Purpose And Advantages Of Primary Data

ABC Pvt Ltd, manufacturers of washing powder in Sri Lanka, was formed in 1995. It became the leading washing powder manufacturers in the whole country by the year 2000, and had a huge market share. The organization decided to conduct a survey in order to find out the reasons for the drop in market share and sales. The management also wanted to assess the level of customer satisfaction.

Every problem exists within a context of the characteristics of the ABC Pvt Ltd and of the market-consumer tastes and preferences, level of income and rate of growth in the market areas, the degree of competition and competitor action and reaction, and the type and extent of governmental regulation. These environmental factors may individually and collectively affect the outcome of the reasons for the drop in market share and sales. The researcher must assist the manager in identifying these relevant environmental factors. Before the survey ABC Pvt Ltd fined some of the environmental factors that could affect the reasons for the drop in market share and sales:

The types of consumers that comprise the potential market

The size and location of the market

The prospects for growth or contraction of the market over the planning period

The buying habits of consumers

The current competition for the product

The likelihood and timing of entry of new competitive products

The current and prospective competitive position with respect to price, quality, and reputation

The marketing and manufacturing capabilities of the company

The situation with respect to patents, trademarks, and royalties

The situation with respect to codes, trade agreements, taxes, and tariffs

For a business to be successful it is vital to know the market and customers profile. This can be done by an intensive research through various methods of data collection which will help to making decision about a new venture. Market research can help create a business plan, launch a new product or service, fine tune existing products and services, expand into new markets etc. It can be used to determine which portion of the population will purchase the product/service, based on variables like age, gender, location and income level.

Primary date and Secondary data

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.

Primary Data

According to Avasarikar (2007) “It is the data collected for a specific purpose or for particular objectives. It is customized according the requirements of the researcher. It exclusively focuses on current research problem.” Primary data is specific information that is collected directly by the person who analyze the data and information also doing research. Primary data are collected for the first time. This data has not been published before collection.

Purpose and advantages of Primary data

Basic and specific information

By using primary data marketers can get basic and specific information about the product.

Accuracy

Primary data is more accurate because it is directly collected from the population.

Update information

By using primary data researcher may get the latest and up-to-date information about the product and services and also its environment.

Unbiased data

Primary data collected and processing by researcher. Therefore, the information might be unbiased.

Primary data collect method

Questionnaire

Questionnaire is one of the important observing, analyzing and research instrument for use the market research. Generally, questionnaire is a series of question in a paper, which makes for the getting information from respondent that means collect the information from potential customers about the product and product related environment.

Interviews

It one of the important medium for the market research. By this method, marketer/researcher directly conducts with the customers. And he takes the short interview about the product and quickly gets the information from the potential customers. Interview may be face to face or by telephone or may be postal interview. Face to face interview is the better than the other interview methods.

Observation

According to Avasarikar (2007) “Observation is one of the simplest methods for primary data research and would not cost much”. All they have to do is simply take note of the behavior of people towards their company’s products and services. They can also try to observe how their competitors behave, and how they provide their products and services.

Secondary Data

“As per Kotler and et al (2008) “Secondary data is information that already exists somewhere, having been collected for another purpose.” Secondary data is the data that have been already collected by and readily available from other sources. Such data are cheaper and more quickly obtainable than the primary data and also may be available when primary data cannot be obtained at all.

Advantages of Secondary data

It is economical. It saves efforts and expenses.

It is time saving.

It helps to improve the understanding of the problem.

It provides a basis for comparison for the data that is collected by the researcher.

Internal secondary data

Internal secondary data is usually an inexpensive information source for the company conducting research, and is the place to start for existing operations. There are three main sources of internal data. These are

Sales and marketing reports

Accounting and financial records

Miscellaneous reports

Internal experts

External data

There is a wealth of statistical and research data available today. Some sources are:

Federal government

Statistics agencies

Trade associations

General business publications

Annual reports

Secondary data collect method

Mail Surveys

Mail/post office is used as a medium for the conduct of survey

Telephone Surveys

Telephone is used as a medium of communication as there is only vocal interface between the interviewer and respondent.

Web based questionnaires

A new and inevitably growing methodology is the use of Internet based research. This would mean receiving an e-mail on which there would click on an address that would take you to a secure web-site to fill in a questionnaire. This type of research is often quicker and less detailed.

Primary and Secondary Data collection based on my research

I have planning to apply both data in my research (Primary and secondary data).Primary data I make questionnaire and distribute to the 30 peoples and getting their answers. To gather the secondary data I have planned to implement a review of the company reports, articles. Reviewing Company annual or semiannual report, Reviewing sales report, reviewing financial report.

My Questionnaire

Figure 1

1.2 The survey methodology’s

Survey is most commonly used method in social sciences, management, marketing and psychology to some extent. Surveys can be conducted in different methods. Survey also such an important aspect in the research and it plays a vital role in terms of collecting data’s.

Questionnaire

Questionnaire is the most commonly used method in survey. Questionnaires are a list of questions open-ended or close -ended for which the respondent gives 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

Interview is a face-to-face conversation with the respondent. In interview the main problem arises when the respondent deliberately hides information otherwise it is an in depth source of information. The interviewer can not only record the statements the interviewee speaks but he can observe the body language, expressions and other reactions to the questions too. This enables the interviewer to draw conclusions easily.

Observations

Observation 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.

Sampling

Sampling frame is the actual set of units from which a sample has been drawn: in the case of a simple random sample, all units from the sampling frame have an equal chance to be drawn and to occur in the sample. In the ideal case, the sampling frame should coincide with the population of interest.

Example

A survey aimed at establishing the number of potential customers for a new service in the population of Colombo City. The research team has drawn 500 numbers at random from a telephone directory for the city, made 200 calls each day from Monday to Friday from 8am to 5pm and asked some questions.

