Sampling in Marketing Research

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 aasics of sampling I

Ã Ú sample is a Samples offer many benefits:

³part of a whole à Save costs× ess expensive to study the
to show what the sample than the population.
rest is like´. Ã Save time× ess time needed to study the
à Sampling helps to sample than the population .
determine the à Úccuracy× Since sampling is done with
corresponding care and studies are conducted by skilled
value of the and qualified interviewers, the results are
population and expected to be accurate.
plays a vital role in
marketing
research.


 aasics of sampling II

Limitations of Sampling Sampling Process

à Memands more rigid control
in undertaking sample M
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operation.  
  

à Minority and smallness in
number of sub-groups often
render study to be  
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suspected.   
   
à Úccuracy level may be
affected when data is
subjected to weighing.
à Sample results are good  !
approximations at best.

÷
 Sampling: Step 1 Sampling: Step 2
Mefining the Universe Establishing the Sampling
Frame
à Universe or population is the
whole mass under study. Ã Ú sample frame is the list of all
elements in the population
à Gow to define a universe:
(such as telephone directories,
Œ £hat constitutes the units of
electoral registers, club
analysis (HMa apartments)?
membership etc.) from which
Œ £hat are the sampling units
the samples are drawn.
(HMa apartments occupied in
the last three months)? Ã Ú sample frame which does not
fully represent an intended
Œ £hat is the specific designation
population will result in frame
of the units to be covered (HMa
error and affect the degree of
in town area)?
reliability of sample result6
Œ £hat time period does the data
refer to (Mecember 31, 1995)
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 Step - 3
Metermination of Sample Size
à Sample size may be determined by using:
ΠSubjective methods (less sophisticated methods)
[ he rule of thumb approach: eg. 5% of population
[ Conventional approach: eg. Úverage of sample sizes of
similar other studies;
[ Cost basis approach: he number that can be studied
with the available funds;
ΠStatistical formulae (more sophisticated methods)
[ Confidence interval approach.


 Conventional approach of Sample size determination using
Sample sizes used in different marketing research studies

 PE OF SUM MINIMUM  PICÚL

SIZE RÚNGE
Identifying a problem (e.g.market
segmentation) 500 1000-2500
Problem-solving (e.g., promotion) 200 300-500
Product tests 200 300-500
Údvertising (
, Radio, or print Media
per commercial or ad tested) 150 200-300
est marketing 200 300-500
est market audits 10 10-20
stores/outlets stores/outlets
Focus groups 2 groups 4-12 groups


 Sample size determination using statistical formulae:
he confidence interval approach

à o determine sample sizes using statistical formulae,

researchers use the confidence interval approach based on the
following factors:
ΠMesired level of data precision or accuracy;
Œ Úmount of variability in the population (homogeneity);
Πevel of confidence required in the estimates of population values.
à Úvailability of resources such as money, manpower and time
may prompt the researcher to modify the computed sample
size.
à Students are encouraged to consult any standard marketing
research textbook to have an understanding of these formulae.
¬
 
×

 
 
 


à Probability Sampling
ΠEvery element in the target population or universe [sampling
frame] has equal probability of being chosen in the sample for
the survey being conducted.
ΠScientific, operationally convenient and simple in theory.
ΠResults may be generalized.
à Non-Probability Sampling
ΠEvery element in the universe [sampling frame] does not have
equal probability of being chosen in the sample.
ΠOperationally convenient and simple in theory.
ΠResults may not be generalized.

X
 Probability sampling
Four types of probability sampling
à Úppropriate for
homogeneous population
ΠSimple random sampling
[ Requires the use of a random
number table.
ΠSystematic sampling
[ Requires the sample frame
only,
[ No random number table is
necessary
à Úppropriate for
heterogeneous population
ΠStratified sampling
[ Use of random number
table may be necessary
ΠCluster sampling
[ Use of random number
table may be necessary
ÿ
 Non--probability sampling
Non

à Four types of non-probability sampling

techniques
Œ ·ery simple types, based on subjective criteria
[ Convenient sampling
[ Judgmental sampling
ΠMore systematic and formal
[ Quota sampling
ΠSpecial type
[ Snowball Sampling
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 Simple Random Sampling

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 How to Use a able of Random Numbers to Select a Sample
our marketing research lecturer wants to randomly select 20 students from
your class of 100 students. Gere is how he can do it using a random number table.
Step 1× 
 
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 Systematic sampling
©
ery similar to simple random sampling with one exception.
© In systematic sampling only one random number is needed throughout the
entire sampling process.
© o use systematic sampling, a researcher needs:
[i] a sampling frame of the population; and is needed.
[ii] a skip interval calculated as follows:
Skip interval = population list size
Sample size

© Names are selected using the skip interval.

