205 Marketing Research Notes.pdf

marketing research notes

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1-1CMR –1
Introduction
to Marketing
Research
Chapter 1
1-2CMR –1
Good Market Research can result in Good Business !

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1-3CMR –1
Redefining Marketing Research
The American Marketing Association (AMA)
redefined
Marketing Research
as:
The function that links the consumer, the
customer, and public to the marketer
through
INFORMATION
1-4CMR –1
Used to identify and
define market
opportunities and
problems
Generate, refine, and
evaluate marketing
performance
Monitor marketing
performance
Improve understanding
of marketing as a
process
Redefining Marketing Research

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1-5CMR –1
Market Research is the…
Systematic design
Collection Analysis
Reporting of
data and
findings
relevant to a specific marketing situation facing the
company.
1-6CMR –1
Definition of Marketing Research
A more thorough definition for this course:
Marketing research is the systematic and objective
identification
collection
analysis
dissemination
and use of information
For the purpose of improving decision making related to the
identification and
solution of problems and opportunities in marketing

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1-7CMR –1
A Classification of Marketing Research
Marketing Research
Problem
Identification Research
Problem-Solving
Research
•Market Potential Research
•Market Share Research
•Market Characteristics Research
•Forecasting Research
•Business Trends Research
•Segmentation Research
•Product Research
•Pricing Research
•Promotion Research
•Distribution Research
1-8CMR –1
Problem-Solving Research
1.Determine the basis of
customer segmentation
•Through demographics, media
preferences, product preferences,
etc.
2.Establish market potential for
various segments
3.Select target markets
•E.g. high-end, tech-savvy, suburban
customers aged 35-55.
SEGMENTATION RESEARCH
1.Test product concept
2.Package tests
3.Product testing and modification
4.Brand positioning and
repositioning
5.Test marketing
PRODUCT RESEARCH

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Problem-Solving Research
PRICING RESEARCH
Pricing policies
Branding through pricing
Product line pricing
$ALE
PROMOTIONAL RESEARCH
Choosing the optimal promotional
budget and mix
Media decisions
Creative advertising testing
Evaluation of advertising
effectiveness
0.00%
APR
1-10CMR –1
Problem-Solving Research
DISTRIBUTION RESEARCH
Determine the…
Proper types of distribution
Intensity of wholesale & resale coverage
Ideal location(s) of retail and wholesale
outlets

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Role of Marketing Research
Identifying marketing opportunities
Enhancing customer orientation
Understanding competitive environment
Exploration and description of information
Diagnosis and solution
Prediction & Decision making
1-12CMR –1
The Role of Marketing Research
Controllable
Marketing
•Product
•Pricing
•Promotion
•Distribution
Variables
Marketing
Research
Marketing
Decision
Making
Providing
Information
Assessing
Information
Needs
Marketing Managers
•Market Segmentation
•Performance & Control
•Target Market Selection
•Marketing Programs
Uncontrollable
Environmental
Factors
•Economy
•Technology
•Laws &
Regulations
•Social & Cultural
Factors
•Political Factors
•Consumers
•Employees
•Shareholders
•Suppliers
Customer Groups

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Marketing Research Process involves…
7.Making the
decision
1.Defining the
problem
& objectives
2.Developing the
research plan
3.Deciding the
Data Sources
5.Analyzing
the information
6.Presenting
the findings
4.Collecting
information
1-14CMR –1
1) Dr. Malhotra’s Case
Dr. Malhotra:
“One day I received a
phone call from a
research analyst who
introduced himself as
one of our alumni.
He was working for a
restaurant chain in town
and wanted help
analyzing the data he
had collected while
conducting a marketing
research study.”

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1) Dr. Malhotra’s Case
“When we met, he presented me with a copy of the
questionnaire and asked how he should analyze the
data. My first question to him was:
What is the problem being addressed?”
1-16CMR –1
1) Dr. Malhotra’s Case
“When he looked
perplexed, I
explained that
data analysisis not
an independent
exercise.
Rather, the goal of data analysis is toPROVIDE
INFORMATION RELATED TO THE PROBLEM
COMPONENTS.”

