MODULE 2 – DATA COLLECTION & SAMPLING
1️⃣ Meaning of Data in Research
Data refers to raw facts, figures, observations, or responses collected for the purpose of analysis to
answer a research problem.
In business research, data becomes the foundation for decision-making.
Key Idea
Without data, research is only assumption.
With data, research becomes evidence-based.
Example (Crazy Café)
Research Problem:
“Why have sales declined at Crazy Café?”
To answer this, the café owner/researcher needs data such as:
Customer visit frequency
Price perception
Satisfaction levels
Competitor preferences
This collected information becomes data for analysis.
2️⃣ Types of Data
Data is broadly classified into:
A. Primary Data
B. Secondary Data
A. Primary Data
Meaning
Primary data is original data collected directly by the researcher for a specific research purpose.
It is collected first-hand and is tailored to the research problem.
Features of Primary Data
1. Original in nature
2. Specific to the research problem
3. More reliable and relevant
4. Time-consuming and costly
Methods of Collecting Primary Data
Survey
Interview
Observation
Questionnaire
E-questionnaire (Google Forms, apps)
Example (Crazy Café)
The café owner conducts:
A survey of 100 students asking:
o How often do you visit cafés?
o What factors influence your choice?
Interviews with regular customers
This data is primary data because it is collected directly.
B. Secondary Data
Meaning
Secondary data is data that has already been collected by someone else for another purpose but is
used by the researcher.
Sources of Secondary Data
Company reports
Government publications
Research papers
Websites and databases
Literature (like books)
Features
1. Already available
2. Less costly and time-saving
3. May not be fully relevant
4. Needs verification
Example (Crazy Café)
The owner uses:
Previous year sales records
Online reviews of café
Competitor pricing data
This is secondary data.
📊 Comparison: Primary vs Secondary Data
Basis Primary Data Secondary Data
Nature Original Already collected
Purpose Specific General
Cost High Low
Time More Less
Accuracy High May vary
3️⃣ Methods of Data Collection
Now we go deeper into how primary data is collected.
3.1 Survey Method
Meaning
A survey is a method of collecting data by asking questions to a large number of respondents.
Features
Structured questions
Large sample size
Quantitative data
Example (Crazy Café)
Survey questions:
How often do you visit cafés?
Rate satisfaction (1–5)
When to Use
When large data is required
When statistical analysis is needed
3.2 Interview Method
Meaning
An interview involves direct interaction between researcher and respondent to collect detailed
information.
Types
Structured interview
Unstructured interview
Example (Crazy Café)
Interview question:
“Why have you stopped visiting Crazy Café?”
Advantage
Provides deep insights
Helps understand customer emotions
3.3 Observation Method
Meaning
Observation involves watching and recording behaviour without asking questions.
Example (Crazy Café)
Owner observes:
Number of customers entering café
Time spent inside
Peak hours
Advantage
Real behaviour (not influenced by responses)
3.4 Questionnaire Method
Meaning
A questionnaire is a method of collecting data by sharing the questions (hard copies) to a
large/medium number of respondents.
Features
Structured questions
Large/medium sample size
Quantitative data
Example (Crazy Café)
MCQ questions:
How often do you visit cafés? A. Once a week B. Twice a month …
Rate satisfaction (1–5): A. Agree E. Disagree …
When to Use
When large/medium data is required
When statistical analysis is needed
3.5 E-Questionnaire
Meaning
A digital questionnaire shared through:
Google Forms
Mobile apps
Email
Example (Crazy Café)
Questionnaire link shared to students via WhatsApp.
Data Selection Insights (Very Important)
Method When to select it
When you want to collect quantitative data from a large sample quickly, to
Survey find patterns, frequencies or general opinions (e.g., customer satisfaction,
attitudes, preferences).
When you need deep, qualitative insights from a smaller group, for exploring
Interview “why” and “how”, complex experiences, or sensitive topics, where follow-up
and probing are important.
When you want to study actual behaviour in natural or structured settings
Observation without relying on self-reports (e.g., classroom behaviour, shop-floor activities,
social interactions).
When you need standardised, written responses from many respondents
Questionnaire (often distributed in person) and can guarantee literacy and understanding of
questions.