© f a researcher were to select a sample of 1000 people using the local telephone
directory containing 215,000 listings as the sampling frame, skip interval is
[215,000/1000], or 215. he researcher can select every 215 th name of the entire
directory [sampling frame], and select his sample.
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 Ôxample: Gow to ake a Systematic Sample
Step 1: Select a listing of the population, say the City elephone Mirectory, from which to
sample. Remember that the list will have an acceptable level of sample frame error.

Step 2: Compute the skip interval by dividing the number of entries in the directory by the
desired sample size.
Ôxample: 250,000 names in the phone book, desired a sample size of 2500,
So skip interval = every 100 th name

Step 3: Using random number(s), determine a starting position for sampling the list.
Ôxample: Select: Random number for page number. ( page 01)
Select: Random number of column on that page. ( col. 03)
Select: Random number for name position in that column (#38, say, Ú..Mahadeva)

Step 4: Úpply the skip interval to determine which names on the list will be in the sample.
Ôxample: Ú. Mahadeva (Skip 100 names), new name chosen is Ú Rahman b Úhmad.

Step 5: Consider the list as ³circular´; that is, the first name on the list is now the initial name
you selected, and the last name is now the name just prior to the initially selected one.
Ôxample: When you come to the end of the phone book names (Zs), just continue on
through the beginning (Ús).
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Ú three-stage process:
à Step 1- Mivide the population into
homogeneous, mutually exclusive
and collectively exhaustive subgroups
or strata using some stratification
variable;
à Step 2- Select an independent simple
random sample from each stratum.
à Step 3- Form the final sample by
consolidating all sample elements
chosen in step 2.
à May yield smaller standard errors of
estimators than does the simple random
sampling. hus precision can be gained
with smaller sample sizes.
Stratified samples can be:
à Proportionate: involving the
selection of sample elements
from each stratum, such that
the ratio of sample elements
from each stratum to the
sample size equals that of the
population elements within
each stratum to the total
number of population
elements.
à Misproportionate: the sample
is disproportionate when the
above mentioned ratio is
unequal.
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 Selection of a proportionate Stratified Sample
o select a proportionate stratified sample of 20 members of the Island
ideo Club which has
100 members belonging to three language based groups of viewers i.e., English (E), Mandarin
(M) and Others (X).

Step 1: Identify each member from the membership list by his or her respective language groups
  
     
      
 

 
  
  
 


   
     

 
   
 
  
 
 
   
  
 
   
   

   
     

           
  
  
     
     
 
 
 
 
 


    
  
  
   


 

 
 

 



  
      

      
 



 
 
   


    
 
  


 
   
 


   
  
    


            

      
 

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 Selection of a proportionate stratified sample II

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1. ëalc late t e overall samli g fractio , f, i t e follo i g ma er:

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 6electio of a roortio ate stratifie samle III

© Metermi e t e m
er of samle eleme ts ( 1) to
e selecte from t e glis

la g age strat m. I t is e amle, 1 50 f 50 0.2 10. By si g a simle
ra om samli g met o [ si g a ra om m
er ta
le] mem
ers ose m
ers
are 01, 03, 16, 30, 43, 48, 50, 54, 55, 75, are selecte .

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er of samle eleme ts ( 2) from t e a ari la g age

strat m. I t is e amle, 2 30 f 30 X 0.2 6. By si g a simle ra om
samli g met o as
efore, mem
ers avi g m
ers 10,15, 27, 51, 59, 87 are
selecte from t e a ari la g age strat m.

