Research Proposal

1

MARK977: Research for Marketing Decisions

Dr. Thomas Lee Trimester 1, 2018

2

Sampling and

Data Collection

WEEK 6 READING: CHAPTERS 9 & 10

2

Learning objectives

Sampling Design and Procedure

1. Differentiate a sample from a census and identify the conditions which favor the use of a sample versus a census.

2. Discuss the sampling design process: definition of the target population, determination of the sampling frame, selection of sampling technique(s), determination of sample size, and execution of the sampling process.

3. Classify sampling techniques as nonprobability and probability sampling techniques.

4. Identify the conditions which favour the use of nonprobability sampling versus probability sampling.

MARK977 Research for Marketing Decisions T1 20183

MARK977 Research for Marketing Decisions T1 20184

3

Selecting samples

Identify target population

MARK977 Research for Marketing Decisions T1 20185

Basic definitions

• Population. A population is the aggregate of all the elements that share some common set of characteristics, and that comprise the universe for the purpose of the marketing research problem.

• Census. A census involves a complete enumeration of all the elements of a population.

• Sample. A sample, on the other hand, is a subgroup of the population selected for participation in the study.

MARK977 Research for Marketing Decisions T1 20186

4

Sample or census? When is census appropriate?

• If cost and time permit

• Population size is quite small (e.g., industrial products)

• Information is needed from every individual in the population

• Variance or variability in characteristics of interest is large

• Costs of making an incorrect decision or sampling errors are high

– Errors resulting from the particular sample selected being an imperfect representation of the population of interest (e.g., if the sample omitted a major airline like Qantas, the results could be misleading)

MARK977 Research for Marketing Decisions T1 20187

Sample or census? When is sample appropriate? • Population size is large

• Both cost and time associated with obtaining information from the population is high

• Quick decision is needed

• To increase response quality since more time can be spent on each interview (vs. cutting time short to accommodate entire population)

• Population being dealt with is homogeneous • If census is impossible, sampling is the only alternative (e.g., consumer

response from all over the world to a new advertising theme for Coca Cola) • If costs of non-sampling errors are high

• Attributed to a variety of causes (other than sampling-related errors), including errors in problem definition, questionnaire design, survey methods, interviewing techniques, etc. (e.g., interviewing errors due to lack of supervision) (vs. making same error for entire population)

MARK977 Research for Marketing Decisions T1 20188

5

Sample vs. census

MARK977 Research for Marketing Decisions T1 20189

CONDITIONS FAVOURING THE USE OF

Sample Census

1. Budget Small Large

2. Time available Short Long

3. Population size Large Small

4. Variance in the characteristic Small Large

5. Cost of sampling error Low High

6. Cost of nonsampling errors High Low

Error in sampling Total Error

▫ Difference between the true value (in the population) and the observed value (in the sample) of a variable

• Sampling Error

▫ Error is due to sampling (i.e., value obtained from sample representing population vs. true value obtained from entire population)

▫ Errors resulting from the particular sample selected being an imperfect representation of the population of interest (i.e., mismatch)

• Non-sampling Error

▫ Errors attributed to sources other than sampling, including design, administering, response and non-response (e.g., problem definition, scaling, questionnaire design, survey methods,

interviewing techniques, data preparation and analysis)

▫ Can be observed in both census and sample – key is to ensure research is designed appropriately and with care

MARK977 Research for Marketing Decisions T1 201810

6

Error in sampling

MARK977 Research for Marketing Decisions T1 201811

Sampling design process

MARK977 Research for Marketing Decisions T1 201812

7

Define the target population The target population is the collection of elements or objects that possess the information sought by the researcher and is defined in terms of:  An element is the object about which or from which the

information is desired, e.g., the respondent.  A sampling unit is an element, or a unit containing the element,

that is available for selection at some stage of the sampling process (i.e., level/unit of analysis – individuals within firm vs. firms within industry).

 Extent refers to the geographical boundaries.  Time is the time period under consideration.

MARK977 Research for Marketing Decisions T1 201813

The target population must be defined precisely. Defining the target population involves translating the marketing research problem into a precise statement of who should or should not

be included in the sample.

