Sampling and market research data

Sampling and market research data

1. Sampling

   • Sampling is the process of selecting a group of respondents from a large population
   • The need for sampling
     • In all market research situations it is impossible to seek evidence from the total populations, or the total potential target market
       • This is either due to the market being to extensive or it is impossible to identify everyone in that market
         • Therefore a sample of the total potential target market will need to be chosen. A sample is simplistic terms is a group of people taking part in a market research survey selected to be representative of the overall target market

2. Limitations of sampling

   • Sample may be to small. This is to save on costs, however this small sample may not give a true cross section of the whole target group. For example if its a group of 10 its to small to be confident about the result as chance variations could easily occur
   • Risk of sampling bias in its simplistic terms is when a sample is not a good representation of the whole population because it is chosen in ways which give some people a greater chance of being selected.

3. Reliability of data collected

   • Primary data and secondary data can be unreliable and a poor basis for decisions. Secondary data can be unreliable because of the limitations already referred to: may be out of date, not specific to the needs of the business and incomplete or unavailable
   • Three main reasons sampling bias, questionnaire bias and other forms of bias
     • Questionnaire bias occurs when questions tend to lead respondents towards one particular answer. Because of this the results are not a completely accurate reflection of how people act or what they believe
     • Other forms of bias consists of the respondent not answering in a very truthful way, perhaps because they do not want to admit to spending so much on music downloads or clothes

4. Analysis of quantitative data