BUSINESS RESEARCH

METHODS
Prof.Radhika Kiran Kumar
Indira Institute of Business Management
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Sampling
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Population or Census
» A population is the entire group that you want to
draw conclusions about.
» In research, a population doesn’t always refer to
people. It can mean a group containing elements
of anything you want to study, such as objects,
events, organizations, countries, species,
organisms, etc.
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Sample
» A sample is the specific group that you will collect
data from. The size of the sample is always less than
the total size of the population.
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Census vs sample
Census Sample
Advertisements for IT jobs in The top 50 search results for
India advertisements for IT jobs in
India on 1st July, 2021

Postgraduate students in 300 postgraduate students in

Mumbai Mumbai Studying MMS
All countries of the world Countries with published data
available on birth rates and
GDP since 2000
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» Sampling:
» Sampling is the process of selecting a group of individuals from a
population to study them and characterize the population as a whole.
» The population includes all members from a specified group, all possible
outcomes or measurements that are of interest. The exact population will
depend on the scope of the study.
» The sample consists of some observations drawn from the population, so a
part of a subset of the population. The sample is the group of elements who
participated in the study.
» The sampling frame is the information that locates and defines the
dimensions of the universe.

» The Sampling Unit is one unit from population.

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Advantages of sampling
» Saves time and money and gives faster results as the sample size is
smaller than the whole population
» Sampling gives more accurate results as it is performed by trained
and experienced investigators
» When there is large population, sampling is the best way
» Sampling enables to estimate the sampling errors. Hence, it assists
in getting information concerning to some characteristics of the
population
» Study of samples requires less space and equipment as they are
small in size
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Sampling Design Process

• Define Population
1

• Determine Sampling Frame

2

• Determine Sampling Procedure

3

• Determine Appropriate Sample Size

4

• Execute Sampling design

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Define the Target Population

» It address the question, ”What do you want to
survey?”
» It involves
- Defining population units
- Setting population boundaries
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Determine Sampling Frame

» Obtaining a list of population
a) Students who eat at KFC
b) Young people at random in malls
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Types of Sampling
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Probability Sampling
» A probability sampling is one in which every unit
in the population has a chance(greater than zero)
of being selected in the sample , and this
probability can be accurately determined.
» Researcher sets a selection of a few criteria and
chooses members of a population randomly.
» All the members have an equal opportunity to be
a part of the sample with this selection parameter.
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Probability Sampling
What What you
you actually Observe
want to Population in the data
talk
about

Sampling Frame Sampling Process Sample

Inference
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Probability Sampling
» It is also known as random sampling
» Each unit has a non-zero and known probability of selection.
» Mathematical theory is available to assess the sampling error
» Probability sampling is designed to allow extrapolation from a
small, highly representative sample, to a larger population.
» This statistical inference allows us to describe a population.
» Used when you want to answer the “where” and “how many”
questions.
Simple Random Sampling

 the purest form of probability sampling

 Assures each element in the population has an equal
chance of being included in the sample
 Random number generators

Probability of selection = Sample size

Population Size
Simple Random Sampling
» Applicable when the population is small, homogeneous and readily
available.
» All subsets of the frame are given an equal probability. Each element of the
frame thus has an equal probability of selection.
» It provides for greatest number of possible samples. This is done by
assigning a number to each unit in the sampling frame.
» A table of random number or lottery system is used to determine which
units are to be selected.
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Simple Random Sampling

Example
» Small Service agency
» Client assessment of quality of service
» Get list of clients over past year.
» Draw a simple random sampling of n/N
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Simple Random Sampling

» Example: If a sample of 20 needs to be collected
from a population of 100. Assign unique numbers
to population members and randomly select 20
members with a random generator. Train and test
split in Machine Learning problems.
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Simple Random Sampling

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Simple Random Sampling

» Advantages
1. Minimum sampling bias as the samples are collected
randomly
2. Selection of samples is simple as random generators are used
3. The results can be generalized due to representativeness
» Disadvantages
1. The potential availability of all respondents can be costly and
time consuming
2. Larger sample sizes
 Stratified Sampling
» Where population embraces a number of distinct categories, the
frame can be organized into separate “strata”. Each stratum is
then sampled as an independent sub-population out of which
individual elements can be randomly selected.

