Unit – 1

1. What is Data?
In general, data is a distinct piece of information that is gathered and translated for
some purpose.
If data is not formatted in a specific way, it does not valuable to computers or
humans.
Data can be available in terms of different forms, such as bits and bytes stored in
electronic memory, numbers or text on pieces of paper, or facts stored in a person's
mind.
Since the invention of computers, people have used the word data to mean
computer information, and this information is transmitted or stored.
There are different kinds of data; such are as follows:
 Sound
 Video
 Single character
 Number (integer or floating-point)
 Picture
 Boolean (true or false)
 Text (string)
In a computer's storage, data is stored in the form of a series of binary digits (bits)
that contain the value 1 or 0.
The information can be in terms of pictures, text documents, software programs,
audio or video clips, or other kinds of data.
The computer data may be stored in files and folders on the computer's storage,
and processed by the computer's CPU, which utilizes logical operations to generate
output (new data) form input data.
As the data is stored on the computer in binary form (zero or one), which can be
processed, created, saved, and stored digitally.

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This allows data to be sent from one computer to another with the help of various
media devices or a network connection.
Furthermore, if you use data multiple times, it does not deteriorate over time or
lose quality.
Examples of computer data
0143 0157 0155 0160 0165 0164 0145 0162 0040 0150 0157 0160
Joe,Smith, 1234 Circle,SLC,UT,8404,8015553211
0110001101101111011011010111000001110101011101000110010101110010
10000001101000000101
2. Classification of Data
There are two types of data that are given below:
1. Qualitative Data
Qualitative data is information that represents some characteristics or attributes.
It depicts descriptions that cannot be counted, measured, or easily expressed with
the help of numbers.
It can be collected from audio, text, and pictures.
It is shared via data visualization tools, such as concept maps, clouds, infographics,
timelines, and databases.
For instance, collecting data on attributes such as honesty, intelligence, creativity,
wisdom, and cleanliness about students of any class would be considered as a
sample of qualitative data.
Typically, it has two types: ethnographic data and interpretive data.
The collection of data for understanding how a group assigns context for an event,
it is known as ethnographic data.
The data, which is collected to understand the experience and feelings of an
individual's personal about the event, it is known as interpretive data.

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Methods of collecting qualitative data
Qualitative data is widely collected by asking open-ended questions, or through
direct or indirect observation.
Below is given common methodologies of collecting the Qualitative data:
 Interviews
 Focus groups
 Case studies
 Cultural, or ethnographic, research
 Pulling from existing records
 Participant observation
 Open-ended survey questions
 Fieldwork
Qualitative data analysis
Qualitative data can be analyzed through being either deductive or inductive
approach.
In the deductive technique, the analyst starts with a question and evaluate data
subjectively in terms of the question.
In the inductive technique, he or she simply evaluates the data to look for patterns
as in this approach; the analyst has no agenda.
Frequently, the inductive process is also known as grounded theory.
Generally, an inductive technique takes more time as compared to the deductive
technique.
Qualitative analysis tools
Qualitative data analysis depends on the analog and digital tools to organize,
systematize, and analyze non-numeric data.
i) SWOT analysis
It is a framework that means strengths, weaknesses, opportunities, and threats
analysis.
It is used to identify and analyze the internal and external factors that can have an
effect on the activity of a place, person, project, or product.
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The tool is beneficial to offer a snapshot to understand the qualitative dynamics
that able to affect success.
ii) Porter's five forces
It is a framework that is used to improve the SWOT analysis.
It is developed by Harvard professor Michael E. Porter, which improves SWOT
analysis with the help of identifying and analyzing the internal and external factors
that able to effect success.
Furthermore, QDAS (qualitative data analysis software) helps to collect and
analyze qualitative data in a short time.
It includes features such as coding for sentiment analysis and text interpretation,
transcription analysis, and recursive abstraction.
Advantages and Disadvantages of Qualitative Data
The methods content and observational help qualitative data researchers to collect
the correct data to the actual experience and also help to avoid the Hawthorne
effect.
Including the qualitative data in reporting helps to add color to the story with the
help of carrying a generalized solution into a less abstract view through real
examples from actual people.
To collect and analyze qualitative data can be very time-consuming.
Therefore, the researchers of qualitative data use sampling in their analysis.
It can be difficult to scale the result out to discover when small samples of data are
used.
The analysts can use numerical calculations and mathematical formulas to analyze
the quantifiable data, and it can be put directly into a database.
Before the qualitative data statistically examined for patterns or meaning, it must
be classified by descriptive parameters, such as physical or traits characteristics.
Although the analysts can easily analyze the quantitative data through any software
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tool like spreadsheets, the analysis of qualitative data depends on the researcher's
how they have skills and experience, which helps to create parameters from a small
sampling, and larger data set can be examined.
2. Quantitative Data
These types of data can be measured but not simply observed.
The data can be numerically represented and used for statistical analysis and
mathematical calculations.
For example, these mathematical derivations can be used in real-life decisions.
Also, the number of students participate in different games from a class; the
mathematical calculation gives an estimate of how many students are playing in
which sport.
This data is any quantifiable information that is used to answer questions such as
How much?" "How often?" "How many?".
These data can be conveniently evaluated by using mathematical techniques and
also can be verified.
Usually, quantitative data is collected for statistical analysis sent across to a
particular section of a population with the help of surveys, questionnaires, or polls.
Furthermore, quantitative data helps to measure several parameters controllable as
it includes mathematical derivations.
Types of Quantitative Data
There are various types of quantitative data; such are as follows:
i) Measurement of physical objects
It is commonly used to calculate the measurement of any physical thing, for
instance, assigned each cubicle to the newly joined employees in any organization
is carefully measured by the HR executive.

