2nd Assignment

The Methods of collecting primary data for research in business

ALLAMA IQBAL OPEN UNIVERSITY

(Department of Business Administration) Assignment # 2
BUSINESS RESEARCH METHOD (524)

Topic:

THE MEHODS OF COLLECTION PRIMARY DATA FOR RESEARCH IN BUSSINESS.

Roll # 508192645
Cell # 03028496300

Submitted to: SIR. QAIMDIN SAHTO SB. Submitted by: ZAFAR IQBAL

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The Methods of collecting primary data for research in business

ACKNOWLEDGEMENT
All praises to Almighty Allah, the most Gracious, the most Beneficent and the most Merciful, who enabled me to complete this assignment. I feel great pleasure in expressing my since gratitude to my teacher, for his guidance and support for providing me an opportunity to complete a productive research study of my topic

THE MEHODS OF COLLECTION PRIMARY DATA FOR RESEARCH IN BUSSINESS.

My special thanks and acknowledgments to Mr.Muhammad Suhail for providing me all relative information, guidance and support to compile the practical study at Procter and Gamble Pakistan. I will keep my hopes alive for the success of given task to submit this report to my honorable teacher Mr.QAIMDIN SAHTO SB, whose guidance; support and encouragement enable me to complete this assignment.

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The Methods of collecting primary data for research in business

EXECUTIVE SUMMARY
This assignment is a research-oriented activity, which represents both the theoretical and practical implication of the topic. In the first section of this assignment, I explain the theoretical aspect of the topic and all major parts has been explained which are involved in the method of collecting primary data for research in business in business research. For empirical study, I select Procter and Gamble Pakistan. and compare their ways of the method of collecting primary data for research in business instruments.

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The Methods of collecting primary data for research in business

Introduction to Topic:
Business research is a systematic inquiry that provides information to build business decisions. Before starting any sort of business, the businessman needs certain information about the product, people and market. The purpose of research is to collect primary and secondary data required for making certain decision and analysis. In this context we will emphasize on Primary Data Collection Methods.

Primary Data:
Data that have been originally collected and have not undergone any sort of statistical treatment, are called Primary data. The detailed study of Primary Data Collection methods is discussed below

Methods of Collecting Primary Data

Some important methods of primary data collection are as under: 1. 2. 3. 4. 5. 6. Direct Personal investigation/Observation. Interviews Questionnaires Collection through Enumerators Collection through Local Sources Registration

1.Direct Personal Investigation:

In this method, an investigator collects the information personally from the individual concerned. Since he interviews the informants himself, the information collected is generally considered quite accurate and complete. This method being very costly and time consuming is employed only in laboratory experiments or localized inquiries. It is not practicable for an extensive field of inquiry as the field cannot be covered within a reasonable amount of time and without errors due to personal shortcomings of the investigator.

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The Methods of collecting primary data for research in business

Observation is found in almost all research studies, at least at the exploratory stage. Such as data collection is known as simple observation. Its practice is not standardized, as one expect, because of the discovery nature of exploratory research. The decision to use observation as the major data collection method may be made as early as the moment the researcher moves from research questions to investigative questions. The latter specify the outcomes of the study. If the study is to be something other than exploratory, steamily observation employs standardized procedures, trained observers, schedules for recording, and other devices for the observer that mirror the scientific procedures of other primary data methods.

Types of Observation
Direct Observation
Observing some actual event, or action and noting its details

Indirect Observation
Event has been done but just sec traces of an action or event. Traces mean the remaining of that event.

Structured Observation
When observations is focused on one item / aspect of action or event, then it known as structured Observation

Unstructured Observation
When Observation is focused on multi items/ aspects of the action. & Event or when you are observing each and every thing then it is known as unstructured observation. The strength of observation as a data collection method includes: (1) Securing information about people or activities that cannot be derived from experiments or surveys. (2) Avoiding respondent filtering and forgetting. (3) Securing environment context information (4) Optimizing the naturalness of the setting (5) Reducing obtrusiveness.

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The Methods of collecting primary data for research in business

Observation may be limited by:

(1) The difficulty of waiting for long periods to capture the relevant phenomena. (2) Expense of observer costs and equipment. (3) The reliability of inferences from surface indicators. (4) The problems of quantification (5) Limitations to prevent activities and inference about Cognitive processes.