Defining the target population

MARK977 Research for Marketing Decisions T1 201814

8

Defining the sampling frame

• A sampling frame is a representation of the elements of the target population

• Consists of a list or set of directions for identifying the target population, for example: – Telephone book – Directory listing the firms in an industry (e.g.,

manufacturing and service firms operating in 20 different two-digit Standard Industrial Classification code industries – 20, 30, & 40)

– Mailing list purchased from a commercial organisation (e.g., IncNet Business Database)

– If study on student experience/satisfaction?

MARK977 Research for Marketing Decisions T1 201815

Select a sampling technique

MARK977 Research for Marketing Decisions T1 201816

Sampling Techniques

Nonprobability Sampling

Techniques

Probability Sampling

Techniques

9

Selecting a sampling procedure

MARK977 Research for Marketing Decisions T1 201817

Probability Sampling Techniques

Simple Random Sampling

Cluster Sampling

Stratified Sampling

Systematic Sampling

All population members have a known probability of being in the sample

Simple random sampling

In simple random sampling, each element in the population has a known and equal probability of selection.

1. Obtain an accurate sampling frame

– E.g., study focuses on SMEs within specific sectors (e.g., professional services) = 1000

2. Number each case in the sampling frame with a unique number from 0 – 1000

3. Select cases using random numbers until you reach target sample size

4. Similar to a lottery system or lucky draw

MARK977 Research for Marketing Decisions T1 201818

10

Simple random sampling example

MARK977 Research for Marketing Decisions T1 201819

A B C D E

1 6 11 16 21

2 7 12 17 22

3 8 13 18 23

4 9 14 19 24

5 10 15 20 25

Select five random

numbers from 1 to 25.

The resulting sample

consists of population

elements 3, 7, 9, 16,

and 24. Note, there is

no element from

Group C.

Systematic sampling

• In systematic sampling, the sample is chosen by selecting a random starting point and then picking every i-th element in succession from the sampling frame.

– Sampling cases at regular intervals (e.g., every 5th case after selecting a random starting point – 0 to 9)

• The sampling interval, i, is determined by dividing the population size (N) by the sample size (n) and rounding to the nearest integer (i.e., total population / sample size).

• For example: – Population = 100,000 elements – Sample = 1,000 – Sampling interval = 100 – Random number = 23 – Sample consists of elements 23, 123, 223, 323, 423, 523, etc.

MARK977 Research for Marketing Decisions T1 201820

11

Systematic sampling example

MARK977 Research for Marketing Decisions T1 201821

A B C D E

1 6 11 16 21

2 7 12 17 22

3 8 13 18 23

4 9 14 19 24

5 10 15 20 25

Select a random

number between 1 to

5, say 2.

The resulting sample

consists of population

2, (2+5=) 7, (2+5x2=)

12, (2+5x3=) 17, and

(2+5x4=) 22. Note, all

the elements are

selected from a single

row.

Stratified sampling • Stratified sampling is a two-step process in which the population is

partitioned into subpopulations, or strata.

1. Partitioning population into subpopulations or strata

2. Selecting elements from each stratum using random or systematic sampling

• The stratification variables should also be closely related to the characteristic of interest (e.g., by age, by income, by ethnicity, public- vs. private-sector firms, etc.).

– If study on student experience/satisfaction?

• The elements within a stratum should be as homogeneous as possible, but the elements in different strata should be as heterogeneous as possible.

MARK977 Research for Marketing Decisions T1 201822

12

Stratified sampling example

MARK977 Research for Marketing Decisions T1 201823

A B C D E

1 6 11 16 21

2 7 12 17 22

3 8 13 18 23

4 9 14 19 24

5 10 15 20 25

Randomly select a

number from 1 to 5

for each stratum, A to

E. The resulting

sample consists of

population elements

4, 7, 13, 19, and 21.

Note, one element

is selected from each

column.

Cluster sampling • For cluster sampling, sampling frame is complete list of clusters rather than

complete list of individual cases within the population

1. Target population is divided into mutually exclusive and collectively exhaustive subpopulations, or clusters (e.g., major AUS cities – Sydney, Melbourne, Brisbane, Perth, etc.)

2. A random sample of clusters is selected, based on a probability sampling technique such as SRS.

3. For each selected cluster, either all the elements are included in the sample (one-stage) or a sample of elements is drawn probabilistically (two-stage).

