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Sampling in Marketing Research Sampling in Marketing Research

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asics of sampling I asics of sampling I
sample is a
~part of a whole
to show what the
rest is like.
Sampling helps to
determine the
corresponding
value of the
population and
plays a vital role in
marketing
research.
Samples offer many benefits:
Save costs: Less expensive to study the
sample than the population.
Save time: Less time needed to study the
sample than the population .
ccuracy: Since sampling is done with
care and studies are conducted by skilled
and qualified interviewers, the results are
expected to be accurate.
estructive nature of elements: For some
elements, sampling is the way to test, since
tests destroy the element itself.
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asics of sampling II asics of sampling II
Limitations of Sampling
emands more rigid control
in undertaking sample
operation.
Minority and smallness in
number of sub-groups often
render study to be
suspected.
ccuracy level may be
affected when data is
subjected to weighing.
Sample results are good
approximations at best.
Sampling Process
Defining the
popuIation
DeveIoping
a sampIing
Frame
Determining
SampIe
Size
Specifying
SampIe
Method
SELECTING THE SAMPLE
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Sampling: Step 1
efining the Universe
Universe or population is the
whole mass under study.
How to define a universe:
hat constitutes the units of
analysis (H apartments)?
hat are the sampling units
(H apartments occupied in
the last three months)?
hat is the specific designation
of the units to be covered (H
in town area)?
hat time period does the data
refer to (ecember 31, 1995)
Sampling: Step 2
Establishing the Sampling
Frame
A sample frame is the list of all
elements in the population
(such as telephone directories,
electoral registers, club
membership etc.) from which
the samples are drawn.
sample frame which does not
fully represent an intended
population will result in frame
error and affect the degree of
reliability of sample result.
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Step Step - - 33
etermination of Sample Size etermination of Sample Size
Sample size may be determined by using:
Subjective methods (less sophisticated methods)
%he rule of thumb approach: eg. 5 of population
Conventional approach: eg. verage of sample sizes of
similar other studies;
Cost basis approach: %he number that can be studied
with the available funds;
Statistical formulae (more sophisticated methods)
Confidence interval approach.
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Conventional approach of Sample size determination using
Sample sizes used in different marketing research studies
%PE OF S%U MINIMUM
SIZE
%PICL
RNGE
Identifying a problem (e.g.market
segmentation) 500 1000-2500
Problem-solving (e.g., promotion) 200 300-500
Product tests 200 300-500
dvertising (%', Radio, or print Media
per commercial or ad tested) 150 200-300
%est marketing 200 300-500
%est market audits 10
stores/outlets
10-20
stores/outlets
Focus groups 2 groups 4-12 groups
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Sample size determination using statistical formulae: Sample size determination using statistical formulae:
1he confidence interval approach
%o determine sample sizes using statistical formulae,
researchers use the confidence interval approach based on the
following factors:
Desired level of data precision or accuracy;
Amount of variability in the population (homogeneity);
Level of confidence required in the estimates of population values.
vailability of resources such as money, manpower and time
may prompt the researcher to modify the computed sample
size.
Students are encouraged to consult any standard marketing
research textbook to have an understanding of these formulae.
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tep 4: Step 4:
SpeciIying the sampling method SpeciIying the sampling method
Probability Sampling
Every element in the target population or universe sampling
frame] has equal probability of being chosen in the sample for
the survey being conducted.
Scientific, operationally convenient and simple in theory.
Results may be generalized.
Non-Probability Sampling
Every element in the universe sampling frame] does not have
equal probability of being chosen in the sample.
Operationally convenient and simple in theory.
Results may not be generalized.
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Probability sampling Probability sampling
Appropriate for
homogeneous population
Simple random sampling
Requires the use of a random
number table.