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 ii) Counter
It is used to count equally with entities.
For example, the calculation of a particular application of how many people have
downloaded it from the App Store.
iii) Sensory calculation
It is a mechanism to sense naturally the measured parameters that help to create a
constant source of information.
For example, electromagnetic information is converted to a string of numerical
data through a digital camera.
iv) Quantification of qualitative entities
It helps to identify numbers to qualitative information.
For example, you are asking to share the likelihood of recommendation on a scale
of 0-10 with respondents of an online survey.
v) Projection of data
It can be used for future projection of data with the help of mathematical analysis
tools and algorithms.
For instance, a marketer, after launching a new product with a thorough analysis,
predicts growth in production.
The methods of collection the quantitative data
The main two types of quantitative data collection methods are given below:
I. Surveys
Surveys were traditionally conducted with the help of paper-based methods and
have gradually evolved into online mediums.
Collecting the closed-ended questions form a major part of these surveys is more
appropriate in the collection of quantitative data.
The survey contains answer options for a particular question.

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 Also, surveys are unified to collect feedback from an audience.
Surveys are classified into different category on the basis of the time involved in
completing surveys:
 Longitudinal Studies: In this, a market researcher conducts surveys from a
specific time period to another as it is a type of observational research.
When the primary objective is to collect and analyze a pattern in data, this
survey is often implemented.
 Cross-sectional studies: In this, a market researcher conducts surveys at a
particular time period. It helps to understand a particular subject from the
sample at a certain time period by implementing a questionnaire.
There are some principles given below to administer a survey to collect
quantitative data:
 Use of Different Question Types: Closed-ended questions have to be used
in a survey to collect quantitative data. These questions can be a
combination of several types of questions as well as multiple-choice
questions like rating scale questions, semantic differential scale questions,
and more. It helps to collect data, which can be understood and analyzed.
 Fundamental Levels of Measurement: Collection of the quantitative data,
four measurement scales, ordinal, nominal, interval, and ratio scales, are
fundamental for creating a multiple-choice question in a survey. These four
fundamentals are most important as no multiple-choice questions can be
created without the fundamentals.
 Survey Distribution and Survey Data Collection: To collect quantitative
data, it is also the other important principle of the survey process. There are
various ways of survey distribution for collecting data, some common
methods are Email, SMS survey, QR code, Embed survey in a website,
QuestionPro app, etc.
II. One-on-one Interviews
It was also a traditional method to collect quantitative data.
Although it was conducted face-to-face, it has been moved to telephonic and online
platforms.
A marketer can collect extensive data from the participants with the help of
interviews.