• Elements within a cluster should be as heterogeneous as possible, but clusters themselves should be as homogeneous as possible. Ideally, each cluster should be a small-scale representation of the population.

• Very cost effective

MARK977 Research for Marketing Decisions T1 201824

13

Types of cluster sampling

MARK977 Research for Marketing Decisions T1 201825

Cluster sampling example

MARK977 Research for Marketing Decisions T1 201826

A B C D E

1 6 11 16 21

2 7 12 17 22

3 8 13 18 23

4 9 14 19 24

5 10 15 20 25

Randomly select 3

clusters, B, D, and E.

Within each cluster,

randomly select one

or two elements. The

resulting sample

consists of population

elements 7, 18, 20, 21,

and 23. Note, no

elements are selected

from clusters A and C.

14

Stratified vs. cluster sampling

MARK977 Research for Marketing Decisions T1 201827

Homogeneity within group

Heterogeneity between groups

All groups are included

A complete sampling frame for the

entire stratified subpopulations should

be drawn.

Homogeneity between groups

Heterogeneity within groups

Random selection of groups

A sampling frame is needed only for the

clusters selected for the sample.

Stratified sampling Cluster sampling

Nonprobability sampling techniques

MARK977 Research for Marketing Decisions T1 201828

- Costs and trouble of developing sampling frames are eliminated - Used in:

• The exploratory stages of a research project • Pre-testing a questionnaire • Dealing with a homogeneous population • When operational ease is required

15

Convenience sampling

Convenience sampling attempts to obtain a sample of convenient elements. Often, respondents are selected because they happen to be in the right place at the right time.

 use of students and members of social organizations

 mall intercept interviews without qualifying the respondents

 “people on the street” interviews  MBA students for organizational research?

MARK977 Research for Marketing Decisions T1 201829

Convenience sampling example

MARK977 Research for Marketing Decisions T1 201830

A B C D E

1 6 11 16 21

2 7 12 17 22

3 8 13 18 23

4 9 14 19 24

5 10 15 20 25

Group D happens to

assemble at a

convenient time and

place. So all the

elements in this

Group are selected.

The resulting sample

consists of elements

16, 17, 18, 19, and 20.

Note, no elements are

selected from group

A, B, C, and E.

16

Judgmental sampling

Judgmental sampling is a form of convenience sampling in which the population elements are selected based on the judgment of the researcher. Common examples:

 purchase engineers selected in industrial marketing research because they are considered to be representative of their respective companies

 Several cities might be selected to represent a country

 Student samples to be representative of young consumers?

MARK977 Research for Marketing Decisions T1 201831

Judgmental sampling example

MARK977 Research for Marketing Decisions T1 201832

A B C D E

1 6 11 16 21

2 7 12 17 22

3 8 13 18 23

4 9 14 19 24

5 10 15 20 25

The researcher considers groups B, C, and E to be typical and convenient. Within each of these groups one or two elements are selected based on typicality and convenience. The resulting sample consists of elements 8, 10, 13, 22, and 24. Note, no elements are selected from groups A and D.

17

Quota sampling

Quota sampling may be viewed as two-stage restricted judgmental sampling.

 The first stage consists of developing control categories, or quotas, of population elements.

 In the second stage, sample elements are selected based on convenience or judgment.

MARK977 Research for Marketing Decisions T1 201833

Control characteristic

Population composition

Sample composition

Gender Percentage Percentage Number

Male 48 48 480

Female 52 52 520

Total 100 100 1000

Quota sampling example

MARK977 Research for Marketing Decisions T1 201834

A B C D E

1 6 11 16 21

2 7 12 17 22

3 8 13 18 23

4 9 14 19 24

5 10 15 20 25

A quota of one element from each group, A to E, is imposed. Within each group, one element is selected based on judgment or convenience. The resulting sample consists of elements 3, 6, 13, 20, and 22. Note, one element is selected from each column or group.

18

Snowball sampling

In snowball sampling, an initial group of respondents is selected, usually at random.

 After being interviewed, these respondents are asked to identify others who belong to the target population of interest.

 Subsequent respondents are selected based on the referrals.