© I t e same ma er, t e m
er of samle eleme ts ( 3) from t e µ t er la g age¶

strat m is calc late . I t is e amle, 3 20 f 20 X 0.2 4. or t is strat m,
mem
ers ose m
ers are 17, 18, 28, 38 are selecte ¶

©  ese t ree iffere t sets of m
ers are o aggregate to o
tai t e ltimate

stratifie samle as s o
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6 (01, 03, 10, 15, 16, 17, 18, 27, 28, 30, 38, 43, 48, 50, 51, 54, 55, 59, 75, 87)

 Cluster sampling

à Is a type of sampling in which clusters or groups of

elements are sampled at the same time.
à Such a procedure is economic, and it retains the
characteristics of probability sampling.
Ã Ú two-step-process:
ΠStep 1- Mefined population is divided into number of mutually
exclusive and collectively exhaustive subgroups or clusters;
ΠStep 2- Select an independent simple random sample of clusters.
à ^ne special type of cluster sampling is called area sampling, where
pieces of geographical areas are selected.

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 Ôxample : ^ne-stage and two-stage Cluster sampling
Consider the same Island
ideo Club example involving 100 club members:

© Step 1: Sub-divide the club members into 5 clusters, each cluster containing 20 members.
  
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 Stratified Sampling vs Cluster Sampling

Stratified Sampling Cluster Sampling

1.he target population is sub-divided 1.he target population is sub-
into a few subgroups or strata, each divided into a large number of
containing a large number of elements. sub-population or clusters, each
containing a few elements.
2.£ithin each stratum, the elements are 2.£ithin each cluster, the elements
homogeneous. However, high degree of are heterogeneous. aetween
heterogeneity exists between strata. clusters, there is a high degree of
homogeneity.
3.Ú sample element is selected each time. 3.Ú cluster is selected each time.
4.Less sampling error. 4.More prone to sampling error.
5.Objective is to increase precision. 5.Objective is to increase sampling
efficiency by decreasing cost.

÷
 Ú
Ú 6ÚI

© Ú commo form of cl ster sampli g ere cl sters co sist of geograp ic areas, s c as
districts, o si g blocks or to s ips. Úrea sampli g co ld be o e-stage, t o-stage, or
m lti-stage.
Ho to Take a Úrea ample si g bdivisio s
o r coma y a ts to co ct a s rvey o t e e ecte atro age of its e o tlet i a e
o si g estate.  e coma y a ts to se area samli g to select t e samle o se ol s to
e
i tervie e .  e samle may
e ra i t e ma er o tli e
elo .
___________________________________________________________________________________
6te 1: Metermi e t e geogra ic area to
e s rveye , a i e tify its s
ivisio s.
ac
s
ivisio cl ster s o l
e ig ly similar to all ot ers. or e amle, c oose te o si g

locks it i 2 kilometers of t e roose site [say, oel o ] for yo r e retail o tlet;
assig eac a m
er.
6te 2: Mecie o t e se of o e-ste or t o-ste cl ster samli g. Úss me t at yo ecie to
se a t o-stage cl ster samli g.
6te 3: si g ra om m
ers, select t e o si g
locks to
e samle. ere, yo select 4

locks ra omly, say m
ers #102, #104, #106, a  #108.
6te 4: si g some ro
a
ility met o of samle selectio , select t e o se ols i eac of t e
c ose o si g
lock to
e i cl e i t e samle. Ie tify a ra om starti g oi t (say,
aartme t o. 103), i str ct fiel orkers to ro off t e s rvey at every fift o se
(systematic samli g).
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à Convenience sampling
ΠMrawn at the convenience of the researcher. Common in exploratory research.
Moes not lead to any conclusion.
à Audgmental sampling
ΠSampling based on some judgment, gut-feelings or experience of the researcher.
Common in commercial marketing research projects. If inference drawing is not
necessary, these samples are quite useful.
à uota sampling
Œ Ún extension of judgmental sampling. It is something like a two-stage judgmental
sampling. Quite difficult to draw.
à Snowball sampling
ΠUsed in studies involving respondents who are rare to find. o start with, the
researcher compiles a short list of sample units from various sources. Ôach of
these respondents are contacted to provide names of other probable respondents.

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Probability Ôvaluation Criteria Non-probability

sampling sampling
Conclusive Nature of research Exploratory

Larger sampling Relative magnitude Larger non-sampling

errors sampling vs. error
non-sampling error

High Population variability Low

[Heterogeneous] [Homogeneous]

Favorable Statistical Considerations Unfavorable

High Sophistication Needed Low

Relatively Longer ime Relatively shorter

High Budget Needed Low