Types of Data Collection and Application to Business Environment - Literature review Example

Running Header: Types of Data Collection and Application to Business Environment Data Collection and Application Nam and Id Course Name & Code Instructor’s Name 28th January 2010 Introduction Many organisations rely on data and information to ensure the organisation operates efficiently, and are able to formulate strategies that are effective. To understand effectively business environment, the organisations and businesses have to gather information that are appropriate to a person, situation, phenomenon or problem (De Leeuw, 2005). In other times, information that is required is already available but they need only to be extracted. However, sometime such information is hard to come along and thus the need for collecting them. The processing of collecting information can be viewed in two major approaches that may be referred as primary and secondary data. Thus, the aim of this paper is to analyse types of data collection and application of data collection. Broad Approaches Secondary sources is the information that is obtained from books, periodicals e.g. has already been gathered while primary sources obtains its information directly from the respondents or environment (Tourangeau and Smith, 1996). Some example of secondary data may include census data to enable obtaining information on the age-sex structure of population, use of organisational records, hospital records to find out the mortality and morbidity, and the collection of data from periodicals, magazines and books (De Leeuw, 2005; Bush & Hair, 1985). On the other hand, primary data source includes evaluating a social program, ascertaining health needs, determining job satisfaction, and evaluating impact of marketing strategy. The difference between primary and secondary sources is that primary sources provide first-hand information while the secondary sources provide second hand information (Kvale & Brinkmann, 2008). Thus, the sources of primary information are observation, interviewing and questionnaire while secondary sources are documents (Bachman & Schutt, 2003). Collecting data using primary sources Different methods can be used o collect primary data but the choice of the method depends upon the study itself, skills of the researcher and availability of resources. Nevertheless, the quality of a study may be affected due to constraints that are associated with skills that are required and resources (Bachman & Schutt, 2003). Before carrying out any research, it is crucial to understand the socioeconomic-demographic characteristics of the study population; this means that it is foremost to ensure that characteristics such as socioeconomic status, educational level, age structure and ethnic background is known in the case of a marketing research (Cohen, Manion & Morrison, 2000). Moreover, it could be helpful to understand the population interest and attitudes towards participating in the study (Axinn & Pearce, 2006). For example, some populations may not be comfortable due to a number of reasons, may not be comfortable to expresses opinions or they may not be at ease with a particular method for data collection. Another factor that may affect the quality of data is the relevance and purpose of study is clearly explained to potential respondents (Rowley, 2006). Observation Observation can be defined as a technique that involves collecting data systematically through selecting, watching, and recording characteristics and behaviour of objects, living beings or phenomena. Kumar (2005) defines observation as “observation is a purposeful, systematic and selective way of watching and listening to an interaction or phenomenon as it takes place” (p. 119). Observation method is appropriate in those cases when psychological behaviour is to be analysed. Some of the information that can be collected includes ascertaining performance by a worker, learning about the interaction in a group, studying dietary patterns of a population, or studying personality traits of an individual (Pratt & Loizos, 1992). Powell (1997) states that some conditions that the approach should fulfil so that it can be viewed as data collection criteria. Powell states that, “scientific observation should be systematic; objective, and free from bias; quantitative whenever possible; and strong in usability, reliability, and validity” (p. 117). Observation is further divided into participant observation and non-participant observation. Kumar (2005) defines participant observation as the researcher participates in the activities of the group or population that is been observed without the group or people been aware that they are been observed. While non-participant observation is when the researcher is not involved in the activities of group but the researcher remains as a passive observer (Cohen, Manion & Morrison, 2000). Nevertheless, the use of observation as a means of data collection has its advantages and disadvantages. Some of the advantages that are associated with this data collection technique include making it possible to record behaviour as it occurs, provides an opportunity of comparing what the people actually did with what they say they did, it allows noting and identifying behaviours and actions that may be deemed irrelevant or unimportant (Macquarie, 2006). This method allows collect of data from subjects who can’t give verbal report and the approach is independent of the subjects’ willingness to participate (Armstrong & Overton, 1977). Some of the shortcomings of the process includes the chance of anticipating a spontaneous event and thus be prepared to observe it, duration of an event may affect feasibility of observing, some behaviours are obviously too personal or private in nature and in most cases it is somehow more difficult to quantify observational data (Rowley, 2006). Questionnaire A questionnaire can be defined has a written list of questions that the respondents will have to record answers. Kumar (2005) states that, “in a questionnaire respondents read the questions, interpret what is expected and then write down the answers” (p. 126). This phenomenon differentiates between an interview and a questionnaire in that in an interview, the interviewer asks the questions and records replies from the respondent on an interview schedule while in the case of a questionnaire the respondents records themselves their responses. This distinction is paramount and crucial