 Useful for estimating characteristics that are rare in the population (e.g., locating marketing research interviewers)

MARK977 Research for Marketing Decisions T1 201835

Snowball sampling example

MARK977 Research for Marketing Decisions T1 201836

A B C D E

1 6 11 16 21

2 7 12 17 22

3 8 13 18 23

4 9 14 19 24

5 10 15 20 25

Elements 2 and 9 are selected randomly from groups A and B. Element 2 refers elements 12 and 13. Element 9 refers element 18. The resulting sample consists of elements 2, 9, 12, 13, and 18. Note, there is no element from group E.

Random Selection Referrals

19

Nonprobability or probability sampling?

• Non-probability sampling if: – Conducting exploratory research given that findings are

treated as preliminary – Non-sampling errors are an important factor because the

use of judgment may allow greater control over the sampling process

• Probability sampling if: – Conducting conclusive research because results are

projected to the target population – Sampling errors are an important factor because results are

projected to the target population (see disadvantages associated with non-probability techniques)

MARK977 Research for Marketing Decisions T1 201837

Nonprobability or probability sampling?

MARK977 Research for Marketing Decisions T1 201838

CONDITIONS FAVOURING THE USE OF

Factors Nonprobability

Sampling Probability Sampling

Nature of research Exploratory Conclusive

Relative magnitude of sampling and

nonsampling errors

Nonsampling errors

are larger

Sampling errors are

larger

Variability in the population Homogeneous

(low)

Heterogeneous

(high)

Statistical considerations Unfavorable Favorable

Operational considerations

(e.g., cost and time) Favorable Unfavorable

20

Non-response problems • Respondents may:

– Refuse to respond – Respond partially – Lack the ability to respond – Be inaccessible

• Non-response bias = bias that arises when actual respondents differ from those who refuse to participate (in terms of characteristics, ways of thinking, etc.) in ways that affect survey results.

• Sample size has to be large enough to allow for non- response

• Common in mail surveys

MARK977 Research for Marketing Decisions T1 201839

Solutions to non-response problems

• Improve research design to reduce the number of non- responses (e.g., include incentives)

• Repeat the contact one or more times (call back or remind) to try to reduce non-responses

MARK977 Research for Marketing Decisions T1 201840

21

Determine the sample size

• Importance of decision and accuracy level required in results – For important decisions, more information is necessary and the

information should be obtained more precisely • Nature of the research

– Exploratory vs. conclusive • Nature of the analysis

– Level/unit of analysis (e.g., firm vs. group/team vs. individual) – Advanced statistical techniques (e.g., AMOS SEM)

• Sample sizes used in similar studies – And the response rates common of a specific method in literature

• Resource constraints • Variability and size of the population

MARK977 Research for Marketing Decisions T1 201841

Sample sizes for different population sizes

MARK977 Research for Marketing Decisions T1 201842

Population 5% (95% accuracy) 1% (99% accuracy)

50 44 50

100 79 99

250 151 244

500 217 475

1,000 278 906

2,000 322 1655

5,000 357 3288

10,000 370 4899

100, 000 383 8762

1,000,000 384 9513

Confidence level

22

Sampling decisions

• Exam stress example • Important issues to consider:

– Who – How – What – Threat of potential biases and errors

MARK977 Research for Marketing Decisions T1 201843

MARK977 Research for Marketing Decisions T1 201844

23

Learning objectives

Data Collection Procedures

1. Describe the field work or data collection process and explain the selection, training, and supervision of field workers, the validation of field work, and the evaluation of field workers.

2. Discuss the training of field workers in making the initial contact, asking the questions, probing, recording the answers, and terminating the interview.

3. Discuss the supervision of field workers in terms of quality control and editing, sampling control, control of cheating, and central office control.

4. Describe the evaluation of field workers in areas of cost and time, response rates, quality of interviewing, and the quality of data.

MARK977 Research for Marketing Decisions T1 201845

Data collection

• Field work (or data collection) – Field workers make contact with respondents, administer

questionnaire, record data, and turn in completed questionnaires for processing

– May occur in the field (e.g., personal in home, mall intercept) or from an office (e.g., telephone, mail)

• Field workers – Personnel involved in the data collection process, including: – A personal interviewer administering questionnaires door to door – An interviewer intercepting shoppers in a mall – A telephone interviewer calling from a central location – A worker mailing questionnaires from an office or posting them

on a website

MARK977 Research for Marketing Decisions T1 201846

24

The field work/data collection process

MARK977 Research for Marketing Decisions T1 201847

Selection of field workers

The selection of field workers requires the researcher to:

• Develop job specifications for the project, taking into account the mode of data collection.

