Chapter 10
Research Methodology
Nepal Bank past exam questions
Past questions and answers
1 question set from this chapter. Most repeated first.
- 2082 · 2nd Paper · 10 marks
Identify the various steps of data for conducting research. Explain the methods of collecting primary data with relevant merits and demerits.
Answer
Steps of Data for Conducting Research
Data handling in research proceeds through a logical sequence of steps:
- Identification of data needs — Defining the objectives of the study and deciding what type of data (qualitative or quantitative) is required to answer the research questions.
- Determination of data sources — Deciding whether primary data (collected afresh) or secondary data (already published) will be used, or a combination of both.
- Selection of data collection method — Choosing the appropriate instrument such as questionnaire, interview, observation or experiment.
- Designing the instrument — Preparing the questionnaire, interview schedule or observation checklist, including pre-testing (pilot survey) to check reliability and validity.
- Collection of data — Actual fieldwork: administering questionnaires, conducting interviews, making observations, etc.
- Editing and coding — Checking the raw data for completeness, accuracy and consistency, and converting responses into numerical codes.
- Classification and tabulation — Grouping data into homogeneous classes and arranging them in tables for analysis.
- Analysis and interpretation — Applying statistical tools (percentage, mean, correlation, regression, chi-square) and drawing meaningful conclusions.
- Presentation and reporting — Presenting findings through tables, graphs and charts in the research report, with recommendations.
Methods of Collecting Primary Data
Primary data are those collected for the first time by the researcher himself for the specific purpose at hand. The main methods are:
1. Questionnaire Method
A set of written questions is sent to respondents, who fill it in and return it. It may be mailed, e-mailed or administered in person.
Merits: Covers a large number of respondents spread over a wide area; low cost per respondent; anonymity encourages frank answers; no bias of the interviewer; suitable for educated respondents.
Demerits: Low and delayed response rate; only literates can respond; questions may be misunderstood; unsuitable for illiterate or rural respondents; no control over who actually fills the form.
2. Interview Method
The researcher holds direct oral conversation with respondents — personal (face-to-face), telephonic or through a structured interview schedule.
Merits: High response rate; clarifications possible; suitable for illiterate respondents; observation of gestures and behaviour adds depth; flexible — questions can be rephrased.
Demerits: Costly and time-consuming; interviewer bias may creep in; limited geographical coverage; respondents may hesitate to reveal personal matters; requires trained interviewers.
3. Observation Method
The researcher watches and records the behaviour or phenomena as they occur, with or without the knowledge of the subjects.
Merits: Records actual behaviour, not reported behaviour; free from respondent bias; useful where respondents cannot verbalise (children, animals); suitable for studying group dynamics.
Demerits: Very time-consuming; observer bias and subjectivity; personal and secret behaviour cannot be observed; sometimes the presence of the observer changes behaviour; costly.
4. Experimental Method
The researcher manipulates one or more independent variables under controlled conditions and measures the effect on the dependent variable.
Merits: Best method for establishing cause-and-effect relationships; variables can be controlled; results can be replicated; highly scientific.
Demerits: Difficult and expensive to conduct; artificial setting may not reflect reality; not applicable to social and behavioural studies involving human values; ethical constraints.
5. Schedule Method
An enumerator personally visits respondents and fills in the schedule (a set of questions) on their behalf.
Merits: Useful for illiterate respondents; high accuracy as the enumerator can explain questions; identity of the respondent is known.
Demerits: Expensive and time-consuming; needs a team of trained enumerators; possibility of enumerator bias; limited coverage.
Conclusion: The choice of method depends on the nature of the study, the literacy level of respondents, the size of the sample, the budget and the time available. For a bank's research (e.g., customer satisfaction), the questionnaire and interview methods are most commonly used.
Answer checked by Claude Haiku · Oct 21, 2026
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