KMBN302-Business Research Management

UNIT-4

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Unit 4 (6 Sessions)
• Sampling: Basic Concepts: Defining the Universe, Concepts of Statistical
Population, Sample, Characteristics of a good sample.
• Sampling Frame (practical approach for determining the sample frame
expected),
• Sampling errors, Non Sampling errors, Methods to reduce the errors, Sample
Size constraints, Non Response.
• Probability Sample: Simple Random Sample, Systematic Sample, Stratified
Random Sample, Area Sampling & Cluster Sampling.
• Non Probability Sample: Judgment Sampling, Convenience Sampling,
Purposive Sampling, Quota Sampling & Snowballing Sampling methods.
• Determining size of the sample – Practical considerations in sampling and
sample size, sample size determination.

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Sample and Sampling:

• A Sampling is a part of the total population.

• It can be an individual element or a group of elements selected from

the population.

• Although it is a subset, it is representative of the population and

suitable for research in terms of cost, convenience, and time.

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 A good sample is one which satisfies all or few of the following conditions:

1. Representativeness: When sampling method is adopted by the researcher, the

basic assumption is that the samples so selected out of the population are the best
representative of the population under study. Thus good samples are those who
accurately represent the population.
2. Accuracy: Accuracy is defined as the degree to which bias is absent from the
sample. An accurate (unbiased) sample is one which exactly represents the
population.
3. Size: A good sample must be adequate in size and reliable. The sample size
should be such that the inferences drawn from the sample are accurate to a given
level of confidence to represent the entire population under study.
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Steps in Sampling Process

An operational sampling process can be divided into seven steps as given below:

1. Defining the target population.

2. Specifying the sampling frame.
3. Specifying the sampling unit.
4. Selection of the sampling method.
5. Determination of sample size.
6. Specifying the sampling plan.
7. Selecting the sample.
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1. Defining the Target Population:

 Defining the population of interest, for business research, is the

first step in sampling process.

 In general, target population is defined in terms of element,

sampling unit, extent, and time frame.

 The definition should be in line with the objectives of the research

study.

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 For ex, if a kitchen appliances firm wants to conduct a survey to ascertain the
demand for its micro-ovens, it may define the population as ‘all women above the
age of 20 who cook (assuming that very few men cook)’. However, this definition
is too broad and will include every household in the country, in the population that
is to be covered by the survey.

 Therefore, the definition can be further refined and defined at the sampling unit
level, that, all women above the age 20, who cook and whose monthly household
income exceeds Rs.50,000. This reduces the target population size and makes the
research more focused.

• The population definition can be refined further by specifying the area from where
the researcher has to draw his sample, that is, households located in Kanpur

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2. Specifying the Sampling Frame:

 Once the definition of the population is clear a researcher should decide on

the sampling frame.

 A sampling frame is the list of elements from which the sample may be
drawn. Continuing with the micro oven ex, an ideal sampling frame would be
a database that contains all the households that have a monthly income above
Rs.50,000.

 However, in practice it is difficult to get an exhaustive sampling frame that

exactly fits the requirements of a particular research.

 In general, researchers use easily available sampling frames like telephone

directories and lists of credit card and mobile phone users.
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3. Specifying the Sampling Unit:

 A sampling unit is a basic unit that contains a single element or a group of elements of the
population to be sampled.

 In this case, a household becomes a sampling unit and all women above the age of 20 years
living in that particular house become the sampling elements.

 If it is possible to identify the exact target audience of the business research, every individual
element would be a sampling unit. This would present a case of primary sampling unit.

 However, a convenient and better means of sampling would be to select households as the
sampling unit and interview all females above 20 years, who cook. This would present a case
of secondary sampling unit.

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4. Selection of the Sampling Method:

 The sampling method outlines the way in which the sample units are to be
selected.

 The choice of the sampling method is influenced by the objectives of the

business research,

 availability of financial resources, time constraints, and the nature of the problem
to be investigated.

 All sampling methods can be grouped under two distinct heads, that is,
probability and non-probability sampling.

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5. Determination of Sample Size:

 The sample size plays a crucial role in the sampling process.

