliable judgments and conclusions.
 Objectivity: That is free being from all biases and vested interests. It means observation is
unaffected by the observer’s values, beliefs and preferences to the extent possible and he is
able to see and accept facts as they are, not as he might wish them to be.
 Recording: That is jotting down complete details as quickly as possible. Since human
memory is fallible, all data collected are recorded.
 Controlling conditions: That is controlling all variables except one and then attempting to
examine what happens when that variable is varied. This is the basic technique in all scientific
experimentation – allowing one variable to vary while holding all other variables constant.
 Training investigators: That is imparting necessary knowledge to investigators to make
them understand what to look for, how to interpret in and avoid inaccurate data collection.

3. What is hypothesis? Examine the procedures for testing hypothesis

According to Theodorson and Theodorson, “a hypothesis is a tentative statement asserting a

relationship between certain facts. Kerlinger describes it as “a conjectural statement of the
relationship between two or more variables”. Black and Champion have described it as “a tentative
statement about something, the validity of which is usually unknown”. This statement is intended to be
tested empirically and is either verified or rejected. It the statement is not sufficiently established, it is
not considered a scientific law. In other words, a hypothesis carries clear implications for testing the
stated relationship, i.e., it contains variables that are measurable and specifying how they are related.
A statement that lacks variables or that does not explain how the variables are related to each other is
no hypothesis in scientific sense.
Criteria for Hypothesis Construction
Hypothesis is never formulated in the form of a question. The standards to be met in formulating a
hypothesis:
 It should be empirically testable, whether it is right or wrong.
 It should be specific and precise.
 The statements in the hypothesis should not be contradictory.
 It should specify variables between which the relationship is to be established.
 It should describe one issue only.

Nature of Hypothesis
A scientifically justified hypothesis must meet the following criteria:
 It must accurately reflect the relevant sociological fact.

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  It must not be in contradiction with approved relevant statements of other scientific disciplines.
 It must consider the experience of other researchers.

The Need for having Working Hypothesis

 A hypothesis gives a definite point to the investigation, and it guides the direction on the
study.
 A hypothesis specifies the sources of data, which shall be studied, and in what context they
shall be studied.
 It determines the data needs.
 A hypothesis suggests which type of research is likely to be most appropriate.
 It determines the most appropriate technique of analysis.
 A hypothesis contributes to the development of theory

Characteristics of Good Hypothesis

a. Conceptual Clarity
b. Specificity
c. Testability
d. Availability of Techniques
e. Theoretical relevance
f. Consistency
g. Objectivity
h. Simplicity
Procedure for Testing Hypothesis
To test a hypothesis means to tell (on the basis of the data researcher has collected) whether or not
the hypothesis seems to be valid. In hypothesis testing the main question is: whether the null
hypothesis or not to accept the null hypothesis? Procedure for hypothesis testing refers to all those
steps that we undertake for making a choice between the two actions i.e., rejection and acceptance of
a null hypothesis. The various steps involved in hypothesis testing are stated below:

Making a Formal Statement

The step consists in making a formal statement of the null hypothesis (Ho) and also of the alternative
hypothesis (Ha). This means that hypothesis should clearly state, considering the nature of the
research problem. For instance, Mr. Mohan of the Civil Engineering Department wants to test the load
bearing capacity of an old bridge which must be more than 10 tons, in that case he can state his
hypothesis as under:
Null hypothesis HO: μ =10 tons
Alternative hypothesis Ha: μ >10 tons
Take another example. The average score in an aptitude test administered at the national level is 80.
To evaluate a state’s education system, the average score of 100 of the state’s students selected on
the random basis was 75. The state wants to know if there is a significance difference between the
local scores and the national scores. In such a situation the hypothesis may be state as under:
Null hypothesis HO: μ =80
Alternative hypothesis Ha: μ ≠ 80
The formulation of hypothesis is an important step which must be accomplished with due care in
accordance with the object and nature of the problem under consideration. It also indicates whether
we should use a tailed test or a two tailed test. If Ha is of the type greater than, we use alone tailed
test, but when Ha is of the type “whether greater or smaller” then we use a two-tailed test.
Selecting a Significant Level
The hypothesis is tested on a pre-determined level of significance and such the same should have
specified. Generally, in practice, either 5% level or 1% level is adopted for the purpose. The factors
that affect the level of significance are:
 The magnitude of the difference between sample ;
 The size of the sample;
 The variability of measurements within samples;
 Whether the hypothesis is directional or non – directional (A directional hypothesis is one
which predicts the direction of the difference between, say, means). In brief, the level of
significance must be adequate in the context of the purpose and nature of enquiry.
Deciding the Distribution to Use

