Advance Business Research

Methodology
Sampling: Design and
Procedure
 Sampling
The process of obtaining information from a subset (sample)
of a larger group (population)
The results for the sample are then used to make estimates
of the larger group
Faster and cheaper than asking the entire population
Two keys
1. Selecting the right people
Have to be selected scientifically so that they are
representative of the population
2. Selecting the right number of the right people
To minimize sampling errors I.e. choosing the wrong
people by chance
SAMPLING
Sample -- contacting a portion of the
population (e.g., 10% or 25%)
best with a very large population (n)
easiest with a homogeneous population
Census -- the entire population
most useful is the population ("n") is
small
or the cost of making an error is high
 Population Vs.
Sample
Population of Interest

Population Sample

Sample
Parameter Statistic

measure the sample using statistics in order to

ences about the population and its parameter
 Characteristics of Good
Samples
Representative

Accessible

Low cost
this (bad)

Sample

Population
or this (VERY bad)

Sample

Population
 Terminology
Population
The entire group of people of interest
from whom the researcher needs to
obtain information.
Element (sampling unit)
one unit from a population
Sampling
The selection of a subset of the
population
Sampling Frame
Listing of population from which a
sample is chosen
Census
 Terminology
Parameter
The variable of interest

Statistic
The information obtained from the
sample about the parameter
Goal
To be able to make inferences about the
population parameter from knowledge of
the relevant statistic - to draw general
conclusions about the entire body of units
Critical Assumption
Steps in Sampling Process
1. Define the population
2. Identify the sampling frame
3. Select a sampling design or
procedure
4. Determine the sample size
5. Draw the sample
 Sampling Design
Process DefinePopulation

DetermineSamplingFrame

DetermineSamplingDesign/Procedure

ProbabilitySampling NonProbabilitySampling
TypeofProcedure TypeofProcedure
SimpleRandomSampling Convenience
StratifiedSampling Judgmental
ClusterSampling Quota

DetermineAppropriate
SampleSize

ExecuteSampling
Design
 sample design
A sample design is a definite plan for obtaining a sample
from a given population. It refers to the technique or the
procedure the researcher would adopt in selecting items for
the sample.

STEPS IN SAMPLE DESIGN

1. What is the relevant target population of focus to the

study?
2. What exactly are the parameters we are interested
in investigating?
3. What kind of a sampling frame is available?
4. What is the sample size needed?
5. What costs are attached to the sampling design?
6. How much time is available to collect the data from
the sample?
 CRITERIA OF SELECTING A SAMPLING PROCEDURE

while selecting a sampling procedure, researcher

must ensure that the procedure causes a relatively
small sampling error and helps to control the
systematic bias in a better way.
Systematic bias results from errors in the sampling
procedures, and it cannot be reduced or eliminated by
increasing the sample size
Sampling errors are the random variations in the
sample estimates around the true population
parameters.
Sampling error can be measured for a given
sample design and size
CHARACTERISTICS OF A GOOD
SAMPLE DESIGN
(a) Sample design must result in a truly
representative sample.
(b) Sample design must be such which results in a
small sampling error.
(c) Sample design must be viable in the context of
funds available for the research study.
(d) Sample design must be such so that systematic
bias can be controlled in a better way.
(e) Sample should be such that the results of the
sample study can be applied, in general, for the
universe with a reasonable level of confidence.
Types of sampling designs

Probability Sampling
The elements in the population have some
known chance or probability of being
selected as sample subjects.
Non probability sampling
In non probability sampling, the elements
do not have a known or predetermined
chance of being selected as subjects.
 Probability Sampling

1. Simple random sampling: All elements in

the population are considered and each
element has an equal chance of being chosen
as the subject.
Advantages
High generalizability of findings.
Disadvantages
Not as efficient as stratified sampling.
 Probability Sampling

2. Systematic sampling : Every nth element in

the population is chosen starting from a
random point in the population frame.

Advantages
Easy to use if population frame is available
Disadvantages
Systematic biases are possible.
 3.Stratified Random Sampling
Population is divided on the basis of
characteristic of interest in the
population e.g. male and female may
have different consumption patterns
Has a smaller sampling error than
simple random sample since a source
of variation is eliminated
Ensures representativeness when
proportional sampling used
 Stratified Sampling
Direct Proportional Stratified
Sampling
The sample size in each stratum is
proportional to the stratum size in the
population
Disproportional Stratified Sampling
The sample size in each stratum is NOT
proportional to the stratum size in the
population
Used if
1) some strata are too small
2) some strata are more important than
 Probability Sampling

4. Cluster sampling : Groups that have

heterogeneous members are first identified; then
some are chosen at random; all the members in each
of the randomly chosen groups are studied
Advantages
In geographic clusters, costs of data collection are low.
Disadvantages
The least reliable and efficient among all probablitiy
sampling designs since subsets of clusters are more
homogeneous than heterogeneous.
 Probability Sampling

5. Area sampling : Cluster sampling within a

particular area or locality.
Advantages
Cost-effective.
Useful for decisions relating to a particular
location.
Disadvantages
Takes time to collect data from an area.
 Probability Sampling

6. Double sampling : The same sample or a

subset of the sample is studied twice.

Advantages
Offers more detailed information on the topic of
study.

Disadvantages
Original biases, if any, will be carried over.
Individuals may not be happy responding a
second time
 Non-Probability Sampling

7. Convenience sampling : The most easily

accessible members are chosen as subjects.
Advantages
Quick, convenient, less expensive.
Disadvantages
Not generalizable at all.
 Non-Probability Sampling

8. Judgment sampling : Subjects selected on

the basis of their expertise in the subject
investigated.
Advantages
Sometimes, the only meaningful way to
investigate.
Disadvantages
Generalizability is questionable; not
generalizable to entire population.
 Non-Probability Sampling

9. Quota sampling : Subjects are conveniently

chosen from targeted groups according to
some predetermined number or quota.

Advantages
Very useful where minority participation in a
study is critical.
Disadvantages
Not easily generalizable.
What is the
Appropriate Sample Design?
Degree of Accuracy
Resources
Time
Advanced Knowledge of the Population
National versus Local
Need for Statistical Analysis
After the Sample Design
is Selected
Determine sample size
Select actual sample units
Conduct fieldwork