Advantages and disadvantages of secondary and primary source of data

Table of contents ADVANTAGES AND DISADVANTAGES OF SECONDARY AND PRIMARY SOURCE OF DATA .... Up-to -date information The primary market research is a great source of latest and up- -to da

NATIONAL ECONOMICS UNIVERSITY SCHOOL OF ACCOUNTING AND AUDITING

-*** -

STATISTICS IN ECONOMICS & BUSINESS

Group name: Group 3

Members: Vu Ngoc Mai

Nguyen Ngoc Mai

Vu Minh Ngoc Pham Hoang Thuy Duong

Le Mai Linh Luu Doan Viet Linh Chu Minh Anh Nguyen Duc Binh Khuc Luu Hoang Thong

Class: Auditing in English integrated with ICAEW CFAB 63

Teacher’s name: Nguyen Huyen Trang

HA NOI, 2022

Table of contents

ADVANTAGES AND DISADVANTAGES OF SECONDARY AND PRIMARY SOURCE OF

DATA 3

EXPLAIN AND GIVE EXAMPLES OF PROBABILITY AND NON-PROBABILITY

SAMPLING 6

QUESTIONNAIRE 11

ADVANTAGES AND DISADVANTAGES OF SECONDARY AND PRIMARY SOURCE OF DATA

Primary data Secondary data

Advantages

1 Resolve specific research

issues

Performing your own research

allows you to address and resolve

issues specific to your own

business situation The collected

information is the exact

information that the researcher

wants to know and he reports it

in a way that benefits the specific

situation in an organization

2 Better accuracy

Primary data is much more

accurate because it is directly

collected from a given

population

3 A higher level of control

The marketer can easily control

the research design and method

In addition, you have a higher

level of control over how the

information is gathered

4 Up-to -date information

The primary market research is a

great source of latest and up- -to

date information as you collect it

directly from the field in

real-time Usually, secondary data is

not so up- -date and recent to

5 You are the owner of the

information

Information collected by the

researcher is their own and is

typically not shared with others

Thus, the information can remain

1 Ease of access

The secondary data sources are very easy to access The internet world changed how secondary research exists Nowadays, you have so much information available just by clicking with the mouse in front of the computer

2 Low cost or free

The majority of secondary sources are absolutely free for use or at very low costs It saves not only your money but your efforts In comparison with primary research where you have to design and conduct a whole primary study process from the beginning, secondary research allows you to gather data without having to put any money

on the table

3 Time-saving

As the above advantage suggests, you can perform secondary research in no time Sometimes it is a matter of a few Google searches to find a credible source of information

4 Generating new insights and understandings from previous analysis

Reanalyzing old data can bring unexpected new understandings and points of view or even new relevant conclusions

5 Longitudinal analysis- the study spans a long period of time

Secondary data allows you to perform a longitudinal analysis which means the studies are performed spanning over a

hidden from other current and

potential competitors

large period of time This can help you

to determine different trends In addition, you can find secondary data from many years back up to a couple of hours ago It allows you to compare data over time

6 Anyone can collect the data

Secondary data research can be performed by people that aren’t familiar with the different types of quantitative and qualitative research methods Practically, anyone can collect secondary data

Disadvantages

1 More expensive

It could be very expensive to

obtain primary data collection

methods because the marketer or

the research team has to start

from the beginning It means they

have to follow the whole study

procedure, organizing materials,

process, etc

2 Time-consuming

It is a matter of a lot of time to

conduct the research from the

beginning to the end Often it is

much longer in comparison with

the time needed to collect

secondary data

3 Can have a lot of limits

Primary data is limited to the

specific time, place or number of

participants etc To compare,

secondary data can come from a

variety of sources to give more

details

4 Not always possible

For example, many researches

can be just too large to be

performed by your company

1 Not specific to your needs

Secondary data is not specific to the researcher’s need due to the fact that it was collected in the past for another reason That is why the secondary data might be unreliable and unuseful and in many business and marketing cases Secondary data sources can give you a huge amount of information, but quantity does not mean appropriateness

