Primary & secondary data

PRIMARY AND
SECONDARY DATA
We explore the availability and use of data (primary and secondary) in the field of business research.
Specifically, we examine an international sample of doctoral dissertations since 1998, categorizing
research topics, data collection, and availability of data. Findings suggest that use of only primary
data pervades the discipline, despite strong methodological reasons to augment with secondary data.

IBRAHIM NAVEEN
Reg. No. IPHRM 5001
Diploma in Human Resource Management Batch 01
INTERNATIONAL INSTITUTE FOR PROFESSIONAL DEVELOPMENT

PRIMARY AND SECONDARY DATA

CONTENTS

INTRODUCTION --------------------------------------------------------------------------------- 02

IMPORTANCE OF DATA AND DATA COLLECTION --------------------------------- 02

DATA COLLECTION TECHNIQUES ------------------------------------------------------- 02

PRIMARY DATA ---------------------------------------------------------------------------------- 03

IMPORTANCE OF PRIMARY DATA ------------------------------------------------------- 03

SOURCES OF PRIMARY DATA -------------------------------------------------------------- 04

ADVANTAGES OF PRIMARY RESEARCH ----------------------------------------------- 05

DISADVANTAGES OF PRIMARY RESEARCH ------------------------------------------ 07

SECONDARY DATA ----------------------------------------------------------------------------- 08

IMPORTANCE OF SECONDARY DATA --------------------------------------------------- 08

SOURCES OF SECONDARY DATA --------------------------------------------------------- 08

ADVANTAGES OF SECONDARY DATA --------------------------------------------------- 10

DISADVANTAGES OF SECONDARY DATA ---------------------------------------------- 11

EVALUATION OF SECONDARY DATA -------------------------------------------------- 12

CONCLUSION ------------------------------------------------------------------------------------- 13

REFERENCES ------------------------------------------------------------------------------------- 14

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INTRODUCTION

Data can be defined as the quantitative or qualitative values of a variable. Data is plural of
datum which literally means to give or something given. Data is thought to be the lowest unit
of information from which other measurements and analysis can be done. Data can be
numbers, images, words, figures, facts or ideas. Data in itself cannot be understood and to get
information from the data one must interpret it into meaningful information. There are
various methods of interpreting data. Data sources are broadly classified into primary and
secondary data.

Knowing how the data was collected allows critics of a study to search for bias in how it was
conducted. A good study will welcome such scrutiny. Each type has its own weaknesses and
strengths. Primary Data is gathered by people who can focus directly on the purpose in mind.
This helps ensure that questions are meaningful to the purpose but can introduce bias in those
same questions. Secondary data doesn't have the privilege of this focus but is only susceptible
to bias introduced in the choice of what data to reuse. Stated another way, those who gather
Primary Data get to write the questions. Those who gather secondary data get to pick the
questions.

IMPORTANCE OF DATA AND DATA COLLECTION

Data is one of the most important and vital aspect of any research studies. Researchers
conducted in different fields of study can be different in methodology but every research is
based on data which is analyzed and interpreted to get information.

Data is the basic unit in statistical studies. Statistical information like census, population
variables, health statistics, and road accidents records are all developed from data.

Data is important in computer science. Numbers, images and figures in computer are all data.

DATA COLLECTION TECHNIQUES

There are two sources of data collection techniques. Primary and Secondary data collection
techniques, Primary data collection uses surveys, experiments or direct observations.
Secondary data collection may be conducted by collecting information from a diverse source
of documents or electronically stored information, census and market studies are examples of
a common sources of secondary data. This is also referred to as "data mining."

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PRIMARY DATA

Primary data means original data that has been collected specially for the purpose in mind. It
means someone collected the data from the original source first hand. Data collected this way
is called primary data.

Primary data has not been published yet and is more reliable, authentic and objective.
Primary data has not been changed or altered by human beings; therefore its validity is
greater than secondary data.

The people who gather primary data may be an authorized organization, investigator,
enumerator or they may be just someone with a clipboard. These people are acting as a
witness so primary data is only considered as reliable as the people who gathered it.

IMPORTANCE OF PRIMARY DATA

Importance of Primary data cannot be neglected. A research can be conducted without
secondary data but a research based on only secondary data is least reliable and may have
biases because secondary data has already been manipulated by human beings. In statistical
surveys it is necessary to get information from primary sources and work on primary data: for
example, the statistical records of female population in a country cannot be based on
newspaper, magazine and other printed sources. One such sourceis old and secondly they
contain limited information as well as they can be misleading and biased.

Validity

Validity is one of the major concerns in a research. Validity is the quality of a research that
makes it trustworthy and scientific. Validity is the use of scientific methods in research to
make it logical and acceptable.