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Quantitative interviews are extremely and play an important role in collecting
information.
There are three important sections that help to gather quantitative data through
interviews. These major sections are given below:
 Face-to-Face Interviews: In addition to the already asked survey questions,
an interviewer can prepare a list of important interview questions. Thus,
interviewers will be capable of providing complete details about the topic
under discussion. Also, an interviewer will get help to collect more details
about the topic by managing to bond with the interviewee on a personal
level, through which the responses also improve.
 Computer-Assisted Personal Interview: In this method, the interviewers
are able to enter the collected data directly into the computer or any other
similar device. It is also called a one-on-one interview technique, which
technique helps to reduce the processing time and provides benefits to
interviewers as they do not require to carry a hardcopy of questionnaires and
only enter the answers on the laptop.
 Online/Telephonic Interviews: Although, telephone-based interviews are
not a modern technique. These types of interviews have also moved to
online mediums like Zoom or Skype, which provides the option to online
interviews over the network. Online interview is beneficial that helps to
overcome the issue of distance between interviewer and interviewee and
save their time.
 However, the interview is only a phone call in case of telephonic interviews.
Analysis methods of quantitative data
Although the collection of data is a crucial part of the research process, it also
needs to analyze for making it understandable. So, there are several methods to
analyze quantitative data that have collected in surveys. These methods are given
below:
 Cross-tabulation: It is the most preferred and widely used method for
quantitative data analysis. To evaluate an effective result between different
data-sets in the research study, it uses a basic tabular form. It contains data
that have some connection with each other.

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 Trend analysis: It provides the option to check out the quantitative data if it
has been gathered over a long period of time. It also helps to gather feedback
about data changes over time.
 MaxDiff analysis: It helps to gauss the customer preferences for purchase
and determine what rank of parameters is higher as compared to others in
this process. This method is also known as the "best-worst" method as it is
time-consuming. Furthermore, this method can be used interchangeably, and
it is much easier to implement.
 Conjoint analysis: It is most similar to the MaxDiff analysis method that
helps to analyze parameters to make a better decision. This method has the
ability to gather and analyze advanced metrics that offer the parameters that
rank the most important, including in-depth insight into purchasing
decisions.
 Gap analysis: It is another type of quantitative data analysis method that
uses a side-by-side matrix to describe data, which provides a way to measure
the difference between actual performance and expected performance. The
data analysis by this method helps to describe the things that need to be
complete this gap and also helps to measure gaps in performance.
 SWOT analysis: It is a framework that means strengths, weaknesses,
opportunities, and threats analysis. It has the ability to identify SWOT of an
organization or product or service. Also, it helps to create effective business
strategies and offers a complete picture of the competition.
 TURF analysis: It evaluates the total market reach of a product or service or
a mix of both, which stands for total unduplicated reach and frequency
analysis. This method is helpful in understanding the avenues and the
frequency in any organization.
 Text analysis: In this method, intelligent tools work on easily
understandable data. They make more quantify or fashion qualitative and
open-ended data of this data. This method is helpful in the case when the
collected data is unstructured and needs to convert into a structural way that
makes it understandable.
Examples of Quantitative Data
Some examples of quantitative data are given below that can help to easily
understand which types of data are known as quantitative data.
 I updated my cellphone six times in a quarter.
 My uncle lost 20 kg last year.

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 The latest mobile application is downloaded by 83 people.
 My son grew up by 2 inches last year.
 600 employees attended the meeting.
 44% of people like online shopping rather than going to the mall.
Advantages of Quantitative Data
Conduct in-depth research: It is highly possible that the research will be detailed,
as quantitative data can be statistically analyzed.
Minimum bias: There are many examples in research if personal bias is involved,
it generates incorrect results. The numerical nature of quantitative data reduces the
personal bias that helps to lead correct data.
Disadvantages of Quantitative Data
Some of the disadvantages of quantitative data are as follows:
Depends on question types: Collection of the quantitative data, the result is
dependent on the types of questions. While collecting quantitative data, the
researcher's objective of research and knowledge of questions are most important.
Restricted information: On the basis of the collected data, it can be more difficult
for researchers to make decisions as quantitative data is not descriptive.
Differences between Quantitative and Qualitative Data

Quantitative Data Qualitative Data

The data that deals with quantities, The data that deals with the quality known as
numbers, or values known as qualitative data.
quantitative data.

These data are measurable and Generally, these data are not measurable and
associated with numbers. associated with details.