2.Interviews
The interview has proven to be an almost universal selection tool. The interviewer asks questions to interviewee. The interviews can follow some predetermined pattern wherein both the questions and the expected responses are identified (a situational interview). Interviews can also be designed to create a difficult environment in which the applicant is put to the test to assess his or her confidence levels. These are frequently referred to as the stress interview. In an interview, since the analyst (interviewer) and the person interviewed meet face to face, there is an opportunity for flexibility in eliciting information. The analyst is also in a position to observe the subject. In contrast, the information obtained through a questionnaire is limited to the subjects written responses to predefined questions.

MODES OF DATA COLLECTION THROUGH:

INTERVIEWS
Interview can be conducted through various modes. Face to face interview. On-line interview. Telephonic interview.

There are four primary advantages of the interview:

Its flexibility makes the interview a superior technique for exploring areas where not much is known about what questions to ask or how to formulate questions.

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The Methods of collecting primary data for research in business 1. It offers a better opportunity than the questionnaire to evaluate the validity of the information gathered. The interviewer can observe not only what subjects say but also how they say it. 2. It is an effective technique for eliciting information about complex subjects and for probing the sentiments underling expressed opinions 3. Many people enjoy being interviewed, regardless of the subject. They usually cooperate in a study when all they have to do is talk. In contrast, the percentage of returns to a questionnaire is relatively low: often less than 20 percent. Attractively designed questionnaire that are simple to return, easy to follow and presented in a context that inspires cooperation, improves the return rate.

The major drawback of the interview is the long preparation time. Interviews
also take a lot of time to conduct, which means expense of time and money. So whenever a more economical alternative captures the same information, the interview is generally not used.

The Effectiveness of Interviews:

Interviews are typical part of any business research method. Although interviews are typical part of every business research process, but reliability and validity of interviews is generally low. Despite its popularity, the interview is expensive, inefficient, and often not business related. More specifically, a review of the research has generated the following conclusions. 1. Prior knowledge about the business can help in conducting effective interview. 2. The interviewer often holds a stereotype of what represents a good about that business. 3. Negative information is given unduly high weight. 4. The interviewer may forget much of the interviews content within minutes after its conclusion. 5. 6. business. Structured and well-organized interviews are more reliable. Interview is most valid tool of studying the environment for

7. It also helps in determining business that it will be fit or not in this environment.

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The Methods of collecting primary data for research in business

The Art of Interviewing:

Interviewing is an art. Few analysts learn it in school, but most of them develop expertise through experience. The interviewers art consists of creating a permissive situation in which the answers offered are reliable. Respondent opinion is offered with no fear of being criticized by others. Primary requirements for a successful interview are to create a friendly atmosphere and to put the respondent at ease. Then the interview proceeds with asking questions properly, obtaining reliable responses, and recording them accurately and completely.

Arranging the Interview:

The interview should be arranged so that the physical location time of the interview, and order of interviewing assure privacy and minimal interruption. Usually a neutral location that is non-threatening to the respondent is preferred. Appointments should be made well in advance and a fixed time period adhered to as closely as possible. Interview schedules generally begin at the top of the organization structure and work down so as not to offend anyone.

Guides to a Successful Interview:

Interview should be approached as logically as programming. In an interview, the following steps should be taken: 1. Set the stage for the interview. 2. Establish rapport; put the interviewee at ease. 3. Phrase questions clearly and succinctly. 4. Be a good listener; avoid arguments. 5. Evaluate the outcome of the interview.

Interviewer error:
Interviewer error is also a major source of response bias. From the introduction to the conclusion of the interview, there are many points where the interviewers control of the process can affect the quality for the data. There are three different kinds of error concerning the interview techniques just discussed. 1. The simple loses credibility and is likely to be biased if interviewers do not do a good job of enlisting respondent cooperation.

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The Methods of collecting primary data for research in business 2. The precision of survey estimates will be reduced and there will be more error around estimates to the extent that interviewers are inconsistent in ways that influence the data. 3. Answer may be systematically inaccurate or biased when interviewers fail to appropriately train and motivate respondents or fail to establish an appropriate interpersonal setting for reporting what is called for.

3.

Questionnaires

In contrast to the interview, the questionnaire is a term used for almost any tool that has questions to which individuals respond. It is usually associated with selfadministered tools with items of the closed or fixed alternative type.

MODES OF DATA COLLECTION THROUGH

QUESTIONNAIRES.

