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1

Basics of sampling I

A sample is a ³part 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 . Accuracy: 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.

2

Specifying Sample Method Determining Sample Size SELECTING THE SAMPLE 3 . Minority and smallness in number of sub-groups often render study to be suspected. Sample results are good approximations at best.Basics of sampling II Limitations of Sampling Sampling Process Defining the population Developing a sampling Frame Demands more rigid control in undertaking sample operation. Accuracy level may be affected when data is subjected to weighing.

) from which the samples are drawn. electoral registers. club membership etc. 4 . A sample frame which does not fully represent an intended population will result in frame error and affect the degree of reliability of sample result.Sampling: Step 1 Defining the Universe Sampling: Step 2 Establishing the Sampling Frame Universe or population is the whole mass under study. How to define a universe: » What constitutes the units of analysis (HDB apartments)? » What are the sampling units (HDB apartments occupied in the last three months)? » What is the specific designation of the units to be covered (HDB in town area)? » What time period does the data refer to (December 31. 1995) A sample frame is the list of all elements in the population (such as telephone directories.

Average of sample sizes of similar other studies. » Statistical formulae (more sophisticated methods) ± Confidence interval approach. ± Cost basis approach: The number that can be studied with the available funds.Step . 5% of population ± Conventional approach: eg. 5 .3 Determination of Sample Size Sample size may be determined by using: » Subjective methods (less sophisticated methods) ± The rule of thumb approach: eg.

. promotion) Product tests Advertising (TV. or print Media per commercial or ad tested) Test marketing Test market audits Focus groups MINIMUM SIZE 500 200 200 150 200 10 stores/outlets 2 groups TYPICAL RANGE 1000-2500 300-500 300-500 200-300 300-500 10-20 stores/outlets 4-12 groups 6 . Radio.market segmentation) Problem-solving (e.g.Conventional approach of Sample size determination using Sample sizes used in different marketing research studies TYPE OF STUDY Identifying a problem (e.g.

Students are encouraged to consult any standard marketing research textbook to have an understanding of these formulae. manpower and time may prompt the researcher to modify the computed sample size. 7 .Sample size determination using statistical formulae: The confidence interval approach To determine sample sizes using statistical formulae. » Amount of variability in the population (homogeneity). » Level of confidence required in the estimates of population values. Availability of resources such as money. researchers use the confidence interval approach based on the following factors: » Desired level of data precision or accuracy.

» Results may not be generalized. » Scientific. 8 . » Results may be generalized. operationally convenient and simple in theory. » Operationally convenient and simple in theory.Step 4: tep Specifying 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. Non-Probability Sampling » Every element in the universe [sampling frame] does not have equal probability of being chosen in the sample.

Appropriate for heterogeneous population » Stratified sampling ± Use of random number table may be necessary » Systematic sampling ± Requires the sample frame only.Probability sampling Four types of probability sampling Appropriate for homogeneous population » Simple random sampling ± Requires the use of a random number table. ± No random number table is necessary » Cluster sampling ± Use of random number table may be necessary 9 .

NonNon-probability sampling Four types of non-probability sampling techniques » Very simple types. based on subjective criteria ± Convenient sampling ± Judgmental sampling » More systematic and formal ± Quota sampling » Special type ± Snowball Sampling 10 .

Simple Random Sampling Also called random sampling Simplest method of probability sampling 1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 37 50 99 70 18 65 83 58 54 56 34 02 43 92 67 2 75 91 14 72 46 76 76 90 74 81 99 26 04 56 42 3 4 10 56 23 01 06 34 95 07 67 92 06 92 25 51 43 49 41 50 00 49 11 25 84 11 73 21 27 36 22 26 5 98 52 21 33 47 33 70 20 15 40 22 95 00 11 20 6 66 82 01 25 32 60 60 98 78 07 7 8 9 10 11 12 13 14 15 16 17 18 19 20 45 35 12 77 22 51 82 42 02 59 83 34 15 88 35 78 84 46 54 15 53 47 15 15 97 76 99 34 51 46 86 01 03 02 74 45 02 61 78 09 23 36 68 55 30 26 64 44 76 75 51 08 56 67 80 45 00 01 76 64 03 86 34 80 98 44 22 22 98 11 57 96 27 10 27 16 03 25 79 07 80 54 55 41 19 16 23 58 03 78 47 43 58 08 75 29 63 66 89 09 95 13 57 21 20 03 32 93 96 05 53 52 36 43 26 72 11 65 14 63 06 87 10 11 57 78 38 71 22 86 28 49 83 74 48 14 01 93 17 51 Need to use Random Number Table 38 22 32 85 26 37 00 62 27 74 46 02 61 59 81 87 59 38 18 30 95 38 36 78 23 20 19 65 48 50 45 73 80 02 61 31 10 06 72 39 02 00 47 06 98 06 86 88 77 86 59 57 66 13 82 33 97 21 31 61 60 84 18 68 48 85 00 00 48 35 48 57 63 38 84 11 .

