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MS30C:Marketing Research

WEEK 5

 Sampling: Design and Procedures (Chapter 11)

 Sampling: Sample Size Determination (Chapter 12)

Presented by: Dr. Trevor Smith

Monday: Oct 2, 2023
Friday: Oct 6, 2023

5-1
© 2007 Prentice Hall
 The Sampling Design Process
Fig. 11.1

Define the Population

Determine the Sampling Frame

Select Sampling Technique(s)

Determine the Sample Size

Execute the Sampling Process

© 2007 Prentice Hall 11-2

 Define the Target Population
The target population is the collection of elements or
objects that possess the information sought by the
researcher and about which inferences are to be made.
The target population should be defined in terms of
elements, sampling units, extent, and time.

 An element is the object about which or from which

the information is desired, e.g., the respondent.
 A sampling unit is an element, or a unit containing
the element, that is available for selection at some
stage of the sampling process.
 Extent refers to the geographical boundaries.
 Time is the time period under consideration.

© 2007 Prentice Hall 11-3

 Sample Sizes Used in Marketing
Research Studies
Table 11.2

Type of Study Minimum Size Typical Range

Problem identification research 500 1,000-2,500

(e.g. market potential)
Problem-solving research (e.g. 200 300-500
pricing)

Product tests 200 300-500

Test marketing studies 200 300-500

TV, radio, or print advertising (per 150 200-300

commercial or ad tested)
Test-market audits 10 stores 10-20 stores

Focus groups 2 groups 6-15 groups

© 2007 Prentice Hall 11-4

 Classification of Sampling Techniques
Fig. 11.2
Sampling Techniques

Nonprobability Probability
Sampling Techniques Sampling Techniques

Convenience Judgmental Quota Snowball

Sampling Sampling Sampling Sampling

Simple Random Systematic Stratified Cluster Other Sampling

Sampling Sampling Sampling Sampling Techniques

© 2007 Prentice Hall 11-5

 Convenience Sampling

Convenience sampling attempts to obtain a

sample of convenient elements. Often, respondents
are selected because they happen to be in the right
place at the right time.

 use of students, and members of social

organizations
 mall intercept interviews without qualifying the
respondents
 department stores using charge account lists
 “people on the street” interviews

© 2007 Prentice Hall 11-6

 A Graphical Illustration of
Convenience Sampling
Fig. 11.3

A B C D E

Group D happens to
assemble at a
1 6 11 16 21
convenient time and
place. So all the
2 7 12 17 22 elements in this
Group are selected.
The resulting sample
3 8 13 18 23 consists of elements
16, 17, 18, 19 and 20.
Note, no elements are
4 9 14 19 24
selected from group
A, B, C and E.
5 10 15 20 25

© 2007 Prentice Hall 11-7

 Judgmental Sampling

Judgmental sampling is a form of convenience

sampling in which the population elements are
selected based on the judgment of the researcher.

 test markets
 purchase engineers selected in industrial
marketing research
 bellwether precincts selected in voting behavior
research
 expert witnesses used in court

© 2007 Prentice Hall 11-8

 Graphical Illustration of Judgmental
Sampling
Fig. 11.3
A B C D E

The researcher
considers groups B, C
1 6 11 16 21 and E to be typical and
convenient. Within each
of these groups one or
2 7 12 17 22 two elements are
selected based on
typicality and
3 8 13 18 23 convenience. The
resulting sample
consists of elements 8,
4 9 14 19 24 10, 11, 13, and 24. Note,
no elements are selected
from groups A and D.
5 10 15 20 25

© 2007 Prentice Hall 11-9

 Quota Sampling
Quota sampling may be viewed as two-stage restricted judgmental
sampling.

 The first stage consists of developing control categories, or

quotas, of population elements.
 In the second stage, sample elements are selected based on
convenience or judgment.