Self-Administered Questionnaires:
The data are collected by enumerator through self- administered questionnaire. The enumerator is a qualified and well trained person in the field of data collection who also guides the respondent how to answer the given questions while filling the questionnaires. However, it is a costly method of data collection and also needs trained and qualified staff. Surveys conducted by the C.B.R. during the Documentation of Economy in the year 2000 are a typical example of use of self administered questionnaire in data collection.

Mail Questionnaires:
Some times questionnaires are delivered by postal service or a courier service. Mail questionnaires are typically cost effective than personal interviews. In the mail questionnaires, respondent can take more time to collect facts, talk with others, or consider reply. Its drawback is non response and less return.

E-Mail Questionnaires:
It is the time of information technology. Use of electronic media is easy, cheaper and fastest mode of communication. In this type of

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The Methods of collecting primary data for research in business information method a questionnaire is sent to a number of persons through mail and response is also obtained via E-Mail.

ADVANTAGES OF QUESTIONNAIRES
1. It is economical and requires less skill.

2. A questionnaire can be administered to large numbers of individuals simultaneously. 3. Uniformity of questions.

4. Due to anonymity the respondents feel greater confidence because they give opinions without fear that the answer will be connected to their names. 5. The questionnaire places less pressure on respondents for immediate responses

DISADVANTAGES OF QUESTIONNAIRES.
1. 2. 3. Low percentage of return. Many people find it difficult to write and they prefer to speak. Questionnaires involve a process which is time-consuming.

Types of Interviews and Questionnaires

Interviews and Questionnaires vary widely in form and structure. Interviews range from the highly unstructured, where neither the questions nor the respective responses are specified in advance to the highly structured alternative in which the questions and responses are fixed. Some variation within this range is possible.

The Unstructured Alternative

The unstructured interview is a relatively nondirective data gathering techniques. It allows respondents to answer questions freely in their own words. The responses are spontaneous rather than forced. They are self-revealing and personal rather than general and superficial. The role of the analyst as an interviewer is to encourage the respondent to talk freely and serve as a catalyst

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The Methods of collecting primary data for research in business to the expression of feelings and opinions. This is best achieved in a permissive atmosphere in which the subjects have no feeling of disapproval.

The Structured Alternative

In the structured approach, the questions are presented with exactly the same wording and in the same order to all subjects. If the analyst asks a subject, Would you like to see a computerized approach to solving your accounts receivable problem? and asks another subject, how do you feel about computers handling accounts receivable? the response may not be the same even though the subject both have the same opinion. Standardized questions improve the reliability of the responses by ensuring that all subjects are responding to the same questions. Structured interviews and questionnaires may differ in the amount of structuring of the questions. Questions may be either closed or open ended.

OPEN ENDED QUESTION

An open-ended question requires no response direction or specific response. In a questionnaire, it is written with space provided for the response.

CLOSE ENDED QUESTION

Closed ended questions are those in which the responses are presented as a set of alternatives.

MAJOR TYPES OF CLOSED QUESTIONS

1. Fill-in-the-blanks questions request specific information. These responses can then be statistically analyzed. 2. Dichotomous (Yes/No Type) questions that offer two answers. These have advantages similar to those of the multiple-choice type. The problem is making certain that a reliable response can be answered by yes or no; otherwise an additional choice (e.g. yes, no, I dont know) should be included. The question sequence and content are also important. 3. Ranking scales questions ask the respondents to rank a list of items in order of importance or preference. 4. Multiple choice questions offer respondents specific answer choices. This offers the advantages of faster tabulation and less analyst bias due to the order in which the answers are given. Respondents have a favorable bias toward the first alternative item. Alternating the order in which answer choices are listed may reduce bias but at the expense of additional time to respond to the questionnaire.

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The Methods of collecting primary data for research in business In any case, it is important to be aware of these types of bias when constructing multiple-choice questions. 5. Rating scales questions are an extension of the multiple-choice design. The respondent is offered a range of responses along a single dimension.

