DBB2103: Research Methodology Manipal University Jaipur (MUJ)

BACHELOR OF BUSINESS
ADMINISTRATION
SEMESTER 3

DBB2103
RESEARCH METHODOLOGY

Unit 4: Sample Selection 1

DBB2103: Research Methodology Manipal University Jaipur (MUJ)

Unit 4
Sample Selection
Table of Contents

SL Topic Fig No / Table SAQ / Page No

No / Graph Activity
1 Introduction - -
3
1.1 Objectives - -
2 Importance and Advantages of Sampling - - 4
3 Sampling Concepts - 1I
3.1 Sample vs Census - - 5-8
3.2 Sampling vs Non-Sampling Error - -
4 Characteristics of Good Sample - - 9
5 Sampling Design - 2 II
5.1 Probability Sampling Design - - 10 – 17
5.2 Non-probability Sampling Designs - -
6 Criteria for Selection of a Sampling
- - 18
Technique
7 Glossary - - 19
8 Terminal Questions - - 19
9 Answers - - 20
10 References - - 21

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1. INTRODUCTION

We discussed the concept of R This unit will discuss an important aspect of research –
sampling. Let us understand what sampling is and what role it plays in research.

As we have discussed earlier, research objectives are generally translated into research
questions that enable the researchers to identify the information needs. Once the
information needs are specified, the sources of collecting the information are sought. Some
of the information may be collected through secondary sources (published material),
whereas the rest may be obtained through primary sources. The primary methods of
collecting information could be the observation method, personal interview the
questionnaire (which we learned in the previous unit), telephone surveys, and mail surveys.
Surveys are, therefore, useful in information collection, and their analysis plays a vital role
in finding answers to research questions. Survey respondents should be selected using the
appropriate procedures; otherwise, the researchers may not be able to get the right
information to solve the problem under investigation. This is done through sampling.

In this unit, we will discuss in detail the concept of sampling, including sampling and non-
sampling error, probability, and non-probability sampling designs, as well as the
determination of sample size.

1.1 Objectives

After studying this unit, you should be able to:

❖ Explain the basic concepts of sampling.

❖ Distinguish between sample and census.
❖ Differentiate between a sampling and non-sampling error.
❖ Understand the meaning of sampling design.
❖ Explain different types of probability sampling designs.
❖ Describe various types of non-probability sampling designs.
❖ Estimate the sample size required while estimating the population mean and proportion.

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2. IMPORTANCE AND ADVANTAGES OF SAMPLING

Sampling helps us to reach conclusions without having to question the entire population.
This comes with a set of benefits to the researchers. There are several reasons why sampling
makes a significant difference to research. Here are some advantages that support the cause
of sampling: lowering costs, higher accuracy, swift data collection and the availability of
population elements.

Lowering Costs: Let us assume that there is a concern that is affecting the organizational
culture. It would be an easy task to ask everyone in the organization about the problem if the
organization has a small number of individuals. However, the task would become expensive,
if it is a large organization. It is in such situations that sampling would make sense.

Higher Accuracy: William Edwards Deming argued that the quality of study is often better
with a sample than the census. This could be because the study can be thorough and can be
supervised efficiently if it is a smaller sample.

Swift Data Collection: With the help of sampling the time taken between the recognition of a
need and the availability of related information is reduced, which can be very crucial in
industries that have rapid innovation.

Availability of Population Elements: The best example of this automobile crash testing. It
would not be feasible to crash test every car. Therefore, a sample which has the
characteristics of the population is taken and experiments are performed on them.

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3. SAMPLING CONCEPTS
The process of selecting the right individuals, objects, or events for a study is known as
sampling. Sampling involves the study of a small number of individuals, objects chosen from
a larger group. Before we get into the details of various issues about sampling, it would be
appropriate to discuss some of the sampling concepts.

Population: Population refers to any group of people or objects that form the subject of
study in a particular survey and are similar in one or more ways. For example, the number
of full-time MBA students in a business school could form one population. If there are 200
such students, the population size would be

200. We may be interested in understanding their perceptions about business education. If

in any organization, there are 1,000 engineers, out of which 350 are mechanical engineers
and we are interested in examining the proportion of mechanical engineers who intend to
leave the organization within six months, all the 350 mechanical engineers would form the
population of interest. If the interest is in studying how the patients in a hospital are looked
after, then all the patients of the hospital would fall under the category of the population.