Population Sample
composition composition
Control
Characteristic Percentage Percentage Number
Sex
Male 48 48 480
Female 52 52 520
____ ____ ____
100 100 1000
© 2007 Prentice Hall 11-10
 A Graphical Illustration of
Quota Sampling
Fig. 11.3
A B C D E

A quota of one
element from each
1 6 11 16 21 group, A to E, is
imposed. Within each
group, one element is
2 7 12 17 22 selected based on
judgment or
convenience. The
3 8 13 18 23 resulting sample
consists of elements
3, 6, 13, 20 and 22.
4 9 14 19 24 Note, one element is
selected from each
column or group.
5 10 15 20 25

© 2007 Prentice Hall 11-11

 Snowball Sampling

In snowball sampling, an initial group of

respondents is selected, usually at random.

 After being interviewed, these respondents are

asked to identify others who belong to the target
population of interest.

 Subsequent respondents are selected based on

the referrals.

© 2007 Prentice Hall 11-12

 A Graphical Illustration of
Snowball Sampling
Random
Selection Referrals
A B C D E
Elements 2 and 9 are
selected randomly
1 6 11 16 21
from groups A and B.
Element 2 refers
elements 12 and 13.
2 7 12 17 22
Element 9 refers
element 18. The
3 8 13 18 23 resulting sample
consists of elements
2, 9, 12, 13, and 18.
4 9 14 19 24
Note, there are no
element from group E.
5 10 15 20 25
© 2007 Prentice Hall 11-13
 Simple Random Sampling

 Each element in the population has a known and

equal probability of selection.

 Each possible sample of a given size (n) has a

known and equal probability of being the sample
actually selected.

 This implies that every element is selected

independently of every other element.

© 2007 Prentice Hall 11-14

 A Graphical Illustration of
Simple Random Sampling
Fig. 11.4
A B C D E

Select five
1 6 11 16 21 random numbers
from 1 to 25. The
2
resulting sample
7 12 17 22
consists of
population
3 8 13 18 23 elements 3, 7, 9,
16, and 24. Note,
4
there is no
9 14 19 24
element from
Group C.
5 10 15 20 25
© 2007 Prentice Hall 11-15
 Systematic Sampling
 The sample is chosen by selecting a random starting
point and then picking every ith element in
succession from the sampling frame.

 The sampling interval, i, is determined by dividing the

population size N by the sample size n and rounding
to the nearest integer.

 When the ordering of the elements is related to the

characteristic of interest, systematic sampling
increases the representativeness of the sample.

© 2007 Prentice Hall 11-16

 Systematic Sampling

 If the ordering of the elements produces a cyclical

pattern, systematic sampling may decrease the
representativeness of the sample.

For example, there are 100,000 elements in the

population and a sample of 1,000 is desired. In this
case the sampling interval, i, is 100. A random
number between 1 and 100 is selected. If, for
example, this number is 23, the sample consists of
elements 23, 123, 223, 323, 423, 523, and so on.

© 2007 Prentice Hall 11-17

 A Graphical Illustration of
Systematic Sampling
Fig. 11.4
A B C D E

Select a random
number between 1 to
1 6 11 16 21
5, say 2.
The resulting sample
2 7 12 17 22 consists of
population 2,
(2+5=) 7, (2+5x2=) 12,
3 8 13 18 23
(2+5x3=)17, and
(2+5x4=) 22. Note, all
4 9 14 19 24 the elements are
selected from a
single row.
5 10 15 20 25

© 2007 Prentice Hall 11-18

 Stratified Sampling
 A two-step process in which the population is
partitioned into subpopulations, or strata.

 The strata should be mutually exclusive and collectively

exhaustive in that every population element should be
assigned to one and only one stratum and no
population elements should be omitted.

 Next, elements are selected from each stratum by a

random procedure, usually SRS.

 A major objective of stratified sampling is to increase

precision without increasing cost.
© 2007 Prentice Hall 11-19
 Stratified Sampling
 The elements within a stratum should be as
homogeneous as possible, but the elements in
different strata should be as heterogeneous as
possible.

 The stratification variables should also be closely

related to the characteristic of interest.

 Finally, the variables should decrease the cost of

the stratification process by being easy to measure
and apply.

© 2007 Prentice Hall 11-20

 A Graphical Illustration of
Stratified Sampling
Fig. 11.4
A B C D E

Randomly select a
1 6 11 16 21
number from 1 to 5
for each stratum, A to
E. The resulting
2 7 12 17 22
sample consists of
population elements
3 8 13 18 23 4, 7, 13, 19 and 21.
Note, one element
is selected from each
4 9 14 19 24
column.