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1) The Problem Definition Process
Fig. 2.1
Discussion
with
Decision Maker(s)
Interviews
with
Experts
Secondary
Data
Analysis
Qualitative
Research
Management Decision Problem
Marketing Research Problem
Pre-step 1: Tasks Involved
Pre-step 2: Environmental Context of the Problem
Step I: Problem Definition
Step II: Approach to the Problem
Objective/
Theoretical
Foundations
Research
Questions
Hypotheses
Step III: Research Design
Analytical
Model: Verbal,
Graphical,
Mathematical
Specification
of
Information
Needed
1-18CMR –1
2) Pre-step 1: Tasks Involved
(Discussion w/
DM)
The problem audit is a comprehensive examination of a
marketing problem with the purpose of understanding its origin
and nature. A discussion with the decision-maker (DM) includes:
1. History of the problem -The events that led to the
decision that action is needed.
2. Alternatives -The alternative courses of action available to
the DM.
3. Criteria -The criteria that will be used to evaluate the
alternative courses of action.
4. Potential Actions -The potential actions that are likely to be
suggested based on the research findings.
5. Information Needed -The information that is needed to
answer the DM's questions.
6. Uses of Information -The manner in which the DM will use
each item of information in making the decision.
7. Cultural Influence -The corporate culture as it relates to
decision making.

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2) Pre-step 1: Tasks Involved, continued
•Conduct Interviews with Industry Experts
•Survey experiences professionals; useful for new
products.
•Conduct Secondary Data Analysis
•Secondary data: data collected for some other purpose
other than the problem at hand; this data already exists.
•Primary data:any data that originated by the
researcher specifically to address the research problem
(save this for later).
•Conduct Qualitative Research
•Qualitative research: an unstructured, exploratory
research methodology based on small samples intended
to provide insight and understanding of the problem
setting.
•Examples: focus groups, depth interviews.
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3) Pre-step 2: Consider the
Environmental Context of the Problem
PAST INFORMATION AND FORECASTS
FIRM RESOURCES AND CONSTRAINTS
RESEARCH OBJECTIVES
BUYER BEHAVIOR
LEGAL ENVIRONMENT
ECONOMIC ENVIRONMENT
MARKETING AND TECHNOLOGICAL SKILLS OF
THE FIRM
Considering the following:

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The Problem Definition Process (again)
Fig. 2.1
Discussion
with
Decision Maker(s)
Interviews
with
Experts
Secondary
Data
Analysis
Qualitative
Research
Management Decision Problem
Marketing Research Problem
Pre-step 1: Tasks Involved
Pre-step 2: Environmental Context of the Problem
Step I: Problem Definition
Step II: Approach to the Problem
Objective/
Theoretical
Foundations
Research
Questions
Hypotheses
Step III: Research Design
Analytical
Model: Verbal,
Graphical,
Mathematical
Specification
of
Information
Needed
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4) Step I: Problem Definition
Management Decision ProblemMarketing Research Problem
Asks what the DM needs to do  Asks what information is needed
and how it should obtained
EXAMPLE
Should a new product be  What are the consumer preferences
introduced? and purchase intentions for the
proposed new product?
Should the advertising  How effective is the current
campaign be changed? advertising campaign?
Should the price of the  How elastic is the demand?
brand be increased? How will a price change impact
sales and profits?

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4) Definition of the Research Problem
Marketing Research Problem
Broad Statement
Specific Components
Fig. 2.3
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The Problem Definition Process (again)
Fig. 2.1
Discussion
with
Decision Maker(s)
Interviews
with
Experts
Secondary
Data
Analysis
Qualitative
Research
Management Decision Problem
Marketing Research Problem
Pre-step 1: Tasks Involved
Pre-step 2: Environmental Context of the Problem
Step I: Problem Definition
Step II: Approach to the Problem
Objective/
Theoretical
Foundations
Research
Questions
Hypotheses
Step III: Research Design
Analytical
Model: Verbal,
Graphical,
Mathematical
Specification
of
Information
Needed

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5) Step II: Approach to the Problem
Objective/Theoretical Foundations
Research Questions
Hypotheses
Analytical Models
Specification of the Information Needed
1-26CMR –1
Research Proposal
•A research proposal sets out the broad topic on
which the researcher would like to research
(substance),
what the research would set out to achieve (aims
and objectives),
how he would go about researching it
(methodology),
how he would undertake it within the time
available (outline plan) and
what the results might be in relation to knowledge
and understanding in the subject (potential
outcomes).