12 . Repeat the selection process until the required number of sample elements is selected. 4. 3. Select serial numbers systematically across rows or down columns. Assign a unique number to each population element in the sampling frame. Start with serial number 1. 5. 2. or 01. or 001. upwards depending on the number of digits required.How to Use Random Number Tables ________________________________________________ 1. etc. Choose a random starting position. Discard numbers that are not assigned to any population element and ignore numbers that have already been selected.

Jerry Lewis ««««««. and 00 to the last name. If this is done.You may identify each element by assigning a two-digit number. NAME NUMBER NAME NUMBER Adam. Tan «««««« Carrol.How to Use a Table of Random Numbers to Select a Sample Your marketing research lecturer wants to randomly select 20 students from your class of 100 students. Here is how he can do it using a random number table. Teo Tai Meng «««««««. then the task of selecting the sample will be easier as you would be able to use a 2-digit random number table. Lim Chin Nam ««««««. Assign 01 to the first name on the list. Chan ««««««.. Step 1: Assign all the 100 members of the population a unique number. Arun 01 08 « 18 « 26 « 30 Tan Teck Wah «««««««« Tay Thiam Soon ««««««. «««««««« Yeo Teck Lan Zailani bt Samat 42 « 61 « 87 « « 99 00 13 . Singh.

# 08 has been chosen as the starting point and the first student chosen is Carol Chan. followed by #89.g. # 26 -. #53 and #19 Step 5: After you have selected the student # 19. 42 and select the person corresponding to that number into the sample. #87 ± Tan Teck Wah Step 4: Continue to the next number that qualifies and select that person into the sample. If you encounter a number selected earlier (e. move left to the end. Continue in the same manner until the full sample is selected.. . go to the next line and choose #90. 14 Starting point: move right to the end of the row. and so on.Jerry Lewis. 10 09 73 25 33 76 37 54 20 48 05 64 08 42 26 89 53 19 90 01 90 25 29 09 12 80 79 99 70 80 66 06 57 47 17 34 31 06 01 08 05 45 Step 3: Move to the next number. 06 in this example) simply skip over it and choose the next number. then down to the next row. 90. In the example below. then down to the next row row.How to use random number table to select a random sample Step 2: Select any starting point in the Random Number Table and find the first number that corresponds to a number on the list of your population.

skip interval is [215.000/1000].000 listings as the sampling frame. and select his sample. or 215. The researcher can select every 215th name of the entire directory [sampling frame]. a researcher needs: [i] a sampling frame of the population. y f a researcher were to select a sample of 1000 people using the local telephone directory containing 215. and is needed. [ii] a skip interval calculated as follows: Skip interval = population list size Sample size y Names are selected using the skip interval. y In systematic sampling only one random number is needed throughout the entire sampling process. y To use systematic sampling.Systematic sampling y Very similar to simple random sampling with one exception. 15 .

Example: 250. Example: Select: Random number for page number. 03) Select: Random number for name position in that column (#38. Mahadeva (Skip 100 names).000 names in the phone book. Step 2: Compute the skip interval by dividing the number of entries in the directory by the desired sample size. new name chosen is A Rahman b Ahmad. Example: When you come to the end of the phone book names (Zs). just continue on through the beginning (As).Example: How to Take a Systematic Sample Step 1: Select a listing of the population. Step 5: Consider the list as ³circular´. say. that is.. A. So skip interval = every 100th name Step 3: Using random number(s).Mahadeva) Step 4: Apply the skip interval to determine which names on the list will be in the sample. desired a sample size of 2500. from which to sample. (col. (page 01) Select: Random number of column on that page. determine a starting position for sampling the list. Remember that the list will have an acceptable level of sample frame error. and the last name is now the name just prior to the initially selected one. 16 . the first name on the list is now the initial name you selected. Example: A. say the City Telephone Directory.

Proportionate: involving the selection of sample elements from each stratum.Select an independent simple random sample from each stratum.Form the final sample by consolidating all sample elements chosen in step 2. mutually exclusive and collectively exhaustive subgroups or strata using some stratification variable. May yield smaller standard errors of estimators than does the simple random sampling. Thus precision can be gained with smaller sample sizes.Stratified sampling I A three-stage process: Stratified samples can be: Step 1. 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.Divide the population into homogeneous. Disproportionate: the sample is disproportionate when the above mentioned ratio is unequal. Step 2. 17 . Step 3.

