BUSINESS RESEARCH METHODS

WILLIAM G. ZIKMUND

Chapter 16: Sample Designs and Sampling Procedures

SAMPLING TERMINOLOGY
Sample subset of larger population Population or universe any complete group that share some set of characteristics (e.g., people, sales territories, stores, etc.) Population element individual member of population Census investigation of all individual elements that make up a population

WHY SAMPLE?

It works! Properly selected samples yield accurate and reliable results.

y

If elements are similar smaller sample is needed Bureau of Census uses samples to check

May even be more accurate than census

y

It saves resources

Stages in the Selection of a Sample

Define the target population

Select a sampling frame

Determine if a probability or nonprobability sampling method will be chosen Plan procedure for selecting sampling units

Determine sample size

Select actual sampling units

Conduct fieldwork

TARGET POPULATION

Vitally important decision:

y

To Whom Do We Want to Talk?

Relevant population

SAMPLING FRAME
A list of elements from which the sample may be drawn Working population Mailing lists - data base marketers Reverse directory :similar to telephone directory. but address, streetwise. Sampling frame error occurs when population is not accurately represented in the sampling frame.

SAMPLING UNITS
Group selected for the sample Primary Sampling Units (PSU)(first stage) Secondary Sampling Units(second stage) Tertiary Sampling Units (third stage)

RANDOM SAMPLING ERROR

The difference between the sample results and the result of a census conducted using identical procedures Statistical fluctuation due to chance variations

SYSTEMATIC ERRORS
Nonsampling errors Unrepresentative sample results (e.g., educated vs. uneducated respondents in mail survey) Not due to chance Due to study design or imperfections in execution

ERRORS ASSOCIATED WITH SAMPLING

Sampling frame error Random sampling error Nonresponse error

TWO MAJOR CATEGORIES OF SAMPLING

Probability sampling

Known, nonzero probability for every element

Nonprobability sampling

Probability of selecting any particular member is unknown Technically, inappropriate to apply statistical techniques to project beyond the sample Still often used

NONPROBABILITY SAMPLING
Convenience Judgment Quota Snowball

CONVENIENCE SAMPLING
Also called haphazard or accidental sampling The sampling procedure of obtaining the people or units that are most conveniently available

JUDGMENT SAMPLING
Also called purposive sampling An experienced individual selects the sample based on his or her judgment about some appropriate characteristics required of the sample member

QUOTA SAMPLING
Ensures that the various subgroups in a population are represented on pertinent sample characteristics To the exact extent that the investigators desire It should not be confused with stratified sampling.

SNOWBALL SAMPLING
A variety of procedures Initial respondents are selected by probability methods if possible Additional respondents are obtained from information provided by the initial respondents

PROBABILITY SAMPLING
Simple random sample Systematic sample Stratified sample Cluster sample Multistage area sample

SIMPLE RANDOM SAMPLING

A sampling procedure that ensures that each element in the population will have an equal chance of being included in the sample

SYSTEMATIC SAMPLING
A simple process Every nth name from the list will be drawn

STRATIFIED SAMPLING
If population is not homogeneous . How to form strata? how item be selected?, how many item? Subsamples are drawn within different strata Each stratum is more or less equal on some characteristic Do not confuse with quota sample

CLUSTER SAMPLING
If the total area happens to big Divide the area in to smaller non overlapping areas The purpose of cluster sampling is to sample economically while retaining the characteristics of a probability sample.

EXAMPLES OF CLUSTERS
Population Element Possible Clusters in the india

adult population in India

States Metropolitan Statistical Area Households

EXAMPLES OF CLUSTERS
Population Element Possible Clusters in the

Airline travelers

Airports Planes Football stadiums Basketball arenas Baseball parks cricket stadiums

Sports fans

MULTISTAGE AREA SAMPLE

Further development of the principle of cluster sampling . Suppose we want to investigate working efficiency of nationalized banks in India First stage sample: country Second stage: district Third stage: village

WHAT IS THE APPROPRIATE SAMPLE DESIGN?

Representativeness is Always Important Degree of accuracy Resources Time Advanced knowledge of the population National versus local Need for statistical analysis