A Level Business Studies - Market Research Facts

Market Research Fact Sheet

Sample size and sample accuracy: what they are and how they interact

Sample size is the number of people or units included in a sample. In order to get an accurate sample size then a lot of people need to be chosen. As more people are asked in a sample, then it will become more expensive and time consuming so it is a trade-off.

Quota, Stratified and Random Sampling: definitions and examples

Quota sampling has an aim to obtain a sample which represents the thoughts and opinions of the overall population. Quota sampling gives the researcher an accurate sample of the population, but this is not a random sample, so there is a sense of bias. The sample is reflective of the traits of the whole population, however this can be difficult to do as it involves understanding the entire population of a place. For example, if the percentage of males and females in a location is 49% to 51% and 100 people are asked, there will need to be 49 men and 51 women in the sample.

Quota sampling is a useful technique as it gives the business carrying out the research answers which accurately reflects that of the population. This gives businesses an edge over competitors because it can be directly applied to the situation at hand. Despite this positive, the method is subject to bias as it is not random. It is chosen in a strategic way. Quota sampling also requires a profound understanding of the population which can be difficult to understand. Although in the short term, it may be an expensive and lengthy way of finding something out, it is beneficial in the long term as it can continually be applied to the business.

A stratified sample will focus mainly on precision. It involves dividing the population into different subcategories and then creating a sample which is proportional to that. Some of the categories could be: income, age, sex, race or location. A benefit of carrying out a stratified sample is that it can be done using a relatively low number of people and is therefore cheap. In addition, it gives the researcher a deeper level of understanding and detail when compared to other sample types. To achieve such detail, the researcher does need to put in more effort than if they carried out a different sampling method.

Stratified sampling gives a business the most accurate and detailed understanding of what the population think. It is an expensive way of carrying out market research, but the level of detail that is achieved from such a method cannot be attained from other techniques of sampling. Some businesses require extremely accurate and informative data in order to make key decisions which could result in profit, so although it may be costly in the short term, the method has the potential to grow a business and increase profits.

Random sampling is a sample where everyone has an equal chance of being questioned. This sample technique is very cheap and requires minimal effort from those conducting the research. Random sampling gives people a sample of the whole population. Although it is an easy process to choose those to interview (computers can do this), it can be time consuming to find a large range of people to make up the initial list. But, once the sample has been carried out, the results are able to be applied to that of a whole population.

The market research method of random sampling is an effective way for a small business to carry out research. This is because it is a process which is cheap and can be done using a small amount of effort, so there is no need for a large number of employees. There is, however, a need for a complete understanding of the entire population but this can be gained through the use of secondary research methods.

Factors influencing choice of sampling method

Size of business, resources available, amount of money, space, time available, researcher aims

Benefits and drawbacks of sampling

Allows for a high level of detail, easy and convenient, sometimes inexpensive. However, time consuming, is sometimes bias, can be questioned and expensive.