Element: An element comprises a single member of the population. Out of the 350
mechanical engineers mentioned above, each mechanical engineer would form an element
of the population.

Sampling frame: The sampling frame comprises all the elements of a population with
proper identification that is available to us for selection at any stage of sampling. For
example, the list of registered voters in a constituency could form a sampling frame; the
telephone directory; the number of students registered with a university; the attendance
sheet of a particular class, and the payroll of an organization are examples of sampling
frames. When the population size is very large, it becomes virtually impossible to form a
sampling frame. We know that the number of consumers of soft drinks is very large and,
therefore, it becomes very difficult to form the sampling frame for the same.

Sample: It is a subset of the population. It comprises only some elements of the population.
If out of the 350 mechanical engineers employed in an organization, 30 are surveyed

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regarding their intention to leave the organization in the next six months, these 30 members
would constitute the sample.

Sampling unit: A sampling unit is a single member of the sample. If a sample of 50 students
is taken from a population of 200 MBA students in a business school, then each of the 50
students is a sampling unit.

Sampling: It is a process of selecting an adequate number of elements from the population

so that the study of the sample will not only help in understanding the characteristics of the
population but also enables us to generalize the results. We will see later that there are two
types of sampling designs—probability sampling design and non-probability sampling
design.

Census (or complete enumeration): An examination of every element of the population is

called a census or complete enumeration. Census is an alternative to sampling. We will
discuss the inherent advantages of sampling over a complete enumeration later.

3.1 Sample Vs Census

In a research study, we are generally interested in studying the characteristics of a

population. Suppose there are 2 lakh households in a town, and we are interested in
estimating the proportion of households that spend their summer vacations in a hill station.
This information can be obtained by asking every household in that town. If all the
households in a population are asked to provide information, such a survey is called a census.
There is an alternative way of obtaining the same information, by choosing a subset of all the
two lakh households and asking them for the same information. This subset is called a
sample. Based on the information obtained from the sample, a generalization about the
population characteristic could be made. However, that sample has to be representative of
the population. For a sample to be representative of the population, the distribution of
sampling units in the sample has to be in the same proportion as the elements in the
population. For example, if in a town there are 50, 35, and 15 percent households in lower,
middle, and upper-income groups, then a sample taken from this population should have the
same proportions for it to be representative. There are several advantages of the sample over
the census.

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• The sample saves time and cost. Many times, a decision-maker may not have too much
time to wait till all the information is available. Therefore, a sample could come to his
rescue.
• There are situations where a sample is the only option. When we want to estimate the
average life of fluorescent bulbs, what is done is that they are burnt out completely. If
we go for a complete enumeration there would not be anything left for us. Another
example could be testing the quality of a photographic film.
• The study of a sample instead of complete enumeration may, at times, produce more
reliable results. This is because by studying a sample, fatigue is reduced and fewer
errors occur while collecting the data, especially when a large number of elements are
involved.

A census is appropriate when the population size is small, e.g., the number of public sector
banks in the country. Suppose the researcher is interested in collecting information from the
top management of a bank regarding their views on the monetary policy announced by the
Reserve Bank of India (RBI), in this case, a complete enumeration may be possible as the
population size is not very large.

3.2 Sampling Vs Non-Sampling Error

There are two types of errors that may occur while we are trying to estimate the population
parameters from the sample. These are called sampling and non-sampling errors.

Sampling error: This error arises when a sample is not representative of the population. It
is the difference between the sample mean and population means. The sampling error
reduces with the increase in sample size as an increased sample may result in increasing the
representativeness of the sample.

Non-sampling error: This error arises not because a sample is not representative of the
population but because of other reasons. Some of these reasons are listed below:

• The respondents when asked for information on a particular variable may not give the
correct answers. If a person aged 48 is asked a question about his age, he may indicate
the age to be 36, which may result in an error in estimating the true value of the variable
of interest.

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• The error can arise while transferring the data from the questionnaire to the
spreadsheet on the computer.
• There can be errors at the time of coding, tabulation, and computation.
• If the population of the study is not properly defined, it could lead to errors.
• The chosen respondent may not be available to answer the questions or may refuse to
be part of the study.