Using primary data in research can improves the validity of research. First-hand information
obtained from a sample that is representative of the target population will yield data that will
be valid for the entire target population.

Authenticity

Authenticity is the genuineness of the research. Authenticity can be at stake if the researcher
invests personal biases or uses misleading information inthe research. Primary research tools

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and data can become more authentic if the methods chosen to analyze and interpret data are
valid and reasonably suitable for the data type.

Primary sources are more authentic because the facts have not been overdone. Primary source
can be less authentic if the source hides information or alters facts due to some personal
reasons. There are methods that can be employed to ensure factual yielding of data from the
source.

Reliability

Reliability is the certainty that the research is enough true to be trusted on. For example, if a
research study concludes that junk food consumption does not increase the risk of cancer and
heart diseases. This conclusion should have to be drawn from a sample whose size, sampling
technique and variability is not questionable.

Reliability improves with using primary data. In the similar research mentioned above if the
researcher uses experimental method and questionnaires the results will be highly reliable.
On the other hand, if he relies on the data available in books and on internet he will collect
information that does not represent the real facts.

SOURCES OF PRIMARY DATA

Sources for primary data are limited and at times it becomes difficult to obtain data from
primary source because of either scarcity of population or lack of cooperation. Regardless of
any difficulty one can face in collecting primary data; it is the most authentic and reliable
data source. Following are some of the sources of primary data.

Experiments

Experiments require an artificial or natural setting in which to perform logical study to collect
data. Experiments are more suitable for medicine, psychological studies, nutrition and for
other scientific studies. In experiments the experimenter has to keep control over the
influence of any extraneous variable on the results.

Survey

Survey is most commonly used method in social sciences, management, marketing and
psychology to some extent. Surveys can be conducted in different methods.

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Questionnaire is the most commonly used method in survey. Questionnaires are a list of
questions either an open-ended or close -ended for which the respondent give answers.
Questionnaire can be conducted via telephone, mail, live in a public area, or in an institute,
through electronic mail or through fax and other methods.

Interview is a face-to-face conversation with the respondent. It is slow, expensive, and they
take people away from their regular jobs, but they allow in-depth questioning and follow-up
questions.

The interviewer can not only record the statements the interviewee speaks but he can observe
the body language or non-verbal communication such as face-pulling, fidgeting, shrugging,
hand gestures, sarcastic expressions that add further meaning to spoken words and other
reactions to the questions too.

A problem with interviews is that people might say what they think the interviewer wants to
hear; they might avoid being honestly critical in case their jobs or reputation might suffer.
And the respondent deliberately hides information otherwise it is an in depth source of
information. So this enables the interviewer to draw conclusions easily.

Observations can be done while letting the observing person know that he is being observed
or without letting him know. Observations can also be made in natural settings as well as in
artificially created environment.

Primary data can be relied on because you know where it came from and what was done to it.
It's like cooking something yourself. You know what went into it.

ADVANTAGES OF PRIMARY RESEARCH

Targeted Issues are addressed

The organization asking for the research has the complete control on the process and the
research is streamlines as far as its objectives and scope is concerned. Researching company
can be asked to concentrate their efforts to find data regarding specific market rather than
concentration on mass market.

Data interpretation is better

The collected data can be examined and interpreted by the marketers depending on their
needs rather than relying on the interpretation made by collectors of secondary data.

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Efficient Spending for Information

Unlike secondary research where the marketer may spend for information that is not needed,
primary data collections’ focus on issues specific to the researcher improves the chances that
research funds will be spent efficiently.

Decency of Data

Usually secondary data is not so recent and it may not be specific to the place or situation
marketer is targeting. The researcher can use the irrelevant seeming information for knowing
trends or may be able to find some relation with the current scenario. Thus primary data
becomes a more accurate tool since we can use data which is useful for us.

Proprietary Issues

Information collected by using primary research is their own and is generally not shared with
others. Thus, information can be kept hidden from competitors and potentially offer an
“information advantage” to the company that undertook the primary research. This gives an
edge over competitors replying on secondary data.

Addresses Specific Research Issues

Carrying out their own research allows the marketing organization to address issues specific
to their own situation. Primary research is designed to collect the information the marketer
wants to know (Step 2) and report it in ways that benefit the marketer. For example, while
information reported with secondary research may not fit the marketer’s needs (e.g., different
age groupings) no such problem exists with primary research since the marketer controls the
research design.

Greater Control

Not only does primary research enable the marketer to focus on specific issues, it also enables
the marketer to have a higher level of control over how the information is collected. In this
way the marketer can decide on such issues as size of project (e.g., how many responses),
location of research (e.g., geographic area) and time frame for completing the project.

