Lecture 7

Sampling Approaches

Learning Objectives
1. Understand the key principles of sampling in business research.

2. Difference between the target population & the sampling frame.

3. Difference between probability and nonprobability sampling procedures.
4. Different sampling methods commonly used by business researchers.
5. Determine the appropriate sample size for various situations encountered in
practice.

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 Sampling
Population Sample
• All elements that share a • Relatively small subset of the
common set of characteristics population.
– People, students, firms, etc. – Must be representative
• Parameter • Statistic
• Census • Procedures:
– Probability
– Nonprobability

Sampling
Questions:
1. Should a sample or a census be used?
2. If a sample, then which sampling approach is best?
3. How large a sample is necessary?

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 The sampling process

1. Defining the target population

2. Choosing the sampling frame

3. Selecting the sampling method

4. Determining the sample size

5. Implementing the sampling plan

1. Defining the target population

• Target population
– The complete group of objects or elements relevant to the
research project.
– They possess information the research is designed to collect.
• Sampling units
– Elements or objects available for selection during the
sampling process.

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 2. Choosing the sampling frame
• Sampling frame
– A comprehensive list of the elements from which the sample
is drawn.
• Ideally: An accurate, complete listing of all the elements in
the population targeted by the research.

• But, it may…
– Not be up-to-date.
– Include elements that do not belong to the target population.
– Not include elements that do belong to the target population.
– Have been compiled from multiple lists and contain duplicate
elements as a result of the manner in which the list was
constructed.
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3. Selecting the sampling method

Probability sampling Nonprobability sampling

• Each element of the target
population has a known (but
not necessarily equal)
probability of being selected
in a sample.
• Sampling elements are
selected randomly.
• The probability of being
selected is determined ahead
of time by the researcher.
• Researcher uses subjective
methods to select the
elements in the sample
– Personal experience, expert
judgment, convenience, etc.
• The probability of any
element of the population
being chosen is not known.
• No statistical methods for
measuring the sampling
error.

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 3. Selecting the sampling method

Probability methods Nonprobability methods

• Simple random • Convenience
• Systematic • Judgement
• Stratified • Quota
• Cluster • Snowball/referral
• Multistage

Simple random sampling

• Assigns each element of the target population an equal
probability of being selected.

• Procedure for drawing large samples:

1. Sequentially assign a unique identification number to each
element in the sampling frame.
2. Use a random number generator to identify the appropriate
elements to be selected for the sample.
3. Ensure that no element is selected more than once.

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 Systematic sampling
• Randomly selecting an initial starting point on a list,
thereafter every nth element in the sampling frame is
selected.

• Procedure:
– Determine sample size.
– Calculate the sampling interval
• Sampling interval: the number of population elements between each
unit selected for the sample.
– Randomly select a number of the sampling interval as a
starting point, e.g., n.
– Select the elements nth from the population.

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Stratified sampling
• Partition the sampling frame into strata
– Strata: relatively homogeneous subgroups that are distinct
and nonoverlapping.
– On the basis of some predetermined criteria
• Determine:
– The total sample size.
– Sample size for each of individual strata.
• The stratified sample is the composite of the samples taken
from the strata.

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 Stratified sampling
• Proportionately stratified sampling:
– The number of elements chosen from each stratum is
proportionate to the size of a particular stratum relative to the
overall sample size.
• Disproportionately stratified sampling: two approaches
1. Choosing the elements from each stratum according to its
relative importance.
• Importance: based on practical consideration.
2. Elements from each stratum are selected based on the relative
variability of the elements
• Based on the variability of the data within each stratum.

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Cluster sampling
• Clusters:
– Heterogeneous groups made up the target population.
– The clusters to be sampled would be randomly selected.
• Examples:
– Geographic areas
– Ethnic groups
– Companies
– Households

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 Cluster sampling: Procedure
1. Define the cluster characteristics.
– The clusters are unambiguously identified in the target population.
– The total number of clusters will be known ahead of time.
2. Decide on how many clusters to sample.
3. Choose the cluster(s) in a random manner.
4. Obtain a sampling frame for the chosen clusters.
5. Decide whether to conduct a census on the chosen cluster(s) or
whether to take a probability sample from the cluster(s).
6. If a probability sample is desired, determine the total sample size.
– If more than one cluster will be used, then the sample size should be
allocated appropriately; generally done on a proportionate sampling basis.

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Stratified sampling and cluster sampling

1 2 3 4 5 6

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 Convenience sampling
• Sample elements
– Most readily available to participate in the study
– Can provide the information required.
• Wed and social media:
– River sampling: Placing survey invitations on a website.
– Web scraping: Harvesting user-generated data from sites
where social media–engaged individuals have placed their
opinions or stimulated dialogue.

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Judgement sampling
• Select elements in the sample for a specific purpose.
– Aka purposive sample.
– A form of convenience sampling: the researcher’s judgment
is used to select the sample elements.

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 Quota sampling
• Similar to stratified random sampling.
• Different: the selection of elements is done on a
convenience basis
• Procedure:
– Define the target population.
– Determine the total sample size.
– Set a quota for the sample elements from each stratum.
• Specify the characteristics of the elements to be selected.
• But leave the actual choice of elements to the discretion of the person
collecting the information.

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Stratified sampling and quota sampling

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 Snowball/referral sampling
• The researcher then uses the initial respondents to help
identify the other respondents in the target population.

• This process is continued until the required sample size is

reached

• Facilitate the location of rare populations or those where a

list does not exist.

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4. Determining the sample size

• Sampling from a large population
– Appropriate sample size: determined prior to data collection.
– Many factors need to be considered.
• Balancing among several factors.
– Approaches:
• Compute the sample size using formulas
– Based on statistical theory.
• Ad hoc methods
– For pragmatic reasons, consider budget and time constraints.
• Sufficient size and quality to yield results that are seen to be credible in
terms of their accuracy and consistency.

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 4. Determining the sample size
• Sampling from a large population
– Using statistical formulas:
• DC (degree of confidence): the number of standard errors for the degree
of confidence specified for the research results.
• DP (desired precision): the acceptable difference between the sample
estimate and the population value.
• TV (true variability): the standard deviation of the population.

𝑫𝑪 × 𝑻𝑽
𝑆𝑎𝑚𝑝𝑙𝑒 𝑆𝑖𝑧𝑒 𝑺𝑺 =
𝑫𝑷
• The calculated sample size does not necessarily ensure that the sample
is representative of the target population.

• The extent to which a sample is representative is dependent on the

process used in the selection of the elements.

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4. Determining the sample size

• Sampling from a small population
– Adjusted formulas:
• N : the population size.
• n : the calculated sample size determined by the original formula.

𝑫𝑪 × 𝑻𝑽 𝑵
𝑆𝑎𝑚𝑝𝑙𝑒 𝑆𝑖𝑧𝑒 𝑺𝑺 = ×
𝑫𝑷 𝑵+ 𝒏−1

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 4. Determining the sample size
• Practical considerations:
– The researcher and client discuss and agree on the desired
level confidence and the precision of the estimate.
– Since it is unlikely to be known, the true variability is
typically estimated based on judgment or through a pilot
study.

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