Activity 1
You are surveying in a business school in Chennai to understand the fast- food habits of
students,
List the sources of non- sampling errors that are faced by you while conducting this survey.

Self-Assessment Questions – 1

1. The difference between the sample result and the results obtained through a
census using the identical procedure is known as sampling error. (True/False)
2. A population that is being sampled is also called the universe. (True/False)
3. Which of these is not a sampling frame?
(a) List of registered voters in a constituency
(b) Subscribers listed in a telephone directory
(c) The total number of students registered with a university
(d) 30 students who are surveyed in a class of 150 MBA students
4. A subset of the population is called
(a) Element
(b) Sampling unit
(c) Sample
(d) Sampling frame

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4. CHARACTERISTICS OF A GOOD SAMPLE

For any sample to be counted as a good representative set it should well represent the
characteristics of the population that it represents. In order for a sample to be valid there are
two criteria – accuracy and precision.

Accuracy: In statistical terms it should be free of any bias. There must be sufficient elements
in the sample such that there is neither overestimation nor underestimation of the measure
of any sample element drawn from the population. Here a term called systematic variance
needs to be understood. It is defined as “the variation in measures due to some known or
unknow influences that cause the scores to lean in one direction more than the other.”
Increasing the sample size can reduce the systematic variance, however if there is an
inherent bias in the data collected it would not help to draw larger samples.

Precision: It is understood that no sample can completely represent its population. However,
we need to measure how closely the sample represents the population. The sampling or the
random sampling error reflects the influence of chance in drawing the sample elements from
a population. Precision is measured by the standard error of estimate, it is a type of standard
deviation measurement, the smaller it is the higher is the precision in the sample.

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5. SAMPLING DESIGN
Sampling design refers to the process of selecting samples from a population. There are two
types of sampling designs—probability sampling design and non-probability sampling
design. Probability sampling designs are used inconclusive research. In a probability
sampling design, every element of the population has a known chance of being selected in
the sample. The known chance does not mean an equal chance. Simple random sampling is
a special case of probability sampling design where every element of the population has both
a known and equal chance of being selected in the sample.

In the case of a non-probability sampling design, the elements of the population do not have
any known chance of being selected in the sample. These sampling designs are used in
exploratory research.

5.1 Probability Sampling Design

Under this, the following sampling designs would be covered—simple random sampling
with replacement (SRSWR), simple random sampling without replacement (SRSWOR),
systematic sampling, and stratified random sampling.

Simple random sampling with replacement (SRSWR)

Under this scheme, a list of all the elements of the population from where the samples are to
be drawn is prepared. If there are 1,000 elements in the population, we write the
identification number or the name of all the 1,000 elements on 1,000 different slips. These
are put in a box and shuffled properly. If there are 20 elements to be selected from the
population, the simple random sampling procedure involves selecting a slip from the box
and reading the identification number. Once this is done, the chosen slip is put back in the
box and again a slip is picked up and the identification number is read from that slip. This
process continues till a sample of 20 is selected. Please note that the first element is chosen
with a probability of 1/1,000. The second one is also selected with the same probability and
so are all the subsequent elements of the population.

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Simple random sampling without replacement (SRSWOR)

In the case of a simple random sample without replacement, the procedure is identical to
what was explained in the case of simple random sampling with replacement. The only
difference here is that the chosen slip is not placed back in the box. This way, the first unit
would be selected with the probability of 1/1,000, the second unit with the probability of
1/999, the third will be selected with a probability of 1/998 and so on, till we select the
required number of elements (in this case, 20) in our sample.

Simple random sampling (with or without replacement) is not used in consumer research.
This is because in consumer research the population size is usually very large, which creates
problems in the preparation of a sampling frame. For example, the number of consumers of
soft drinks, pizza, shampoo, soap, chocolate, etc., is very large. However, these (SRSWR and
SRSWOR) designs could be useful when the population size is very small, for example, the
number of steel/aluminum-producing companies in India and the number of banks in India.
Since the population size is quite small, the preparation of a sampling frame does not create
any problem.