5 10 15 20 25
© 2007 Prentice Hall 11-21
 Cluster Sampling

 The target population is first divided into mutually

exclusive and collectively exhaustive subpopulations,
or clusters.

 Then a random sample of clusters is selected, based

on a probability sampling technique such as SRS.

 For each selected cluster, either all the elements are

included in the sample (one-stage) or a sample of
elements is drawn probabilistically (two-stage).

© 2007 Prentice Hall 11-22

 A Graphical Illustration of
Cluster Sampling (2-Stage)
Fig. 11.4
A B C D E

Randomly select 3
clusters, B, D and E.
1 6 11 16 21
Within each cluster,
randomly select one
2 7 12 17 22 or two elements. The
resulting sample
consists of
3 8 13 18 23 population elements
7, 18, 20, 21, and 23.
4 9 14 19 24 Note, no elements
are selected from
clusters A and C.
5 10 15 20 25
© 2007 Prentice Hall 11-23
 Strengths and Weaknesses of
Basic Sampling Techniques
Table 11.3
Technique Strengths
Nonprobability Sampling Least expensive, least
Convenience sampling time-consuming, most
convenient
Judgmental sampling Low cost, convenient,
not time-consuming
Quota sampling Sample can be controlled
for certain characteristics
Snowball sampling Can estimate rare
characteristics
Probability sampling Easily understood,
Simple random sampling results projectable
(SRS)
Systematic sampling Can increase
representativeness,
easier to implement than
SRS, sampling frame not
necessary
Stratified sampling Include all important
subpopulations,
precision
Cluster sampling Easy to implement, cost
effective
© 2007 Prentice Hall
Weaknesses
Selection bias, sample not
representative, not recommended for
descriptive or causal research
Does not allow generalization,
subjective
Selection bias, no assurance of
representativeness
Time-consuming
Difficult to construct sampling
frame, expensive, lower precision,
no assurance of representativeness.
Can decrease representativeness
Difficult to select relevant
stratification variables, not feasible to
stratify on many variables, expensive
Imprecise, difficult to compute and
interpret results
11-24
 Sampling:
Sample
Size Determination (Chapter 12)

12-25
© 2007 Prentice Hall
Sample size determination for proportions using
confidence interval approach (1)
• n = ∏(1- ∏) z2 for infinite population
____________

D2
where n = sample size
∏ = population proportion
z = z value associated with confidence level
D = level of precision expressed as difference (margin of error)

Confidence Level Z-score

90% 1.65
95% 1.96
99% 2.58
99.5% 2.81

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Sample size determination for proportions using
confidence interval approach (2)

Example
 Determine the sample size for conducting

research among Jamaican credit card holders (at

a confidence level of 95% and margin of error of
± 3.5%) on the assumption that 60% of
Jamaican households have credit cards.

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Sample size determination for proportions using
confidence interval approach (3)
D = ±3.5% or ± 0.035 (margin of error)
CL = 95% (corresponding to z value of 1.96)
∏ = 60% or 0.60
• Substitute in formula:

n = ∏(1- ∏) z2
____________

D2
= .60(1-.60)(1.96)(1.96)
__________________ = 753
(.035)(.035)

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Confidence Level and Margin of error
Explained
 95% confidence level
 ± 3% margin of error (confidence interval); represents D
in sample size formula
 If survey is conducted 100 times, the data would be within
3% points above or below the percentage reported in
95% of the 100 surveys
 In research conducted, if 50% of respondents say
customer service is “very good” at 95%CL and ±3%ME
 This means that if the survey were conducted 100 times,
the %age who say the service is “very good” will range
between 47 and 53%, 95% of the time

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 Sample size determination for means using
confidence interval approach (2)

n= sd2 z2 for finite population

____________

D2
where n = sample size
sd = standard deviation of the population
Confidence Levelz = z valueZ-scoreassociated with confidence level
D = level of precision expressed as difference (margin of error)
90% 1.65
95% 1.96
99% 2.58
99.5% 2.81

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 Thank You…

5-31
© 2007 Prentice Hall