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Purpose of a Research Proposal
•Research proposal is intended to convince others that its
worthwhile research project and that one has the
competence and the work-plan to complete it.
•The purpose of a proposal is to sell ones research idea to
the funding agency. This means that the investigator must
convince the funding agency that:
•The problem is significant and worthy of study
•The technical approach is novel and likely to yield results
•The investigator and his/her research team is/are the right
group of individuals to carry out and accomplish the
work described in the research proposal.
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Elements of a Research Proposal
•Title
•Abstract
•Table of Content
•Section A: Introduction
•Section B: Review of the Related
Literature
•Section C: Methodology
•Section D: Ethical/ Legal Consideration
•Section E: Time Schedule
•References

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1) Research Design: Definition
•
A research designis a framework or
blueprint for conducting the marketing
research project. It details the procedures
necessary for obtaining the information
neededto structure or solve marketing
research problems.
1-30CMR –1
Research design involves the following components or tasks:
•Define the information needed.
•Define the exploratory , descriptive and/or causal phases of
the research.
•Specify the measurement and scaling process and
procedures.
•Construct and pre-test a questionnaire (interview form) or
an appropriate form for data collection.
•Specify the sampling process and sample.
•Develop a plan of data analysis.

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Research Design Types
1.Exploratory Research
2.Descriptive Research
3.Causal Research
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1) A Classification of Marketing Research
Designs
Single Cross-
Sectional Design
Multiple Cross-
Sectional Design
Research Design
Conclusive
Research Design
Exploratory
Research Design
Descriptive
Research
Causal
Research
Cross-Sectional
Design
Longitudinal
Design

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1) Exploratory & Conclusive Research
Differences
Objective:
Character-
istics:
Findings/
Results:
Outcome:
To provide insights and
understanding
•Information needed is defined
only loosely.
•Research process is flexible and
unstructured.
•Sample is small and non-
representative.
•Analysis of primary data is
qualitative.
•Hypotheses may not exist.
Tentative
Generally followed by further
exploratory or conclusive research
To test specific hypotheses and
examine relationships
•Information needed is clearly
defined.
•Research process is formal and
structured.
•Sample is large and representative.
•Data analysis is quantitative
Conclusive
Findings used as input into decision
making
Exploratory Conclusive
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1) A Comparison of Basic Research Designs
Objective:
Characteristics:
Methods:
Discovery of ideas
and insights
•Flexible, versatile
•Often the front end of
total research design
•Expert surveys
•Pilot surveys
•Case studies
•Qualitative &
quantitative secondary
data
Describe market
characteristics or
functions
•Marked by the prior
formulation of specific
hypotheses
•Preplanned and
structured design
•Quantitative
secondary data
•Surveys
•Panels
•Observation and other
data
Determine cause
and effect
relationships
•Manipulation of
independent
variables, effect on
dependent
variables
•Control mediating
variables
•Experiments
Exploratory Descriptive Causal
Conclusive

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5) Potential Sources of Error in Research Designs
Surrogate Information Error
Measurement Error
Population Definition Error
Sampling Frame Error
Data Analysis Error
Respondent Selection Error
Questioning Error
Recording Error
Cheating Error
Inability Error
Unwillingness Error
Total Error
Non-sampling
Error
Random
Sampling Error
Non-response
Error
Response
Error
Interviewer
Error
Respondent
Error
Researcher
Error
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3. Review: Qualitative Vs. Quantitative Research
Qualitative Research
To gain a qualitative
understanding of the
underlying reasons and
motivations
Small number of non-
representative cases
Unstructured
Non-statistical
Develop an initial
understanding
Objective
Sample
Data Collection
Data Analysis
Outcome
Quantitative Research
To quantify the data and
generalize the results from
the sample to the population
of interest
Large number of
representative cases
Structured
Statistical
Recommend a final courseof
action
Table 5.1