Procedure for Questionnaire Construction

The procedure for constructing a questionnaire consists of six steps. 1. Define the problem to be investigated. 2. Decide what type of questionnaire (Closed or Open-ended) should be used. 3. Outline the topics for the questionnaire and then write the questions. 4. Edit the questionnaire for technical defects or biases that reflect personal values. 5. Pretest (try out) the questionnaire to see how well it works. 6. Do a final editing to ensure that the questionnaire is ready for administration. This includes a close look at the content, form, and sequence of questions as well as the appearance and clarity of the procedure for using questionnaire. A critical aspect of questionnaire construction is the formulation of reliable and valid questions. To do a satisfactory job, the analyst must focus on question content, wording, and format. The following is a checklist of what to consider:

Question Content:
a. Is the question necessary? Is it a part of other questions? b. Does the question adequately cover the area intended? c. Does the respondent have proper information to answer the question? d. Is the question biased in a given direction? e. Is the question likely to generate emotional feelings that might lead to untrue responses?

Question wording:
a. Is the question worded for the subjects background and experience? b. Can the question be misinterpreted? What else could it mean to a respondent? c. Is the frame of reference uniform for all respondents? d. Is the wording biased toward a particular answer? e. How clear and direct is the question?

Question Format:

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The Methods of collecting primary data for research in business Can the question best be asked in the form of check answer (answered by a word or two or by a number) or with a follow-up free answer? a. In the response form easy to use or adequate for the job? b. Is the answer to the question likely to be influenced by the preceding question? That is, is there any contamination effect?

4 .Collection through Enumerators:

In this method, information is collected through trained enumerators. They assist the informants in filling the schedules or answer the questionnaires. This method, although accurate, but is costly. So private individuals, organizations and institutions cannot adopt this method. This is useful when data are collected on very large scale e.g. population census. If the enumerators are not properly trained, they may not get full information required for research. People may hesitate to tell them the whole truth. e.g. when a life insurance sales representative approach to potential customer, sales rep. have to collect some specific information which are the requirement for selling life insurance policy.

5 . Collection through Local Sources:

In this method, there is no formal collection of data but the agents or local correspondents are directed to collect and send the required information, using their own judgment as to the best way of obtaining the required information. This method is cheap and expeditious, but gives only the estimates. In Pakistan, Department of Agriculture, Newspapers and Radio Pakistan collect information about daily market prices through this source.

7.

Registration:

The government authorities can also manage to collect data by arranging registration of events. For example, Municipal committees and corporations prepare records about deaths and births in the cities through registration of births and deaths at registrations centers in various localities. As in USA, registration of the others countrys citizens are declared compulsory for getting the information about the non- citizens of specific. In this method, generally public it approaches for registration. It is cheap method for collection of data.

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The Methods of collecting primary data for research in business

PRACTICAL STUDY
Procter and Gamble is one of the leading consumer goods companies in the world. Founded in 1837 in Cincinnati, Switzerland. P&G last year achieved $40 billio n in the sales and $4.2 billion in net earnings. 110,000 employees produce market and sell around 300 brands in more than 140 countries. The company's objective is to

" Im p r o vt e el i v e so f w o r ldcs n s u m e r s " h o

History
Procter & Gamble started its operations in Pakistan in 1991 with live goal of becoming the finest global local consumer goods company operating in Pakistan. With

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The Methods of collecting primary data for research in business commitment came growth, and in 1994 we acquired a soap-manufacturing facility, a sprawling 7-acre land at Hub, Baluchistan. With a recent strategic investment of 5 million dollars, the bar soap production capacity jumped three-fold. P&G Pakistan is headquartered in Karachi. Since (he inception of P&G Pakistan, we have always committed ourselves to business growth, consumer satisfaction, and community development. Thanks to our committed base of employees, customers, vendors, stakeholders, and above all, consumers, today we are one of the most thriving operations in Pakistan. We proudly celebrate being a part of the Pakistani way of life. Looking back we arc proud, that we have accomplished a lot already. Ariel has changed the quality of life. With less effort than eve Pakistani enjoy best possible cleaning performance. Head & Shoulder, Pantene, Pert and recently Ascent help all Pakistani men and women to enjoy beautiful, shiny hair without any dandruff. Pampers lets Pakistani babies sleep during the night so they develop better, always allows, Pakistani's women to carry on with their normal lifestyle, whey they need extra protection, Safeguard kills the germs which might otherwise causes illness, pimples or body odor, Camay and oil of Olay make Pakistani's woman look even more beautiful and Vicks Vaporous gives Pakistani's relief when they arc bothered with a cold.