When you want online, fast, low-cost distribution to a large, geographically
E-Questionnair
dispersed sample, and have access to internet-enabled respondents (e-mail,
e
web links, apps).
Classroom Activity
Task:
“Crazy Café wants to understand why customers stopped visiting.”
👉 Which method will you use and why?
Expected answers:
Survey → large data
Interview → deep insights
Observation → actual behaviour
Questionnaire Design, Interviewing, Scheduling & E-Questionnaire
1️⃣ What is a Questionnaire?
A questionnaire is a systematic set of questions used to collect information from respondents for
research purposes.
It is the primary instrument for survey-based data collection.
🔍 Role in Research
Research Problem → Variables → Questionnaire → Data → Analysis
If the questionnaire is poor, data becomes unreliable, and the entire research fails.
Crazy Café Link
Research Problem:
Why are customers not visiting Crazy Café?
Variables:
Price perception
Service quality
Ambience
Wi-Fi availability
Customer satisfaction
👉 Questionnaire must capture all these variables.
2️⃣ Types of Questions in Questionnaire
A. Open-Ended Questions
Meaning
Respondents answer in their own words. Open-ended questions are queries that cannot be
answered with a simple "yes," "no," or one-word answer, requiring descriptive, detailed responses
that encourage deeper thought.
Example
“Why did you stop visiting Crazy Café?”
Advantages
Rich insights
Useful in exploratory research
Limitations
Difficult to analyse
Time-consuming
B. Closed-Ended Questions
Meaning
Close-ended questions are structured queries that restrict respondents to specific, predefined
answers—such as "yes/no," multiple-choice or rating scales. Respondents choose from the given
options.
Types:
Dichotomous Questions
Multiple Choice Questions
Likert Scale Questions (Rating Scale)
Ranking Scale Questions
Checklist-Style Questions
1. Dichotomous Questions
Binary choices, most commonly "Yes/No" or "True/False".
o Example 1: "Cleanliness of café needs improvement?” (True/False)
o Example 2: “Do you visit Crazy Café regularly?” (Yes/No)
2. Multiple Choice Questions
Provides several options, where respondents can select one or more answers
o Example: “What influences your café choice?”
Price
Ambience
Service
Location
3. Rating Scale Questions (Likert Scale)
Measures attitudes or feelings by asking the extent to which they agree or disagree, typically on a 5
or 7-point scale.
o Example: “Rate the service quality”
1 – Poor
2 – Average
3 – Good
4 – Excellent
5 – Brilliant
4. Ranking Questions
Respondents rate a product, service, or experience on a numerical or visual scale.
o Example: “Rank the following factors”
Price
Quality
Location
5. Checklist-Style Questions: Allows respondents to check all applicable options from a list.
o Example: "Which of the following menus do you like to eat? (Select all that apply)"
Idli-Wada
Upama
Avalakki
Rice Bath
Masala Dosa
3️⃣ Questionnaire Structure (Very Important for Students)
A good questionnaire must follow a logical sequence.
Standard Structure
Section Content
Introduction Purpose of the study
Screening Questions Identify relevant respondents
Main Questions Core data collection
Classification Questions Demographics
Example (Crazy Café)
Section 1: Introduction
“This survey is for academic research…”
Section 2: Screening
“Do you visit cafés?”
Section 3: Main Questions
Frequency of visits
Satisfaction rating
Price perception
Section 4: Demographics
Age
Gender
Student status
4️⃣ Guidelines for Good Questionnaire Design
1. Clarity
Questions must be simple and clear.
❌ Bad:
“Evaluate the service effectiveness dynamics.”
✅ Good:
“How would you rate the service?”
2. Avoid Ambiguity
❌ “Do you visit often?”
✅ “How many times per week do you visit?”
3. Avoid Leading Questions
❌ “Don’t you think prices are too high?”
✅ “How do you rate the price level?”
4. Logical Order
General → Specific
Easy → Difficult
5. Keep it Short
Long questionnaires reduce response quality.
5️⃣ Pretesting of Questionnaire
Meaning
Pretesting (Pilot testing) means testing the questionnaire on a small group before final use.
Purpose
Identify unclear questions
Check response time
Improve reliability
Example
Test questionnaire on 10 students before surveying 100.