Systematic sampling
Requires the sample frame
only,
Ao random number table is
necessary
Appropriate for
heterogeneous population
Stratified sampling
Use of random number
table may be necessary
Cluster sampling
Use of random number
table may be necessary
Four types of probability sampling
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Non Non- -probability sampling probability sampling
Four types of non-probability sampling
techniques
Jery simple types, based on subjective criteria
Convenient sampling
1udgmental sampling
More systematic and formal
Quota sampling
Special type
Snowball Sampling
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Simple Random Sampling Simple Random Sampling
lso called random
sampling
Simplest method of
probability
sampling
2 3 4 5 6 7 8 9 2 3 4 5 6 7 8 9 2
37 75 49 98 66 3 86 34 8 98 44 22 22 45 83 53 86 23 5
2 5 9 56 4 52 82 98 57 96 27 27 6 35 34 47 36 8
3 99 4 23 5 2 3 25 79 7 8 54 55 4 2 5 5 3 68 56
4 7 72 33 25 9 6 23 58 3 78 47 43 77 88 5 2 55 67
5 8 46 6 49 47 32 58 8 75 29 63 66 89 9 22 35 97 74 3 8
6 65 76 34 33 6 95 3 53 72 6 78 28 4 5 78 76 45 26 45
7 83 76 95 25 7 6 3 32 52 87 38 49 82 84 99 2 64
8 58 9 7 84 2 98 57 93 36 65 7 83 93 42 46 34 6 44
9 54 74 67 5 78 2 96 43 4 22 74 7 2 54 5 78 76 76
56 8 92 73 4 7 2 5 26 63 57 86 48 5 59 5 46 9 75 64
34 99 6 2 22 38 22 32 85 26 37 62 27 74 46 2 6 59 8
2 2 26 92 27 95 87 59 38 8 3 95 38 36 78 23 2 9 65 48 5
3 43 4 25 36 45 73 8 2 6 3 6 72 39 2 47 6 98
4 92 56 5 22 6 86 88 77 86 59 57 66 3 82 33 97 2 3 6
5 67 42 43 26 2 6 84 8 68 48 85 48 35 48 57 63 38 84
Aeed to use Aeed to use
Random
Number %able
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How to Use Random Number TabIes
________________________________________________
1. Assign a unique number to each population element in the
sampling frame. Start with serial number 1, or 01, or 001,
etc. upwards depending on the number of digits required.
2. Choose a random starting position.
3. Select serial numbers systematically across rows or down
columns.
4. Discard numbers that are not assigned to any population
element and ignore numbers that have already been
selected.
5. Repeat the selection process until the required number of
sample elements is selected.
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How to Use a %able of Random Numbers to Select a Sample
Your marketing research lecturer wants to randomly select 2 students from
your class of 1 students. Here is how he can do it using a random number table.
Step 1: Assign all the members oI the population a unique number.You may
identiIy each element by assigning a two-digit number. Assign to the Iirst name
on the list, and to the last name. II this is done, then the task oI selecting the
sample will be easier as you would be able to use a 2-digit random number table.
NME NUMER NME NUMER
Adam, Tan Tan Teck Wah 42
...... ........ .
Carrol, Chan 8 Tay Thiam Soon 6
....... . ........ .
Jerry Lewis 8 Teo Tai Meng 87
....... . ........ .
Lim Chin Nam 26 ........ .
....... . Yeo Teck Lan 99
Singh, Arun 3 ailani bt Samat
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Step 2: Select any starting point in the Random Number Table and Iind the Iirst number that
corresponds to a number on the list oI your population. In the example below, # 8 has been
chosen as the starting point and the Iirst student chosen is Carol Chan.
9 73 25 33 76
37 54 2 48 5 64
8 42 26 89 53 9
25 29 9
2 8 79 99 7 8
66 57 47 7 34
3 8 5 45
Step 3: Move to the next number, 42 and select the person corresponding to that number into
the sample. #87 Tan Teck Wah
Step 4: Continue to the next number that qualiIies and select that person into the sample.
