Qing Liu

Associate Professor of Marketing

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Marketing Research Process
Problem formulation

Research design

Data collection design

Sample design and data collection

Analysis and interpretation

Research reporting
Definition
Population: the entire group
of people about whom
information is needed.
Census: collecting data from
or about every member of the
population of interest.
Sample: a subset of all the
members of a population of
interest.
Census

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Parameter vs. Statistic

vs. x
parameter vs. statistic

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Practice Question

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Sampling Procedures
Probability
Every element has a known, non-zero probability of
inclusion in the sample
Non-Probability
Population elements are selected in a non-random manner

Advantages of Probability Samples

Allows quantification of sampling error
Generally more representative
Select A Sampling Procedure
Non-Probability Probability
Population elements are selected Every element has a known, non-zero
in a non-random manner probability of inclusion in the sample

Convenience Simple Random

availability Pick n from N

Judgment Systematic
selection criteria kth skip interval

Quota Stratified
Predetermined number homogeneous within, heterogeneous between

Cluster
heterogeneous within, homogenous between
Non-Probability Samples
Convenience Samples
e.g. Beer drinkers at social events such as a Giants game
Judgment Samples
e.g. Beer drinkers in carefully selected New York bars
Quota Samples
e.g. A predetermined number of respondents by gender, region, age

Applications
Exploratory research
When probability samples are too costly
When natural sample size is too small
Probability Samples
Simple Random Samples

Systematic Samples

Stratified Samples

Cluster Samples
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Simple Random Sampling
Each element of the population has the same known
nonzero probability of inclusion
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 Stratified Sampling
Two-step procedure:
1. Divide the population into mutually exclusive and
exhaustive subsets called strata
2. Select a simple random sample from each stratum
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 Cluster Sampling
Two-step procedure:
1. Divide the population into mutually exclusive and
exhaustive subsets called clusters
2. Select a random sample of subsets
Which Sampling Method to Use
Cost Statistical efficiency
Convenience very low very poor
Judgment slightly more very poor
Quota slightly more very poor
SRS moderate fair
Systematic easier than SRS fair
Stratified costly can be very good
Cluster less than stratified fair to good
Summary
Carefully think about your population
The choice of Probability vs. Non-probability sampling is
closely tied to the Research Problems
Practical issues
Is there a readily available sampling frame?
If yes, Probability sample is plausible-- and that is good
But do you have the resources to use a probability
sample?
Non-probability samples may be a perfectly fine
alternative-- Used all the time

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Discussion

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How to Determine Sample Size
Heuristics
100/group
Minimum of 20 to 50 per subgroup
Disproportionate sampling

Budget constraints
Sample size = total budget/cost per subject

Previous Research
Formal Statistics

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Formal Statistics

Reminder: Confidence interval for a population mean is:

s
X Z
n

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Sample Size & Confidence Interval (CI)
T = margin of error you are willing to tolerate, i.e.,
zone around sample mean where population mean lies, or half CI width

s
T =z
n

s
n =z
T

z2 2
n= 2 s
T

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Sample Size for Estimating a Mean
(e.g., responses to interval- or ratio-scale questions)

Three pieces of information are needed:

1. Margin of error T (zone around sample mean where
population mean lies)
2. Your confidence level
For 90% confidence, z = 1.645
For 95% confidence, z = 1.96
For 99% confidence, z= 2.575
3. Estimate of the population standard deviation (SD) s
2 n = required sample size
z 2
n= 2s z = z-score for confidence level
T = margin of error
T s = standard deviation

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Estimating the population SD
Review prior research
Conduct a pilot study
Use conservation guesses
For 5-item rating/Likert scale, use s=1.4
For 7-item rating/Likert scale, use s=2
For 9, 10, 11-item rating scale, use s=3
For responses measured by ratio scales,
use s=range/4

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Sample Size Required for Estimating
a Mean: Beer Example

Of interest: average Ounces of beer consumed by

students at happy hour?
Want to be 95% confident that sample estimate within
+/- .5 ounces of the actual average
Past trends indicate that population SD is 4 ounces
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Estimating Sample Size for a Mean:
Beer Example
Margin of error SD n
(a) 95%
+/- .5 4 ???
confidence
+/- ounce
99% +/- .5 4
confidence ???
+/- ounce
(b) 99%
confidence +/- .25 4 ???
+/- ounce

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Sample Size for Estimating a Proportion
(e.g., responses to nominal- or ordinal-scale questions)
Three pieces of information are needed
1. Margin of error T
2. Confidence level
For 90% confidence, z = 1.645
For 95% confidence, z = 1.96
For 99% confidence, z= 2.575
3. Estimate of the population proportion p

z2 n = required sample size

=n ( p (1 p )) z = z-score for confidence level
T 2 T = margin of error
p = estimated population proportion

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Estimating the Population
Proportion p
Review prior research
Find secondary data (e.g., US census)
Conduct a pilot study
Make an informed guess
Use the most conservative guess: p=0.5

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Sample Size Required for Estimating a
Proportion: Example

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Sample Size Required for a Survey
with Multiple Questions

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Note
Inference presented in these slides assume that the
number in the population is very large (infinite), and
power of test (i.e., 1 - Type II error )= 50%.
http://www.itl.nist.gov/div898/handbook/prc/section2/
prc222.htm; prc242.htm
Sample size calculator example
If you sample from a population with few members,
(say less than 1000)
Sample sizes can be smaller
Standard errors are smaller
Can use finite population correction

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