6️⃣ Interview Method
Meaning
A structured conversation where the researcher asks questions directly.
Types
Type Description
Structured Fixed questions
Unstructured Flexible discussion
Example (Crazy Café)
“Why do you prefer other cafés?”
Advantages
Detailed responses
Clarification possible
Limitations
Time-consuming
Interviewer bias
7️⃣ Schedule Method
Meaning
The researcher fills in responses instead of the respondent.
When Used
Low literacy respondents
Complex questionnaires
8️⃣ E-Questionnaire (Modern Context)
Meaning
Online questionnaire shared via:
Google Forms
Mobile apps
Email
Advantages
Fast data collection
Low cost
Easy analysis
Limitation
Low response rate sometimes
9️⃣ Panel Research
Meaning
Data collected repeatedly from the same group of respondents over time.
Example
Tracking the same students’ café preferences for 6 months.
Use
Study trends
Study behaviour changes
🔟 Integrated Example – Full Questionnaire (Crazy Café)
Sample Questions
1. How often do you visit cafés?
2. Which café do you prefer?
3. Rate Crazy Café service (1–5)
4. How do you perceive the price?
5. What improvements do you suggest?
🎓 Classroom Activity
Task:
“Design 5 questions to study why customers stopped visiting Crazy Café.”
Expected Outcome
Students create:
2 closed questions
2 scale questions
1 open-ended question
Scaling Techniques & Measurement (Nominal, Ordinal, Interval, Ratio)
1️⃣ Meaning of Measurement in Research
Measurement is the process of assigning numbers or labels to characteristics of objects or
respondents according to specific rules.
Measurement converts abstract concepts (like satisfaction, preference) into analysable data.
🔍 Why Measurement is Important
In business research, many variables are intangible:
Satisfaction
Attitude
Preference
Perception
These cannot be directly measured unless we use scales.
🧠 Crazy Café Example
Research problem:
“Why are customers not visiting Crazy Café?”
We cannot directly measure “satisfaction,” so we use:
👉 “Rate your satisfaction from 1 to 5”
This is a measurement using scaling.
2️⃣ Meaning of Scaling
A scale is a tool used to assign numbers or labels to variables so that they can be measured and
analysed.
Scaling helps convert qualitative responses into quantitative data.
3️⃣ Types of Scaling Techniques
There are four fundamental measurement scales:
1. Nominal Scale
2. Ordinal Scale
3. Interval Scale
4. Ratio Scale
📘 3.1 Nominal Scale
Meaning
Nominal scale classifies data into categories without any order or ranking. You can count responses
but cannot rank or average
Features
Only labels
No order
No mathematical operations
Examples
Variable Categories
Gender Male / Female
Payment mode Cash / UPI / Card
Café choice Café A / Café B
🔍 Crazy Café Example
“Which café do you prefer?”
Crazy Café
Café X
Café Y
Statistical Use
👉 Chi-square test
📘 3.2 Ordinal Scale
Meaning
Ordinal scale classifies data into ordered categories, but the difference between values is not
measurable. Ordinal scale arranges data in order or ranking, but the difference between ranks is not
equal.
Features
Order exists
Difference not equal
Examples
Rank Meaning
1 Poor
2 Average
3 Good
4 Excellent
🔍 Crazy Café Example
“Rank the following factors”
Price
Service
Ambience
Statistical Use
👉 Median, Rank correlation
📘 3.3 Interval Scale
Meaning
Interval scale measures data with equal intervals between values, but no true zero.
Features
Equal distance
No absolute zero
Examples
Temperature (°C)
Satisfaction rating (1–5 scale)
🔍 Crazy Café Example
“Rate your satisfaction from 1 to 5”
Rating Meaning
1 Very Dissatisfied
2 Dissatisfied
3 Neutral
4 Satisfied
5 Very Satisfied
Statistical Use
👉 Mean, Standard deviation, Correlation
📘 3.4 Ratio Scale
Meaning
Ratio scale has all properties of interval scale + a true zero point.
Features
Equal intervals
True zero
All mathematical operations possible
Examples
Variable Example
Sales ₹5000
Number of visits 5 visits/week
Waiting time 10 minutes
🔍 Crazy Café Example
“How many times do you visit per week?”