Step 1: Identify each member from the membership list by his or her respective language groups 00 (E ) 01 (E ) 02 ( X ) 03 (E ) 04 (E ) 05 (E ) 06 (M) 07 (M) 08 (E ) 09 (E ) 10 (M) 11 (E ) 12 ( X ) 13 (M) 14 (E ) 15 (M) 16 (E ) 17 ( X ) 18 ( X ) 19 (M) 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 (M) (X) (E ) (X) (E ) (M) (E ) (M) (X) (E ) (E ) (E ) (E ) (M) (E ) (M) (E ) (E ) (X) (X) 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 (E ) (X) (X) (E ) (M) (E ) (X) (M) (E ) (E ) (E ) (M) (X) (M) (E ) (E ) (M) (E ) (M) (M) 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 (X) (M) (M) (E ) (E ) (X) (M) (E ) (M) (E ) (E ) (E ) (M) (E ) (X) (E ) (E ) (M) (M) (E ) 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 (M) (E ) (E ) (M) (X) (E ) (E ) (M) (X) (E ) (X) (E ) (M) (E ) (E ) (X) (E ) (E ) (M) (E ) 18 .e.Selection of a proportionate Stratified Sample To select a proportionate stratified sample of 20 members of the Island Video Club which has 100 members belonging to three language based groups of viewers i.. Mandarin (M) and Others (X). English (E).

Selection of a proportionate stratified sample II Step 2: Sub-divide the club members into three homogeneous sub-groups or strata by the language groups: English. in the following manner: f = n = 20 = 1 = N 100 5 0. Calculate the overall sampling fraction. EnglishLanguage Stratum 00 22 40 64 82 01 24 43 67 85 03 26 45 69 86 04 29 48 70 89 05 30 49 71 91 08 31 50 73 93 09 32 54 75 94 11 34 55 76 96 14 36 57 79 97 16 37 63 81 99 Mandarin Language Stratum 06 35 66 07 44 68 10 47 72 13 51 77 15 53 78 19 56 80 20 58 83 25 59 87 27 61 92 33 62 98 Other Language Stratum . Mandarin and others.2 where n = sample size and N = population size 19 . 02 42 12 46 17 52 18 60 21 65 23 74 28 84 38 88 39 90 41 95 1. f.

28. 54. 48. 48. are selected. 51. 75. By using a simple random sampling method [using a random number table] members whose numbers are 01. 18. S = (01.Selection of a proportionate stratified sample III y Determine the number of sample elements (n1) to be selected from the English language stratum. In this example. By using a simple random sampling method as before. 16. 38. n1 = 50 x f = 50 x 0. 87) 20 . In this example. 59. 50. n3 = 20 x f = 20 X 0. 27. For this stratum.2 =10. 15. 54. members whose numbers are 17. 43.15. 30. y In the same manner.2 = 4. 18. 38 are selected¶ y These three different sets of numbers are now aggregated to obtain the ultimate stratified sample as shown below. n2 = 30 x f = 30 X 0. 55. 59. y Next. 27. In this example. 30. 87 are selected from the Mandarin language stratum. 17. 55. 16. 10. 03. 51. members having numbers 10. 75.2 = 6. 50. 28. determine the number of sample elements (n2) from the Mandarin language stratum. the number of sample elements (n3) from the µOther language¶ stratum is calculated. 43. 03.

Cluster sampling Is a type of sampling in which clusters or groups of elements are sampled at the same time.Defined population is divided into number of mutually exclusive and collectively exhaustive subgroups or clusters. and it retains the characteristics of probability sampling. where pieces of geographical areas are selected. One special type of cluster sampling is called area sampling. » Step 2. 21 . Such a procedure is economic. A two-step-process: » Step 1.Select an independent simple random sample of clusters.

95 y Step 2: Select one of the 5 clusters. If cluster 4 is selected. 71. 67. 75. 29. 28. 62. 65 23. In this case. 81. 51. 58. 94. 50. 48. 35. 34. 40. 46 17. 80 20.Example : One-stage and two-stage Cluster sampling Consider the same Island Video Club example involving 100 club members: y Step 1: Sub-divide the club members into 5 clusters. 57. 52 18. 45. 56. 20. 64. 42 12. 30. each cluster containing 20 members. 63. 37. 97 16. Cluster No. 96. 84. 25. 74 28. 44. 91 08. 88) are selected. 72 13. the sample will be different from that shown in step 2 above. 31. 38. 93 09. 90 41. 60 21. 59. 59. 36. 76. 70. 55. 68 10. 26. 86 04. 11. 61. the researcher may randomly select 4 members from each of the five clusters. 89 05. Club Members with numbers 09. 98 Others 02. 32. 87. 32. 24. 99 Mandarin 06. 96 14. 54. 34. 83. 94 11. 79. 78 19. 84 38. 66 07. 55. 54. 58. 77 15. 75. 22. 43. 83 25. 76. 69. 49. 47. 22 .e. y Step 3: If a two-stage cluster sampling is desired. 82 01. 85 03. 1 2 3 4 5 English 00. then all its elements (i. 88 39. 92 33. 87 27. 73. 53.

