Merits

1. It is more economical and time saving to use secondary data.

2. As secondary data are collected after the occurence of an event, they are not biased. Besides collecting primary data may be very tedious, whereas the secondary data are freely available off-shelf.

Limitations

1. The secondary data may have limited application. There are many problems. The unit of measurement, the definition of data classes and the outdated nature of data may make the data irrelevant. The data must be modified before using.

2. The accuracy of secondary data may be questionable. If the data are inaccurate, the prsent research findings will be distorted.