0
1
2
3
Statistical Use
👉 All statistical tools (Regression, ANOVA, etc.)
📊 Comparison Table (Very Important)
Feature Nominal Ordinal Interval Ratio
Nature Categories Ordered Equal intervals Absolute measure
Order ❌ ✔ ✔ ✔
Equal distance ❌ ❌ ✔ ✔
True zero ❌ ❌ ❌ ✔
Example Gender Ranking Rating scale Sales
🧠 Easy Memory Trick
Nominal → Name
Ordinal → Order
Interval → Equal intervals
Ratio → Real zero
4️⃣ Linking Scales to Statistical Tests (Very Important)
Scale Test
Nominal Chi-square
Ordinal Rank correlation
Interval Correlation
Ratio Regression, ANOVA
🎓 Classroom Activity
Task:
“Identify the scale type”
Variable Scale
Gender
Satisfaction rating
Monthly spending
Rank of café
Expected Answers
Gender → Nominal
Satisfaction → Interval
Spending → Ratio
Rank → Ordinal
Variable Scale
Customer Membership Nominal
Satisfaction level (Poor, Average, Good) Ordinal
Variable Scale
Temperature of café (°C) Interval
Number of customers per day Ratio
Payment method (Cash/UPI/Card) Nominal
Rank of service quality Ordinal
Sampling Techniques, Sample Size, Confidence & Sampling Error
INTRODUCTION TO SAMPLING
Meaning and Definition
Sampling is the process of selecting a subset of elements from a defined population for the purpose
of making inferences about the entire population.
Kerlinger (1986): Sampling is the process of selecting a number of individuals for a study in such a
way that the individuals selected represent the larger group.
Conceptual Understanding
In business research, it is often impractical, costly, or impossible to study the entire population.
Therefore, researchers rely on a representative subset (sample).
The key notes:
“A properly selected sample reflects the characteristics of the population.”
“Good sampling leads to good data, and good data leads to good decisions.”
☕ Crazy Café Illustration
Population: All students near Crazy Café (2000 students)
Sample: 120 students surveyed
👉 If sampling is done correctly, conclusions drawn from 120 students can represent all 2000.
🔍 Why Sampling is Needed
Studying the entire population (census) is:
Time-consuming
Costly
Sometimes impossible
🧠 Crazy Café Example
Population:
All students near the café (say 2000 students)
Sample:
100 students selected for survey
👉 These 100 students represent the population.
2️⃣ Key Terms in Sampling
Term Meaning
Population Entire group (all customers)
Sample Subset of population
Sampling Unit Individual respondent
Sampling Frame List of population
3️⃣ Types of Sampling Techniques
Sampling is divided into:
A. Probability Sampling
B. Non-Probability Sampling
Basis Probability Sampling Non-Probability Sampling
Selection Random Non-random
Bias Low High
Accuracy High Moderate
Cost Higher Lower
Use Descriptive & causal research Exploratory research
PROBABILITY SAMPLING TYPES
Probability sampling ensures that each element in the population has a
known and equal probability of selection. This is achieved through different
structured methods.
Each method is designed to:
Improve representativeness
Reduce bias
Enable statistical testing
2 SIMPLE RANDOM SAMPLING
2️⃣
Meaning
Simple Random Sampling is a technique in which every element of the
population has an equal and independent chance of being selected.
Conceptual Explanation
Selection is purely random
No bias or grouping
Each unit is treated equally
Methods of Selection
Lottery method
Random number tables
Computer-generated randomization
Crazy Café Example
Population: 2000 students
Sample: 100 students
Method: Assign numbers (1–2000) → randomly pick 100 numbers
👉 Every student has equal chance
Advantages
Simple and easy to understand
Eliminates selection bias
Statistically valid
Limitations
Requires complete population list
Not suitable for large, scattered populations
3 SYSTEMATIC SAMPLING
3️⃣
Meaning
Systematic sampling involves selecting every kth element from the population
after a random start.