This data is implemented on It is implemented when data can be separated into

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Numerical data. well-defined groups.

These types of collected data can be These types of collected data can be observed and
analyzed statistically. not evaluated.

This type of data is generated by Mostly, this type of data is gained through
statistics and subsequently analyzed. observation.

Its approach objective and research Its approach subjective and research methodology
methodology conclusive. exploratory.

It contains structure data. It contains unstructured data.

The methods of collecting these data This data is collected through qualitative surveys,
are quantitative surveys, interviews, documental revision, and more.
experiments, etc.

It is more reliable and objective data It is less objective and reliable as compared to
as it uses statistics to add credence or credibility. quantitative data.

It includes a wide number of It includes a smaller number of non-representative

representative samples. samples.

This data is expressed in numerical Its nature is descriptive instead of numerical.

form.

The measure quantities of quantitative It often uses adjectives and other descriptive words
for referring data on color, texture,
data are size, length, amount, price,
appearance, including other qualities.
and more.

Examples of quantitative data are weight, height, Examples of qualitative data are appearance,
time, price, temperature, and more. beauty, flavors, scents, etc.

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How a computer process data into information?
A computer uses following four functions to process data into information by using
software and hardware.
1. Input
First, the data must receive input before a computer starts to process
anything. For instance, to enter input into the computer have to type on the
keyboard.
2. Process
A computer uses a program to process the data into information, which data
has received through input. The program may organize, calculate, or
manipulate the data to create understandable information.
3. Output
It is displayed as output to the user after the data is processed into
information. For example, when you use the Windows Calculator, the
program displays the information on your monitor screen.
4. Storage
Finally, the created information is stored on the computer for future
retrieval. It uses storage media like hard disk, floppy disk, etc.
What is the difference between Data and Information?

Parameters Data Information

Description There are two variables qualitative It is a collection of data

that contains
and quantitative that helps to
valuable meaning and
develop ideas or conclusions.
news.

Format It is in the form of letters, It is in the form of Ideas

and
numbers, or a collection of
inferences.
characters.

Represented in The data can be represented in a graph, It can be represented

tabular data, structured data tree, and based on the
more.
given data, language,

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 ideas, etc.

Feature The data alone doesn't have any It is a collection of data

and a
valuable meaning. It is raw and a
product that has a logical
single unit.
meaning.

Interrelation It is related to the collected It is related to the

information that
information.
is
processed.

Meaning It includes row data that does not It does have logical
meaning, which
have any specific purpose.
has assigned by
interpreting data.

Contains It is unprocessed raw factors. It is processed in a

meaningful way.

Dependence The data does not depend on A piece of information

depends on
information.
Data.

Support for Decision As it does not have any specific It provides useful
making information,
purpose, hence cannot be used
hence
for decision making.
widely used for decision
making.

Measuring unit The data is measured in bytes The information is

measured in
and bits.
meaningful units such as
quantity,
time, and more.

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Knowledge level Data is low-level knowledge. Information is the
second level of
knowledge.

Characteristic It cannot be sold to the public Information can be sold

to the public.
as it is the property of an
organization.

Usefulness The data may not be useful as Information is easily

available to the
it is collected by the researcher.
researcher for use; hence
it is valuable
and useful.

How the Data can be Organized into Information

Example of Data
In the below example, the data is a collection of random words and numbers,
separated by commas.
Circle, DR, 8015553211, 110001, Smith, DL, 1432, Joe
Example of Information
Joe Smith
1432 Circle
Delhi Road, DL 110001
(801) 555-3211
In the above information example, the data has organized, formatted, and
interpreted that have a clear meaning. It contains the address information of a
person.
3. Classification of Information
Information can be classified in a number of ways and in this chapter, you will

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learn two of the most important ways to classify information.