» Sometimes called “Proportional” or “quota” random sampling.

» Objective: Population of N units divided into non-overlapping

strata N1,N2,N3,…. Ni such that N1+N2+…..+Ni = N; then do
simple random sample of n/N in each strata.
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Stratified Sampling
Example
» Small Service agency
» Client assessment of quality of service
» Get list of clients over past year.
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Stratified Sampling
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Stratified Sampling
Example: A company wants to do an employee
satisfaction survey and the company has 300k
employees and planned to collect a sample of 1000
employees for the survey. So the sample should
contain all the levels of employees and from all the
locations. So create different strata or groups and
select the sample from each strata.
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Stratified Sampling
» Strata size calculation
» For proportional allocation strategy, the size of the sample in each
stratum is taken in proportion to the size of the stratum. Suppose that
in a company there are following staff:
1. Full time male employees:90
2. Part time male employees:18
3. Full time female employees:9
4. Part time female employees:63
5. Total:180
And we are asked to take a sample of 40 staff, stratified according to the
above categories
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Strata size calculation

The first step is to calculate the percentage of each group of the
total.
1. Full time male employees:90/180 = 50%
2. Part time male employees:18/180 = 10%
3. Full time female employees:9/180 = 5%
4. Part time female employees:63/180 = 35%
This tells us that our sample of 40,
50% of 40 –Full time male employees
10% of 40 – Part time male employees
5 % of 40 – Full time female employees
35% of 40 – Part time female employees
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Stratified Sampling
Advantages
» Greater level of representation from all the groups
» If there is homogeneity within strata and
heterogeneity between strata, the estimates can be
as accurate
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Stratified Sampling
Disadvantages
» Requires the knowledge of strata membership
» Might take longer and more expensive
» Complex methodology
Systematic Sampling
» Systematic sampling relies on arranging the target
population according to some ordering scheme and then
selecting elements at regular intervals through that
ordered list.
» Systematic sampling involves a random start and then
proceeds with the selection of every nth element from
then onwards. In this case, n=(population size/sample
size).
» The procedure involved in systematic random sampling
is very easy and can be done manually.
Systematic Sampling
Ex: If a sample of 20 needs to be collected from a
population of 100. Divide the population into 20
groups with a members of (100/20) = 5. Select a
random number from the first group and get
every 5th member from the random number.
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Systematic Sampling
» Applications
» Quality Control: The systematic sampling is extensively
used in manufacturing industries for statistical quality
control of their products. Here a sample is obtained by
taking an item from the current production stream at
regular intervals.
» In Auditing: In auditing the savings accounts, the most
natural way to sample a list of accounts to check
compliance with accounting procedures.
 Systematic Sampling
» Advantages
1. Cost and time efficient
2. Spreads the sample more evenly over the population
» Disadvantages
1. Complete population should be known
2. Sample bias If there are periodic patterns within the
dataset
Cluster Sampling
» Cluster sampling is an example of two-stage sampling.
» A sample of areas are chosen in the first stage.
» A sample of respondents within those areas are selected in the second stage.
» Population is based on clusters of homogenous units.
» Sampling units are groups rather than individuals.
» A sample of such clusters is then selected.
» All units from the selected clusters are selected.
 Cluster Sampling
Ex: A researcher wants to conduct an academic performance of engineering
students under a particular university. He can divide the entire population into
multiple engineering colleges (Which are clusters) and randomly pick up some
clusters for the study.
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Cluster Sampling
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Cluster Sampling
» Types of cluster sampling:
» One-stage cluster : From the above example,
selecting the entire students from the random
engineering colleges is one stage cluster
» Two-Stage Cluster: From the same example,
picking up the random students from the each
cluster by random or systematic sampling is Two-
Stage Cluster
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Cluster sampling
» Advantages
1. Saves time and money
2. It is very easy to use from the practical
standpoint
3. Larger sample sizes can be used
» Disadvantages
1. High sampling error
2. May fail to reflect the diversity in the sampling
frame
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Multi-stage sampling
» Multi-Stage sampling-Using all the sample elements in all the
selected clusters may be expensive or unnecessary. Under these
circumstances, multistage cluster/stage sampling becomes