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4. A Classification of Qualitative Research
Procedures
Association
Techniques
Completion
Techniques
Construction
Techniques
Expressive
Techniques
Fig. 5.2
Direct (Non-
disguised)
Indirect
(Disguised)
Focus Groups
Depth Interviews
Projective
Techniques
Qualitative Research
Procedures
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Direct (Nondisguise)Approach:
A type of qualitative research in which the
purpose of project is disclosed to the
respondents.
Types:
Focus groups
Indepth interview

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Focus groups:
•An interview conducted by a trained moderator
among a small group of respondents in an
unstructured and natural manner.
Characteristics:
Include 8 to 12 members
Homogenous in demographic and socioeconomic
characteristics
Time dueration is 1 to 3 hours
Use audiocassettes and vidio tapes forrecording
free flow of ideas encouraged
group dynamics are useful
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Devision of focus group:
•It is also devided into two parts,
Focus group
Other focus
group
Dual
moderator
group
Respondent
moderator
group
Dueling
moderator
group
Mini group
Online focus
group

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Advantages and disadvantage s of focus
group:
•Advantages
Bandwagon Effect
/Synergism
Simulation
Deep
Understanding
Speed
Specialization
Non-Verbal Cues
•Disadvantages:
Not Representative
difficult to steer and
control
Misrepresentation/
Respondents can feel
peer pressure
Interviewer Bias
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Indepth interview:
•An unstructured interview in which a
single respondent isprobed by a highly
skilled interviewer to uncover underlying
motivation, beliefs, attitude s, and feelings
on a topic.
Characteristics:
An unstructured and direct way of obtaining
information.
Interview conducted on one -on-one basis.
Time duration is 30 minutes to 1 hour

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Indepth interview:
•Techniques:
Techniques that are used in depth interview;
Probing
Laddering
Hidden issuing questioning &
Symbolic analysis
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Longitudinal Studies:
•Longitudinal Studies: Longitudinal studies are also known as
time-series studies and involve a repetitive measurement of
the same sample of elements over time.
•Because longitudinal studies involve multiple measurements,
they are often described as "movies" of the population.
•Applications of Longitudinal Studies in Marketing:
•Consumer Panels
•Retail Shop Audit
•Media Audience Tracking

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Applications of Longitudinal Studies in Marketing:
•1) Consumer Panels: A longitudinal study that
gathers data from the same sample of individuals
or households over time is called a consumer
panel.
•Types of Consumer Panels:
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Types of Consumer Panels:
Types of Consumer Panels:
•a) Purchase Panel: Purchase
panel is useful to study the
purchasing habits and trends
of consumers. Such panel is a
group of selected consumers
who are asked to record
purchases made by them
regularly in the diaries
provided to them.
Information is collected from
the panel members
continuously for detailed
analysis.
Types of
Consumer
Panels
Purchase
Panel
Audience
Panel
Attitude
Panel
Dealer
Panel
Product
Testing
Panel
Retail
Panel/Retail
Audit

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Consumer Purchase Panels Diary
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Types of Consumer Panels:
Types of Consumer Panels:
•b) Audience Panel: Audience panels are panels designed to provide
information regarding media audiences. Audience panels are of
listeners / viewers of programmeson radio and TV. The panel
members are asked to listen the programmeson TV and radio
regularly.
•c) Attitude Panel: Attitude panel is useful for the study of attitude of
consumers towards a product/ marketing practice. Attitudes are
usually studied along with the purchase behaviourof consumers.