3.1. Classification by Characteristics

Based on Anthony's classification of Management, information used in business
for decision-making is generally categorized into three types −
 Strategic Information − Strategic information is concerned with long term
policy decisions that defines the objectives of a business and checks how
well these objectives are met. For example, acquiring a new plant, a new
product, diversification of business etc, comes under strategic information.
 Tactical Information − Tactical information is concerned with the
information needed for exercising control over business resources, like
budgeting, quality control, service level, inventory level, productivity level
etc.
 Operational Information − Operational information is concerned with
plant/business level information and is used to ensure proper conduction of
specific operational tasks as planned/intended. Various operator specific,

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 machine specific and shift specific jobs for quality control checks comes
under this category.
3.2. Classification by Application
In terms of applications, information can be categorized as −
 Planning Information − These are the information needed for establishing
standard norms and specifications in an organization. This information is
used in strategic, tactical, and operation planning of any activity. Examples
of such information are time standards, design standards.
 Control Information − This information is needed for establishing control
over all business activities through feedback mechanism. This information is
used for controlling attainment, nature and utilization of important processes
in a system. When such information reflects a deviation from the established
standards, the system should induce a decision or an action leading to
control.
 Knowledge Information − Knowledge is defined as "information about
information". Knowledge information is acquired through experience and
learning, and collected from archival data and research studies.
 Organizational Information − Organizational information deals with an
organization's environment, culture in the light of its objectives. Karl
Weick's Organizational Information Theory emphasizes that an organization
reduces its equivocality or uncertainty by collecting, managing and using
these information prudently. This information is used by everybody in the
organization; examples of such information are employee and payroll
information.
 Functional/Operational Information − This is operation specific
information. For example, daily schedules in a manufacturing plant that
refers to the detailed assignment of jobs to machines or machines to
operators. In a service oriented business, it would be the duty roster of
various personnel. This information is mostly internal to the organization.
 Database Information − Database information construes large quantities of
information that has multiple usage and application. Such information is
stored, retrieved and managed to create databases. For example, material
specification or supplier information is stored for multiple users.

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3.3. Classification by Management Hierarchy
Levels of Management - Top, Middle and Lower
The term “Levels of Management’ refers to a line of demarcation between various
managerial positions in an organization.
The number of levels in management increases when the size of the business and
work force increases and vice versa.
The level of management determines a chain of command, the amount of authority
& status enjoyed by any managerial position. The levels of management can be
classified in three broad categories:
1. Top level / Administrative level
2. Middle level / Executory
3. Low level / Supervisory / Operative / First-line managers
Managers at all these levels perform different functions. The role of managers at
all the three levels is discussed below:

1. Top Level of Management

It consists of board of directors, chief executive or managing director. The top
management is the ultimate source of authority and it manages goals and policies
for an enterprise. It devotes more time on planning and coordinating functions.

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The role of the top management can be summarized as follows -
a. Top management lays down the objectives and broad policies of the
enterprise.
b. It issues necessary instructions for preparation of department budgets,
procedures, schedules etc.
c. It prepares strategic plans & policies for the enterprise.
d. It appoints the executive for middle level i.e. departmental managers.
e. It controls & coordinates the activities of all the departments.
f. It is also responsible for maintaining a contact with the outside world.
g. It provides guidance and direction.
h. The top management is also responsible towards the shareholders for the
performance of the enterprise.
2. Middle Level of Management
The branch managers and departmental managers constitute middle level. They are
responsible to the top management for the functioning of their department. They
devote more time to organizational and directional functions. In small
organization, there is only one layer of middle level of management but in big
enterprises, there may be senior and junior middle level management.
Their role can be emphasized as -
a. They execute the plans of the organization in accordance with the policies
and directives of the top management.
b. They make plans for the sub-units of the organization.
c. They participate in employment & training of lower level management.
d. They interpret and explain policies from top level management to lower
level.
e. They are responsible for coordinating the activities within the division or
department.
f. It also sends important reports and other important data to top level
management.
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g. They evaluate performance of junior managers.
h. They are also responsible for inspiring lower level managers towards better
performance.
3. Lower Level of Management
Lower level is also known as supervisory / operative level of management. It
consists of supervisors, foreman, section officers, superintendent etc. According
to R.C. Davis, “Supervisory management refers to those executives whose work
has to be largely with personal oversight and direction of operative employees”. In
other words, they are concerned with direction and controlling function of
management.
Their activities include -
a. Assigning of jobs and tasks to various workers.
b. They guide and instruct workers for day to day activities.
c. They are responsible for the quality as well as quantity of production.
d. They are also entrusted with the responsibility of maintaining good relation
in the organization.
e. They communicate workers problems, suggestions, and recommendatory
appeals etc to the higher level and higher level goals and objectives to the
workers.
f. They help to solve the grievances of the workers.
g. They supervise & guide the sub-ordinates.
h. They are responsible for providing training to the workers.
i. They arrange necessary materials, machines, tools etc for getting the things
done.
j. They prepare periodical reports about the performance of the workers.
k. They ensure discipline in the enterprise.
l. They motivate workers.