2 Lack of control over data quality

You have no control over the data quality at all In comparison, with primary methods that are largely controlled by the data-driven marketer, secondary data might lack quality It means the quality of secondary data should be examined in detail since the source of the information may be questionable As you rely on secondary data for your decision-making process, you must evaluate the reliability of the information by finding out how the information was collected and analyzed

3 Biasness

As the secondary data is collected by someone else than you, typically the data is biased in favor of the person who gathered it This might not cover your

requirements as a researcher or marketer

4 Data might be out of date

Secondary data is collected in the past which means it might be out-of-date This issue can be crucial in many different situations

5 Not proprietary Information

Generally, secondary data is not collected specifically for your company Instead, it is available to many companies and people either for free or for a little fee So this is not exactly an

“information advantage” for you and your competitors also have access to the data

EXPLAIN AND GIVE EXAMPLES OF PROBABILITY AND NON-PROBABILITY SAMPLING

Types of sampling Definition Example

PROBABILITY

SAMPLING

Simple random

It is a reliable method of obtaining information where every single member of a population is chosen randomly, merely

by chance Everyone has the same probability of being chosen to be a part

of a sample

You want to select a simple random sample of 100 employees of Company X You assign a number to every employee in the company database from 1 to

1000 and use a random number generator to select

100 numbers

Systematic random

It is the random sampling method that requires selecting samples based on

a system of intervals in a numbered population

It involves selecting a starting point for the sample and sample size that can be repeated at regular intervals This type

of sampling method has a predefined range; hence, this sampling technique is the least time-consuming

You want to create a systematic random sample

of 10 people from a population of 100 Using a list of the total population, number each person from 1

to 100 Then, randomly choose a number, like 5, as the number to start with This means that the person numbered "5" would be your first selection, and then every tenth person from then on would be included

in your sample Your sample, then, would be composed of persons numbered 15, 25, 35, 45, 55, and so on down the line until you reach the person numbered 95

Stratified random

It is a method in which the researcher divides the population into smaller groups that don’t overlap but represent the entire population While sampling, these groups can

A researcher looking to analyze the characteristics

of people belonging to different annual income divisions will create strata (groups) according to the annual family income

be organized, and then draw a sample from each group separately

Example less than –

$20,000, $21,000 $30,000, –

$31,000 to $40,000, etc By doing this, the researcher concludes the characteristics

of people belonging to different income groups Marketers can analyze which income groups to target and which ones to eliminate to create a roadmap that would bear fruitful results

(Random) Cluster

Cluster sampling is a method where the researchers divide the entire population into sections or clusters that represent a population

Clusters are identified and included in a sample based

on demographic parameters like age, sex, location, etc This makes it very simple for a survey creator to derive effective inferences from the feedback

There are 3 types of Cluster sampling:

1 Single-stage cluster sampling:

An example of single-stage cluster sampling An NGO – (non-governmental organization wants to create

a sample of girls across five neighboring towns to provide education Using single-stage sampling, the NGO randomly selects towns (clusters) to form a sample and extend help to the girls deprived of education in those towns

2 Two-stage cluster sampling:

Instead of selecting all the elements of a cluster, only a handful of members are chosen from each group by implementing systematic or simple random sampling

An example of two-stage cluster sampling –A business owner wants to explore the performance of his/her plants that are spread across various parts of the U.S The owner creates

clusters of plants He/she then selects random samples from these clusters to conduct research

3 Multiple stage cluster sampling:

Multiple-stage cluster sampling takes a step or a few steps further than two-stage sampling

An example of Multiple stage sampling by clusters –

An organization intends to survey to analyze the performance of smartphones across Germany They can divide the entire country’s population into cities (clusters) and select cities with the highest population and also filter those using mobile devices

NON-PROBABILITY

SAMPLING

Quota Researchers create a

sample involving individuals that represent a population Researchers choose these individuals according to specific traits

or qualities They decide and create quotas so that the market research samples can be useful in collecting data These samples can be generalized

to the entire population

The final subset will be decided only according to the interviewer’s or researcher’s knowledge of the population

A researcher wants to survey individuals about what smartphone brand they prefer to use He/she considers a sample size of