 There are various ways of classifying the techniques used in determining the sample size.

 In non-probability sampling procedures, the allocation of budget, thumb rules and number
of sub groups to be analysed, importance of the decision, number of variables, nature of
analysis, incidence rates, and completion rates play a major role in sample size
determination.

 In the case of probability sampling, however, formulas are used to calculate the sample size
after the levels of acceptable error and level of confidence are specified. The details of the
various techniques used to determine the sample size will be explained at the end of the
chapter.
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6. Specifying the Sampling Plan:

 In this step, the specifications and decisions regarding the implementation of

the research process are outlined.

 Suppose, blocks in a city are the sampling units and the households are the
sampling elements.

 This step outlines the modus operandi of the sampling plan in identifying
houses based on specified characteristics.

 It includes issues like how is the interviewer going to take a systematic sample
of the houses. What should the interviewer do when a house is vacant?

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7. Selecting the Sample:

 This is the final step in the sampling process, where the actual
selection of the sample elements is carried out.

 At this stage, it is necessary that the interviewers stick to the rules

outlined for the smooth implementation of the business research.

 This step involves implementing the sampling plan to select the

sampling plan to select a sample required for the survey.

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 Sampling Methods

Types of sampling: sampling methods

Sampling in market research is of two types – probability sampling and non-probability
sampling. Let’s take a closer look at these two methods of sampling.
• Probability sampling: Probability sampling is a sampling technique where a
researcher sets a selection of a few criteria and chooses members of a population
randomly. All the members have an equal opportunity to be a part of the sample with
this selection parameter.
• Non-probability sampling: In non-probability sampling, the researcher chooses
members for research at random. This sampling method is not a fixed or predefined
selection process. This makes it difficult for all elements of a population to have equal
opportunities to be included in a sample.
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Population vs sample
• First, you need to understand the difference between
a population and a sample, and identify the target population of your
research.
• The population is the entire group that you want to draw conclusions
about.
• The sample is the specific group of individuals that you will collect
data from.
• The population can be defined in terms of geographical location, age,
income, and many other characteristics.
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Example
• You are doing research on working conditions at Company X.
Your population is all 1000 employees of the company.
• Your sampling frame is the company’s HR database which
lists the names and contact details of every employee.

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Probability sampling methods
• Probability sampling means that every member of the population has a
chance of being selected.
• It is mainly used in quantitative research.
• If you want to produce results that are representative of the whole
population, probability sampling techniques are the most valid choice.
• There are four main types of probability sample.

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1. Simple random sampling
• In a simple random sample, every member of the population has an equal chance
of being selected. Your sampling frame should include the whole population.
• Example

• You want to select a simple random sample of 100 employees of Company X. You
assign a number to every employee in the company database from 1 to 1000, and
use a random number generator to select 100 numbers.

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2. Systematic sampling
• Systematic sampling is similar to simple random sampling, but it is usually slightly easier to
conduct. Every member of the population is listed with a number, but instead of randomly
generating numbers, individuals are chosen at regular intervals.
• Example
• All employees of the company are listed in alphabetical order. From the first 10 numbers, you
randomly select a starting point: number 6. From number 6 onwards, every 10th person on
the list is selected (6, 16, 26, 36, and so on), and you end up with a sample of 100 people.
• If you use this technique, it is important to make sure that there is no hidden pattern in the list
that might skew the sample. For example, if the HR database groups employees by team, and
team members are listed in order of seniority, there is a risk that your interval might skip over
people in junior roles, resulting in a sample that is skewed towards senior employees.

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3. Stratified sampling
• Stratified sampling involves dividing the population into subpopulations
that may differ in important ways. It allows you draw more precise
conclusions by ensuring that every subgroup is properly represented in the
sample.
• To use this sampling method, you divide the population into subgroups
(called strata) based on the relevant characteristic (e.g. gender, age range,
income bracket, job role).
• Based on the overall proportions of the population, you calculate how many
people should be sampled from each subgroup. Then you use random or
systematic sampling to select a sample from each subgroup.
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Example
• The company has 800 female employees and 200 male employees. You
want to ensure that the sample reflects the gender balance of the
company, so you sort the population into two strata based on gender.
Then you use random sampling on each group, selecting 80 women and
20 men, which gives you a representative sample of 100 people.