• Decide what characteristics the field workers should have (to match respondents’ characteristics and nature of the problem being addressed).

• Recruit appropriate individuals.

MARK977 Research for Marketing Decisions T1 201848

25

General qualifications of field workers

• Healthy. Field workers must have the stamina required to do the job.

• Outgoing. The interviewers should be able to establish rapport with the respondents.

• Communicative. Effective speaking and listening skills are a great asset.

• Pleasant appearance. If the field worker's physical appearance is unpleasant or unusual, the data collected may be biased.

• Educated. Interviewers must have good reading and writing skills. • Experienced. Experienced interviewers are likely to do a better

job.

MARK977 Research for Marketing Decisions T1 201849

Training field workers

MARK977 Research for Marketing Decisions T1 201850

26

Training field workers

• Making the Initial Contact. Interviewers should be trained to make opening remarks that will convince potential respondents that their participation is important. When rejected due to inconvenience, ask for a rescheduling.

• Asking the Questions 1. Be familiar with the questionnaire. 2. Ask the questions in the order in which they appear in the

questionnaire. 3. Use the exact wording given in the questionnaire. 4. Read each question slowly. 5. Repeat questions that are not understood. (even a slight change in the wording, sequence, or manner in which the question is asked can distort its meaning and bias the response)

MARK977 Research for Marketing Decisions T1 201851

Training field workers (cont.)

• Probing. Motivating respondents to enlarge on, clarify, or explain their answers. Some commonly used probing techniques are:

1. Repeating the question.

2. Repeating the respondent's reply.

3. Using a pause or silent probe.

4. Eliciting clarification

MARK977 Research for Marketing Decisions T1 201852

27

Training field workers (cont.)

• Recording the Answers. Guidelines for recording answers to unstructured questions are:

1. Record responses during the interview. 2. Use the respondent's own words (verbatim). 3. Do not summarize or paraphrase the respondent's answers. 4. Include everything that pertains to the question objectives. 5. Include all probes and comments. 6. Repeat the response as it is written down.

• Terminating the Interview. The respondent should be left with a positive feeling about the interview. Thank the respondent and express appreciation.

MARK977 Research for Marketing Decisions T1 201853

Supervision of field workers  Quality Control. This requires checking to see if the field

procedures are being properly implemented. If problems are detected, supervisors should discuss them with interviewers and provide additional training where necessary.

 Sampling Control. The supervisor attempts to ensure that the interviewers are strictly following the sampling plan rather than selecting sampling units based on convenience or accessibility.

 Control of Cheating. Occurs when interviewers fill in fake answers without contacting respondents. Cheating can be minimized through proper training, supervision, and validation.

 Central Office Control. Supervisors provide quality and cost- control information to the central office in the form of an overall progress report.

MARK977 Research for Marketing Decisions T1 201854

28

Validation of field work

• In the validation of field work, the supervisors call 10 - 25% of the respondents to inquire whether the field workers actually conducted the interviews.

• The supervisors ask about the length and quality of the interview, reaction to the interviewer, and basic demographic data.

• The demographic information is cross-checked against the information reported by the interviewers on the questionnaires.

MARK977 Research for Marketing Decisions T1 201855

Evaluation of field workers

• Cost and Time. The interviewers can be compared in terms of the total cost (salary and expenses) per completed interview (e.g., high completes and low travel/food expenditure).

• Response Rates. It is important to monitor response rates on a timely basis so that corrective action can be taken if these rates are too low (e.g., problems with introductions or the way they conduct the interview).

MARK977 Research for Marketing Decisions T1 201856

29

Evaluation of field workers

• Quality of Interviewing. To evaluate interviewers on the quality of interviewing, the supervisor must directly observe the interviewing process (e.g., making appropriate initial contact, asking questions in order and as worded, interpersonal skills during the interview, manner in which interview is terminated).

• Quality of Data. The completed questionnaires of each interviewer should be evaluated for the quality of data (e.g., legible recorded data, little incompletes, answers to unstructured questions are recorded verbatim and complete).

MARK977 Research for Marketing Decisions T1 201857