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DISADVANTAGES OF PRIMARY RESEARCH

High Cost

Compared to secondary research, primary data may be very expensive since there is a great
deal of marketer involvement and the expense in preparing and carrying out research can be
high and has to design everything.

Time Consuming

To be done correctly primary data collection requires the development and execution of a
research plan. Going from the start-point of deciding to undertake a research project to the
end-point to having results is often much longer than the time it takes to acquire secondary
data, which can be collected in much lesser time duration.

Inaccurate Feed-backs

In case the research involves taking feedbacks from the targeted audience, there are high
chances that feedback given is not correct. Feedbacks by their basic nature are usually biased
or given just for the sake of it.

More number of resources is required

Leaving aside cost and time, other resources like human resources and materials too are
needed in larger quantity to do surveys and data collection.

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SECONDARY DATA

Secondary data is the data that has been already collected by and readily available from other
sources. When we use Statistical Method with Primary Data from another purpose for our
purpose we refer to it as Secondary Data. It means that one purpose's Primary Data is another
purpose's Secondary Data. So that secondary data is data that is being reused. Such data are
cheaper and more quickly obtainable than the primary data.

These secondary data may be obtained from many sources, including literature, industry
surveys, compilations from computerized databases and information systems, and
computerized or mathematical models of environmental processes.

IMPORTANCE OF SECONDARY DATA

Secondary data can be less valid but its importance is still there. Sometimes it is difficult to
obtain primary data; in these cases getting information from secondary sources is easier and
possible. Sometimes primary data does not exist in such situation one has to confine the
research on secondary data.

Sometimes primary data is present but the respondents are not willing to reveal it in such case
too secondary data can suffice: for example, if the research is on the psychology of
transsexuals first it is difficult to find out transsexuals and second they may not be willing to
give information you want for your research, so you can collect data from books or other
published sources.

SOURCES OF SECONDARY DATA

Secondary data is often readily available. After the expense of electronic media and internet
the availability of secondary data has become much easier.

Published Printed Sources

There are varieties of published printed sources. Their credibility depends on many factors.
For example, on the writer, publishing company and time and date when published. New
sources are preferred and old sources should be avoided as new technology and researches
bring new facts into light.

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Books

Books are available today on any topic that you want to research. The uses of books start
before even you have selected the topic. After selection of topics books provide insight on
how much work has already been done on the same topic and you can prepare your literature
review. Books are secondary source but most authentic one in secondary sources.

Journals/periodicals

Journals and periodicals are becoming more important as far as data collection is concerned.
The reason is that journals provide up-to-date information which at times books cannot and
secondly, journals can give information on the very specific topic on which you are
researching rather talking about more general topics.

Magazines/Newspapers

Magazines are also effective but not very reliable. Newspaper on the other hand is more
reliable and in some cases the information can only be obtained from newspapers as in the
case of some political studies.

Published Electronic Sources

As internet is becoming more advance, fast and reachable to the masses; it has been seen that
much information that is not available in printed form is available on internet. In the past the
credibility of internet was questionable but today it is not. The reason is that in the past
journals and books were seldom published on internet but today almost every journal and
book is available online. Some are free and for others you have to pay the price.

E-journals: e-journals are more commonly available than printed journals.
Latest journals are difficult to retrieve without subscription but if your university has an e-
library you can view any journal, print it and those that are not available you can make an
order for them.

General Websites; Generally websites do not contain very reliable information so their
content should be checked for the reliability before quoting from them.

Weblogs: Weblogs are also becoming common. They are actually diaries written by different
people. These diaries are as reliable to use as personal written diaries.

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Unpublished Personal Records

Some unpublished data may also be useful in some cases.

Diaries: Diaries are personal records and are rarely available but if you are conducting a
descriptive research then they might be very useful. The Anne Franks diary is the most
famous example of this. That diary contained the most accurate records of Nazi wars.

Letters: Letters like diaries are also a rich source but should be checked for their reliability
before using them.

Government Records

Government records are very important for marketing, management, humanities and social
science research.

Census Data/population statistics

Health records

Educational institutes records

Public Sector Records

NGO's survey data

Other private companies records

ADVANTAGES OF SECONDARY DATA

Ease of Access

There are many advantages to using secondary research. This includes the relative ease of
access to many sources of secondary data. In the past secondary data accumulation required
marketers to visit libraries, or wait for reports to be shipped by mail. Now with the
availability of online access, secondary research is more openly accessed. This offers
convenience and generally standardized usage methods for all sources of secondary research.

Low Cost to Acquire

The use of secondary data has allowed researchers access to valuable information for little or
no cost to acquire. Therefore, this information is much less expensive than if the researchers
had to carry out the research themselves.

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Clarification of Research Question

The use of secondary research may help the researcher to clarify the research question.
Secondary research is often used prior to primary research to help clarify the research focus.