Another problem with these (SRSWR and SRSWOR) designs is that we may not get a
representative sample using such a scheme. Consider an example of a locality having 10,000
households, out of which 5,000 belong to the low-income group, 3,500 belong to a middle-
income group and the remaining 1,500 belong to the high-income group. Suppose it is
decided to take a sample of 100 households using simple random sampling. The selected
sample may not contain even a single household belonging to the high- and middle-income
group and only the low-income households may get selected, thus, resulting in a non-
representative sample.

Systematic sampling

Systematic sampling takes care of the limitation of simple random sampling that the sample
may not be a representative one. In this design, the entire population is arranged in a
particular order. The order could be the calendar dates or the elements of a population
arranged in an ascending or descending order of magnitude which may be assumed as
random. A list of subjects arranged in alphabetical order could also be used and they are

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usually assumed to be random in order. Once this is done, the steps followed in the
systematic sampling design are as follows:

• First of all, a sampling interval is given by K = N/n is calculated,

where N = the size of the population and n = the size of the sample.

It is seen that the sampling interval K should be an integer. If it is not, it is rounded off
to make it an integer.

• A random number is selected from 1 to K. Let us call it C.

• The first element to be selected from the ordered population would be C, the next
element would be C + K and the subsequent one would be C + 2K and so on till a sample
of size n is selected.

This way we can get representation from all the classes in the population and overcome the
limitations of simple random sampling. To take an example, assume that there are 1,000
grocery shops in a small town. These shops could be arranged in ascending order of their
sales, with the first shop having the smallest sales and the last shop having the highest sales.
If it is decided to take a sample of 50 shops, then our sampling interval K will be equal to
1000 ÷ 50 =20. Now we select a random number from 1 to 20. Suppose the chosen number
is 10. This means that shop number 10 will be selected first and then shop number 10 + 20
= 30 and the next one would be 10 + (2 × 20) = 50 and so on till all the 50 shops are selected.
This way we can get a representative sample in the sense that it will contain small, medium,
and large shops.

It may be noted that in a systematic sampling the first unit of the sample is selected at
random (probability sampling design) and having chosen this, we have no control over the
subsequent units of the sample (non-probability sampling). Because of this, this design at
times is called mixed sampling.

The main advantage of a systematic sampling design is its simplicity. When sampling from a
list of populations arranged in a particular order, one can easily choose a random start as
described earlier. After having chosen a random start, every Kth item can be selected instead
of going for a simple random selection.

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This design is statistically more efficient than a simple random sampling, provided

the condition of the ordering of the population is satisfied.

The use of systematic sampling is quite common as it is easy and cheap to select a systematic
sample. In systematic sampling, one does not have to jump back and forth all over the
sampling frame wherever random number leads and neither does one have to check for
duplication of elements as compared to simple random sampling. Another advantage of
systematic sampling over simple random sampling is that one does not require a complete
sampling frame to draw a systematic sample. The investigator may be instructed to
interview every 10th customer entering a mall without a list of all customers.

Stratified random sampling

Under this sampling design, the entire population (universe) is divided into strata (groups),
which are mutually exclusive and collectively exhaustive. By mutually exclusive, it is meant
that if an element belongs to one stratum, it cannot belong to any other stratum. Strata are
collectively exhaustive if all the elements of various strata put together completely cover all
the elements of the population. The elements are selected using a simple random sampling
independently from each group.

There are two reasons for using stratified random sampling rather than simple random
sampling. One is that researchers are often interested in obtaining data about the parts of a
universe. For example, the researcher may be interested in knowing the average monthly
sales of cell phones in ‘large’, ‘medium’, and ‘small’ stores. In such a case, separate sampling
from within each stratum would be called for. The second reason for using stratified random
sampling is that it is more efficient as compared to simple random sampling. This is because
dividing the population into various strata increases the representativeness of the sampling
as the elements of each stratum are homogeneous to each other.

Certain issues may be of interest while setting up a stratified random sample. These are:

• What criteria should be used for stratifying the universe (population)?

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The criteria for stratification should be related to the objectives of the study. The entire
population should be stratified in such a way that the elements are homogeneous
within the strata, whereas there should be heterogeneity between strata. As an
example, if the interest is to estimate the expenditure of households on entertainment,
the appropriate criteria for stratification would be the household income. This is
because the expenditure on entertainment and household income are highly
correlated.