Formula
N
k=
n
Where:
N = Population size
n = Sample size
Crazy Café Example
Population = 2000
Sample = 200
k=2000/200=10
👉 Select every 20th student
Conceptual Insight
First element is selected randomly
Remaining are selected systematically
Advantages
Easy to implement
Saves time
Ensures uniform coverage
Limitations
Risk of periodic bias
Not suitable if pattern exists in data
4 STRATIFIED SAMPLING
4️⃣
Meaning
Stratified sampling involves dividing the population into homogeneous groups
(strata) and selecting samples from each group.
Conceptual Logic
Population is heterogeneous
Each subgroup is homogeneous
Crazy Café Example
Population divided into:
UG students
PG students
Sample taken proportionately from each group
Advantages
High accuracy
Ensures representation of all groups
Reduces sampling error
Limitations
Requires detailed population information
More complex to implement
5 CLUSTER SAMPLING
5️⃣
Meaning
Cluster sampling involves dividing the population into clusters (groups) and
selecting entire clusters randomly.
Conceptual Logic
Each cluster is a mini population
Used when population is geographically dispersed
Crazy Café Example
Clusters = Colleges
👉 Select 2 colleges randomly
👉 Survey all students in those colleges
Advantages
Cost-effective
Useful for large populations
Reduces travel/time
Limitations
Lower accuracy than stratified sampling
Higher sampling error
6 COMPARISON OF PROBABILITY SAMPLING TYPES
6️⃣
Method Key Idea Best Use Limitation
Simple
Equal chance Small population Needs full list
Random
Risk of pattern
Systematic Every kth unit Ordered data
bias
Group-based
Stratified Heterogeneous population Complex
sampling
Cluster Group selection Large/geographical Less accurate
Method Key Idea Best Use Limitation
population
NON-PROBABILITY SAMPLING
Meaning and Definition
Non-probability sampling is a technique in which the probability of selecting each element is
unknown, and selection depends on convenience, judgment, or accessibility.
Key Idea: Not all elements have an equal chance of being selected.
Conceptual Understanding
Unlike probability sampling, this method is:
Non-random
Based on practical considerations
Widely used in exploratory and field studies
☕ Crazy Café Example
Surveying only customers present inside the café during evening hours:
👉 Easy to collect data
👉 But may not represent all customers
Types:
1. CONVENIENCE SAMPLING
Meaning
Convenience sampling involves selecting respondents who are easily available and accessible.
Conceptual Logic
Based on ease and availability
No systematic selection
Crazy Café Example
Surveying:
Students sitting in the café
Friends or classmates
Advantages
Quick and inexpensive
Easy to implement
Limitations
High bias
Low representativeness
Cannot generalise results
2. JUDGMENT SAMPLING
Meaning
Judgment sampling involves selecting respondents based on the researcher’s expertise and
judgment.
Conceptual Logic
Researcher selects relevant and knowledgeable respondents
Crazy Café Example
Selecting:
Regular customers
Café staff
Frequent visitors
Advantages
Focused data
Useful for expert opinions
Limitations
Subjective
High risk of bias
3. QUOTA SAMPLING
Meaning
Quota sampling involves selecting a fixed number of respondents from different categories.
Conceptual Logic
Ensures representation of groups
Similar to stratified sampling but non-random
Crazy Café Example
Sample of 100 students:
50 UG students
50 PG students
Selection within groups is non-random
Advantages
Ensures group representation
More balanced than convenience sampling
Limitations
Selection bias within groups
Not fully scientific
4. SNOWBALL SAMPLING
Meaning
Snowball sampling involves selecting respondents through referrals from initial participants.
Conceptual Logic
One respondent leads to another
Sample “snowballs” in size
☕ Crazy Café Example
Surveying:
One regular customer
That customer refers 3 more
They refer others
Advantages
Useful for hidden populations
Expands sample quickly
Limitations
Highly biased
Limited control
7️⃣ COMPARISON OF NON-PROBABILITY METHODS
Method Basis Best Use Limitation
Convenience Availability Student surveys High bias
Judgment Researcher decision Expert studies Subjective
Quota Group proportion Balanced sample Non-random
Method Basis Best Use Limitation
Snowball Referral Hidden population Bias accumulation
4️⃣ Sample Size Determination
Meaning
Sample size is the number of respondents selected for the study.
