Home > Topics > Business Statistics – I > Collection of Primary Data – Methods & Precautions

Collection of Primary Data – Methods & Precautions

Primary Data = Fresh Data! Like cooking a meal from scratch instead of ordering takeout. 🍳


What is Primary Data?

[!NOTE] Definition: Data collected by the investigator for the first time for a specific purpose. It is original in nature.

Also called: First-hand data, Original data.

Example:

  • A company conducting a survey to know customer feedback.
  • Census of India collecting population data.

Methods of Collecting Primary Data 📝

There are 5 main methods. Let's compare them!

1. Direct Personal Investigation (Interview) 🎤

Method: The investigator meets the respondents face-to-face and asks questions.

Suitability:

  • When intensive study is needed.
  • When area is small.
  • When accuracy is critical.
Merits ✅Demerits ❌
High Accuracy: Investigator can verify facts.Expensive: Travel cost is high.
Response Rate: People rarely refuse face-to-face.Time Consuming: Takes long time.
Flexibility: Can explain/clarify questions.Bias: Investigator's bias may affect results.

Example: Police interrogation, Census enumeration.


2. Indirect Oral Investigation 🗣️

Method: Information is collected not from the person concerned, but from third parties (witnesses) who know the facts.

Suitability:

  • When the person is reluctant (e.g., drug addicts, criminals).
  • When the area is large.
  • When direct contact is impossible (e.g., fire accident).
Merits ✅Demerits ❌
Economical: Saves time and money.Less Accurate: Third-party info may be wrong.
Wide Coverage: Can cover large area.Bias: Witnesses may be biased.
Expert Opinion: Can get expert views.Reliability: Depends on witness honesty.

Example: Police asking neighbors about a theft, Commission of Inquiry.


3. Information from Correspondents 📰

Method: Local agents (correspondents) are appointed in different areas to send regular reports.

Suitability:

  • When regular/continuous information is needed.
  • For newspapers, magazines, government agencies.
Merits ✅Demerits ❌
Very Cheap: Low cost.Low Accuracy: Rough estimates only.
Continuous Data: Regular updates.Uniformity: Different agents use different methods.
Wide Coverage: Covers entire country.Delay: Reports may come late.

Example: News channels getting reports from local reporters, Crop price reporting.


4. Mailed Questionnaire Method ✉️

Method: A list of questions (Questionnaire) is sent by post or email to respondents. They fill it and send it back.

Suitability:

  • When area is very large (National survey).
  • When respondents are educated.
Merits ✅Demerits ❌
Cheapest Method: No travel needed.Low Response Rate: People ignore mails.
Wide Coverage: Can reach anywhere.Inflexible: Cannot clarify doubts.
Originality: No investigator bias.Illiterates: Cannot use for uneducated people.

Example: Customer satisfaction surveys via email.


5. Schedules Sent through Enumerators 📋

Method: Enumerators (staff) go to respondents with the questionnaire (Schedule), ask questions, and fill it themselves.

Suitability:

  • When respondents are illiterate.
  • When area is large but funds are available.
  • For government surveys.
Merits ✅Demerits ❌
High Response: Enumerator ensures filling.Most Expensive: Salary + Travel.
Suitable for Illiterates: Enumerator writes.Time Consuming: Takes years.
Accuracy: Trained staff fill data.Bias: Enumerator bias possible.

Example: Population Census of India, NSSO Surveys.


Comparison of Methods 📊

MethodCostTimeAccuracyCoverageSuitability
Direct PersonalHighHighHighestSmallIntensive study
Indirect OralLowLowLowLargeComplex issues
CorrespondentsVery LowLowLowVery LargeRegular info
Mailed QuestionnaireLowMediumMediumLargeEducated people
EnumeratorsVery HighHighHighLargeIlliterates/Govt

Essentials of a Good Questionnaire ✅

If you use the Questionnaire method, the form must be perfect!

  1. Cover Letter: Explain purpose politely.
  2. Number of Questions: Minimum possible (15-20).
  3. Simple Language: No technical jargon.
  4. No Personal Questions: Avoid income, age (unless necessary).
  5. Logical Sequence: Easy → Difficult questions.
  6. Types of Questions:
    • Simple Alternative: Yes/No
    • Multiple Choice (MCQ): A/B/C/D
    • Open Ended: "What is your opinion?" (Avoid if possible)

Example of Bad Question: "Don't you think the government is corrupt?" (Leading/Biased) Example of Good Question: "How would you rate government performance? (Excellent/Good/Poor)"


Summary

  • Primary Data = Original, first-hand.
  • 5 Methods: Direct, Indirect, Correspondents, Mailed, Enumerators.
  • Best for Accuracy: Direct Personal.
  • Best for Large Area: Mailed / Correspondents.
  • Best for Illiterates: Enumerators.
  • Questionnaire: Should be short, simple, and logical.

Exam Tip: Remember the difference between Questionnaire (filled by respondent) and Schedule (filled by enumerator)! 📝

Test Your Knowledge

Question 1 of 5

1. Data collected for the first time is called:

Secondary Data
Primary Data
Internal Data
External Data