useful.
» Instead of using all the elements contained in the selected
clusters, the researcher randomly selects elements from each
cluster.
» The process is – Constructing the clusters is the first stage. –
Deciding what elements within the cluster to use is the second
stage.
» The technique is used frequently when a complete list of all
members of the population does not exist and is inappropriate.
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Non-Probablility Sampling
» Subjective procedure in which the probability of
selection for some population units are zero or
unknown before drawing the sample.
» Information is obtained from a non-representative
sample of the population.
» This sampling method is not a fixed or predefined
selection process. This makes it difficult for all
elements of a population to have equal
opportunities to be included in a sample.
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Convenience Sampling
» Easiest method of selection
» Participants are selected based on availability and
willingness to participate in the survey.
Applications
» Surveys conducted in social networking sites and
offices
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Convenience Sampling
» Example: The polls conducted in Facebook or
Youtube. The people who are interested in taking
the survey or polls will attend the survey and the
results may not be accurate as the results are
prone to significant bias.
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Convenience Sampling
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Convenience Sampling
» Advantages
1. It is easy to get the sample
2. Low cost and participants are readily available
» Disadvantages
1. Can’t generalize the results
2. Possibility of under or over representation of the
population
3. Significant bias
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Judgemental or Purposive
Sampling
» Researcher relies on his or her judgment when
choosing members of the population to
participate in the study.
» Researchers often believe that they can obtain a
representative sample by using sound judgment,
which will result in saving time and money.
» Example:
» Test markets
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Judgemental Sampling
» Advantages
1. Cost and time effective sampling method
2. Allows researchers to approach their target market
directly
3. Almost real-time results
» Disadvantages
1. Vulnerability to errors in judgment by researcher
2. Low level of reliability and high levels of bias
3. Inability to generalize research findings
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Judgemental Sampling
» Example:
» A broadcasting company wants to research one of
the TV shows. The researcher has an idea of the
target audience and he can choose the members
of the population to participate in the study.
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Snowball Sampling
» Also known as referral sampling.
» This method is commonly used in social sciences
when investigating hard-to-reach groups.
» This sampling method involves primary data
sources nominating other potential primary data
sources to be used in the research.
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Snowball Sampling
» For example, if you are studying the level of
customer satisfaction among the members of an
elite country club, you will find it extremely
difficult to collect primary data sources unless a
member of the club agrees to have a direct
conversation with you and provides the contact
details of the other members of the club.
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Snowball Sampling
» Advantages
1. Researchers can reach rare subjects in a particular population
2. Low-cost and easy to implement
3. It doesn’t require a recruitment team to recruit the additional
subjects
» Disadvantages
1. The sample may not be a representative
2. Sampling bias may occur
3. Because the sample is likely to be biased, it can be hard to draw
conclusions about the larger population with any confidence
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Quota Sampling
» The researchers divide the survey population into
mutually exclusive subgroups.
» These subgroups are selected with respect to
certain known features, traits, or interests.
» Samples from each subgroup are selected by the
researcher.
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Quota Sampling
» Controlled quota sampling involves introduction
of certain restrictions in order to limit
researcher’s choice of samples.
» Uncontrolled quota sampling resembles
convenience sampling method in a way that
researcher is free to choose sample group
members
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Quota Sampling
» Example:
» A painting company wants to do research on one
of their products. So the researcher uses the quota
sampling methods to pick up painters, builders,
agents and retail painting shop owners.
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Quota Sampling
» Advantages
1. Cost effective
2. Doesn’t depend on sampling frames
3. Allows the researchers to sample a subgroup that is of great interest
to the study
» Disadvantages
1. sample may be overrepresented
2. Unable to calculate the sampling error
3. Great potential for researcher bias and the quality of work may suffer
due to researcher incompetency and/or lack of experience
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THANKS!
Any questions?