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4. Cluster sampling
• Cluster sampling also involves dividing the population into subgroups, but each
subgroup should have similar characteristics to the whole sample. Instead of
sampling individuals from each subgroup, you randomly select entire subgroups.
• If it is practically possible, you might include every individual from each sampled
cluster. If the clusters themselves are large, you can also sample individuals from
within each cluster using one of the techniques above. This is called
multistage sampling.
• This method is good for dealing with large and dispersed populations, but there is
more risk of error in the sample, as there could be substantial differences between
clusters. It’s difficult to guarantee that the sampled clusters are really
representative of the whole population.
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Example
• The company has offices in 10 cities across the country (all with
roughly the same number of employees in similar roles).
• You don’t have the capacity to travel to every office to collect your
data, so you use random sampling to select 3 offices – these are
your clusters.

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Non-probability sampling methods

• In a non-probability sample, individuals are selected based on non-random

criteria, and not every individual has a chance of being included.
• This type of sample is easier and cheaper to access, but it has a higher risk
of sampling bias.
• That means the inferences you can make about the population are weaker
than with probability samples, and your conclusions may be more limited.
• If you use a non-probability sample, you should still aim to make it as
representative of the population as possible.

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1. Convenience sampling
• A convenience sample simply includes the individuals who happen to be most
accessible to the researcher.
• This is an easy and inexpensive way to gather initial data, but there is no way to
tell if the sample is representative of the population, so it can’t produce
generalizable results.
Example
• You are researching opinions about student support services in your university, so
after each of your classes, you ask your fellow students to complete a survey on
the topic. This is a convenient way to gather data, but as you only surveyed
students taking the same classes as you at the same level, the sample is not
representative of all the students at your university.
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3. Purposive (Judgemental) sampling
• This type of sampling, also known as judgement sampling, involves
the researcher using their expertise to select a sample that is most
useful to the purposes of the research.
• It is often used in qualitative research, where the researcher wants to
gain detailed knowledge about a specific phenomenon rather than
make statistical inferences, or where the population is very small and
specific. An effective purposive sample must have clear criteria and
rationale for inclusion.

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Example
• You want to know more about the opinions and experiences of disabled
students at your university, so you purposefully select a number of
students with different support needs in order to gather a varied range of
data on their experiences with student services.

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3. Snowball sampling
• If the population is hard to access, snowball sampling can be used to
recruit participants via other participants. The number of people you have
access to “snowballs” as you get in contact with more people.
Example
• You are researching experiences of homelessness in your city. Since there
is no list of all homeless people in the city, probability sampling isn’t
possible. You meet one person who agrees to participate in the research,
and she puts you in contact with other homeless people that she knows in
the area.
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4.Quota sampling: In Quota sampling, the selection of members in
this sampling technique happens based on a pre-set standard.
In this case, as a sample is formed based on specific attributes, the
created sample will have the same qualities found in the total
population. It is a rapid method of collecting samples

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Sampling errors:

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• Non-sampling error refers to all sources of error that are unrelated to
sampling.
• Non-sampling errors are present in all types of survey, including
censuses and administrative data.
• They arise for a number of reasons: the frame may be incomplete,
some respondents may not accurately report data, data may be missing
for some respondents, etc.

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Non-sampling errors can be classified into two groups: random
errors and systematic errors.
• Random errors are errors whose effects approximately cancel out if a
large enough sample is used, leading to increased variability.
• Systematic errors are errors that tend to go in the same direction, and
thus accumulate over the entire sample leading to a bias in the final
results.
• Unlike random errors, this bias is not reduced by increasing the
sample size.
• Systematic errors are the principal cause of concern in terms of a
survey’s data quality.
• Unfortunately, non-sampling errors are often extremely difficult, if not
impossible, to measure.
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Types of non-sampling error

Non-sampling error can occur in all aspects of the survey process, and can
be classified into the following categories:
• Coverage error,
• Measurement error,
• Nonresponse error
• Processing error.