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Types of Consumer Panels:
•(d) Dealer Panel: Dealer panels are useful for collecting
information from the dealers in a continuous manner. They give
data on dealer activities including total sales, prices charged,
promotional efforts made, services offered and so on.
•(e) Product Testing Panel: Product testing panel is useful for
testing the utility and other features of the product before
bringing it in the market for Large scale marketing. The panel
includes consumers from cross section of the society.
•(f) Retail Panel/Retail Audit: Retail audit panel is a panel of retail
traders who are willing to give information about their stocks at
regular intervals purely for research purpose. Panel members are
required to note information about the sales and stock position
and provide the record for study purpose.
1-54CMR –1
Applications of Longitudinal Studies in Marketing:
•Retail Shop Audit: Retail Shop audit is a technique in which
marketing information is collected directly from large number of
wide ranged retail shops which sell the products directly to
consumers. Each retail shop has comparatively limited number of
customers and it is in a position to supply precise information
about its customers and their features for research purpose. Shop
audit (also called marketing audit) consists of approaching the
retail shops for collecting facts and required information about,
purchases by consumers.

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Retail Shop Audit
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Applications of Longitudinal Studies in Marketing:
•3) Media Audience Tracking: When mass media consisted of print
communication, audience measurement was relatively straightforward.
Subscription rates provided a base from which to build readership profiles for
newspapers and magazines, and as long as the data supplied by publishers
could be verified by an external audit, advertisers could rely on its credibility.
•(a) TRP: Target Rating Points(TRPs) are thegross rating pointsdelivered by a
media vehicle to a specific target audience. The purpose of the 'target rating
point' metric is to measureimpressionsin relation to the number of people in a
specific target audience for an advertisement.
•(b) Brand Tracking Studies: Brand tracking studies allow marketers to monitor
the health of the brand and provide insights into the effectiveness of marketing
programs implemented by the company. Each brand faces different issues,
which often required customized tracking surveys. Following are some of the
ways a brand tracking study is conducted.

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•) Brand Tracking Studies:
•i) Awareness: A brand that first comes to mind in certain
situations is more likely to be considered than one that is only
recognized when it is prompted to the consumer.
•ii) Usage: These brand tracking measures, not only tell us about
consumer shopping behavior and preferences, but also are
indicators of market share and "share of wallet, "which is the
amount of consumer spending a brand is capturing and has a
direct impact on company's revenues and profits.
•iii) Brand Attitudes and Perceptions: This is usually captured
through questions related to brand image and associations that
consumers develop as they experience the brand and are
exposed to its positioning message through PR, advertising and
promotional programs.
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Questionnaire for
readership survey

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Questionnaire for
readership survey
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Questionnaire for
readership survey

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Questionnaire for
readership survey
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Questionnaire for
readership survey

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Questionnaire for
readership survey
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Product
Concept
Test
Survey

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Product
Concept
Test
Survey
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Product
Concept
Test
Survey

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Product
Concept
Test
Survey
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Product
Concept
Test
Survey

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Product
Concept
Test
Survey
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Sample
Questionnaire
Brand
Perception:

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Sample
Questionnaire
Brand
Perception:
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Brand
Preference
Questionnaire
Sample:

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Brand
Preference
Questionnaire
Sample:
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Brand
Image
Questionnaire
Sample:

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Brand
Image
Questionnaire
Sample:
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CUSTOMER BEHAVIOUR STUDY QUESTIONNAIRE

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CUSTOMER BEHAVIOUR STUDY QUESTIONNAIRE
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CUSTOMER BEHAVIOUR STUDY QUESTIONNAIRE

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CUSTOMER BEHAVIOUR STUDY QUESTIONNAIRE
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Primary Scales of Measurement

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A Classification of Scaling
Techniques
Likert
Semantic
Differential
Stapel
Scaling Techniques
Noncomparative
Scales
Comparative
Scales
Paired
Comparison
Rank
Order
Constant
Sum
Q-Sort and
Other
Procedures
Continuous
Rating Scales
Itemized
Rating Scales
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•Taking a sample from a population
Populations and samples
Sample data ‘represents’ the whole population
1-106CMR –1
Population mean
Population SD

Point estimation
sample mean
Sample SD
Sample data is used to estimate parameters
of a population
Statisticsare calculated using sample data.
Parametersare the characteristics of population
data
estimates


