Sampling: Theory and Methods

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Sampling: Theory and Methods Chapter 6 Sampling: Theory and Methods McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.

Sampling in Marketing Research Selection of a small number of elements from a larger defined target group of elements Information gathered from the small group allows conclusions to be drawn about the larger group

Sampling as a Part of the Research Process Sampling is used when it is impossible or unreasonable to conduct a census Census: A research study that includes data about every member of the defined target population It is almost always impossible to conduct a census! Too expensive Too time-consuming Not needed!

The Basics of Sampling Theory Factors underlying sampling theory Central limit theorem (CLT): The sampling distribution of a statistic derived from a simple random sample will be approximately normally distributed as long as the sample size is greater than 30 (i.e. n > 30).

The Basics of Sampling Theory Population: An identifiable group of elements of interest to the researcher Defined target population: The complete set of elements identified for investigation Sampling units: The target population elements available for selection during the sampling process Sampling frame: The list of all eligible sampling units Sample: Actual units in the sampling frame that take part in the study

The Basics of Sampling Theory Tools used to assess the quality of samples: Sampling error: Any type of bias that is attributable to mistakes in either drawing a sample or determining the sample size Non-sampling error: A bias that occurs in a research study regardless of whether a sample or census is used measurement error response errors non-response error coding errors

The Basics of Sampling Theory Two difficulties associated with detecting sampling error: A census is very seldom conducted in survey research (i.e. there can’t be any sampling error in a census!) Sampling error can only be determined after the sample is drawn and data collection is completed Sampling error is usually estimated by a formula or algorithm Examples: Confidence intervals, polling + or - %

Nonprobability Sampling Each sampling unit in the defined target population has a known probability of being selected for the sample Nonprobability Sampling Sampling designs in which the probability of selection of each sampling unit is unknown The selection of sampling units is based on the judgment of the researcher and may or may not be representative of the target population

Types of Probability and Nonprobability Sampling Methods

Probability Sampling Designs Simple random sampling: A probability sampling procedure in which every sampling unit has a known and equal chance of being selected Systematic random sampling: Similar to simple random sampling, but the sampling frame is ordered in some way and a sample is systematically selected from this ordered list

Steps in Drawing a Systematic Random Sample

Probability Sampling Designs Stratified random sampling: Separation of the target population into different groups, called strata, and the selection of samples from each stratum Proportionately stratified sampling: A stratified sampling method in which each stratum’s sample size is dependent on the stratum’s size relative to the overall population Disproportionately stratified sampling: A stratified sampling method in which the size of each stratum sample does not depend on its relative size in the overall population

Stratified Random Sample Process 1. Divide the target population into homogeneous subgroups or strata 2. Draw random samples from each stratum 3. Combine the samples from each stratum into a single sample of the target population and analyze 4. Analyze strata by themselves

Probability Sampling Designs Cluster sampling: A probability sampling method in which the sampling units are divided into mutually exclusive and collectively exhaustive subpopulations called clusters Take a “census” of each cluster Area sampling: A form of cluster sampling in which the clusters are formed by geographic designations

Nonprobability Sampling Methods Convenience sampling: A nonprobability sampling method in which samples are drawn at the convenience of the researcher Judgment sampling: A nonprobability sampling method in which participants are selected according to an experienced individual’s belief that they will meet the requirements of the study

Nonprobability Sampling Methods Quota sampling: A nonprobability sampling method in which participants are selected according to pre-specified quotas regarding demographics, attitudes, behaviors, or some other criteria Snowball sampling: A set of respondents is chosen, and they help the researcher identify additional people to be included in the study Also called referral sampling

Factors to Consider in Selecting the Appropriate Sampling Design

Probability Sample Sizes Factors that determine sample sizes with probability designs: Population variance and population standard deviation (what about multiple variables/constructs?!) Level of confidence desired in the estimate Usually chosen by statistical conventions Degree of precision desired in estimating the population characteristic Precision: The acceptable amount of error in the sample estimate

Probability Sampling and Sample Sizes When estimating a population mean: Where, ZB,CL = The standardized z-value associated with the level of confidence σμ = Estimate of the population standard deviation (σ) based on some type of prior information e = Acceptable tolerance level of error (stated in percentage points)

Probability Sampling and Sample Sizes When estimating a population proportion: Where, ZB,CL = The standardized z-value associated with the level of confidence P = Estimate of expected population proportion having a desired characteristic based on intuition or prior information Q = 1 — P, or the estimate of expected population proportion not having the characteristic of interest e = Acceptable tolerance level of error (stated in percentage points)

Sampling from a Small Population Use of previous formulas may lead to an unnecessarily large sample size when n > 5% of N Calculated sample size should be multiplied by the following correction factor: Where: N = Population size n = Calculated sample size determined by the original formula

Sampling from a Small Population The adjusted sample size is:

Nonprobability Sample Sizes Sample size formulas cannot be used for nonprobability samples Determining the sample size is a subjective, intuitive judgment We also cannot estimate sampling error!

Other Sample Size Determination Approaches Sample sizes are often determined using less formal approaches Rules of thumb / heuristics Budget Client desires Expert judgment

Sampling Plan The blueprint or framework needed to ensure that the data collected are representative of the defined target population

Steps in Developing a Sampling Plan Define the target population Select the data collection method Identify the sampling frames needed Select the appropriate sampling method Determine necessary sample sizes and overall contact rates Create an operating plan for selecting sampling units Execute the operational plan