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Chapter 06 – Sampling: Theory and Methods
Chapter 6
Sampling: Theory and Methods
Learning Objectives (PPT slide 6-2)
1. Explain the role of sampling in the research process.

2. Distinguish between probability and nonprobability sampling.
3. Understand factors to consider when determining sample size.
4. Understand the steps in developing a sampling plan.
Key Terms and Concepts
1. Area sampling
2. Census
3. Central limit theorem (CLT)
4. Cluster sampling
5. Convenience sampling
6. Defined target population
7. Disproportionately stratified sampling
8. Judgment sampling
9. Nonprobability sampling
10. Nonsampling error
11. Population
12. Precision
13. Probability sampling
14. Proportionately stratified sampling
15. Quota sampling
16. Sampling
17. Sampling error
18. Sampling frame
19. Sampling plan
20. Sampling units
21. Simple random sampling
22. Snowball sampling
23. Stratified random sampling
24. Systematic random sampling
Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill
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Chapter Summary by Learning Objectives
Explain the role of sampling in the research process.
Sampling uses a portion of the population to make estimates about the entire population. The
fundamentals of sampling are used in many of our everyday activities. For instance, we sample
before selecting a TV program to watch, test-drive a car before deciding whether to purchase it,
and take a bite of food to determine if our food is too hot or if it needs additional seasoning. The
term target population is used to identify the complete group of elements (e.g., people or objects)
that are identified for investigation. The researcher selects sampling units from the target popula-
tion and uses the results obtained from the sample to make conclusions about the target popula-
tion. The sample must be representative of the target population if it is to provide accurate esti-
mates of population parameters.
Sampling is frequently used in marketing research projects instead of a census because sampling
can significantly reduce the amount of time and money required in data collection.
Distinguish between probability and nonprobability sampling.
In probability sampling, each sampling unit in the defined target population has a known proba-
bility of being selected for the sample. The actual probability of selection for each sampling unit
may or may not be equal depending on the type of probability sampling design used. In nonprob-
ability sampling, the probability of selection of each sampling unit is not known. The selection of
sampling units is based on some type of intuitive judgment or knowledge of the researcher.
Probability sampling enables the researcher to judge the reliability and validity of data collected
by calculating the probability the findings based on the sample will differ from the defined target
population. This observed difference can be partially attributed to the existence of sampling er-
ror. Each probability sampling method, simple random, systematic random, stratified, and clus-
ter, has its own inherent advantages and disadvantages.
In nonprobability sampling, the probability of selection of each sampling unit is not known.
Therefore, potential sampling error cannot be accurately known either. Although there may be a
temptation to generalize nonprobability sample results to the defined target population, for the
most part the results are limited to the people who provided the data in the survey. Each non-
probability sampling method—convenience, judgment, quota, and snowball—has its own inher-
ent advantages and disadvantages.
Understand factors to consider when determining sample size.
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Researchers consider several factors when determining the appropriate sample size. The amount
of time and money available often affect this decision. In general, the larger the sample, the
greater the amount of resources required to collect data. Three factors that are of primary impor-
tance in the determination of sample size are (1) the variability of the population characteristics
under consideration, (2) the level of confidence desired in the estimate, and (3) the degree of pre-
cision desired in estimating the population characteristic. The greater the variability of the char-
acteristic under investigation, the higher the level of confidence required. Similarly, the more
precise the required sample results, the larger the necessary sample size.
Statistical formulas are used to determine the required sample size in probability sampling. Sam-
ple sizes for nonprobability sampling designs are determined using subjective methods such as
industry standards, past studies, or the intuitive judgments of the researcher. The size of the de-
fined target population does not affect the size of the required sample unless the population is
large relative to the sample size.
Understand the steps in developing a sampling plan.
A sampling plan is the blueprint or framework needed to ensure that the data collected are repre-
sentative of the defined target population. A good sampling plan will include, at least, the follow-
ing steps: (1) define the target population; (2) select the data collection method; (3) identify the
sampling frames needed; (4) select the appropriate sampling method; (5) determine necessary
sample sizes and overall contact rates; (6) create an operating plan for selecting sampling units;
and (7) execute the operational plan.
Chapter Outline
Opening Vignette: Mobile Web Interactions Explode
The opening vignette in this chapter describes development of Internet searches by mobile
phone. There has been a vast increase in the use of mobile phones for content online but con-
sumers still prefer a desktop or laptop for searches. If a marketing research study were conducted
on mobile phone search adoption, following would be the key questions to answer.
 What respondents should be included in a study about consumer acceptance of mobile
search?
 How many respondents should be included in each study?
I. Value of Sampling in Marketing Research (PPT slide 6-3)
Sampling is selection of a small number of elements from a larger defined target group of ele-
ments and expecting that the information gathered from the small group will allow judgments to
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be made about the larger group (PPT slide 6-3).
A. Sampling as a Part of the Research Process (PPT slide 6-4)
Sampling is often used when it is impossible or unreasonable to conduct a census. A census is