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After deciding the level of significance, the next step in hypothesis testing is to determine the
appropriate sampling distribution. The choice generally remains between distribution and the t
distribution. The rules for selecting the correct distribution are similar to those which we have stated
earlier in the context of estimation.
Selecting A Random Sample & Computing An Appropriate Value
Another step is to select a random sample(S) and compute an appropriate value from the sample data
concerning the test statistic utilizing the relevant distribution. In other words, draw a sample to furnish
empirical data.
Calculation of the Probability
One has then to calculate the probability that the sample result would diverge as widely as it has from
expectations, if the null hypothesis were in fact true.
Comparing the Probability
Yet another step consists in comparing the probability thus calculated with the specified value for α,
the significance level. If the calculated probability is equal to smaller than α value in case of one tailed
test (and α/2 in case of two-tailed test), then reject the null hypothesis (i.e. accept the alternative
hypothesis), but if the probability is greater, then accept the null hypothesis.
In case we reject H0 we run a risk of (at most level of significance) committing an error of type I, but if
we accept H0, then we run some risk of committing error type II.

Flow Diagram for Testing Hypothesis

Testing of Hypothesis

The hypothesis testing determines the validity of the assumption (technically described as null
hypothesis) with a view to choose between the conflicting hypotheses about the value of the
population hypothesis about the value of the population of a population parameter. Hypothesis testing
helps to secede on the basis of a sample data, whether a hypothesis about the population is likely to
be true or false. Statisticians have developed several tests of hypothesis (also known as tests of
significance) for the purpose of testing of hypothesis which can be classified as:

 Parametric tests or standard tests of hypothesis ;

 Non Parametric test or distribution – free test of the hypothesis.

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Parametric tests usually assume certain properties of the parent population from which we draw
samples. Assumption like observations come from a normal population, sample size is large,
assumptions about the population parameters like mean, variants etc must hold good before
parametric test can be used. But there are situation when the researcher cannot or does not want to
make assumptions. In such situations we use statistical methods for testing hypothesis which are
called non parametric tests because such tests do not depend on any assumption about the
parameters of parent population. Besides, most non-parametric test assumes only nominal or original
data, where as parametric test require measurement equivalent to at least an interval scale. As a
result non-parametric test needs more observation than a parametric test to achieve the same size of
Type I & Type II error.

4. Write an essay on the need for research design and explain the principles
of experimental designs.
The research designer understandably cannot hold all his decisions in his head. Even if he could, he
would have difficulty in understanding how these are inter-related. Therefore, he records his decisions
on paper or record disc by using relevant symbols or concepts. Such a symbolic construction maybe
called the research design or model.
A research design is a logical and systematic plan prepared for directing a research study. It specifies
the objectives of the study, the methodology and techniques to be adopted for achieving the
objectives. It constitutes the blue print for the collection, measurement and analysis of data. It is the
plan, structure and strategy of investigation conceived so as to obtain answers to research questions.
The plan is the overall scheme or program of research. A research design is the program that guides
the investigator in the process of collecting, analyzing and interpreting observations. It provides a
systematic plan of procedure for the researcher to follow elltiz, Jahoda and Destsch and Cook
describe, “A research design is the arrangement of conditions for collection and analysis of data in a
manner that aims to combine relevance to the research purpose with economy in procedure.”
Characteristics of a Good Research Design
 It is a series of guide posts to keep one going in the right direction.
 It reduces wastage of time and cost.
 It encourages co-ordination and effective organization.
 It is a tentative plan which undergoes modifications, as circumstances demand, when the
study progresses, new aspects, new conditions and new relationships come to light and
insight into the study deepens.
 It has to be geared to the availability of data and the cooperation of the informants.
 It has also to be kept within the manageable limits

Needs of Research Design

The need for the methodologically designed research:
a. In many a research inquiry, the researcher has no idea as to how accurate the results of his
study ought to be in order to be useful. Where such is the case, the researcher has to
determine how much inaccuracy may be tolerated. In a quite few cases he may be in a
position to know how much inaccuracy his method of research will produce. In either case he
should design his research if he wants to assure himself of useful results.
b. In many research projects, the time consumed in trying to ascertain what the data mean after
they have been collected is much greater than the time taken to design a research which
yields data whose meaning is known as they are collected.
c. The idealized design is concerned with specifying the optimum research procedure that could
be followed were there no practical restrictions.