May Answer Research Question

The use of secondary data collection is often used to help align the focus of large scale
primary research. When focusing on secondary research, the researcher may realize that the
exact information they were looking to uncover is already available through secondary
sources. This would effectively eliminate the need and expense to carry out their own
primary research.

May Show Difficulties in Conducting Primary Research

In many cases, the originators of secondary research include details of how the information
was collected. This may include information detailing the procedures used in data collection
and difficulties encountered in conducting the primary research. Therefore, the detailed
difficulties may persuade the researcher to decide that the potential information obtained is
not worth the potential difficulties in conducting the research.

DISADVANTAGES OF SECONDARY DATA

Quality of Research

There are some disadvantages to using secondary research. The originators of the primary
research are largely self-governed and controlled by the marketer. Therefore, the secondary
research used must be scrutinized closely since the origins of the information may be
questionable. Moreover, the researcher needs to take sufficient steps to critically evaluate the
validity and reliability of the information provided.

Not Specific to Researcher’s Needs

In many cases, secondary data is not presented in a form that exactly meets the researcher’s
needs. Therefore, the researcher needs to rely on secondary data that is presented and
classified in a way that is similar to their needs.

Incomplete Information

In many cases, researchers find information that appears valuable and promising. The
researcher may not get the full version of the research to gain the full value of the study. This

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is because many research suppliers offer free portions of their research and then charge
expensive fees for their full reports.

Not Timely

When using secondary research, one must exercise caution when using dated information
from the past. With companies competing in fast changing industries, an out-of-date research
reports many have little or no relevance to the current market situation.

EVALUATION OF SECONDARY DATA

Because of the above mentioned disadvantages of secondary data, we will lead to evaluation
of secondary data. Evaluation means the following four requirements must be satisfied:-

1. Availability- It has to be seen that the kind of data you want is available or not. If it is
not available then you have to go for primary data.

2. Relevance- It should be meeting the requirements of the problem. For this we have
two criterion:-

a. Units of measurement should be the same.

b. Concepts used must be same and currency of data should not be outdated.

3. Accuracy- In order to find how accurate the data is, the following points must be
considered: -

a. Specification and methodology used;

b. Margin of error should be examined;

c. The dependability of the source must be seen.

4. Sufficiency- Adequate data should be available.

Robert W Joselyn has classified the above discussion into eight steps. These eight steps are
sub classified into three categories. He has given a detailed procedure for evaluating
secondary data.

1. Applicability of research objective.

2. Cost of acquisition.

3. Accuracy of data.

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CONCLUSION

Primary research entails the use of immediate data in determining the survival of the market.
The popular ways to collect primary data consist of surveys, interviews and focus groups,
which shows that direct relationship between potential customers and the companies.
Whereas secondary research is a means to reprocess and reuse collected information as an
indication for betterments of the service or product.

Both primary and secondary data are useful for businesses but both may differ from each
other in various aspects.In secondary data, information relates to a past period. Hence, it lacks
aptness and therefore, it has unsatisfactory value. Primary data is more accommodating as it
shows latest information.

Secondary data is obtained from some other organization than the one instantaneously
interested with current research project. Secondary data was collected and analyzed by the
organization to convene the requirements of various research objectives. Primary data is
accumulated by the researcher particularly to meet up the research objective of the subsisting
project.

Secondary data though old may be the only possible source of the desired data on the
subjects, which cannot have primary data at all. For example, survey reports or secret records
already collected by a business group can offer information that cannot be obtained from
original sources.

Firm in which secondary data are accumulated and delivered may not accommodate the exact
needs and particular requirements of the current research study. Many a time, alteration or
modifications to the exact needs of the investigator may not be sufficient. To that amount
usefulness of secondary data will be lost. Primary data is completely tailor-made and there is
no problem of adjustments.

Secondary data is available effortlessly, rapidly and inexpensively. Primary data takes a lot of
time and the unit cost of such data is relatively high.Often secondary data have been pre-
processed to give totals or averages and the original details are lost so you can't verify it by
replicating the methods used by the original data collectors.

In short, primary data are expensive and difficult to acquire, but they are trustworthy.
Secondary data are cheap and easy to collect, but must be treated with caution.

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REFERENCES

1. http://www.ianswer4u.com/2012/02/primary-research-advantages-
and.html#ixzz2B6ioqOwT
2. http://www.worldbank.org/poverty/impact/methods/datacoll.htm
3. Bryman, A. and E. Bell: 2003, Business Research Methods (Oxford University Press,
Oxford, New York).
4. Dillman, Don A. Mail and Telephone Surveys: The Total Design Method. New York,
John Wiley and Sons, 1978.
5. Galpin, T. The Use of Mail Questionnaires as a Method of Data Collection. (Sept,
1987)

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