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m. They are the image builders of the enterprise because they are in direct
contact with the workers.

Objectives Of Management
The main objectives of management are:
1. Getting Maximum Results with Minimum Efforts - The main objective of
management is to secure maximum outputs with minimum efforts &
resources. Management is basically concerned with thinking & utilizing
human, material & financial resources in such a manner that would result in
best combination. This combination results in reduction of various costs.
2. Increasing the Efficiency of factors of Production - Through proper
utilization of various factors of production, their efficiency can be increased
to a great extent which can be obtained by reducing spoilage, wastages and
breakage of all kinds, this in turn leads to saving of time, effort and money
which is essential for the growth & prosperity of the enterprise.
3. Maximum Prosperity for Employer & Employees - Management ensures
smooth and coordinated functioning of the enterprise. This in turn helps in
providing maximum benefits to the employee in the shape of good working
condition, suitable wage system, incentive plans on the one hand and higher
profits to the employer on the other hand.
4. Human betterment & Social Justice - Management serves as a tool for the
upliftment as well as betterment of the society. Through increased
productivity & employment, management ensures better standards of living
for the society. It provides justice through its uniform policies.
4. Data Collection Methods
Data is being generated at an ever-increasing pace. According to Statista, the total
volume of data was 64.2 zettabytes in 2020; it’s predicted to reach 181 zettabytes
by 2025. This abundance of data can be overwhelming if you aren’t sure where to
start.
So, how do you ensure the data you use is relevant and important to the business
problems you aim to solve? After all, a data-driven decision is only as strong as the
data it’s based on. One way is to collect data yourself.

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Here’s a breakdown of data types, why data collection is important, what to know
before you begin collecting, and seven data collection methods to leverage.
What is Data Collection?
Data collection is the methodological process of gathering information about a
specific subject. It’s crucial to ensure your data is complete during the collection
phase and that it’s collected legally and ethically. If not, your analysis won’t be
accurate and could have far-reaching consequences.
In general, there are three types of consumer data:
 First-party data, which is collected directly from users by your organization
 Second-party data, which is data shared by another organization about its
customers (or its first-party data)
 Third-party data, which is data that’s been aggregated and rented or sold by
organizations that don’t have a connection to your company or users
Although there are use cases for second- and third-party data, first-party data (data
you’ve collected yourself) is more valuable because you receive information about
how your audience behaves, thinks, and feels—all from a trusted source.
Data can be qualitative (meaning contextual in nature) or quantitative (meaning
numeric in nature). Many data collection methods apply to either type, but some
are better suited to one over the other.
In the data life cycle, data collection is the second step. After data is generated, it
must be collected to be of use to your team. After that, it can be processed, stored,
managed, analyzed, and visualized to aid in your organization’s decision-making.

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Before collecting data, there are several factors you need to define:
 The question you aim to answer
 The data subject(s) you need to collect data from
 The collection timeframe
 The data collection method(s) best suited to your needs
The data collection method you select should be based on the question you want to
answer, the type of data you need, your timeframe, and your company’s budget.
5. Importance of Data Collection
Collecting data is an integral part of a business’s success; it can enable you to
ensure the data’s accuracy, completeness, and relevance to your organization and