Principles of Experimental Designs

Professor Fisher has enumerated three principles of experimental designs:
i. The principle of replication: The experiment should be reaped more than once. Thus, each
treatment is applied in many experimental units instead of one. By doing so, the statistical
accuracy of the experiments is increased. For example, suppose we are to examine the effect

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 of two varieties of rice. For this purpose we may divide the field into two parts and grow one
variety in one part and the other variety in the other part.
We can compare the yield of the two parts and draw conclusion on that basis. But if we are to
apply the principle of replication to this experiment, then we first divide the field into several
parts, grow one variety in half of these parts and the other variety in the remaining parts.
We can collect the data yield of the two varieties and draw conclusion by comparing the
same. The result so obtained will be more reliable in comparison to the conclusion we draw
without applying the principle of replication. The entire experiment can even be repeated
several times for better results. Consequently replication does not present any difficulty, but
computationally it does. However, it should be remembered that replication is introduced in
order to increase the precision of a study; that is to say, to increase the accuracy with which
the main effects and interactions can be estimated.
ii. The principle of randomization: It provides protection, when we conduct an experiment,
against the effect of extraneous factors by randomization. In other words, this principle
indicates that we should design or plan the ‘experiment in such a way that the variations
caused by extraneous factors can all be combined under the general heading of “chance”. For
instance if we grow one variety of rice say in the first half of the parts of a field and the other
variety is grown in the other half, then it is just possible that the soil fertility may be different in
the first half in comparison to the other half. If this is so, our results would not be realistic. In
such a situation, we may assign the variety of rice to be grown in different parts of the field on
the basis of some random sampling technique i.e., we may apply randomization principle and
protect ourselves against the effects of extraneous factors. As such, through the application of
the principle of randomization, we can have a better estimate of the experimental error.

iii. Principle of local control: It is another important principle of experimental designs. Under it
the extraneous factors, the known source of variability, is made to vary deliberately over as
wide a range as necessary and this needs to be done in such a way that the variability it
causes can be measured and hence eliminated from the experimental error. This means that
we should plan the experiment in a manner that we can perform a two-way analysis of
variance, in which the total variability of the data is divided into three components attributed to
treatments, the extraneous factor and experimental error. In other words, according to the
principle of local control, we first divide the field into several homogeneous parts, known as
blocks, and then each such block is divided into parts equal to the number of treatments.
Then the treatments are randomly assigned to these parts of a block. In general, blocks are
the levels at which we hold an extraneous factors fixed, so that we can measure its
contribution to the variability of the data by means of a two-way analysis of variance. In brief,
through the principle of local control we can eliminate the variability due to extraneous factors
from the experimental error.

5. Distinguish between primary and secondary of data collection. Explain the

features, uses, advantages and limitations of secondary data. Which is the
best way of collecting the data for research “Primary or secondary”.
Support your answer.

The search for answers to research questions is called collection of data. Data are facts,
and other relevant materials, past and present, serving as bases for study and analyses.
The data needed for a social science research may be broadly classified into

 Data pertaining to human beings,

 Data relating to organization and
 Data pertaining to territorial areas.

Secondary Data Primary Data

Advantages Advantages

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  Cheap and accessible
 Often the only resource, for example
historical documents
 Only way to examine large-scale
trends
Disadvantages
Quick and cheap if your sample is small
 Computer codable for quick analysis
and repetition
 Coding enables multiple comparisons
among variables
 Allows generalization to a larger
population
 Verifiable by replication and re-
questioning of
interviewees/respondents
Disadvantages

 Lack of consistency of perspective  Lack of consistency of perspective

 Biases and inaccuracies cannot be
checked
 Published statistics often raise more
questions than they answer
 The concern over whether any data
can be totally separated from the
context of its collection
 Biases and inaccuracies cannot be
checked
 Published statistics often raise more
questions than they answer
 The concern over whether any data
can be totally separated from the
context of its collection

Secondary Sources of Data

These are sources containing data which have been collected and compiled for another purpose. The
secondary sources consists of readily compendia and already compiled statistical statements and
reports whose data may be used by researchers for their studies e.g., census reports , annual reports
and financial statements of companies, Statistical statement, Reports of Government Departments,
Annual reports of currency and finance published by the Reserve Bank of India, Statistical statements
relating to Cooperatives and Regional Banks, published by the NABARD, Reports of the National
sample survey Organization, Reports of trade associations, publications of international organizations
such as UNO, IMF, World Bank, ILO, WHO, etc., Trade and Financial journals newspapers etc.
Secondary sources consist of not only published records and reports, but also unpublished records.
The latter category includes various records and registers maintained by the firms and organizations,
e.g., accounting and financial records, personnel records, register of members, minutes of meetings,
inventory records etc.

