Marketing research

BA035IU
• Lecturer: Dr. Alang Thớ
• Email: alangtho@hcmiu.edu.vn
• Workshops: Monday, 8.00– 10.30
• Consultation appointment: Skype
 Summarizing main points
from previous weeks
Sampling fundamentals

This week 8
Sampling size and statistical
theory
Summary of this week’s
lesson
 • Distinguishing among a population, a census,
and a sample
• Understanding sampling process
• Describing probability and non-probability
sampling procedure
• Determining sample size with ed hoc methods
• Understanding confidence intervals and
Learning interval estimate
objectives • Calculating sample size for a simple random
sample
• Calculating sample sizes for stratified sample
and for multistage designs
Summarizing main points from previous
weeks
Sampling fundamentals

Differentiating a
Probability sampling
population, a Sampling process
techniques
sample, and a census

Determining sample
Non-probability
size with ad hoc
sampling techniques
methods
Differentiating population, sample, and
census

1 2 3
Population is the set of Sample is a subset, or Census is an
all objects that possess some part, of a larger investigation of all the
some common set of population (Zikmund individual elements that
characteristics (Aaker et and Babin, 2010, p. 301) make up a population
al., 2002, p. 363) (Zikmund and Babin,
2010, p. 301)
When is census appropriate?

Information is needed
Population size itself is
from every individual in
quite small
the population

Cost of making an
Sampling errors are high
incorrect decision is high
When is sample appropriate?

Both cost and time is Quick decision is

Sample size is large
high needed

Easier to manage
Increasing response surveys and control in Population being dealt
quality with is homogeneous
the interview process

Used if census is
impossible
Error in sampling

Total Error • Difference between the true value and the observed
value of a variable

Sampling Error • Error is due to sampling

Non-sampling • Error is observed in both census and sample

(measurement; data recording; data analysis; and non-
Error response)
Sampling process
Identifying the target population Reconciling the
population, sampling
Determining the sampling frame frame differences

Selecting a sampling frame

Probability Non-probability
sampling sampling

Determining the relevant sample size

Execute sampling

Data collection from respondents Handling the non-

response problem
Information for decision-making
Determining target population

Look to the Consider the

Consider all Know your
research appropriate
alternatives market
objectives sampling unit

Specify clearly
Should be
what is Convenience
reproducible
excluded
 Determining sampling frame

• A list of population members used to obtain a sample

• Creating lists: list of households, telephone directories
• Selecting a sampling procedure
• Choose between Bayesian and traditional sampling procedure
• Decide whether to sample with or without replacement
Selecting sampling frames: Probability
sampling techniques

Sample selection
Target population
methods

Addressing nonresponse
Sample size
problem
 Probability sampling techniques (cont’d)

Simple Random Sampling:

• Each population member, and each possible sample, has equal probability of being selected

Stratified Sampling:
• The chosen sample is forced to contain units from each of the segments or strata of the population
• Proportionate Stratified Sampling:
• Number of objects/sampling units chosen from each group is proportional to number in
population;
• Can be classified as directly proportional or indirectly proportional stratified sampling
• Disproportionate Stratified Sampling:
• Sample size in each group is not proportional to the respective group sizes;
• Used when multiple groups are compared and respective group sizes are small
Probability sampling techniques (cont’d)

Cluster Sampling
• Involves dividing population into subgroups
• Random sample of subgroups/clusters is selected and all members of subgroups are
interviewed
• Very cost effective
• Useful when subgroups can be identified that are representative of entire population

Systematic Sampling
• Involves systematically spreading the sample through the list of population members
• Commonly used in telephone surveys
Cluster sampling and systematic sampling
Selecting sampling frames: Non-probability
sampling techniques
Costs and trouble of developing sampling frame are eliminated

Results can contain hidden biases and uncertainties

It can be used in situations: Exploratory stages; pretesting a questionnaire;

dealing with a homogeneous population; researchers’ lack of statistical
knowledge; requirement of operational ease
Non-probability sampling techniques (cont’d)

Judgmental Snowball

• "Expert" uses judgement to • Form of judgmental sampling

identify representative • Appropriate when reaching
samples small, specialized populations
• Each respondent, after being
interviewed, is asked to
identify one or more others in
the appropriate group
Non-probability sampling techniques (cont’d)