when analysis the weaknesses and strengths of both of the methods (Macquarie, 2006). This means that when utilising a questionnaire and since there is no explaining, the questions should be clear and the respondent should easily understand its contents (Kvale, 1997). Moreover, the layout of the questionnaire should be easy to read and thus pleasant to the eye, while the sequence of the questions should easily be followed by the respondent; the questionnaire should generally be interactive in nature, this means that the questionnaire should be in a form that acts like it is communicating (Cohen, Manion & Morrison, 2000). In the case of sensitive questions, the questionnaire should be prefaced by an interactive statement that explains the relevance of the question and in most cases, it is important to change the font of the question and the interactive statement. Hague (2002) introduces three different types of questionnaires and these three classifications include structured questionnaire in which it is used in large survey programme e.g. more than 200 interviews, and where it is possible to anticipate the responses. Administration of such questionnaire is through face-to-face, telephone, and self-completion (Kvale, 1997). Semi structured questionnaire is frequently used in business-to-business market research in which it facilitates different and wide responses from companies, and it is used in those instances where the responses cannot be anticipated (Tourangeau and Smith, 1996). Administration of such questionnaires is through telephone and face-to-face. The third type of questionnaires is the unstructured and is usually used in studies that incorporate technical or narrow markets (Macquarie, 2006). It is also used in group discussions and in depth interviewing. Such questionnaires are important in that it allows probing and searching in that the researcher is not fully aware of the responses. Methods of administration include face-to-face interviews, group discussions and depth telephone interviews. Moreover, the questions that are been asked in a question can take two forms, which are open-ended or/and closed ended. Kumar (2005) states that open ended questions answers/possible response are not provided. This means that the researcher records response either in summary form or verbatim. In a closed ended question, Philips & Stone (2002) state that possible answers are clearly state and the respondent is supposed to tick specific category. Kent (1993) defines open ended questions as “leave respondents free to formulate replies in their own words” (p. 64) while closed ended questions “give respondents a list of possible answers from which to choose”. On the other hand, Hague (2002) classifies questions in three fold: behavioural, attitudinal, and classification. The behavioural questions bring into consideration information on what the respondent does, is or owns. It general deals with how people behave. This strategy can be used in those surveys that are aimed in pinpointing market shares, market size, usage and awareness. Attitudinal questions bring into consideration what people think of something, ratings of things and their image, and why they do things (Kvale, 1997). Attitudinal questions are frequently used in scenarios as brand mapping studies, image and attitude survey, and customer satisfaction surveys. While the last question is classification in which respondents are grouped in a way that different respondents are compared and bring into consideration such features as location of household, social class, age, gender, family composition and type of house (Grove, 2005). Like any other data collection method, questionnaire has both numerous advantages and disadvantages. Some advantages of questionnaires include standardised method in collection of response in that the questionnaires are more objective, it is easy to collect information and large portion of information can easily be obtained (Foddy, 1994). Some disadvantages include some participants may forget some important issues, most questions are standardised and thus may not allow manipulation, the open ended questions may generate huge amounts of data, respondents may answer superficially the questions, and sometimes participants may not be ready to answer the questions (Donnelly, 2004). Interviews Interviews in research provide in-depth information regarding a particular question or issue. Interviews are not quantifiable, e.g. not amenable to statistical analysis; this means that interview is classified as qualitative research method. The most appropriate method that is used in analysing interview data is the use of “hermeneutic method” (Foddy, 1994). In most cases, information obtained from interviews is objective in nature since an expert possesses some special experience or skills regarding a question. Generally, an interview is the science and art of exploring the opinions, subjective knowledge and beliefs of an individual (Cateora, 2008). Two major types of interviews exist, which are structured and unstructured interviews. In the case of structured interview, the interviewer has specific questions that should be asked, and the interviewer is not supposed to deviate from the list or introduce remarks during the interview process (Kvale, 1997). The interviewer is only allowed to expound on a question or elaborate on brief comments, this means that the interviewer tries to be objective and tries not to interfere or influence interviewer’s statements. On the other hand, unstructured interview may also be referred to as freewheeling – this means that it is more conversational (Marschan-Piekkari & Welch, 2004). This means that the interviewer is allowed to adjust the questions based on how the interviewee is responding. The interviewer is allowed to encourage the interviewee, encourage, and stimulate the interviewee’s responses (Kvale & Brinkmann, 2008). Interview data collection has numerous advantages but has some disadvantages. Some advantages of interview include it is easily to collect the data, it does not require expertise, specific information can be obtained from the respondent, and the interviewer may manipulate the information in such a way that it can easily be understood. Some of the disadvantages include manipulation of statements in view of the interviewer, and the interviewer cannot revisit the respondents (Foddy, 1994). Secondary Data Secondary data collection methods are means of collection data that had initially