Discussion Question #3
Chapter 12 Sampling and Statistical Theory
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Learning Outcomes
After studying this chapter, you should
Explain reasons for taking a sample rather than a complete census
Describe the process of identifying a target population and selecting a sampling frame to represent it with a sample
Compare random sampling and systematic (nonsampling) errors with an emphasis on how online access can reduce or increase error
Identify the types of nonprobability sampling, including their advantages and disadvantages
Summarize various types of probability samples
Discuss how to choose an appropriate sample design
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Introduction
A sample is a subset of some larger population that is measured or observed in some way to infer what the entire population is like
Purpose of sampling is to estimate an unknown characteristic of a population
Population (universe) is any complete group
Sampling is defined in terms of the population being studied
A census is an investigation of all the individual elements making up the population—a total enumeration rather than a sample
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Why Sample?
Pragmatic reasons
Sampling cuts costs, reduces labor requirements, and gathers vital information quickly
Accurate and reliable results
A sample on occasion is more accurate than a census
Increased volume of work in a census may lead to interviewer mistakes, tabulation errors, and other nonsampling errors
Destruction of test units
Occurs in the process of the research project
Provides the case against using a census
LO01
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Learning Objective 01
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Defining the Target Population (1 of 2)
Once the decision to sample has been made, the first question concerns identifying the target population
The population must be defined accurately for the research to produce good results
One approach for defining the target population is to ask and answer questions about crucial population characteristics
Is a list available that matches our population?
Who are we not interested in?
Should the study include multiple populations?
Answers to these questions help researchers and decision-makers focus on the right populations of potential respondents
LO02
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Learning Objective 02
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Defining the Target Population (2 of 2)
The sample is implemented using the tangible, identifiable characteristics that also define the population
If the population members cannot be reached by an appropriate communication method, they cannot be part of a sample
LO02
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Learning Objective 02
6
EXHIBIT 12.2 Stages in the Selection of a Sample
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Learning Objective 02
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The Sampling Frame
A sampling frame is a list of elements from which the sample may be drawn
Also called the working population
Sampling frame error occurs when certain sample elements are excluded or when the entire population is not accurately represented in the sampling frame
Almost every list excludes some members of the population
LO02
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Learning Objective 02
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Sampling Services
Sampling services are firms specializing in providing lists or databases of specific populations
Also called list brokers
Equifax City Directory provides complete, comprehensive, and accurate business and residential information
A reverse directory provides listings by city and street address or by phone number
Useful when a researcher wishes to survey only a certain geographical area
LO02
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Learning Objective 02
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Online Panels
Online panels are lists of respondents who have agreed to participate in marketing research
Generally contain millions of potential respondents
The more specific the profile requested, the more expensive the panel
LO02
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Learning Objective 02
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Sampling Frames for International Marketing Research
The availability of sampling frames around the world varies dramatically
Not every country’s government conducts a census of the population
LO02
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Learning Objective 02
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Sampling Units
The sampling unit is a single element or group of elements subject to selection in the sample
If the target population has first been divided into units, additional terminology must be used
Primary sampling unit (PSU) designates units selected in the first stage of sampling
Secondary sampling or tertiary sampling units describes units in successive stages of sampling
When there is no list of population elements the sampling unit is generally something other than the population element
LO02
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Learning Objective 02
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Random Sampling and Nonsampling Errors
Statistical error occurs when a difference exists between the value of a sample statistic and the value of the corresponding population parameter
Two basic causes of differences
Random sampling errors
Systematic (nonsampling) errors
Random sampling error is the difference between the sample result and the result of a census conducted using identical procedures
LO03
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Learning Objective 03
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Random Sampling Error
Random sampling error is a technical term that refers only to statistical fluctuations that occur because of chance variations in the elements selected for the sample
A function of sample size
As sample size increases, random sampling error decreases
Margin of error is determined by the sample size
LO03
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Learning Objective 03
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Systematic Sampling Error
Systematic (nonsampling) errors result from nonsampling factors, primarily the nature of a study’s design and the correctness of execution
These errors are not due to chance fluctuations
Sample biases account for a large portion of errors in marketing research
Errors due to sample selection problems are nonsampling errors
LO03
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Learning Objective 03
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Systematic But Not Obvious Sampling Error
Internet surveys allow researchers to reach a large sample rapidly
Both an advantage and a disadvantage
Due to the flood of online questionnaires, frequent Internet users may be more selective about which surveys they bother answering
LO03
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Learning Objective 03
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Website Visitors (1 of 2)
These unrestricted samples are clearly not random samples
May not be representative because of the haphazard manner by which many respondents arrived at a particular website or because of self-selection bias
A better technique for sampling website visitors is to randomly select sampling units
LO03
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Learning Objective 03
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Website Visitors (2 of 2)
Survey software can be used to trigger a pop-up survey for every Nth visitor or on information gathered on the respondent’s Web behavior
Randomly selecting Website visitors can cause a potential problem
May over-represent the more frequent visitors to the site
Programming techniques and technologies (cookies, registration data, or pre-screening) can help accomplish more representative sampling based on site traffic
LO03
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Learning Objective 03
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Panel Samples
Consumer panels provide a practical sampling frame in many situations
There is some concern regarding the representativeness of these samples
Researchers must take more steps to ensure that the sampling units do indeed represent the population
LO03
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Learning Objective 03
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Opting In
Opt in refers to giving permission to receive selected e-mail from a company with an Internet presence
Spamming is not tolerated by experienced Internet users and can backfire
Sites like Amazon’s Mechanical Turk provide another opportunity for respondents to opt in to surveys
These respondents participate as an unscreened, paid respondent; therefore, not random
LO03
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Learning Objective 03
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Less Than Perfectly Representative Samples
