RESEARCH
METHODOLOGY
(Business Research Methods)
Week 5
29 August 2005
MBA III (Research Methodology)
Course Instructor: Dr. Aurangzeb Z. Khan
1
Secondary Data
Secondary (or historical) data is data which has
been acquired through a research or any other
effort in the past and for another purpose
Depending on the secondary data needed, there
may be numerous sources for acquiring this
secondary data
29 August 2005
MBA III (Research Methodology)
Course Instructor: Dr. Aurangzeb Z. Khan
2
Advantages of Secondary Data
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•
•
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Pool of already existing data
Cost-effective vis-à-vis primary data
Quick availability
No need for designing and undertaking a
research study
• Collecting primary data may not be
feasible (privacy issues)
• Many different sources are available
29 August 2005
MBA III (Research Methodology)
Course Instructor: Dr. Aurangzeb Z. Khan
3
Disadvantages of Secondary Data
• Relevance for researcher
• Does data apply to target population?
• Time-frame consistent with researchers
requirement? (outdatedness)
• Variation in terms of definition of terms
• Different units of measurement (data
conversion)
• Verification of data’s accuracy (inherent biases
due to vested interests)
• Reputation of the data-collecting organization
and research design used may not be good
29 August 2005
MBA III (Research Methodology)
Course Instructor: Dr. Aurangzeb Z. Khan
4
Evaluating Secondary Data
Applicability to Current Project
Do the data help answer questions
set out in the problem definition?
No!
Yes
Do the data apply to the time
period of interest?
No! Can data
be reworked?
Yes
Do the data apply to the population
of interest?
No!
If yes,
continue
Yes
Do other terms and variable
classifications presented apply
to the project?
No!
Yes
Are the units of measurement compatible?
29 August 2005
MBA III (Research Methodology)
No!
Course Instructor: Dr. Aurangzeb Z. Khan
(Next
Slide!)
5
Evaluating Secondary Data
Are the units of measurement compatible?
Yes
If possible, go to the original data source
Yes
Is the cost of data acquisition worth it?
No!
Yes
Is there a possibility of bias?
Is using
data worth
the risk? No
No
Yes!
No!
Can accuracy of data collection be verified?
Yes
No
Yes (accurate)
Inaccurate
or unsure)
Use Data
29 August 2005
MBA III (Research Methodology)
Course Instructor: Dr. Aurangzeb Z. Khan
6
Fact Finding
Fact finding is about collecting secondary (or descriptive) data
with a view to obtaining insights which can assist in decisionmaking
Some examples:
(1) Macroeconomic Data of Pakistan
(2) Global Oil price trends
(3) FDI in China over the period 2000-2005
(4) Indo-Pakistan trade statistics
(5) Salary structure across ten selected industries
29 August 2005
MBA III (Research Methodology)
Course Instructor: Dr. Aurangzeb Z. Khan
7
Model Building
 Model building is about specifying relationships
between two or more variables
 Models can range from very simple ones,
involving only two interrelated variables to
complex ones involving several interrelated
variables (multivariate statistical forecasting
models)
29 August 2005
MBA III (Research Methodology)
Course Instructor: Dr. Aurangzeb Z. Khan
8
Classification of Secondary Data: Internal Sources
 Internal Sources (data already existing within an
organization, for example, data collected and
stored by various departments such as
accounting and finance, marketing)
 Sometimes one unit in an organization is
unaware that other units may be maintaining
data which may be relevant for it and undertakes
unnecessary and costly data collection
29 August 2005
MBA III (Research Methodology)
Course Instructor: Dr. Aurangzeb Z. Khan
9
Classification of Secondary Data: External Sources
 External Sources (data generated or provided by
individuals and entities other than the researcher or
his/her organization)
 There are many types of external sources of secondary
data:
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29 August 2005
Books and Professional Journals
Federal Government sources
Regional / Provincial Publications
Electronic and Print Media Sources
Commercial Sources
Internet, CDs
MBA III (Research Methodology)
Course Instructor: Dr. Aurangzeb Z. Khan
10
Secondary Data in the International Context
 As economies and business becomes
increasingly global in outlook, so does the need
for secondary data from other regions and
countries
 Potential Problems:
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29 August 2005
Unavailability of data in some countries
Accuracy of data may be questionable
Definitions and measurements of data may vary
Comparability of data may be difficult
MBA III (Research Methodology)
Course Instructor: Dr. Aurangzeb Z. Khan
11
On-Line Sources of Secondary (Business) Data in Pakistan:
Selected Examples
 Business Recorder
www.brecorder.com
 Forex Pakistan
www.forexpk.com
 Karachi Stock Exchange
www.kse.com.pk
 The Economist
www.economist.com/countries/pakistan
 State Bank of Pakistan
www.sbp.org.pk
 National Bank of Pakistan
www.nbp.com.pk
 Federal Ministry of Finance
www.finance.gov.pk
 Pakistan Federal Government www.pakistan.gov.pk
29 August 2005
MBA III (Research Methodology)
Course Instructor: Dr. Aurangzeb Z. Khan
12