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the issue at hand. The information gathered allows organizations to analyze past
strategies and stay informed on what needs to change.
The insights gleaned from data can make you hyperaware of your organization’s
efforts and give you actionable steps to improve various strategies—from altering
marketing strategies to assessing customer complaints.
Basing decisions on inaccurate data can have far-reaching negative consequences,
so it’s important to be able to trust your own data collection procedures and
abilities.
By ensuring accurate data collection, business professionals can feel secure in their
business decisions.
Explore the options in the next section to see which data collection method is the
best fit for your company.
1. Surveys
Surveys are physical or digital questionnaires that gather both qualitative and
quantitative data from subjects. One situation in which you might conduct a survey
is gathering attendee feedback after an event. This can provide a sense of what
attendees enjoyed, what they wish was different, and areas in which you can
improve or save money during your next event for a similar audience.
While physical copies of surveys can be sent out to participants, online surveys
present the opportunity for distribution at scale. They can also be inexpensive;
running a survey can cost nothing if you use a free tool. If you wish to target a
specific group of people, partnering with a market research firm to get the survey
in front of that demographic may be worth the money.
Something to watch out for when crafting and running surveys is the effect of bias,
including:
 Collection bias: It can be easy to accidentally write survey questions with a
biased lean. Watch out for this when creating questions to ensure your
subjects answer honestly and aren’t swayed by your wording.
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 Subject bias: Because your subjects know their responses will be read by
you, their answers may be biased toward what seems socially acceptable.
For this reason, consider pairing survey data with behavioral data from other
collection methods to get the full picture.
2. Transactional Tracking
Each time your customers make a purchase, tracking that data can allow you to
make decisions about targeted marketing efforts and understand your customer
base better.
Often, e-commerce and point-of-sale platforms allow you to store data as soon as
it’s generated, making this a seamless data collection method that can pay off in
the form of customer insights.
3. Interviews and Focus Groups
Interviews and focus groups consist of talking to subjects face-to-face about a
specific topic or issue. Interviews tend to be one-on-one, and focus groups are
typically made up of several people. You can use both to gather qualitative and
quantitative data.
Through interviews and focus groups, you can gather feedback from people in your
target audience about new product features. Seeing them interact with your product
in real-time and recording their reactions and responses to questions can provide
valuable data about which product features to pursue.
As is the case with surveys, these collection methods allow you to ask subjects
anything you want about their opinions, motivations, and feelings regarding your
product or brand. It also introduces the potential for bias. Aim to craft questions
that don’t lead them in one particular direction.
One downside of interviewing and conducting focus groups is they can be time
consuming and expensive. If you plan to conduct them yourself, it can be a lengthy
process. To avoid this, you can hire a market research facilitator to organize and

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conduct interviews on your behalf.
4. Observation
Observing people interacting with your website or product can be useful for data
collection because of the candor it offers. If your user experience is confusing or
difficult, you can witness it in real-time.
Yet, setting up observation sessions can be difficult. You can use a third-party tool
to record users’ journeys through your site or observe a user’s interaction with a
beta version of your site or product.
While less accessible than other data collection methods, observations enable you
to see firsthand how users interact with your product or site. You can leverage the
qualitative and quantitative data gleaned from this to make improvements and
double down on points of success.
5. Online Tracking
To gather behavioral data, you can implement pixels and cookies. These are both
tools that track users’ online behavior across websites and provide insight into
what content they’re interested in and typically engage with.
You can also track users’ behavior on your company’s website, including which
parts are of the highest interest, whether users are confused when using it, and how
long they spend on product pages. This can enable you to improve the website’s
design and help users navigate to their destination.
Inserting a pixel is often free and relatively easy to set up. Implementing cookies
may come with a fee but could be worth it for the quality of data you’ll receive.
Once pixels and cookies are set, they gather data on their own and don’t need
much maintenance, if any.
It’s important to note: Tracking online behavior can have legal and ethical privacy
implications. Before tracking users’ online behavior, ensure you’re in compliance

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with local and industry data privacy standards.
6. Forms
Online forms are beneficial for gathering qualitative data about users, specifically
demographic data or contact information. They’re relatively inexpensive and
simple to set up, and you can use them to gate content or registrations, such as
webinars and email newsletters.
You can then use this data to contact people who may be interested in your
product, build out demographic profiles of existing customers, and in remarketing
efforts, such as email workflows and content recommendations.
7. Social Media Monitoring
Monitoring your company’s social media channels for follower engagement is an
accessible way to track data about your audience’s interests and motivations. Many
social media platforms have analytics built in, but there are also third-party social
platforms that give more detailed, organized insights pulled from multiple
channels.You can use data collected from social media to determine which issues
are most important to your followers. For instance, you may notice that the number
of engagements dramatically increases when your company posts about its

sustainability efforts.
Building Data Capabilities
Understanding the variety of data collection methods available can help you decide
which is best for your timeline, budget, and the question you’re aiming to answer.
When stored together and combined, multiple data types collected through
different methods can give an informed picture of your subjects and help you make
better business decisions.

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