Random sampling errors and systematic errors associated with the sampling process may combine to yield a sample that is less than perfectly representative of the population
Additional errors will occur if individuals refuse to be interviewed or cannot be contacted
Such nonresponse error may also cause the sample to be less than perfectly representative
LO03
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Learning Objective 03
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EXHIBIT 12.3 Errors Associated with Sampling
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Learning Objective 03
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Probability Versus Nonprobability Sampling
The main alternative sampling plans may be grouped into two categories
Probability techniques
Probability sampling - every population element has a known, nonzero probability of selection
Simple random sample is the best-known probability sample
Nonprobability techniques
Nonprobability sampling - probability of any member of the population being chosen is unknown
The selection of sampling units is quite arbitrary
Nonprobability samples are pragmatic and are used in market research
LO04
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Learning Objective 04
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EXHIBIT 12.4 Summarizing Sampling Processes
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Learning Objective 04
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Convenience Sampling
Convenience sampling refers to sampling by obtaining people or units that are conveniently available
Used to obtain results quickly and economically
Used obtaining a sample through other means is impractical or impossible
Employed when research is looking at cross-cultural differences in organizational or consumer behavior
LO04
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Learning Objective 04
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Judgment Sampling
Judgment sampling refers to a nonprobability technique in which an experienced individual selects the sample based on his or her judgment
Also called purposive sampling
The consumer price index (CPI) is based on a judgment sample
Test-market cities often are selected because they are viewed as typical cities whose demographic profiles closely match the national profile
LO04
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Learning Objective 04
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Quota Sampling
Quota sampling is used to ensure that the various subgroups in a population are represented on pertinent sample characteristics to the exact extent that the investigators desire
In quota sampling, the interviewer has a quota to achieve
Aggregating the various interview quotas yields a sample representing the desired proportion of the subgroups
LO04
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Learning Objective 04
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Quota Sampling: Possible Sources of Bias
Respondents are selected according to a convenience sampling procedure rather than on a probability basis (as in stratified sampling)
The haphazard selection of subjects may introduce bias
Quota samples tend to include people who are easily found, willing to be interviewed, and middle class
LO04
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Learning Objective 04
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Advantages of Quota Sampling
The major advantages
Speed of data collection
Lower costs
Convenience
Careful supervision of the data collection may provide a representative sample for analyzing the various subgroups within a population
May be appropriate when the researcher knows that a certain demographic group is more likely to refuse to cooperate with a survey
LO04
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Learning Objective 04
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Snowball Sampling
Snowball sampling involves using some process for selecting a few initial respondents and then uses those respondents to seek out additional respondents
This technique is used to locate members of rare populations by referrals
Reduced costs and sample sizes are clear-cut advantages of snowball sampling
Possible bias due to the referred member being similar to the first person who made the referral
LO04
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Learning Objective 04
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Probability Sampling
Based on chance selection procedures
Eliminate the bias inherent in nonprobability sampling procedures because the probability sampling process is random
Randomness characterizes a procedure whose outcome cannot be predicted because it depends on chance
Randomness is the basis of all probability sampling techniques
LO05
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Learning Objective 05
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Simple Random Sampling
Simple random sampling is a sampling procedure that assures that each element in the population will have an equal chance of being included in the sample
Sample selection when populations consist of large numbers of elements
Utilizes tables of random numbers or computer-generated random numbers
In contrast to other, more complex types of probability sampling, this process is simple in that only one stage of sample selection is required
LO05
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Learning Objective 05
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Systematic Sampling
Systematic sampling is a procedure in which an initial starting point is selected by a random process; then every nth number on the list is selected
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Learning Objective 05
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Stratified Sampling
Stratified Sampling is a probability sampling procedure in which simple random subsamples that are more or less equal on some characteristic are drawn from within each stratum of the population
Provides a more efficient sample than would be possible with simple random sampling
Ensures that the sample will accurately reflect the population on the basis of the criterion or criteria used for stratification
LO05
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Learning Objective 05
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Proportional Versus Disproportional Sampling
Proportional stratified sampling means the number of sampling units drawn from each stratum is in proportion to the relative population size of the stratum
In a disproportional stratified sample, the sample size for each stratum is not allocated in proportion to the population size but is dictated by analytical considerations
Ensures an adequate number of sampling units in every stratum
LO05
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Learning Objective 05
35
EXHIBIT 12.5 Disproportional Sampling: Hypothetical Example
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Learning Objective 05
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Cluster Sampling
Cluster sampling is an economically efficient sampling technique in which the primary sampling unit is not the individual element in the population but a large cluster of elements
The area sample is the most popular type of cluster sample
Cluster samples become attractive when lists of a sample population are not available
Cluster sampling is classified as a probability sampling technique because of either the random selection of clusters or the random selection of elements within each cluster
LO05
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Learning Objective 05
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EXHIBIT 12.6 Examples of Clusters
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Learning Objective 05
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Multistage Area Sampling
Multistage area sampling is a cluster sampling approach involving multiple steps that combine some of the probability techniques already described
Researchers may take as many steps as necessary to achieve a representative sample
LO05
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Learning Objective 05
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What Is the Appropriate Sample Design? (1 of 2)
Degree of accuracy
Cost savings is a trade off for a reduction in accuracy
Resources
If the researcher’s financial and human resources are restricted, certain options will have to be eliminated
Time
Time constraints restrict sampling techniques to simpler methods
LO06
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Learning Objective 06
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What Is the Appropriate Sample Design? (2 of 2)
Advance knowledge of the population
A lack of adequate lists may automatically rule out systematic sampling, stratified sampling, or other sampling designs
National versus local project
Geographic proximity of population elements will influence sample design
When population elements are unequally distributed geographically, a cluster sample may become much more attractive
LO06
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Learning Objective 06
41