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The Sampling Design Process
A. Define the Population
B. Determine the Sampling Frame
C. Select Sampling Technique(s)
D. Determine the Sample Size
E. Execute the Sampling Process
1-108CMR –1
The Sampling Design Process: Define
the Target Population
A.Define the Target Population
The target population is the collection of
elements/objects/people that possess the
information sought by the researcher and about
which inferences are to be made. The target
population should be defined in terms of:
•An elementis the object about which or from which the
information is desired
•e.g., a person in the population.
•A sampling unitis an element that is available for selection
at some stage of the sampling process.
•E.g., a respondent who takes your survey
•Extentrefers to the geographical boundaries.
•Timeis the time period under consideration.
•B. Sample Frame: A representation of the elements of the
target population. It consists of a list or set of directions for
identifying the target population.

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Classification of Sampling Techniques
Sampling Techniques
Nonprobability
Sampling Techniques
Probability
Sampling Techniques
Convenience
Sampling
Judgmental
Sampling
Quota
Sampling
Snowball
Sampling
Systematic
Sampling
Stratified
Sampling
Cluster
Sampling
Simple Random
Sampling
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3. Classification of Sampling
Techniques
•Probability Sampling: A sampling procedure in
which each element of the population has a fixed
probabilistic chance of being selected for the sample.
•Nonprobability sampling: A sampling technique
that do not use chance selection procedure. Rather,
they rely on personal judgement of the researcher.

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4. Nonprobability Sampling -
Convenience Sampling
Nonprobability sampling techniques include:
convenience,judgmental,quota, and
snowball sampling
Convenience sampling attempts to obtain a
sample of convenientelements. Often,
respondents are selected because they
happen to be in the right place at the right
time. Examples:
•Use of student respondents
•Members of social organizations
•“People on the street” interviews
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4. Nonprobability Sampling -
Judgmental Sampling
Judgmental sampling is a form of nonprobability
sampling in which the population elements are
selected based on the judgmentof the
researcher.

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4. Nonprobability Sampling -Quota
Sampling
Quota sampling may be viewed as two-stage
restricted judgmental sampling.
1.The first stage consists of developing quotas of
population elements.
2.In the second stage, sample elements are
selected based on convenience or judgment.
Quota Population Sample
Variable composition composition
319m. total 1000 total
Sex PercentagePercentageNumber
Male 48% 48% 480
Female 52% 52% 520
____ ____ ____
100% 100% 1000
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4. Nonprobability Sampling -
Snowball Sampling
Insnowball 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.

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5. Probability Sampling –
Simple Random Sampling
Probability sampling techniques
include:
•Simple random,systematic,
stratified, and cluster sampling
Simple Random Sample:
•Each element in the population has
a known and equal probability of
selection.
•This implies that every element is selected independently
of every other element.
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5. Probability Sampling –Systematic
Sampling
Systematic Sampling
•The sample is chosen by selecting a random
starting point and then picking every ith(e.g.
5
th
, 10
th
) element in succession from the
sampling frame.
•The sampling interval, i, is determined by
dividing the population size, N, by the sample
size, n, and rounding to the nearest integer.
•For example: 500,000 (N)/1,000(n) = 500(i)
•When the ordering of the elements is related
to the characteristic of interest (e.g. age),
systematic sampling increases the
representativeness of the sample.

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5. Probability Sampling –Systematic
Sampling
For example:
•There are 100,000 people in the population
(N).
•Each person is put into order based on age.
•A sample (n) of 1,000 is desired.
•In this case the sampling interval, i, is 100.
•(100,000/1,000) = 100
•A random number between
1 and 100 is selected.
•If, for example, this number
is 23, the sample consists
of elements 23, 123, 223,
323, 423, 523, and so on.
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5. Probability Sampling –Stratified
Sampling
Stratified Sampling:
1.A two-step process in which the population
is partitionedinto subpopulations, or
strata.
•Every person in the population should be assigned
to one and only one stratumand no population
elements should be omitted.
2.Next, elements are selected from each
stratumby a random procedure, usually
simple random sampling.
•A major objective of stratified sampling is to
increase precision without increasing cost.