Less sampling error. homogeneity. Between homogeneous. The target population is sub-divided 1. sub-population or clusters. Within each stratum.Stratified Sampling vs Cluster Sampling Stratified Sampling Cluster Sampling 1. 4. However. A cluster is selected each time. Objective is to increase sampling efficiency by decreasing cost. each containing a few elements. Within each cluster. 23 . the elements are heterogeneous. there is a high degree of heterogeneity exists between strata. 4. 5. A sample element is selected each time. each divided into a large number of containing a large number of elements. 2. Objective is to increase precision. 5. high degree of clusters. The target population is subinto a few subgroups or strata. the elements are 2. 3. More prone to sampling error. 3.

choose ten housing blocks within 2 kilometers of the proposed site [say. select the housing blocks to be sampled. ___________________________________________________________________________________ Step 1: Determine the geographic area to be surveyed. 24 . assign each a number. Step 3: Using random numbers. The company wants to use area sampling to select the sample households to be interviewed. two-stage. #106. you select 4 blocks randomly. instruct field workers to drop off the survey at every fifth house (systematic sampling). and identify its subdivisions. select the households in each of the chosen housing block to be included in the sample. apartment no. Step 2: Decide on the use of one-step or two-step cluster sampling. The sample may be drawn in the manner outlined below. Model Town ] for your new retail outlet. say numbers #102. How to Take an Area Sample Using Subdivisions Your company wants to conduct a survey on the expected patronage of its new outlet in a new housing estate. Here. 103). Area sampling could be one-stage.AREA SAMPLING y A common form of cluster sampling where clusters consist of geographic areas. Step 4: Using some probability method of sample selection. such as districts. #104. and #108. or multi-stage. Each subdivision cluster should be highly similar to all others. housing blocks or townships. Identify a random starting point (say. Assume that you decide to use a two-stage cluster sampling. For example.

Quite difficult to draw. Does not lead to any conclusion. the researcher compiles a short list of sample units from various sources. Quota sampling » An extension of judgmental sampling. these samples are quite useful. If inference drawing is not necessary. Each of these respondents are contacted to provide names of other probable respondents. Common in exploratory research. Snowball sampling » Used in studies involving respondents who are rare to find.NonNon-probability samples Convenience sampling » Drawn at the convenience of the researcher. To start with. Judgmental sampling » Sampling based on some judgment. It is something like a two-stage judgmental sampling. 25 . gut-feelings or experience of the researcher. Common in commercial marketing research projects.

......4% 53..4% = 402 3000 x 52.... ................ ...3% = 1479 3000 x 13.. y Here...8% Islam 3000 x 14..6% = 198 .. Age: .... 14. 40 years & over ......... Female ....... the three control characteristics are considered independently of one another................... 6... Control Characteristics Gender: ....... In order to calculate the desired number of sample elements possessing the various attributes of the specified control characteristics... Islam .... 30-39 years ...3% = 1029 ..7% = 1521 3000 x 49....Quota Sampling y To select a quota sample comprising 3000 persons in country X using three control characteristics: sex..3% 33... age and level of education........... Christianity .....3% Male Female 20-29 years 30-39 years 40 years & over Sample Elements 3000 x 50...... ..6% Hinduism 3000 x 6..3% = 1569 3000 x 34..... Hinduism ..3% 13.............. the distribution pattern of the general population in country X in terms of each control characteristics is examined.........2% Others 3000 x 2. 2.......... Distribution 50............... Population Male.8% = 444 ............... 20-29 years ...........4% Christianity 3000 x 76.. Others .................4% = 2292 .......7% 49.............. 76........2% = 66 _________________________________________________________________________________ _ 26 .. Religion: ....

Sampling vs non-sampling errors non- Sampling Error [SE] Non-sampling Error [NSE] Very small sample Size sample Larger sample size sample Still larger sample Complete census 27 .

Choosing probability vs. non-probability sampling nonProbability sampling Conclusive Larger sampling errors Evaluation Criteria Nature of research Relative magnitude sampling vs. non-sampling error Population variability Statistical Considerations Sophistication Needed Time Budget Needed Non-probability sampling Exploratory Larger non-sampling error High [Heterogeneous] Favorable High Relatively Longer High Low [Homogeneous] Unfavorable Low Relatively shorter Low 28 .

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