500 respondents Also, he/she is only interested in surveying ten states in the

US Here’s how the researcher can divide the population by quotas: Gender: 250 males and 250 females

Age: 100 respondents each between the ages of 16-20, 21-30, 31-40, 41-50, and 51+

Employment status: 350 employed and 150 unemployed people Location: 50 responses per state

Depending on the type of research, the researcher can apply quotas based on the sampling frame It is not necessary for the researcher

to divide the quotas equally He/she divides the quotas as per his/her need (as shown

in the example where the researcher interviews 350 employed and only 150 unemployed individuals) Random sampling can be conducted to reach out to the respondents

Purposive In the judgmental sampling

method, researchers select the samples based purely

on the researcher’s knowledge and credibility

In other words, researchers choose only those people whom they deem fit to participate in the research study Judgmental or purposive sampling is not a scientific method of sampling, and the downside to this sampling technique is that the preconceived notions of a researcher can influence the results

Before launching a new wine product, an organization conducts pilot testing to gather feedback from the market For the sample population, the researcher chooses expert wine tasters to provide valuable feedback for product improvement Purposive sampling can also

be used in educational research Suppose you want

to collect feedback from students on the pedagogical methods in their school You go ahead to handpick the brightest students who can provide relevant information for your systematic investigation

Snowball (Volunteer)

If the population is hard to access, snowball sampling can be used to recruit participants via other participants The number

of people you have access

to ‘snowballs’ as you get

You are researching experiences of homelessness

in your city Since there is

no list of all homeless people in the city, probability sampling isn’t possible You meet one person who agrees to

in contact with more people

participate in the research, and she puts you in contact with other homeless people she knows in the area

Self-selection (Volunteer)

A sampling method in which members of a population volunteer to be part of the sample

Suppose a teacher wants to know if a new test prep course helps students improve test scores She posts a sign-up sheet outside

of her classroom and lets students decide if they’d like to participate in the course Self-selection bias is likely to occur because students who are more studious are more likely to sign up which means the sample of students who take the course isn’t likely to match the overall population

of students who could potentially take the course

Convenience It is a non-probability

sampling technique where samples are selected from the population only because they are conveniently available to the researcher Researchers choose these samples just because they are easy to recruit, and the researcher did not consider selecting a sample that represents the entire population

- A professor conducting research at a university may use student volunteers to constitute a sample simply because they are readily available and will participate as subjects for little or no cost

- A marketing student needs

to get feedback on the

“scope of content marketing

in 2020.” The student may quickly create an online survey, send a link to all the contacts on their phone, share a link on social media, and talk to people they meet daily, face- -face to

Survey on environmental protection and the application of

eco-friendly products among NEU students

Good day! We are Group 3 from the Auditing CFAB K63 class, National Economics University

As part of our course, we are conducting a survey on the popularity of the green lifestyle among NEU students As you may be aware, our environment is deteriorating at an alarming rate due to human’s waste and harmful substances such as Carbon dioxide being emitted into the

atmosphere every day, threatening the very existence of every living creature To combat this situation, more and more people have shifted towards a green lifestyle in recent years by consuming eco-friendly products like reusable shopping bags, paper straw, etc Through this survey, we hope we can have a better understanding of NEU students’ participation in this global trend and devise some ways to encourage more students to participate in it Our ultimate goal is

to save our environment and raise the awareness of the young about the importance of protecting the natural world

We pledge that the information you provide is only for research purposes, your personal information is kept private and not disclosed to third parties

Thank you very much for your help and support Your responses and contribution will be highly appreciated!

A PERSONAL INFORMATION

We need some of your personal information to ensure the independence and authenticity of these data

Please tick on/fill in the blank space before/after each category

1 Name:

2 Phone number (optional):

3 Email:

4 Student ID:

5 Major:

B SURVEY CONTENT

Section 1: General questions

From question 1-6, please tick on one choice Question 7 is a short-answer question

1 Have you ever used eco-friendly products? o Yes

o No

2 How often do you recycle? o Always

o Most of the time

o About half of the time

o Once in a while

o Never

3 Do you think “being green” is part of our

normal life now?

o Yes

o No