Generally, stratification is done based on demographic variables like age, income,

education, and gender. Customers are usually stratified based on life stages and income
levels to study their buying patterns. Companies may be stratified according to size,
industry, profits for analyzing the stock market reactions.

• How many strata should be constructed?

Going by common sense, as many strata as possible should be used so that the elements
of each stratum will be as homogeneous as possible. However, it may not be practical
to increase the number of strata and, therefore, the number may have to be limited. Too
many strata may complicate the survey and make preparation and tabulation difficult.
The costs of adding more strata may be more than the benefit obtained. Further, the
researcher may end up with the practical difficulty of preparing a separate sampling
frame as the simple random samples are to be drawn from each stratum.

• What should be the appropriate number of samples size to be taken in each stratum?

5.2 Non-Probability Sampling Designs

Under the non-probability sampling, the following designs would be considered—

convenience sampling, purposive (judgmental) sampling, and snowball sampling.

Convenience sampling

Convenience sampling is used to obtain information quickly and inexpensively. The only
criterion for selecting sampling units in this scheme is the convenience of the researcher or
the investigator. Mostly, the convenience samples used are neighbors, friends, family

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members, colleagues, and ‘passers-by’. This sampling design is often used in the pre-test
phase of a research study such as the pre-testing of a questionnaire. Some of the examples of
convenience sampling are:

• People were interviewed in a shopping center for their political opinion for a TV
program.
• Monitoring the price level in a grocery shop to infer the trends in inflation in the
economy.
• Requesting people to volunteer to test products.
• Using students or employees of an organization for experimenting.

In all the above situations, the sampling unit may either be self-selected or selected because
of ease of availability. No effort is made to choose a representative sample. Therefore, in this
design the difference between the population value (parameters) of interest and the sample
value (statistic) is unknown both in terms of magnitude and direction. Therefore, it is not
possible to estimate the sampling error and researchers would not be able to make a
conclusive statement about the results from such a sample. It is because of this; convenience
sampling should not be used inconclusive research (descriptive and causal research).

Convenience sampling is commonly used in exploratory research. This is because the

purpose of exploratory research is to gain insight into the problem and generate a set of
hypotheses that could be tested with the help of conclusive research. When very little is
known about a subject, a small-scale convenience sampling can be of use in the exploratory
work to help understand the range of variability of responses in a subject area.

Judgmental sampling

Under judgmental sampling, experts in a particular field choose what they believe to be the
best sample for the study in question. The judgment sampling calls for special efforts to
locate and gain access to the individuals who have the required information. Here, the
judgment of an expert is used to identify a representative sample. For example, the shoppers
at a shopping Centre may serve to represent the residents of a city or some of the cities may
be selected to represent a country. Judgmental sampling design is used when the required
information is possessed by a limited number/category of people. This approach may not

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empirically produce satisfactory results and, may, therefore, curtail the generalizability of
the findings because we are using a sample of experts (respondents) that are usually
conveniently available to us. Further, there is no objective way to evaluate the precision of
the results. A company wanting to launch a new product may use judgmental sampling for
selecting ‘experts’ who have prior knowledge or experience of similar products. A focus
group of such experts may be conducted to get valuable insights. Knowledgeable opinion
leaders are included in the organizational context. Enlightened opinions (views and
knowledge) constitute a rich data source. A very special effort is needed to locate and have
access to individuals who possess the required information.

The most common application of judgmental sampling is in business-to-business (B to B)

marketing. Here, a very small sample of lead users, key accounts, or technologically
sophisticated firms or individuals is regularly used to test new product concepts, produce
programs, etc.

Quota Sampling

In quota sampling, the sample includes a minimum number from each specified subgroup in
the population. The sample is selected based on certain demographic characteristics such as
age, gender, occupation, education, income, etc. The investigator is asked to choose a sample
that conforms to these parameters. Field workers are assigned quotas of the sample to be
selected satisfying these characteristics.