# 26 -- Jerry Lewis, Iollowed by #89, #53 and #9
Step 5: AIter you have selected the student # 9, go to the next line and choose #9. Continue
in the same manner until the Iull sample is selected. II you encounter a number selected
earlier (e.g., 9, 6 in this example) simply skip over it and choose the next number.
Starting point:
move right to the end
of the row, then down
to the next row row;
move left to the end,
then down to the next
row, and so on.
How to use random number table to select a random sample
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Systematic sampling Systematic sampling
O 'ery similar to simple random sampling with one exception.
O In systematic sampling only one random number is needed throughout the
entire sampling process.
O %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
O Names are selected using the skip interval.
O f a researcher were to select a sample of 1 people using the local telephone
directory containing 215, listings as the sampling frame, skip interval is
[215,/1j, or 215. 1he researcher can select every 215
th
name of the entire
directory [sampling framej, and select his sample.
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Example: How to 1ake a Systematic Sample
Step 1: Select a listing of the population, say the City %elephone irectory, 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.
Example: 25, names in the phone book, desired a sample size of 25,
So skip interval every 1
th
name
Step 3: Using random number(s), determine a starting position for sampling the list.
Example: Select: Random number for page number. (page 1)
Select: Random number of column on that page. (col. 3)
Select: Random number for name position in that column (#38, say, A..Mahadeva)

Step 4: pply the skip interval to determine which names on the list will be in the sample.
Example: A. Mahadeva (Skip 1 names), new name chosen is A Rahman b Ahmad.
Step 5: Consider the list as ~circular; 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.
Example: When you come to the end of the phone book names (Zs), just continue on
through the beginning (As).
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StratiIied sampling I StratiIied sampling I
three-stage process:
Step 1- ivide the population into
homogeneous, mutually exclusive
and collectively exhaustive subgroups
or strata using some stratification
variable;
Step 2- Select an independent simple
random sample from each stratum.
Step 3- Form the final sample by
consolidating all sample elements
chosen in step 2.
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:
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.
isproportionate: the sample
is disproportionate when the
above mentioned ratio is
unequal.
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%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
00 (E ) 20 (V) 10 (E ) 0 ( X ) 80 (V)
01 (E ) 21 ( X ) 11 ( X ) 1 (V) 81 (E )
02 ( X ) 22 (E ) 12 ( X ) 2 (V) 82 (E )
03 (E ) 23 ( X ) 13 (E ) 3 (E ) 83 (V)
01 (E ) 21 (E ) 11 (V) 1 (E ) 81 ( X )
05 (E ) 25 (V) 15 (E ) 5 ( X ) 85 (E )
0 (V) 2 (E ) 1 ( X ) (V) 8 (E )
0Z (V) 2Z (V) 1Z (V) Z (E ) 8Z (V)
08 (E ) 28 ( X ) 18 (E ) 8 (V) 88 ( X )
09 (E ) 29 (E ) 19 (E ) 9 (E ) 89 (E )
10 (V) 30 (E ) 50 (E ) Z0 (E ) 90 ( X )
11 (E ) 31 (E ) 51 (V) Z1 (E ) 91 (E )
12 ( X ) 32 (E ) 52 ( X ) Z2 (V) 92 (V)
13 (V) 33 (V) 53 (V) Z3 (E ) 93 (E )
11 (E ) 31 (E ) 51 (E ) Z1 ( X ) 91 (E )
15 (V) 35 (V) 55 (E ) Z5 (E ) 95 ( X )
1 (E ) 3 (E ) 5 (V) Z (E ) 9 (E )
1Z ( X ) 3Z (E ) 5Z (E ) ZZ (V) 9Z (E )
18 ( X ) 38 ( X ) 58 (V) Z8 (V) 98 (V)
19 (V) 39 ( X ) 59 (V) Z9 (E ) 99 (E )
Selection of a proportionate Stratified Sample
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Step 2: Sub-divide the club members into three homogeneous sub-groups or strata by the
language groups: English, Mandarin and others.