In this example, population of interest is all inhabitants of the city; the sampling frame includes only those Colombo City who satisfy all the following conditions:

Has a telephone;

The telephone number is included in the directory;

Likely to be at home from 8am to 5pm from Monday to Friday;

Not a person who refuses to answer all telephone surveys.

The sampling frame in this case definitely differs from the population. For example, it under-represents the categories which either have no a telephone (e.g. the most poor), have an unlisted number, and who were not at home at the time of calls (e.g. employed people), who don’t like to participate in telephone interviews (e.g. more busy and active people). Such differences between the sampling frame and the population of interest is a main cause of bias in surveys and other methods aimed at random sampling.

Types of Samples

Figure 2

Figure 3

Sampling Methods

Random sampling

Is the purest form of probability sampling. Each member of the population has an equal and known chance of being selected. When there are very large populations, it is often difficult or impossible to identify every member of the population, so the pool of available subjects becomes biased.

Systematic sampling

Is often used instead of random sampling. It is also called an Nth name selection technique. After the required sample size has been calculated, every Nth record is selected from a list of population members. As long as the list does not contain any hidden order, this sampling method is as good as the random sampling method. Its only advantage over the random sampling technique is simplicity. Systematic sampling is frequently used to select a specified number of records from a computer file.

Stratified sampling

Is commonly used probability method that is superior to random sampling because it reduces sampling error. A stratum is a subset of the population that shares at least one common characteristic. Examples of stratums might be males and females, or managers and non-managers. The researcher first identifies the relevant stratums and their actual representation in the population. Random sampling is then used to select a sufficient number of subjects from each stratum. “Sufficient” refers to a sample size large enough for us to be reasonably confident that the stratum represents the population. Stratified sampling is often used when one or more of the stratums in the population have a low incidence relative to the other stratums.

Convenience sampling:

Is used in exploratory research where the researcher is interested in getting an inexpensive approximation of the truth. As the name implies, the sample is selected because they are convenient. This non probability method is often used during preliminary research efforts to get a gross estimate of the results, without incurring the cost or time required to select a random sample.

Judgment sampling

Is a common non probability method. The researcher selects the sample based on judgment. This is usually an extension of convenience sampling. For example, a researcher may decide to draw the entire sample from one “representative” city, even though the population includes all cities. When using this method, the researcher must be confident that the chosen sample is truly representative of the entire population.

Quota sampling

Is the non-probability equivalent of stratified sampling. Like stratified sampling, the researcher first identifies the stratums and their proportions as they are represented in the population. Then convenience or judgment sampling is used to select the required number of subjects from each stratum. This differs from stratified sampling, where the stratums are filled by random sampling.

Snowball sampling:

Is a special non probability method used when the desired sample characteristic is rare. It may be extremely difficult or cost prohibitive to locate respondents in these situations. Snowball sampling relies on referrals from initial subjects to generate additional subjects. While this technique can dramatically lower search costs, it comes at the expense of introducing bias because the technique itself reduces the likelihood that the sample will represent a good cross section from the population.

Under Survey I take Questionnaire method. Questionnaire is the most commonly used method in survey. It is a research instrument consisting of a series of questions and other prompts for the purpose of gathering information from respondents. I declare that to the best of my knowledge and belief the information given in this questionnaire. I understand that information given by you will be treated in confidence. My aim and objective for this research regarding improve the market share and level of customer satisfaction of ABC Pvt Ltd.

Questionnaire

Q1 – What is your gender?

Male

Female

Q2 – Your age group is?

20-30

40-50

60-70

70 & older

Question 1& 2 Justification

The purpose of this is to help the ABC (Pvt) Ltd identify participants the gender and age group. Its help to identify which gender is most use ABC washing powder also which age category gender is use it ABC washing powered regularly.

Q3 – Which type of washing powder do you use?

Powder variety

Liquid variety

Pump variety

Q4 – How often you buy washing powder?

Daily

Alternate Days

Weekly

Monthly

Question 3 & 4 Justification

The purpose of this is to help the ABC (Pvt) Ltd identify which type mainly customer buy the daily use or weekly use it is help to identify the customer satisfactions of which type ABC washing powder.

Q5 – In what quantity do you buy washing powder?

Q5 – In what quantity do you buy washing powder?

100 Gms

250 Gms

500 Gms

1 kg

Q6 – From where do you like to buy your washing powder?

Retails Shops

Shopping Mall

Department Stores

Question 5 & 6 Justification

The purpose of this is to help the ABC (Pvt) Ltd identify customers every time buying ABC washing powder quantity because it mainly helps increase their packing capacity every week. Question no 6 its help to identify which shops most of ABC washing powder moving.

Q7 – Are you satisfied with the price and quality?

Yes, But not with quality

Yes, But not with price

Yes, Both

Not at all with both price

And quality

Q8 – Why do you like ABC brand?

Fits on my budget

Attractive Packaging

My Favorite Star endorses it

I get promotional discounts,

Free coupons

Question 7 & 8 Justification

The purpose of this is to help the ABC (Pvt) Ltd identify main business problem why came to their business because these two question mainly helps to identify the ABC washing powder buying customer mainly facing what type problems. E.g.: the quality is not enjoying like other brands or price is high comparing the competitor brands like problems easy to identify ABC (Pvt) Ltd.

Conclusion

Questionnaire design is a long process that demands careful attention. Design begins with an understanding of the capabilities of a questionnaire and how they can help the research. If it is determined that a questionnaire is to be used, the greatest care goes into the planning of the objectives. Questionnaires are like any scientific experiment. One does not collect data and then see if they found something interesting.