Differentiate between Primary and Secondary Data

Q.4 Explain Primary Data. Discuss the various sources of Primary Data. Differentiate between Primary and Secondary Data.

1. Meaning of Primary Data

Primary data are those data which are collected for the first time, directly from the original source by the investigator for a specific purpose of his/her own study.
They are also called first–hand data or original data.

Features / Characteristics

1. Originality – They are collected afresh, directly from respondents or situations.
2. Specific Purpose – They are collected keeping in view a particular problem or objective of the investigation.
3. Greater Accuracy and Reliability – As they are collected by proper methods and under the control of the investigator, they are usually more accurate.
4. Time-consuming and Costly – Collection of primary data needs more time, more money and more manpower.
5. First Stage in Statistical Inquiry – Every statistical investigation begins with collection of primary data; later, these may become secondary data for some other investigation.

2. Sources / Methods of Collecting Primary Data

Primary data can be collected from various sources and with different methods. Important methods are:

1. Direct Personal Investigation
   
   • The investigator himself goes to the field and contacts the respondents personally. Differentiate between Primary and Secondary Data.
   • He asks questions, observes the facts and records the answers on the spot.
   • Suitable when the area of enquiry is small and information required is of confidential nature.
2. Indirect Oral Investigation
   
   • The investigator does not contact the persons about whom the information is needed, but contacts witnesses or experts who are expected to know about them. Differentiate between Primary and Secondary Data.
   • Commonly used in estimating income, expenditure, credit-worthiness etc.
3. Information from Local Agents / Correspondents
   
   • The investigator appoints local agents or correspondents in different areas.
   • These agents collect information regularly and send it to the central office.
   • Newspapers and market-research agencies often use this method. Differentiate between Primary and Secondary Data.
4. Mailed Questionnaire Method
   
   • A list of well-framed questions (questionnaire) is prepared and sent by post or e-mail to the selected respondents.
   • Respondents read the questions and record their answers in the space provided and send them back. Differentiate between Primary and Secondary Data.
   • Useful when the investigation covers a wide area and respondents are educated.
5. Schedules through Enumerators
   
   • Instead of sending a questionnaire, trained enumerators visit the respondents, ask questions and fill the schedules themselves.
   • Very useful when respondents are illiterate or the questions are complicated.
6. Personal Interview / Telephone / Online Interview
   
   • Information is obtained by face-to-face or telephone or video interview.
   • The interviewer asks questions and records answers immediately.
   • Useful for opinion surveys, market surveys etc. Differentiate between Primary and Secondary Data.
7. Observation Method
   
   • Data are collected by directly observing the behaviour of persons, objects or events, e.g. counting vehicles passing through a road, studying buying behaviour of customers in a shop etc.
   • Helpful when respondents may not give correct answers.
8. Experimental Method
   
   • Data are obtained by conducting controlled experiments, e.g. testing a new variety of seed, new medicine, or new advertisement. Differentiate between Primary and Secondary Data.
   • Very useful in physical sciences and also in social sciences.

3. Difference between Primary Data and Secondary Data

Secondary data are those which have already been collected and processed by someone else for some other purpose and are being used by the investigator for his present study.

Important points of distinction:

1. Origin
   Primary data: Collected first-hand by the investigator himself.

Secondary data: Already collected by some other person or organisation.

1. Purpose of Collection
   
   • Primary: Collected with a specific objective of the present enquiry.
   • Secondary: Collected earlier for some other purpose; present use is only a by-product. Differentiate between Primary and Secondary Data.
2. Originality and Accuracy
   
   • Primary: More original and usually more accurate because the investigator controls the method of collection.
   • Secondary: May be less accurate; reliability depends on the competence and object of the original collector.
3. Cost
   
   • Primary: Collection is expensive – needs more money, time and staff.
   • Secondary: Comparatively cheap, because data are already available. Differentiate between Primary and Secondary Data.
4. Time Required
   
   • Primary: Time-consuming; many stages like planning, collection, scrutiny etc.
   • Secondary: Time-saving; data can be obtained quickly from published or unpublished sources.
5. Suitability
   
   • Primary: Highly suitable to the present study, as they are collected keeping in view the specific requirements.
   • Secondary: May not be fully suitable; they may relate to different units, definitions or time periods. Differentiate between Primary and Secondary Data.
6. Dependence
   
   • Primary: Investigator is independent; he decides the coverage, accuracy and method.
   • Secondary: Investigator is dependent on others for the quality, coverage and method of collection.
7. Form of Presentation
   
   • Primary: Generally in raw form and need classification and tabulation by the investigator.
   • Secondary: Often already classified, tabulated and sometimes analysed.
8. Use in Research
   
   • Primary: Used when fresh and detailed information is required.
   • Secondary: Used for preliminary study, comparison, or when primary data collection is not possible. Differentiate between Primary and Secondary Data.

Conclusion:
Primary data are first-hand, original and highly suitable for a specific investigation but are costly and time-consuming to collect. Secondary data are already available, cheaper and quicker to use but may not fully meet the exact needs of the present study and may suffer from limitations of accuracy and suitability.

If you would like to know the Syllabus of Statistical Analysis For Business of M.Com-l of Gndu, You must visit the official website of Gndu.

👉 Important questions of Statistical Analysis for Business

1. Methods of Sampling probability
2. What is probability distribution