a research study that includes data about every member of the defined target population (PPT
slide 6-4).
It is easy to see that sampling is less time-consuming and less costly than conducting a census.
Samples also play an important indirect role in designing questionnaires.
II. The Basics of Sampling Theory (PPT slides 6-5 to 6-8)
A. Population (PPT slide 6-5)
A population is an identifiable group of elements (e.g., people, products, organizations) of in-

terest to the researcher and pertinent to the information problem. Most businesses that collect
data are not really concerned with total populations, but with a prescribed segment. A defined
target population is the complete set of elements identified for investigation based on the ob-
jectives of the research project. A precise definition of the target population is essential and is
usually done in terms of elements, sampling units, and time frames. Sampling units are target
population elements actually available to be used during the sampling process.
B. Sampling Frame (PPT slide 6-5)
A sampling frame is a list of all eligible sampling units. Some common sources of sampling
frames are lists of registered voters and customer lists from magazine publishers or credit card
companies. There also are specialized commercial companies (for instance, Survey Sampling,
Inc.; American Business Lists, Inc.; and Scientific Telephone Samples) that sell databases
containing names, addresses, and telephone numbers of potential population elements.
Regardless of the source, it is often difficult and expensive to obtain accurate, representative,
and current sampling frames.
C. Factors Underlying Sampling Theory (PPT slide 6-6)
To understand sampling theory, researchers must know sampling-related concepts. Sampling

concepts and approaches are often discussed as if the researcher already knows the key popu-
lation parameters prior to conducting the research project. However, because most business
environments are complex and rapidly changing, researchers often do not know these parame-
ters prior to conducting research. One of the major goals of researching small, yet representa-
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tive, samples of members of a defined target population is that the results of the research will
help to predict or estimate what the true population parameters are within a certain degree of
confidence.
If business decision makers had complete knowledge about their defined target populations,
they would have perfect information about the realities of those populations, thus eliminating
the need to conduct primary research.
The central limit theorem (CLT) describes the theoretical characteristics of a sample popu-
lation. The CLT is the theoretical backbone of survey research and is important in understand-
ing the concepts of sampling error, statistical significance, and sample sizes. In brief, the theo-
rem states that for almost all defined target populations, the sampling distribution of the mean
(x) or the percentage value (p) derived from a simple random sample will be approximately
normally distributed, provided the sample size is sufficiently large (i.e., when n is > or = 30).
Moreover, the mean (x) of the random sample with an estimated sampling error (Sx) fluctuates
around the true population mean (µ) with a standard error of σ/√ n and an approximately nor-
mal sampling distribution, regardless of the shape of the probability frequency distribution of
the overall target population. In other words, there is a high probability that the mean of any
sample (x) taken from the target population will be a close approximation of the true target
population mean (µ), as one increases the size of the sample (n).
With an understanding of the basics of the central limit theorem (CLT), the researcher can do
the following:
 draw representative samples from any target population
 obtain sample statistics from a random sample that serve as accurate estimates of the
target population’s parameters
 draw one random sample, instead of many, reducing the costs of data collection
 more accurately assess the reliability and validity of constructs and scale measurements
 statistically analyze data and transform it into meaningful information about the target
population
D. Tools Used to Assess the Quality of Samples (PPT slides 6-7 to 6-8)
There are numerous opportunities to make mistakes that result in some type of bias in any re-
search study. This bias can be classified as either of the following (PPT slide 6-8):
 sampling error
 nonsampling error
Random sampling errors could be detected by observing the difference between the sample
results and the results of a census conducted using identical procedures. Following are the two
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difficulties associated with detecting sampling error.