Snowball sampling

Snowball sampling is generally used when it is difficult to identify the members of the
desired population, e.g., deep-sea divers, families with triplets, people using walking sticks,
doctors specializing in a particular ailment, etc. Under this design, each respondent, after
being interviewed, is asked to identify one or more in the field. This could result in a very
useful sample. The main problem is in making the initial contact. Once this is done, these
cases identify more members of the population, who then identify further members and so
on. It may be difficult to get a representative sample. One plausible reason for this could be
that the initial respondents may identify other potential respondents who are similar to
themselves. The next problem is to identify new cases.

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Activity 2
Visit a factory where there are unskilled, semiskilled worker. If you have to choose a
representative sample to examine their job satisfaction level which sampling design,
would you choose for the study? Justify your answer.

Self-Assessment Questions – 2

5. A judgmental sample provides a better representation of the population than a

probability sample. (True/False)
6. Non-probability methods are those in which the sample units are chosen
purposefully. (True/False)
7. The criteria for stratification should be related to _________ of the study.
8. Only the initial sample unit is chosen randomly in a __________ sampling.

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6. CRITERIA FOR SELECTION OF SAMPLING TECHNIQUE

To ensure that the research that is organized is useful and relevant the appropriate sampling
technique has to be chosen. Probability sampling is generally considered for representative
samples, however, there are instances where it is impossible to use it.

Probability techniques can be applied only for a finite population and for a population with
infinite elements the non-probability techniques are used. Whenever the population is not
clearly defined it is appropriate to use a non-probability technique as probability sampling
cannot be applied on a general category such as ‘college students’.

Furthermore, if the intention of the research is to explore an idea rather than an

understanding a population then non probability techniques are used. Similarly, if you are
looking to study a specific population then probability techniques are used.

Other than these factors the availability of resources at the disposal of the researcher/
researchers such as time, cost, and efforts play an important role. When resources are
abundant then Probability Sampling techniques are chosen and in other cases Non
probability sampling techniques are chosen.

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7. GLOSSARY

• Convenience sampling: The type of sampling in which the sample is selected as per
the convenience of the investigator.
• Census: The enumeration of every element of the population.
• Element: A single member of the population.
• Sampling design: The process of selecting samples from a population.
• Sampling error: The error that occurs because of the non-representativeness of the
sample.

8. TERMINAL QUESTIONS

1. Differentiate between sample and census. Explain the various sources of non-sampling
errors.
2. Differentiate between stratified random sampling and systematic sampling.
3. Why is judgmental sampling used in research? Can it result in a more representative
sample than a random sample?
4. Explain the difference between simple random sampling with replacement and without
replacement.
5. Explain by giving example why a random sample may not result in a representative
sample.
6. Explain the factors that should be considered while selecting a sample for research.

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9. ANSWERS
Answers to Self-Assessment Questions

1. True
2. True
3. (d) 30 students who are surveyed of a class of 150 MBA students
4. (c) Sample
5. True
6. True
7. Objectives
8. Systematic

Answers to Terminal Questions

1. A census is a complete enumeration of the population, while a sample is a subset of the

population. Refer to sections 2.1 and 2.2 for further details.
2. Systematic sampling and stratified random sampling are types of probability sampling
design. Refer to section 3.1 for further details.
3. Under judgmental sampling, experts in a particular field choose what they believe to be
the best sample for the study in question. Refer to sections 3.2 and 3.1 for further
details.
4. Simple random sampling with replacement (SRSWR) and simple random sampling
without replacement (SRSWOR) are types of probability sampling design. Refer to
Section 3.1
5. We may not get a representative sample using a random sample with or without
replacement. Refer to section 3.1 for further details.
6. The size of a sample depends upon the basic characteristics of the population, the type
of information required from the survey, and the cost involved. Refer to section 7 for
further details.

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10. REFERENCES

• Aaker, David A, Kumar, V and Day, G S. (2001). Marketing Research, 7th edn. Singapore:
John Wiley & Sons, Inc.
• Chawla D and Sondhi, N. (2011). Research Methodology: Concepts and Cases. New Delhi:
Vikas Publishing House.
• Churchill, G A Jr, and Lacobucci, D. (2002). Marketing Research Methodological
Foundations, 8th edn. New Delhi: Thomson-South Western.
• Kinnear, T C and Taylor, J C. (1987). Marketing Research—An Applied Approach, 3rd edn.
New York: McGraw-Hill Book Company.

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