Product Information
Some of their product information is given below:

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The Methods of collecting primary data for research in business

CORPORARE SECTOR
As a company we have always believed in the potential Pakistan has as a country and a nation to develop and excel. No wonder P&G Pakistan, within the last ID years, has reinvested over $100 million in Pakistan and has contributed close to seven billion rupees to the Pakistani government's revenues over the last 5 years in the form of sales tax. Customs and excise duties. That is also why 99% of the jobs that P&G Pakistan creates in Pakistan are held by Pakistanis.

All this makes P&G a more locally involved company than man companies actually headquartered in Pakistan

Use Head & Shoulders! The good news is that dandruff car. be fought and even prevented. Head & Shoulders has a new line of shampoos, 2 in 1 formulas and conditioners to help you fight dandruff and leave your hair manageable and looking great. Proctor ct (iambic using three methods for collecting primary data, this type of work given to

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The Methods of collecting primary data for research in business t he di ff erent agencies by the company for research purposes. Then company R&D department makes decisions upon them. Market Position Largest company in Pakistan engaged in consumer products. Has captured the enough market ratios in the consumer Products. Playing major role to enhancing the living standard of being. I met with Mr. Asher (Unit Manager) IBL. IBL is the sole distributor of the Procter & (iambic, along with other companies like Gillette. IBL is situated at Plot No 331, Indus tria l area H-9, Islamabad. They distribute the products of the company to the whole sellers / traders. I discussed with Mr. Suhail upon the company research & development department, he said these task are given to the third agencies (Aftab & Co. Karachi) to carried the research work on t he be ha lf of the company and their results are analyzed by the company's RD for the fu rt he r decisions. Some how the company is using primary data collection method, which are following:Observations Surveys (Questionnaires) Mysterious shopping human

My research report contains two types of methods (i) (ii) Observation. Questionnaire

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The Methods of collecting primary data for research in business

OBSERVATIONS
When an observation is focused on one action or event, then it known item / aspect of as structured Observation. I have visited following department stores and found the direct structured observation about the particular item Head &. Shoulder shampoo; data are showed in the tabular form under below.

Departmen Location tal Store Name

No. No. of Showca of Showcas for for all articles PC; Competit articles

No. No. of showca of showca displayi displayin g II&S ng r&c articles items

Esa Jee Departmental store

Sadder Rawalpindi 1 5.00 2.00

2.50
150

1.00 2.00 1 .50

Main CSD Near CSD Lal kurti, Rwp 2 5 .0 0 BestDay Dept Blue Area Store Islamabad. 20.00

100 2.50

3.00

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This survey regarding my research report on "Methods of primary data collection''. Your answers would be valued and your opinions are welcome. Please tick one of the given choices. Thanks for your cooperation. Name: Age: Occupation / qualification: Location: Gender:

Questionnaires
1) You prefer hair-washing using?

a b. 2) a b. c d e a

Soap Shampoo hair washing? Head & Shoulder Pantene Sunsilk Lifebuoy Any others Red

Which brand do you use in

3) Wihch brand of Head & Shoulder you prefer to use

The Methods of collecting primary data for research in business b c d e a b c d Black Green Blue Any Other Brand Friends Advertisement Need Any others

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4) Why you adopt this product by convening through

5) Why you use your brand for a b c d e a b Hair Softness Hair shinning Look nice/ smart Healthiness All of them Yes No

6) Do you change your brand

7) Are you satisfied from your using brand's performance? a Yes b No c If no please give your reasons

The Methods of collecting primary data for research in business I have distributed this questioner among 10 persons, the analyses of these questions arc under below, presented though pie chart for more and quick view of each question. Questionnaire Result & analyses. Q1 70% sample space using shampoo.

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Preference of Hair Washing

70%

Q2

60% of shampoo user capture by Procter & (iambic, among of them 50% of Head & Shoulder.

Q3 Q4 Q5

Preference of Head & Shoulder's Brand Convinced through different sources. Purpose of using sample space's choice.

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CONCLUSION
Surveys are more efficient and economical than observation. Information can be gathered by new well chosen questions that would take much more time and effort to gather by observation. In this research report 1 used both of them primary source of collecting data (Observation & Questioner). Observation method shows PG has captured 50% of market share but survey (questioner) shows about 60% of market share of PG, particularly in shampoo's consumer among them 50% are using Head & Shoulder that Procter & Gamble claim the same ratios market share, therefore survey method result is more near to the company's claim.