 A census is very seldom conducted in survey research
 Sampling error can be determined only after the sample is drawn and data collection is
completed
Sampling error is any bias that is attributable to mistakes in either drawing a sample or de-
termining the sample size. Moreover, random sampling error tends to occur because of chance
variations in the selection of sampling units. Even if the sampling units are properly selected,
those units still might not be a perfect representation of the defined target population, but they
generally are reliable estimates. When there is a discrepancy between the statistic estimated
from the sample and the actual value from the population, a sampling error has occurred.
Sampling error can be reduced by increasing the size of the sample. In fact, doubling the size
of the sample can reduce the sampling error, but increasing the sample size primarily to re-
duce the standard error may not be worth the cost.
Nonsampling error is a bias that occurs in a research study regardless of whether a sample or
census is used. These errors can occur at any stage of the research process. Some examples
are as follows.
 The target population may be inaccurately defined causing population frame error
 Inappropriate question/scale measurements can result in measurement error
 A questionnaire may be poorly designed causing response error
 There may be other errors in gathering and recording data or when raw data are coded
and entered for analysis.
In general, the more extensive a study, the greater the potential for nonsampling errors. Unlike
sampling error, there are no statistical procedures to assess the impact of nonsampling errors
on the quality of the data collected. Yet, most researchers realize that all forms of nonsam-
pling errors reduce the overall quality of the data regardless of the data collection method.
Nonsampling errors usually are related to the accuracy of the data, whereas sampling errors
relate to the representativeness of the sample to the defined target population.
IV. Probability and Nonprobability Sampling (PPT slide 6-9)
There are two basic sampling designs.

 Probability sampling
 Nonprobability sampling
Exhibit 6.2 lists the different types of both sampling methods.
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In probability sampling, each sampling unit in the defined target population has a known proba-
bility of being selected for the sample. The actual probability of selection for each sampling unit
may or may not be equal depending on the type of probability sampling design used. Specific
rules for selecting members from the population for inclusion in the sample are determined at the
beginning of a study to ensure the following:
 unbiased selection of the sampling units
 proper sample representation of the defined target population
Probability sampling enables the researcher to judge the reliability and validity of data collected
by calculating the probability that the sample findings are different from the defined target popu-
lation. The observed difference can be partially attributed to the existence of sampling error. The
results obtained by using probability sampling designs can be generalized to the target popula-
tion within a specified margin of error.
Nonprobability sampling is a sampling design in which the probability of selection of each

sampling unit is not known. The selection of sampling units is based on the judgment of the re-
searcher and may or may not be representative of the target population. The degree to which the
sample is representative of the defined target population depends on the sampling approach and
how well the researcher executes the selection activities.
A. Probability Sampling Designs (PPT slides 6-10 to 6-14)
Simple random sampling is a probability sampling in which every sampling unit has a
known and equal chance of being selected (PPT slide 6-11).
Simple random sampling has several advantages.