EnglishLanguage Mandarin Language Other Language
Stratum Stratum Stratum .
22 4 64 82 6 35 66 2 42
24 43 67 85 7 44 68 2 46
3 26 45 69 86 47 72 7 52
4 29 48 7 89 3 5 77 8 6
5 3 49 7 9 5 53 78 2 65
8 3 5 73 93 9 56 8 23 74
9 32 54 75 94 2 58 83 28 84
34 55 76 96 25 59 87 38 88
4 36 57 79 97 27 6 92 39 9
6 37 63 8 99 33 62 98 4 95
1. Calculate the overall sampling fraction, f, in the following manner:
I

N 5
where n sample size and N population size
0.2
Selection of a proportionate stratified sample II
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O etermine the number of sample elements (n
1
) to be selected from the English
language stratum. In this example, n
1
50 x f 50 x 0.2 10. y using a simple
random sampling method using a random number table] members whose numbers
are 01, 03, 16, 30, 43, 48, 50, 54, 55, 75, are selected.
O Next, determine the number of sample elements (n
2
) from the Mandarin language
stratum. In this example, n
2
30 x f 30 X 0.2 6. y using a simple random
sampling method as before, members having numbers 10,15, 27, 51, 59, 87 are
selected from the Mandarin language stratum.
O In the same manner, the number of sample elements (n
3
) from the Other language`
stratum is calculated. In this example, n
3
20 x f 20 X 0.2 4. For this stratum,
members whose numbers are 17, 18, 28, 38 are selected`
O %hese three different sets of numbers are now aggregated to obtain the ultimate
stratified sample as shown below.
S (01, 03, 10, 15, 16, 17, 18, 27, 28, 30, 38, 43, 48, 50, 51, 54, 55, 59, 75, 87)
Selection of a proportionate stratified sample III
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Cluster sampling Cluster sampling
Is a type of sampling in which clusters or groups of
elements are sampled at the same time.
Such a procedure is economic, and it retains the
characteristics of probability sampling.
two-step-process:
Step 1- efined population is divided into number of mutually
exclusive and collectively exhaustive subgroups or clusters;
Step 2- Select an independent simple random sample of clusters.
One special type of cluster sampling is called area sampling, where
pieces of geographical areas are selected.
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Example : One-stage and two-stage Cluster sampling
Consider the same Island 'ideo Club example involving 100 club members:
O Step 1: Sub-divide the club members into 5 clusters, each cluster containing 20 members.
Cluster
No. English Mandarin Others
1 00, 22, 40, 64, 82 06, 35, 66 02, 42
01, 24, 43, 67, 85 07, 44, 68 12, 46
2 03, 26, 45, 69, 86 10, 47, 72 17, 52
04, 29, 48, 70, 89 13, 51, 77 18, 60
3 05, 30, 49, 71, 91 15, 53, 78 21, 65
08, 31, 50, 73, 93 19, 56, 80 23, 74
4 09, 32, 54, 75, 94 20, 58, 83 28, 84
11, 34, 55, 76, 96 25, 59, 87 38, 88
5 14, 36, 57, 79, 97 27, 61, 92 39, 90
16, 37, 63, 81, 99 33, 62, 98 41, 95
O Step 2: Select one oI the 5 clusters. II cluster 4 is selected, then all its elements (i.e. Club
Members with numbers 9, , 32, 34, 54, 55, 75, 76, 94, 96, 2, 25, 58, 59, 83, 87, 28, 38, 84,
88) are selected.
O Step 3: II a two-stage cluster sampling is desired, the researcher may randomly select 4 members
Irom each oI the Iive clusters. In this case, the sample will be diIIerent Irom that shown in step 2
above.