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Coverage error
• Coverage error consists of omissions (undercoverage), erroneous
inclusions, duplications and misclassifications (overcoverage) of units in
the survey frame.
• Since it affects every estimate produced by the survey, they are one of
the most important types of error.
• In the case of a census, it may be the main source of error.
• Coverage error can have both spatial and temporal dimensions, and may
cause bias in the estimates.
• The effect can vary for different subgroups of the population.
• This error tends to be systematic and is usually due to under coverage,
which is why it’s important to reduce it as much as possible.
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Measurement error

• Measurement error, also called response error, is the difference

between measured values and true values.
• It consists of bias and variance, and it results when data are
incorrectly requested, provided, received or recorded.
• These errors may occur because of inefficiencies with the
questionnaire, the interviewer, the respondent or the survey process.

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1.Poor questionnaire design

• It is essential that sample survey or census questions are worded

carefully in order to avoid introducing bias.
• If questions are misleading or confusing, then the responses may end
up being distorted.

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2.Interviewer bias
• An interviewer can influence how a respondent answers the survey
questions.
• This may occur when the interviewer is too friendly or aloof or
prompts the respondent.
• To prevent this, interviewers must be trained to remain neutral
throughout the interview.
• They must also pay close attention to the way they ask each question.
• If an interviewer changes the way a question is worded, it may impact
the respondent’s answer.

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3.Respondent error
• Respondents can also provide incorrect answers.
• Faulty recollections, tendencies to exaggerate or underplay events,
and inclinations to give answers that appear more socially acceptable
are several reasons why a respondent may provide a false answer.
4.Problems with the survey process
• Errors can also occur because of a problem with the actual survey
process.
• Using proxy responses, meaning taking answers from someone other
than the respondent, or lacking control over the survey procedures
are just a few ways of increasing the risk of response errors.

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Non-response error

• Estimates obtained after nonresponse has been observed and imputation

has been used to deal with this nonresponse are usually not equivalent to
the estimates that would have been obtained had all the desired values
been observed without error.
• The difference between these two types of estimates is called
the nonresponse error.
• There are two types of non-response errors: total and partial.

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• Total nonresponse error occurs when all or almost all data for a
sampling unit are missing.
• This can happen if the respondent is unavailable or temporarily absent,
the respondent is unable to participate or refuses to participate in the
survey, or if the dwelling is vacant.
• If a significant number of sampled units do not respond to a survey, then
the results may be biased since the characteristics of the non-respondents
may differ from those who have participated.

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• Partial nonresponse error occurs when respondents provide
incomplete information.
• For certain people, some questions may be difficult to understand,
they may refuse or forget to answer a question.
• Poorly designed questionnaire or poor interviewing techniques can
also be reasons which result partial nonresponse error.
• To reduce this form of error, care should be taken in designing and
testing questionnaires.
• Adequate interviewer training and appropriate edit and imputation
strategies will also help minimize this error.

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Processing error

• Processing error occurs during data processing.

• It includes all data processing activities after collection and prior to
estimation, such as errors in data capture, coding, editing and
tabulation of the data as well as in the assignment of survey weights.

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• Coding errors occur when different coders code the same answer
differently, which can be caused by poor training, incomplete
instructions, variance in coder performance (i.e. tiredness, illness), data
entry errors, or machine malfunction (some processing errors are caused
by errors in the computer programs).

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• Data capture errors result when data are not entered into the computer
exactly as they appear on the questionnaire.
• This can be caused by the complexity of alphanumeric data and by the
lack of clarity in the answer provided.
• The physical layout of the questionnaire itself or the coding documents
can cause data capture errors.
• The method of data capture, manual or automated (for example, using
an optical scanner), can also result in errors.

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• Editing and imputation errors can be caused by the poor quality of
the original data or by its complex structure.
• When the editing and imputation processes are automated, errors can
also be the result of faulty programs that were insufficiently tested.
• The choice of an inappropriate imputation method can introduce bias.
Errors can also result from incorrectly changing data that were found
to be in error, or by erroneously changing correct data.

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