 The technique is easily understood and the survey’s results can be generalized to the de-
fined target population with a prespecified margin of error.
 Simple random samples produce unbiased estimates of the population’s characteristics.
 This method guarantees that every sampling unit has a known and equal chance of being
selected, no matter the actual size of the sample, resulting in a valid representation of
the defined target population.
The primary disadvantage of simple random sampling is the difficulty of obtaining a complete
and accurate listing of the target population elements. Simple random sampling requires that
all sampling units be identified. For this reason, simple random sampling works best for small
populations where accurate lists are available.
Systematic random sampling is similar to simple random sampling but requires that the de-
fined target population be ordered in some way, usually in the form of a customer list, tax-
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payer roll, or membership roster (PPT slide 6-11). In research practices, systematic random
sampling has become a popular method of drawing samples. Compared to simple random
sampling, systematic random sampling is less costly because it can be done relatively quickly.
When executed properly, systematic random sampling creates a sample of objects or prospec-
tive respondents that is very similar in quality to a sample drawn using simple random sam-
pling.
To use systematic random sampling, the researcher must be able to secure a complete listing
of the potential sampling units that make up the defined target population. But unlike simple
random sampling, there is no need to give the sampling units any special code prior to draw-
ing the sample. Instead, sampling units are selected according to their position using a skip in-
terval. The skip interval is determined by dividing the number of potential sampling units in
the defined target population by the number of units desired in the sample. The required skip
interval is calculated using the following formula:
Skip interval = Defined target population list size ∕ Desired sample size
Exhibit 6.3 displays the steps that a researcher would take in drawing a systematic random
sample.
Systematic sampling is frequently used because it is a relatively easy way to draw a sample
while ensuring randomness. The availability of lists and the shorter time required to draw a
sample versus simple random sampling makes systematic sampling an attractive, economical
method for researchers. The greatest weakness of systematic random sampling is the possibil-
ity of hidden patterns in the list of names that create bias. Another difficulty is the number of
sampling units in the target population must be known. When the size of the target population
is large or unknown, identifying the number of units is difficult, and estimates may not be ac-
curate.
Stratified random sampling involves the separation of the target population into different
groups, called strata, and the selection of samples from each stratum. (PPT slide 6-12) It is
similar to segmentation of the defined target population into smaller, more homogeneous sets
of elements.
To ensure that the sample maintains the required precision, representative samples must be
drawn from each of the smaller population groups (stratum). Drawing a stratified random
sample involves three basic steps.
 Dividing the target population into homogeneous subgroups or strata
 Drawing random samples from each stratum
 Combining the samples from each stratum into a single sample of the target population
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Two common methods are used to derive samples from the strata.
 Proportionate: Proportionately stratified sampling is a stratified sampling method in
which each stratum is dependent on its size relative to the population.
 Disproportionate: Disproportionately stratified sampling is a stratified sampling
method in which the size of each stratum is independent of its relative size in the popu-
lation.
Dividing the target population into homogeneous strata has several advantages, including the
following:
 assurance of representativeness in the sample
 opportunity to study each stratum and make comparisons between strata
 the ability to make estimates for the target population with the expectation of greater
precision and less error
The primary difficulty encountered with stratified sampling is determining the basis for strati-
fying.
Cluster sampling is similar to stratified random sampling, but is different in that the sam-
pling units are divided into mutually exclusive and collectively exhaustive subpopulations
called clusters. Each cluster is assumed to be representative of the heterogeneity of the target
population (PPT slide 6-13). Once the cluster has been identified, the prospective sampling
units are selected for the sample by either using a simple random sampling method or can-
vassing all the elements (a census) within the defined cluster.
A popular form of cluster sampling is area sampling (PPT slide 6-14). In area sampling, the
clusters are formed by geographic designations. When using area sampling, the researcher has
two additional options.
 The one-step approach: The researcher must have enough prior information about the
various geographic clusters to believe that all the geographic clusters are basically iden-
tical with regard to the specific factors that were used to initially identify the clusters.
 The two-step approach
Cluster sampling is widely used because of its cost-effectiveness and ease of implementation.
In many cases, the only representative sampling frame available to researchers is one based on
clusters.
A primary disadvantage of cluster sampling is that the clusters often are homogeneous. The
more homogeneous the cluster, the less precise the sample estimates. Another concern with
cluster sampling is the appropriateness of the designated cluster factor used to identify the
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sampling units within clusters.
B. Nonprobability Sampling Designs (PPT slides 6-14 and 6-15)
Convenience sampling is a nonprobability sampling method in which samples are drawn at

the convenience of the researcher (PPT slide 6-14). The assumption is that the individuals in-
terviewed at the shopping mall are similar to the overall defined target population with regard
to the characteristic being studied.
Convenience sampling enables a large number of respondents to be interviewed in a relatively

short time. For this reason, it is commonly used in the early stages of research, including con-
struct and scale measurement development as well as pretesting of questionnaires. But using
convenience samples to develop constructs and scales can be risky. Another major disadvan-
tage of convenience samples is that the data are not generalizable to the defined target popula-
tion. The representativeness of the sample cannot be measured because sampling error esti-
mates cannot be calculated.
Judgment Sampling or purposive sampling is a nonprobability sampling method in which

participants are selected according to an experienced individual’s belief that they will meet
the requirements of the research study (PPT slide 6-14).
If the judgment of the researcher is correct, the sample generated by judgment sampling will
be better than one generated by convenience sampling. As with all nonprobability sampling
procedures, however, the representativeness of the sample cannot be measured.
Quota sampling involves the selection of prospective participants according to prespecified

quotas for either demographic characteristics, specific attitudes, or specific behaviors (PPT
slide 6-15). The purpose of quota sampling is to assure that prespecified subgroups of the
population are represented.
The major advantage of quota sampling is that the sample generated contains specific sub-
groups in the proportions desired by researchers. Quota sampling reduces selection bias by
field workers. An inherent limitation of quota sampling is that the success of the study is de-
pendent on subjective decisions made by researchers. Since it is a nonprobability sampling
method, the representativeness of the sample cannot be measured. Therefore, generalizing the
results beyond the sampled respondents is questionable.
Snowball sampling is a nonprobability sampling method, also called referral sampling, in

which a set of respondents is chosen, and they help the researcher identify additional people
to be included in the study (PPT slide 6-15). Snowball sampling is typically used in the fol-
lowing situations.
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 The defined target population is small and unique