Features of Secondary Sources

Though secondary sources are diverse and consist of all sorts of materials, they have certain
common characteristics. First, they are readymade and readily available, and do not require the
trouble of constructing tools and administering them. Second, they consist of data which a researcher
has no original control over collection and classification. Both the form and the content of secondary
sources are shaped by others. Clearly, this is a feature which can limit the research value of
secondary sources. Finally, secondary sources are not limited in time and space. That is, the
researcher using them need not have been present when and where they were gathered.

Use of Secondary Data

The second data may be used in three ways by a researcher. First, some specific information from
secondary sources may be used for reference purpose. For example, the general statistical
information in the number of co-operative credit societies in the country, their coverage of villages,
their capital structure, volume of business etc., may be taken from published reports and quoted as
background information in a study on the evaluation of performance of cooperative credit societies in
a selected district/state.

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Second, secondary data may be used as bench marks against which the findings of research may be
tested, e.g., the findings of a local or regional survey may be compared with the national averages;
the performance indicators of a particular bank may be tested against the corresponding indicators of
the banking industry as a whole; and so on. Finally, secondary data may be used as the sole source
of information for a research project. Such studies as securities Market Behaviour, Financial Analysis
of companies, Trade in credit allocation in commercial banks, sociological studies on crimes, historical
studies, and the like, depend primarily on secondary data. Year books, statistical reports of
government departments, report of public organizations of Bureau of Public Enterprises, Censes
Reports etc, serve as major data sources for such research studies.

Advantages of Secondary Data

Secondary sources have some advantages:
 Secondary data, if available can be secured quickly and cheaply. Once their source of
documents and reports are located, collection of data is just matter of desk work. Even the
tediousness of copying the data from the source can now be avoided, thanks to Xeroxing
facilities.
 Wider geographical area and longer reference period may be covered without much cost.
Thus, the use of secondary data extends the researcher’s space and time reach.
 The use of secondary data broadens the data base from which scientific generalizations can
be made.
 Environmental and cultural settings are required for the study.
 The use of secondary data enables a researcher to verify the findings bases on primary data.
It readily meets the need for additional empirical support. The researcher need not wait the
time when additional primary data can be collected.
Disadvantages of Secondary Data
The use of a secondary data has its own limitations.
 The most important limitation is the available data may not meet our specific needs. The
definitions adopted by those who collected those data may be different; units of measure may
not match; and time periods may also be different. The available data may not be as accurate
as desired. To assess their accuracy we need to know how the data were collected.
 The secondary data are not up-to-date and become obsolete when they appear in print,
because of time lag in producing them. For example, population census data are published
two or three years later after compilation and no new figures will be available for another ten
years.
 Finally, information about the whereabouts of sources may not be available to all social
scientists. Even if the location of the source is known, the accessibility depends primarily on
proximity. For example, most of the unpublished official records and compilations are located
in the capital city, and they are not within the easy reach of researchers based in far off
places.

Primary or Secondary source of data:

Success depends on a lot of things, but when we have information about a geographic area, or
customer preferences, we'll be better prepared to make the decisions that can make or break our
business.

Many companies use primary and secondary data as a guide. Whether we want to expand our
business into a new area or introduce a new product, primary and secondary market research can
provide valuable insight to help us shape our business and prevent costly missteps.

Secondary Research
If we’re considering extending business into new markets or adding new services or product lines,
start with secondary research. This type of research is based on information gleaned from studies
previously performed by government agencies, chambers of commerce, trade associations, and other
organizations. This includes Census Bureau information and Nielsen ratings.

We can find much of this kind of information in local libraries or on the Web, but books and business
publications, as well as magazines and newspapers, are also great sources.

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Although secondary data collection is less expensive than primary data collection, it's not as accurate,
or as useful, as specific and customized research. For instance, secondary research will tell you how
much teenagers spent last year on basketball shoes, but not how much they're willing to pay for the
shoe design your company has in mind.

Primary data collection

Simply put, primary data collection is research that's tailored to a company's particular needs. By
customizing tried-and-true approaches — focus groups, surveys, field tests, interviews or observation
— you can gain information about your target market. For example, you can investigate an issue
specific to your business, get feedback about your Web site, assess demand for a proposed service,
gauge response to various packaging options, and find out how much consumers will shell out for a
new product.

Primary research delivers more specific results than secondary research, which is an especially
important consideration when you're launching a new product or service. In addition, primary research
is usually based on statistical methodologies that involve sampling as little as 1 percent of a target
market. This tiny sample can give an accurate representation of a particular market.

But professional primary research can be pricey.