been collected by another person. This means that the secondary data in the data that has been collected and collated by a person because of another reason other than the current study. Such reports or data present a new perspective on the current study and supplements the requirements of any research that should be carried out (Grove, 2005). Moreover, the secondary data can further be classified as qualitative data such as personal letters, documents, computer databases and biographies while quantitative data incorporates details such as economic documents, census, market research and specimens. Information collected based on secondary data in endless and thus it is convenient to ensure the data utilised conforms to what is required (Kvale, 1997). Moreover, the secondary data types may further be classified as internal and external (Rozakis, 2007). The internal secondary data is usually connected within the organisation, such as internal databases that are associated with stakeholders while external refers to information that is obtained from outside the organisation (Hentschel, 1999). This data may be published such as data that is available for free from trade associations and libraries, syndicated are those that are available for a fee to subscribers such as Arbitron and Nielsen, and databases such as census (Kvale & Brinkmann, 2008). Numerous advantages are associated with secondary data that may include they are easily and quick to obtain, it is inexpensive to obtain when compared to obtaining primary data collection, such information is widely available, the information can enhance primary data collection i.e. identification of components that can be used in the primary study (Grove, 2005). Some disadvantages that are associated to secondary data collection include the measurement of units may differ with the requirements and fundamental of the research i.e. square footage vs. Sales or size of business (Marschan-Piekkari & Welch, 2004). Differing definitions, applicability of the secondary data e.g. whether the data is recent, problems of fit, problems of accuracy, and credibility of the data obtained (Marshall &Rossman, 2006). Application of collected data Data is an important component to any firm since it can be applied differently based on the requirements of the organisation (Rozakis, 2007). Major use of data in business environment is to understand the direction in which the business is taking. For example, production data may determine the increase or decrease of production. Thus, utilising the data provides means of monitoring the development of the business (Marshall & Rossman, 2006). This generally means that subsequent data collection will determine production and financial improvement of an organisation. Moreover, availability of data may be used by marketers to understand the market share and position of the business relative to the competitors (Kvale & Brinkmann, 2008). The census and demographic data determines the type of poduct that can be introduced to certain segments and means of ensuring that these segments benefits are maximised. Thus, data that has been accumulated for long periods ensures easy monitoring in development of the business. Collection of data provides a means of formulating and implementing strategies that can improve on the business environment (Marshall & Rossman, 2006). Strategies and decisions are usually based on passed data and maybe used to strategise future approaches the organisation will take. Managers are supposed to guide their employees towards ensuring the best is obtained for the organisation. This means that collection of appropriate data, and analysing this data efficiently will provide a means in which operations of the business can be based (Rozakis, 2007). Organisations have clearly defined vision and mission statements that guide the way the organisation will operate. Thus, synchronising collected data with the vision/mission of an organisation ensures that appropriate strategies are in place that will ensure organisation improves. Additionally, application of data that is collected can be used to formulate polices and regulations. For example, government may use the information to set taxations or may determine the way business within a given region is developing (Cohen, Manion & Morrison, 2000). This then provides means of understanding microeconomics and macroeconomics of certain regions. The requirements of organisations are diverse and thus the organisations have to follow certain policies. Conclusion Many organisations appreciate the presence of strategies of collecting data and utilising this data efficiently. Two broad approaches are usually associated with data collections, which are primary and secondary. Primary data collection is collecting first hand information from respondents while secondary data collection involves utilising information that had initially been collected. In the case of primary sources, the most common strategies are the use of observation, questionnaires and interviews. Observation involves collecting data systematically through selecting, watching, and recording characteristics of living beings, objects or phenomena. It is further divided into participant and non-participant observation. Some advantages of using observations include makes it possible to record behaviours as they occur while disadvantage is the time of behaviour as it occurs. Questionnaire is a list of questions that respondents have to respond. Three types of questionnaires exist based on questions that are asked. These includes structured, semi structured, and unstructured. Interviews are the last type of primary data collection and it provides in-depth information regarding certain questions. N the case of secondary data, the method involves collecting information from periodicals, government documents, and other prints. Collection of data is used and applied differently to a business environment. The major use of collected data includes used for formulating d implementing strategies, monitoring growth of the business, impact of the organisation to the environment, and governmental decision making. References Armstrong, J. & Overton, T. (1977). Estimating Non-response Bias in Mail Surveys. Journal of Marketing Research, 14, pp. 396-402. Axinn, W. & Pearce, L. (2006). Mixed method data collection strategies. Cambridge: Cambridge University Press. Bachman, R. & Schutt, R. (2003). 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