 Compiling a complete list of sampling units is very difficult
Snowball sampling is a reasonable method of identifying respondents who are members of

small, hard-to-reach, uniquely defined target populations. As a nonprobability sampling
method, it is most useful in qualitative research. But snowball sampling allows bias to enter
the study. If there are significant differences between people who are known in certain social
circles and those who are not, there may be problems with this sampling technique. Like all
other nonprobability sampling approaches, the ability to generalize the results to members of
the target population is limited.
C. Determining the Appropriate Sampling Design (PPT slide 6-16)
Determining the best sampling design involves consideration of several factors. Exhibit 6.5
provides an overview of the major factors that should be considered (PPT slide 6-16).
 Research objectives
 Degree of accuracy
 Resources
 Time frame
 Knowledge of the target population
 Scope of the research
 Statistical analysis needs
V. Determining Sample Sizes (PPT slides 6-18 to 6-24)
Determining the sample size is not an easy task. The researcher must consider how precise the
estimates must be and how much time and money are available to collect the required data, since
data collection is generally one of the most expensive components of a study. Sample size deter-
mination differs between probability and nonprobability designs.
A. Probability Sample Sizes (PPT slides 6-18 to 6-21)
Three factors play an important role in determining sample sizes with probability designs
(PPT slide 6-18).
 The population variance, which is a measure of the dispersion of the population, and its
square root, referred to as the population standard deviation. The greater the variability
in the data being estimated the larger the sample size needed.
 The level of confidence desired in the estimate. The higher the level of confidence de-
sired the larger the sample size needed.
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 The degree of precision desired in estimating the population characteristic. Precision is

the acceptable amount of error in the sample estimate. The more precise the required
sample results, that is, the smaller the desired error, the larger the sample size.
For a particular sample size, there is a trade-off between degree of confidence and degree of
precision, and the desire for confidence and precision must be balanced. These two considera-
tions must be agreed upon by the client and the marketing researcher based on the research
situation.
Formulas based on statistical theory can be used to compute the sample size. For pragmatic
reasons, such as budget and time constraints, alternative “ad hoc” methods often are used. Ex-
amples of these are sample sizes based on rules of thumb, previous similar studies, one’s own
experience, or simply what is affordable. Irrespective of how the sample size is determined it
is essential that it should be of a sufficient size and quality to yield results that are seen to be
credible in terms of their accuracy and consistency.
When formulas are used to determine sample size, there are separate approaches for determin-
ing sample size based on a predicted population mean and a population proportion. The for-
mulas are used to estimate the sample size for a simple random sample. When the situation in-
volves estimating a population mean, the formula for calculating the sample size is:
n = (Z2 B,CL) (σ2∕ e2)
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)
In situations where estimates of a population proportion are of concern, the standardized for-
mula for calculating the needed sample size would be:
n = (Z2 B,CL) ([P×Q] ∕ e2)
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 intu-
ition or prior information
Q = − [1 − P], or the estimate of expected population proportion not holding the characteristic
of interest
e = Acceptable tolerance level of error (stated in percentage points)
When the defined target population size in a consumer study is 500 elements or less, the re-
searcher should consider taking a census of the population rather than a sample. The logic be-
hind this is based on the theoretical notion that at least 384 sampling units need to be included
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in most studies to have a +/- 5 percent confidence level and a sampling error of +/- 5 percent-
age points.
Sample sizes in business-to-business studies present a different problem than in consumer

studies where the population almost always is very large. With business-to-business studies
the population frequently is only 200 to 300 individuals. An acceptable sample size may be as
small as 30 percent or so but the final decision would be made after examining the profile of
the respondents.
B. Sampling from a Small Population (PPT slide 6-20)
When working with small populations, however, use of the above formulas may lead to an un-
necessarily large sample size. If, for example, the sample size is larger than 5 percent of the
population then the calculated sample size should be multiplied by the following correction
factor:
N∕(N + n − 1)
Where:
N = Population size
n = Calculated sample size determined by the original formula
Thus, the adjusted sample size is:

Sample size = (Specified degree of confidence × Variability/Desired precision) 2 × N∕(N +
n−1)
C. Nonprobability Sample Sizes (PPT slide 6-21)
Sample size formulas cannot be used for nonprobability samples. Determining the sample size
for nonprobability samples is usually a subjective, intuitive judgment made by the researcher
based on either past studies, industry standards, or the amount of resources available. Regard-
less of the method, the sampling results cannot be used to make statistical inferences about the
true population parameters. Researchers can compare specific characteristics of the sample,
such as age, income, and education, and note that the sample is similar to the population.
D. Other Sample Size Determination Approaches (PPT slide 6-21)
Sample sizes are often determined using less formal approaches. For example, the budget is
almost always a consideration, and the sample size then will be determined by what the client
can afford. A related approach is basing sample size on similar previous studies that are con-
sidered comparable and judged as having produced reliable and valid findings.
Consideration also is often given to the number of subgroups that will be examined and the
minimum sample size per subgroup needed to draw conclusions about each subgroup. Some
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researchers suggest the minimum subgroup sample size should be 100 while many believe
subgroup sample sizes as small as 50 are sufficient. If the minimum subgroup sample size is
50 and there are five subgroups, then the total sample size would be 250. Finally, sometimes
the sample size is determined by the number of questions on a questionnaire. Decisions on
which of these approaches, or combinations or approaches, to use require the judgment of
both research experts and managers to select the best alternative.
VI. Steps in Developing a Sampling Plan (PPT slides 6-22 and 6-23)
Sampling plan is the blueprint or framework needed to ensure that the data collected are repre-
sentative of the defined target population (PPT slide 6-22).
A good sampling plan includes the following steps (PPT slide 6-25).
 Define the target population
 Select the data collection method
 Identify the sampling frames needed
 Select the appropriate sampling method—in determining the sampling method, the re-
searcher must consider seven factors:
o Research objectives
o Desired accuracy
o Availability of resources
o Time frame
o Knowledge of the target population
o Scope of the research
o Statistical analysis needs
 Determine necessary sample sizes and overall contact rates—to determine the appropriate
sample size, decisions have to be made concerning the:
o Variability of the population characteristic under investigation
o Level of confidence desired in the estimates
o Precision required
 Create an operating plan for selecting sampling units
 Execute the operational plan
Marketing Research in Action
Developing a Sampling Plan for a New Menu Initiative Survey (PPT slides 6-24 and 6-25)
The Marketing Research in Action introduces the fact that the owners of the Santa Fe Grill real-
ize that in order to remain competitive in the restaurant industry, new menu items need to be in-
troduced periodically to provide variety for current customers and to attract new customers.
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Owners of the Santa Fe Grill want to know whether the menu should be changed to include items
beyond the traditional southwestern cuisine, how many new items should be included on the sur-
vey, and what type of sampling plan should be developed for selecting respondents, and who
should those respondents be.
Answers to Hands-On Exercise
1. How many questions should the survey contain to adequately address all possible new
menu items, including the notion of assessing the desirability of new cuisines? In short,
how can it be determined that all necessary items will be included on the survey without
the risk of ignoring menu items that may be desirable to potential customers?
The number of questions should be limited to enable participants to complete the survey
quickly. Otherwise, participants may be annoyed at the time investment they were asked to
make.
It is not necessary to examine a set of menu items on the survey. Rather it is necessary to
find out whether it is important to customers that new items be offered periodically, and if
so, how often, how many items, and what kind of items (including cuisine).
2. How should the potential respondents be selected for the survey? Should customers be in-
terviewed while they are dining? Should customers be asked to participate in the survey
upon exiting the restaurant? Or should a mail or telephone approach be used to collect in-
formation from customers/noncustomers?
An exit interview might be appropriate. As diners receive their checks they could be given
a short survey and asked to complete it before they leave.
3. How many new menu items can be examined on the survey? Remember, all potential menu
possibilities should be assessed but you must have a manageable number of questions so
the survey can be performed in a timely and reasonable manner. Specifically, from a list of
all possible menu items that can be included on the survey, what is the optimal number of
menu items that should be used? Is there a sampling procedure one can use to determine
the maximum number of menu items to place on a survey?
First, Santa Fe Grill is a niche player. There is a reason for that. If they try to be all things
to all people, they will need to have a great deal of resources to put into their operation.
They obviously don’t have that option. Therefore, if they are thinking about expanding the
menu, they should think of items that are congruent with, or complimentary to, their
present offering.
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That said, the way to identify a few new items for the menu is a multi-stage process, much
like the new product development model. Make a list of all the possible choices for new
items. Use secondary sources; a literature review, look at competitor’s offerings, and ex-
pert interviews. Also, use primary sources of information; stage a contest to solicit new
menu offering ideas, brainstorm your staff, and ask customers for suggestions. Once you
have a massive list, start to eliminate the obvious “losers.” Items that are incongruent with
your restaurant’s theme, items that don’t fit the rest of your offering’s price range, items
that the cooks can’t handle, etc. Once you have drastically cut the list, get your target popu-
lation to give feedback on their desires. The result should be a prioritized short-list of items
that will work in your setting and that your target market finds attractive.
How you decide on an optimal menu offering is a business decision, not based on con-
sumers’ tastes and preferences. Make an estimate of contribution to margin that each menu
item will generate. Start at the top and work down through the list. Stop when you get to
zero. Stop before that if you get to the place that you don’t have resources to support the
offering. Include some items that are complimentary to the real profit drivers. There is no
“optimum” number of items for a menu. It all depends on the individual situation. Menu
items can even change seasonally, to keep up with ingredient availability and/or customer’s
seasonal expectations.
4. Determine the appropriate sample design. Develop a sample design proposal for the Santa
Fe Grill that addresses the following: Should a probability or nonprobability sample be
used? Given your answer, what type of sampling design should be employed (simple ran-
dom, stratified, convenience, etc.)? Given the sample design suggested, how will potential
respondents be selected for the study? Finally, determine the necessary sample size and
suggest a plan for selecting the sample units.
It is possible to use a probability sample in this case and the results can be generalized to
the target population. A systematic random sample is probably adequate for this ex-
ploratory research situation. The sampling plan will have something to do with how much
traffic flows through your restaurant, the desired sample size, and the resources available to
do the sample. Let’s say that you sample the person who pays the bill for every 15th order.
The tickets have control numbers, so identifying every 15th ticket (after a random start)
should be fairly easy.
Sample size is a function of the degree of precision required, the amount of variation
within the target population, and the resources available to do the study. We don’t know
anything about any of these factors, so it is pretty hard to select a proper sample size. Cer-
tainly anything less than 30 would be too small. Anything over 500 would be too costly
and cumbersome. Somewhere in that range would be the “right” size.
Education.
17
Answers to Review Questions
1. Why do many research studies place heavy emphasis on correctly defining a target popula-
tion rather than a total population?
When performing marketing research today, it’s important to ensure the people and objects
under scrutiny have a direct relationship to the objectives of the research project. A total
population is a grouping of people, objects, products, and organizations that are of interest
to the researcher and client. However, drawing a representative sample from a population
such as “all people studying for a Bachelor of Science Degree” or “everyone who orders
out for fast food on the weekend” is a challenge, since it’s unlikely the data captured would
be accurate or useful at all to Brown University or KFC. In sum, heavy emphasis is placed
upon correctly defining a target population in that the focus is placed on a precisely defined
subset of the total population of interest to the research team and the client.
2. Explain the relationship between sample sizes and sampling error. How does sampling er-
ror occur in survey research?
Sampling error is any type of bias that can be attributed to how the sample was drawn or
how sample size was determined. Estimated standard error measures the sampling error
and gives the research team and the client an idea of how far the sample outcome “strays”
from the estimate from the actual defined target population. Estimated standard error is
“joined at the hip” with sample size for the following reason: The more variability, and the
more precision and confidence desired and the bigger the sample must be.
3. The vice president of operations at Busch Gardens knows that 70 percent of the patrons
like roller-coaster rides. He wishes to have an acceptable margin of error of no more than
+/- 2 percent and wants to be 95 percent confident about the attitudes toward the “Gwazi”
roller coaster. What sample size would be required for a personal interview study among
on-site patrons?
This is an interesting review question; however, it should be assigned as a take-home ques-