Using primary and secondary data collection:

Savvy entrepreneurs will do secondary data collection first and then conduct primary research. For
example, the owner of a video-rental shop would want to know all about a neighbourhood before
opening a new store there. Using information gleaned from secondary sources, the owner can learn
all kinds of demographic data, including detailed income data and spending patterns.

They can then send out a questionnaire to a sampling of households to find out what kinds of movies
people like to rent. That primary-research technique will help when it comes time to stock the store
with the latest Hollywood releases.

Secondary data collection lays the groundwork and primary data collection helps fill in the
gaps. By using both types of market research, business owners get a well-rounded view of their
market and have the information they need to make important business decisions.

6. Describe interview method of collecting data. State the conditions under

which it is considered most suitable. You have been assigned to conduct a
survey on the reading habits of the house wives in the middle class family.
Design a suitable questionnaire consisting of 20 questions you propose to
use in the survey.

Interviewing is one of the prominent methods of data collection. It may be defined as a two way
systematic conversation between an investigator and an informant, initiated for obtaining information
relevant to a specific study. It involves not only conversation, but also learning from the respondent’s
gesture, facial expressions and pauses, and his environment. Interviewing requires face to face
contact or contact over telephone and calls for interviewing skills. It is done by using a structured
schedule or an unstructured guide.

Interviewing may be used either as a main method or as a supplementary one in studies of persons.
Interviewing is the only suitable method for gathering information from illiterate or less educated

MB 0034 SET 1
respondents. It is useful for collecting a wide range of data from factual demographic data to highly
personal and intimate information relating to a person’s opinions, attitudes, values, beliefs past
experience and future intentions. When qualitative information is required or probing is necessary to
draw out fully, and then interviewing is required. Where the area covered for the survey is a compact,
or when a sufficient number of qualified interviewers are available, personal interview is feasible.

Interview is often superior to other data-gathering methods. People are usually more willing to talk
than to write. Once report is established, even confidential information may be obtained. It permits
probing into the context and reasons for answers to questions. Interview can add flesh to statistical
information. It enables the investigator to grasp the behavioural context of the data furnished by the
respondents.

The requirements or conditions necessary for a successful interview are:

 Data availability: The needed information should be available with the respondent. He should be
able to conceptualize it in terms to the study, and be capable of communicating it.
 Role perception: The respondent should understand his role and know what is required of him. He
should know what is a relevant and how complete it should be. He can learn much of this from the
interviewer’s introduction, explanations and questioning procedure.
 The interviewer should also know his role: He should establish a permissive atmosphere and
encourage frank and free conversation. He should not affect the interview situation through
subjective attitude and argumentation.
 Respondent’s motivation: The respondent should be willing to respond and give accurate answer.
This depends partly on the interviewer’s approach and skill. The interview has interest in it for the
purpose of his research, but the respondent has no personal interest in it. Therefore, the
interviewer should establish a friendly relationship with the respondent, and create in him an
interest in the subject-matter of the study. The interviewer should try to reduce the effect of de
motivating factors like desire to get on with other activities, embarrassment at ignorance, dislike of
the interview content, suspicious about the interviewer, and fear of consequence, He should also
try to build up the effect of motivating actors like curiosity, loneliness, politeness, sense of duty,
respect of the research agency and liking for the interviewer.
The above requirement reminds that the interview is an interaction process. The investigator should
keep this in mind and take care to see that his appearance and behaviour do not distort the interview
situation.
Reading habits of the house wives - Survey Questionnaire

a. Have you read an entire book in the last 12 months?

 Yes.
 No.
b. Do you enjoy reading?
 Yes
 No
c. Do you share the knowledge you acquire by reading, with your family.
 Yes
 No
d. What are your best 3 interested topics for reading?
e. Do you get bored while reading or do you read book while you are bored?
f. How much time do you spend reading each day?
 I don’t read.
 Less than two hours.
 Two to four hours.
 Five or more hours.
g. Where do you read? Check all that apply.
 During leisure.
 While cooking.
 When kids are not at home.
 In bed.
 At the computer.
 In the kitchen or family room.

MB 0034 SET 1
  At the library.
h. Have you ever pretended that you read a book when you hadn’t?
 Yes.
 No.
i. Why do you usually read a book?
 Because I think I should.
 Because it was assigned to me.
 Because I am interested in the topic or author.
 I don’t read books.
j. Have you ever pretended that you read a web page when you hadn’t?
 Yes.
 No.
k. What is the last book that you read? If you haven’t read a book, write “Not Applicable.”
l. Is being able to read is important?
 Yes.
 No.
m. Do you read books on web pages?
 Yes
 No
 Occasionally

MB 0034 SET 1