Business Research

Research Process and

sampling

10-11-2022
Steps in Research Process
It contains a series of closely related activities which has to carry out by a
researcher. Following are the main steps in social or business research process.
1. Selection of Research Problem
2. Extensive Literature Survey
3. Making Hypothesis
4. Preparing the Research Design
5. Sampling
6. Data collection
7. Data Analysis
8. Hypothesis Testing
9. Generalization and Interpretation
10. Preparation of Report
Research Process Flow
Sampling design
CENSUS AND SAMPLE SURVEY
Sampling Design Process
 Define the Target Population
The target population is the collection of elements or objects that
possess the information sought by the researcher and about which
inferences are to be made.
• An element is an object about which or from which the information is
desired, e.g., the respondent.
• A sampling unit is an element, or a unit containing the element, that is
available for selection at some stage of the sampling process.
• Extent refers to geographical boundaries.
• Time is the time period under consideration.
 Sampling Techniques
• Nonprobability sampling relies on convenience or the personal judgment
of the researcher rather than chance to select sample elements. The
researcher can arbitrarily (Random) or consciously (Knowing) decide
what elements to include in the sample. It may yield good estimates of the
population characteristics. However, they do not allow for objective
evaluation of the precision of the sample results.
• Probability sampling, sampling units are selected by chance. It is possible
to pre-specify every potential sample of a given size that could be drawn
from the population, as well as the probability of selecting each sample.
Every potential sample need not have the same probability of selection,
but it is possible to specify the probability of selecting any particular
sample of a given size. This requires not only a precise definition of the
target population but also a general specification of the sampling frame.
Classification of Sampling Techniques
 Convenience Sampling (Non-probability)
Convenience sampling attempts to obtain a sample of convenient
elements. Often, respondents are selected because they happen to be in
the right place at the right time.
• Use of students, and members of social organizations
• Mall intercept interviews without qualifying the respondents

• Department stores using charge account lists

• “People on the street” interviews
 Judgmental Sampling (Non-probability)
Judgmental sampling is a form of convenience sampling in which the
population elements are selected based on the judgment of the
researcher.
(1) to select unique respondents who are especially informative;
(2) to select members of a difficult-to-reach, specialized population;
(3) to identify particular types of respondents for in-depth investigation.

e.g.-Expert witnesses used in court

 Quota Sampling (Non-probability)

Quota sampling may be viewed as

two-stage restricted judgmental
sampling.
• The first stage consists of developing
control categories, or quotas, of
population elements.
• In the second stage, sample elements are
selected based on convenience or
judgment.
 Snowball Sampling (Non-probability)
Snowball sampling, an initial group of respondents is
selected, usually at random.

• After being interviewed, these respondents are asked

to identify others who belong to the target population
of interest.
• Subsequent respondents are selected based on the
referrals.
Strengths and Weaknesses of Nonprobability Sampling
Techniques
Nonprobability Sampling Strengths Weaknesses
Convenience sampling Least expensive, least Selection bias, sample not
time-consuming, most representative, not recommended for
convenient descriptive or causal research
Judgmental sampling Low cost, convenient, not Does not allow generalization,
time-consuming subjective
Quota sampling Sample can be controlled Selection bias, no assurance of
for certain characteristics representativeness

Snowball sampling Can estimate rare Time-consuming

characteristics
 Simple Random Sampling(probability)
• Each element in the population has a known and equal
probability of selection.

• Each possible sample of a given size (n) has a known and equal
probability of being the sample actually selected.

• This implies that every element is selected independently of every

other element.

• Every single element has an equal chance of getting selected

randomly from the population. Each element has the same
probability by chance of being chosen to be a part of a sample.
 Systematic Sampling (probability)
• The sample is chosen by selecting a random starting point and then picking
every ith 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.

• When the ordering of the elements is related to the characteristic of

interest, systematic sampling increases the representativeness of the
sample.
 Systematic Sampling (probability)
• If the ordering of the elements produces a cyclical pattern, systematic
sampling may decrease the representativeness of the sample.

• For example, there are 100,000 elements in the population and a sample
of 1,000 is desired. In this case the sampling interval, i, is 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.
Stratified Sampling (probability)
• Population is divided into subgroups (strata) with similar
characteristics and then elements are chosen randomly from each
of these subgroups. e.g. Gender, range, age etc.
• The elements within a stratum should be as homogeneous as
possible, but the elements in different strata should be as
heterogeneous as possible.
• In proportionate stratified sampling, the size of the sample drawn
from each stratum is proportionate to the relative size of that
stratum in the total population.
Stratified Sampling (probability)
• The strata should be mutually
exclusive and collectively
exhaustive in that every
population element should be
assigned to one and only one
stratum and no population
elements should be omitted.

This sampling method is used when data from all the subgroups of the population.
 Cluster Sampling (probability)
• The target population is first divided into mutually exclusive and
collectively exhaustive subpopulations, or clusters.

• Then a random sample of clusters is selected, based on a probability

sampling technique such as SRS.

• For each selected cluster, either all the elements are included in the
sample (one-stage) or a sample of elements is drawn probabilistically
(two-stage).
 Cluster Sampling (probability)
• Elements within a cluster should be as heterogeneous as possible, but
clusters themselves should be as homogeneous as possible. Ideally,
each cluster should be a small-scale representation of the population.

• In probability proportionate to size sampling, the clusters are

sampled with probability proportional to size. In the second stage, the
probability of selecting a sampling unit in a selected cluster varies
inversely with the size of the cluster.
Cluster Sampling (probability)

This method is used when focus

more on specific region or area.
 Cluster Sampling Vs. Stratified Sampling
Factor Stratified Sampling Cluster Sampling (One-Stage)
Objective Increase precision Decrease cost
Subpopulations All strata are included A sample of clusters is chosen
Within subpopulations Each stratum should be Each cluster should be
homogeneous heterogeneous

Across subpopulations Strata should be heterogeneous Clusters should be homogeneous

Sampling frame Needed for the entire Needed only for the selected
population clusters

Selection of elements Elements selected from each All elements from each selected
stratum randomly cluster are included
Strengths and Weaknesses of Probability Sampling
Techniques
Probability Sampling Strengths Weaknesses

Simple random Easily understood, results Difficult to construct sampling frame,

sampling (SRS) projectable expensive, lower precision, no assurance
of representativeness
Systematic sampling Can increase Can decrease representativeness if there
representativeness, easier are cyclical patterns
to implement than SRS,
sampling frame not
necessary
Stratified sampling Includes all important Difficult to select relevant stratification
subpopulations, precision variables, not feasible to stratify on many
variables, expensive
Cluster sampling Easy to implement, cost- Imprecise, difficult to compute and
effective interpret results
Potential Sources of Error in Research Designs
 Errors in Research
• Total error is the variation between the true mean value in the
population of the variable of interest and the observed mean value
obtained in the research project.
• Random sampling error is the variation between the true mean value
for the population and the true mean value for the original sample.
• Non-sampling errors can be attributed to sources other than
sampling, and they may be random or nonrandom: including errors
in problem definition, approach, scales, questionnaire design,
interviewing methods, and data preparation and analysis. Non-
sampling errors consist of non-response errors and response errors.
 Errors in Research
• Non-response error arises when some of the respondents included
in the sample do not respond.

• Response error arises when respondents give inaccurate answers,

or their answers are misrecorded or misanalyzed.