tion as a way of preparing your class participants for some of the more sophisticated dis-
cussion questions concerning sample size below. For this reason it’s advised that you sim-
ply point them toward the section which discusses determining sample size and let them
“have a go at it.” At this juncture it’s important to encourage them to “do the best they can”
and that they will learn more if they come to class prepared. There’s an old saying you
should share with your students as you begin to drill down into the more “quantitative”
side of our text; namely: “Fifty percent of something is better than one-hundred percent of
Education.
18
nothing at all.” Determining sample size, like the many and varied statistical techniques
can cause the culture of your class to take a “turn for the worse” if the process of acclima-
tion isn’t managed properly. Unlike the discussion questions below—which come com-
plete with outcomes you can use—approach this review question by “thinking outside the
box.” The rewards will be rich when you return to cover the landscape of quantitative anal-
ysis later in the term.
Answers to Discussion Questions
1. Summarize why a current telephone directory is not a good source from which to develop a
sampling frame for most research studies.
The current telephone directory is a less than adequate source from which to develop a
sampling frame because of what’s referred to as an under-registration condition. Under
registration occurs when eligible sampling units are accidentally (and in this case purpose-
fully) left out of the sampling frame. For example, in its most basic sense a “telephone”
book ought to list names, numbers, and addresses for each and every person who owns a
telephone. However, your telephone book does not include people whose numbers were
activated after the book has been published, cell phone numbers, pager numbers, and/or
unlisted numbers. Therefore, a telephone book should never be used as the primary or only
source for developing a sampling frame because of this sampling gap.
2. EXPERIENCE MARKETING RESEARCH. Go to www.surveysampling.com and se-