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Stratified Sampling vs Cluster Sampling
Stratified Sampling Cluster Sampling
1. %he target population is sub-divided
into a few subgroups or strata, each
containing a large number of elements.
1. %he target population is sub-
divided into a large number of
sub-population or clusters, each
containing a few elements.
2. ithin each stratum, the elements are
homogeneous. However, high degree of
heterogeneity exists between strata.
2. ithin each cluster, the elements
are heterogeneous. etween
clusters, there is a high degree of
homogeneity.
3. sample element is selected each time. 3. 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.
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RE SMPLING
O A common form of cluster sampling where clusters consist of geographic areas, such as
districts, housing blocks or townships. Area sampling could be one-stage, two-stage, or
multi-stage.
How to 1ake an Area Sample Using Subdivisions
our company wants to conduct a survey on the expected patronage of its new outlet in a new
housing estate. %he company wants to use area sampling to select the sample households to be
interviewed. %he sample may be drawn in the manner outlined below.
___________________________________________________________________________________
Step 1: etermine the geographic area to be surveyed, and identify its subdivisions. Each
subdivision cluster should be highly similar to all others. For example, choose ten housing
blocks within 2 kilometers of the proposed site say, Model %own ] for your new retail outlet;
assign each a number.
Step 2: ecide on the use of one-step or two-step cluster sampling. ssume that you decide to
use a two-stage cluster sampling.
Step 3: Using random numbers, select the housing blocks to be sampled. Here, you select 4
blocks randomly, say numbers #102, #104, #106, and #108.
Step 4: Using some probability method of sample selection, select the households in each of the
chosen housing block to be included in the sample. Identify a random starting point (say,
apartment no. 103), instruct field workers to drop off the survey at every fifth house
(systematic sampling).
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Non Non- -probability samples probability samples
Convenience sampling
Drawn at the convenience of the researcher. Common in exploratory research.
Does not lead to any conclusion.
udgmental sampling
Sampling 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.
"uota sampling
An extension of judgmental sampling. It is something like a two-stage judgmental
sampling. Quite difficult to draw.
Snowball sampling
Used in studies involving respondents who are rare to find. 1o start with, the
researcher compiles a short list of sample units from various sources. Each of
these respondents are contacted to provide names of other probable respondents.
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Quota Sampling
O %o select a quota sample comprising 3000 persons in country X using three control
characteristics: sex, age and level of education.
O Here, the three control characteristics are considered independently of one another.
In order to calculate the desired number of sample elements possessing the various
attributes of the specified control characteristics, the distribution pattern of the
general population in country X in terms of each control characteristics is examined.
Control
Characteristics Population istribution Sample Elements .
Gender: .... Male...................... 5.7 Male 3 x 5.7 52
................. Female .................. 49.3 Female 3 x 49.3 479
Age: ......... 2-29 years ........... 3.4 2-29 years 3 x 3.4 42
................. 3-39 years ........... 53.3 3-39 years 3 x 52.3 569
................. 4 years & over .... 33.3 4 years & over 3 x 34.3 29
Religion: .. Christianity........... 76.4 Christianity 3 x 76.4 2292
................. Islam..................... 4.8 Islam 3 x 4.8 444
................. Hinduism.............. 6.6 Hinduism 3 x 6.6 98
................. Others ................... 2.2 Others 3 x 2.2 66
*********************************************************************************
*
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Sampling vs non Sampling vs non- -sampling errors sampling errors
Sampling Error SE] Non-sampling Error NSE]
'ery smaII sam 'ery smaII sampIe pIe Size Size
Larger s Larger sampIe size ampIe size
SStiII Iarger sampIe tiII Iarger sampIe
CompIete census CompIete census
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Choosing probability vs. non Choosing probability vs. non- -probability sampling probability sampling
Probability Evaluation Criteria Non-probability
sampling sampling
Conclusive Aature 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 Aeeded Low
Relatively Longer 1ime Relatively shorter
High Budget Aeeded Low