Factors Affecting Sample Size
1. Population size
2. Research objective
3. Time & cost
4. Accuracy required
Rule of Thumb (UG Level)
Population Sample Size
Small (<500) 50–100
Medium (1000–5000) 100–200
Large 200+
🧠 Crazy Café Example
Population = 2000 students
Sample = 120 students
5️⃣ Confidence Level
Meaning
Confidence level indicates how sure we are about the results.
Common Levels
Confidence Level Meaning
90% Moderate confidence
Confidence Level Meaning
95% Standard level
99% Very high confidence
Example
95% confidence means:
👉 Results are correct in 95 out of 100 cases
6️⃣ Sampling Error
Meaning
Sampling error is the difference between the sample result and the actual population result.
Example
Sample result: 60% satisfied
Actual population: 65% satisfied
👉 Error = 5%
Causes
Small sample size
Poor sampling method
Bias
A. Confidence Level
Confidence level indicates how sure we are about our results.
Common Values
Level Z-value
90% 1.645
95% 1.96
99% 2.576
B. Margin of Error (e)
Margin of error is the acceptable level of error.
Example:
±5% means results may vary by 5%.
C. Proportion (p)
Estimated percentage of the population having a characteristic.
Example:
50% customers are satisfied → p = 0.5
6️⃣ Standard Result (Must Remember)
At:
Confidence = 95%
Error = 5%
👉 Sample size ≈ 384
🧠 Interpretation
If the population is large:
👉 Minimum sample = 384 respondents
8️⃣ Practical Rule for Students
Population Sample Size
< 500 50–100
500–2000 100–200
Large (>5000) 200–400
Sampling Error, Types of Errors, Practical Decisions & Integration
1️⃣ Meaning of Sampling Error
Definition
Sampling error is the difference between the sample result and the actual population result.
Since we study only a sample (not the entire population), some error is inevitable.
🔍 Simple Example (Crazy Café)
Actual population:
👉 65% customers are satisfied
Sample result:
👉 60% customers are satisfied
👉 Sampling Error = 5%
🧠 Key Insight
Sample ≠ Population
Difference = Sampling Error
2️⃣ Types of Errors in Research
Errors are broadly classified into:
A. Sampling Errors
B. Non-Sampling Errors
A. Sampling Errors
These occur because only a sample is studied, not the entire population.
Causes
1. Small sample size
2. Poor sampling method
3. High variability in population
Example
Surveying only 10 students instead of 100
👉 Results may not represent all students
How to Reduce Sampling Error
Increase sample size
Use probability sampling
Ensure proper representation
B. Non-Sampling Errors
These errors occur due to mistakes in data collection, measurement, or analysis.
Types of Non-Sampling Errors
1. Response Error
Respondents give incorrect answers
Example:
Student says “I visit café daily” but actually visits once a week
2. Measurement Error
Poor questionnaire design
Example:
Confusing or ambiguous questions
3. Interviewer Bias
Interviewer influences responses
4. Data Processing Error
Mistakes in data entry or analysis
🔍 Example (Crazy Café)
Wrong data entry in Excel
Misinterpretation of satisfaction scale
📊 Comparison
Basis Sampling Error Non-Sampling Error
Cause Sample selection Human/method errors
Basis Sampling Error Non-Sampling Error
Control Can be reduced Can be avoided
Example Small sample Wrong question
A CASE STUDY FOR BRM NOTEBOOK
ABC College launched a mobile app called Campus Connect to help students with:
• Academic updates
• Event notifications
• Assignment submissions
• Communication with faculty
Initially, the app had high engagement. However, after 3 months:
• Active users dropped by 37%
• Students stopped checking notifications
• Event participation reduced
Research Problem
“Why has student engagement declined on the Campus Connect App?”
Sampling Challenge
The college wants to conduct a survey of students, and the total number of students are 5500
Q: Try all methods under probability and non-probability sampling. Which sampling method will
provide the best results for effective decision-making in this case? Justify your answer.
QUESTIONS BANK:
1. Explain the meaning of data in research and its types with suitable examples.
2. Describe different methods of data collection in business research with examples.
3. Explain the concept and types of questionnaires with examples and explain the
guidelines for preparing a good questionnaire.
4. Explain the meaning of scaling and describe different types of scaling
techniques with suitable examples.
5. Explain the meaning of sampling and discuss the types of sampling in business
research.