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5. Probability Sampling –Stratified
Sampling
•The elements/people within a stratum(e.g. male)
should be as homogeneous as possible.
•The elements/people across strata (e.g. male,
female) should be as heterogeneous as possible.
•The stratification
variables should also
be closely related to
the characteristic of
interest.
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5. Probability Sampling –Cluster
Sampling
Cluster Sampling:
1.The target population is first divided into
mutually exclusive and collectively
exhaustive subpopulations, or clusters.
2.Then a random sample of clusters is
selected, based on a probability sampling
technique such as simple random
sampling.
3.For each selected cluster, all the elements
are generally included in the sample.

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5. Probability Sampling –Cluster
Sampling
Note: In stratified sampling, a
random sample is drawn from
each of the strata (e.g. five
people from every town),
whereas in cluster sampling
only the selected clusters are
studied (e.g. every person from
five towns).
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Technique Strengths Weaknesses
Nonprobability Sampling
Convenience sampling
Least expensive, least
time-consuming, most
convenient
Selection bias, sample not
representative, not recommended for
descriptive or causal research
Judgmental sampling Low cost,convenient,
not time-consuming
Does not allow generalization,
Subjective, selection bias
Quota sampling Sample can be controlled
for certain characteristics
Selection bias, no assurance of
representativeness
Snowball sampling Can estimate rare
Characteristics, convenient
Selection bias, time-consuming
Probability Sampling
Simple random sampling
Representative,
results, projectable
Difficult to construct sampling
frame, expensive, lower precision
Systematic sampling Can increase
representativeness,
easier to implement than
SRS, sampling frame not
necessary
Can accidentally decrease
representativeness
Stratified sampling Include all important
subpopulations,
representative
Difficult to select relevant
stratification variables, not feasible to
stratify on many variables, expensive
Cluster sampling Easy to implement, cost
effective, more representative
Imprecise, difficult to compute and
interpret results
6. Choosing Nonprobability Vs. Probability
Sampling

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6. Choosing Nonprobability Vs. Probability
Sampling
Conditions Favoring the Use of
Factors

Nonprobability
sampling
Probability
sampling

Nature of research


Exploratory

Conclusive

Variability in the population


Homogeneous
(low
variability)
Heterogeneous
(high
variability)

Statistical considerations



Unfavorable

Favorable
Operational considerations Favorable Unfavorable
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WHAT IS SAMPLE SIZE DETERMINATION
Sample size determination is the
mathematical estimation of the number of
subjects/units to be included in a study.
When a representative sample is taken
from a population, the finding are
generalized to the population.
Optimum sample size determination is
required for the following reasons:
To allow for appropriate analysis
To provide the desired level of accuracy
To allow validity of significance test.

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HOW LARGE A SAMPLE DO I NEED?
IF THE SAMPLE IS TOO SMALL:
1.Even a well conducted study may fail to
answer it research question
2.It may fail to detect important effect or
associations
3.It may associate this effect or association
imprecisely
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CONVERSELY
IF THE SAMPLE SIZE IS TOO LARGE:
1.The study will be difficult and costly
2.Time constraint
3.Available cases e.grare disease.
4.Loss of accuracy.
Hence, optimum sample size must be determined
before commencement of a study.

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Important factors in determining the
sample size are:
•the natureof the research
•Surveys need more people; qualitative
interviews need less
•the number of variables
•More variables = more people
•the nature of the analysis
•Certain methods require more people –
e.g. t-tests need more than simple
averages.
•sample sizes used in similar
studies
Determining The Sample Size
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Sample Sizes Used in Marketing
Research Studies
Type of Study

Minimum Size Typical Range

Market potential research


500

1,000-2,500
Pricing research

200 300-500
Product tests

200 300-500
Test marketing studies

200 300-500
TV, radio, or print advertising (per
commercial or ad tested)
150 200-300
Test-market audits

10 stores 10-20 stores
Focus groups

2 groups 6-15 groups