Convenience
• Used to obtain information
quickly and inexpensively
Quota
• Minimum number from each
specified subgroup in the
population
• Often based on demographic
data
An example of quota sampling
Non-response problems

Refuse to respond

Lack the ability to respond

Be inaccessible

Sample size has to be large enough to allow for non response

Those who respond may differ from non respondents in a meaningful way, creating biases

Seriousness of nonresponse bias depends on extent of non response

Solutions for non-response problems

1 2 3
Improve research Repeat the contact Attempt to estimate
design to reduce the one or more times the nonresponse
number of (call back) to try to bias
nonresponses reduce
nonresponses
Determining sample size

Use of statistical
techniques or ad hoc
methods Used when a person
knows from
experience what
sample size to adopt
Ad Hoc Methods
Used when budgetary
constraints dictate the
size of the sample
Ad hoc methods: Rules of thumb

Sample should be large enough, so that when it is divided into groups,

each group will have a minimum sample size of 100 or more

If analysis involves comparison between subgroups, sample size in each

subgroup should be 20 to 50

Use disproportionate sampling if one of groups of population is

relatively small
Ad hoc methods: Rules of thumb (cont’d)

Budget Constraints Comparative Studies

Researcher must decide whether sample size Find similar studies and use their sample sizes as
dictated by budget constraints allows a a guide
worthwhile study to be conducted
Factors determining sample size

NUMBER OF GROUPS VALUE OF ACCURACY LEVEL COST OF SAMPLE VARIABILITY OF THE

AND SUBGROUPS INFORMATION IN THE REQUIRED IN RESULTS POPULATION
WITHIN THE SAMPLE STUDY
Population characteristics/parameters

Population Mean (µ) Population Variance (𝝏2)

Normally unknown Measure of population dispersion
Determine its value as closely as possible by Based on degree to which a response differs
taking a sample from population from population average response
The difference of each value from it’s mean is
squared and averaged across all responses
An example of • Student ages: Peter (20), Loan (24), Quynh (19), Chloe
(32), George (25)
population mean • N= 5
and variance • µ= ?
• 𝝏2 =?
• …

• Type equation here.

Sample characteristics/statistics

Sample
Sample Reliability
Characteristics/Statistics
• Population mean is not • X will vary from sample to
known and must be sample
estimated from a sample • As sample size (n)
• Sample mean (X) is used increases, variation in X
to estimate the unknown will decrease
population mean
Sample characteristics/statistics (cont’d)
• Variation of X
• Standard error depends on sample size
• Assume that variation of X follows normal distribution
• Sampling distribution
• Indicates probability of getting a particular sample mean
Interval estimation
• X varies from sample to sample
• The difference between the sample mean (X) and the population
mean is the sampling error
• X + sampling error = interval estimate of sample mean
• Interval size depends on the confidence level the researcher wants for
the interval to contain the true population mean
• If the population standard deviation is not known, it is necessary to
estimate it with the sample standard deviation
Interval estimate of the population mean
• X + sampling error
sx - population standard deviation
Or
x + z sx / Ön
N - sample size
Size of interval estimate

CONFIDENCE LEVEL POPULATION SAMPLE SIZE

STANDARD DEVIATION
Sample size question
• Size of the sampling error that is desired
• Confidence level
• Sample size n = Z2 s2 /(sampling error)2
Determining the population standard
deviation
• Use a sample standard deviation obtained from a previous
comparable survey or from a pilot survey
• Estimate the sample standard deviation (s) subjectively
Sample size when proportion are used
• n = z2 p(1 - p)/(sampling error)2
• Researcher may require the sample estimate be within plus or minus
G percentage points of the population value
D = Gµ
Sample size formula
• N = s2 Z2 /(sampling error)2
N = s2 Z2 / D2
= C2 Z2 / g2
Coefficient of variation: C=(s/µ)
 Summary

• Two methods to get information from population. Census is contacting every member in the
population, while sampling is estimating a population parameter by contacting only a subset of
the population.
• Sampling process includes defining the target population; determining the sampling frames;
selecting the sample size; etc. For sample selection methods, it consists of probability sampling
methods and non probability sampling methods.
• Sample size is determined by ad hoc methods and statistical techniques. With statistical
techniques, sample size is determined by the confidence level desired, the allowed estimate
error, and the variance of the population.