lect from the menu “the frame.” Once there, select “archive” and go to a particular year
(e.g., 2012) and review the articles available on the topic of sampling. Select two articles
and write a brief summary on how sampling affects the ability to conduct accurate market
research.
Students’ answers will vary. Students should be able to summarize the importance of sam-
pling in their own words.
Education.

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1

Chapter 06 – Sampling: Theory and Methods

Learning Objectives (PPT slide 6-2)

1. Explain the role of sampling in the research process.

Key Terms and Concepts

Chapter Summary by Learning Objectives

Explain the role of sampling in the research process.

Distinguish between probability and nonprobability sampling.

Understand factors to consider when determining sample size.

Understand the steps in developing a sampling plan.

Opening Vignette: Mobile Web Interactions Explode

I. Value of Sampling in Marketing Research (PPT slide 6-3)

be made about the larger group (PPT slide 6-3).

A. Sampling as a Part of the Research Process (PPT slide 6-4)

Sampling is often used when it is impossible or unreasonable to conduct a census. A census is

II. The Basics of Sampling Theory (PPT slides 6-5 to 6-8)

A. Population (PPT slide 6-5)

A population is an identifiable group of elements (e.g., people, products, organizations) of in-

B. Sampling Frame (PPT slide 6-5)

C. Factors Underlying Sampling Theory (PPT slide 6-6)

To understand sampling theory, researchers must know sampling-related concepts. Sampling

difficulties associated with detecting sampling error.

IV. Probability and Nonprobability Sampling (PPT slide 6-9)

There are two basic sampling designs.

Exhibit 6.2 lists the different types of both sampling methods.

Nonprobability sampling is a sampling design in which the probability of selection of each

A. Probability Sampling Designs (PPT slides 6-10 to 6-14)

Simple random sampling has several advantages.

sampling units within clusters.

B. Nonprobability Sampling Designs (PPT slides 6-14 and 6-15)

Convenience sampling is a nonprobability sampling method in which samples are drawn at

Convenience sampling enables a large number of respondents to be interviewed in a relatively

Judgment Sampling or purposive sampling is a nonprobability sampling method in which

Quota sampling involves the selection of prospective participants according to prespecified

Snowball sampling is a nonprobability sampling method, also called referral sampling, in

 The defined target population is small and unique

Snowball sampling is a reasonable method of identifying respondents who are members of

C. Determining the Appropriate Sampling Design (PPT slide 6-16)

V. Determining Sample Sizes (PPT slides 6-18 to 6-24)

A. Probability Sample Sizes (PPT slides 6-18 to 6-21)

 The degree of precision desired in estimating the population characteristic. Precision is

Sample sizes in business-to-business studies present a different problem than in consumer

B. Sampling from a Small Population (PPT slide 6-20)

Thus, the adjusted sample size is:

C. Nonprobability Sample Sizes (PPT slide 6-21)

D. Other Sample Size Determination Approaches (PPT slide 6-21)

Marketing Research in Action

Answers to Hands-On Exercise

Answers to Review Questions

This is an interesting review question; however, it should be assigned as a take-home ques-

Answers to Discussion Questions

2. EXPERIENCE MARKETING RESEARCH. Go to www.surveysampling.com and se-

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