Sampling design in business

research project

Submitted by: Imran Azad

Submitted to: Sir Nadeem
Book: Business Research Methods
Code: 5529
Course: MBA
Submitted on: April 19, 2009
 Acknowledgement

I would like to say thank you to my ALLAH who is most merciful and
forgiving, who always help me at every stage of my life and give me enough
for which I am not able for.

I want to say thank you to my teacher who give us lots of confidence

to prepare this report. Especially to management of TCS PVT ltd who
helped me a lot in preparing this report and allow me to visit some
departments?
 Contents

• Introduction
• Properties
• Purpose of Sampling
• Errors in Research
 Sampling Errors
 Non-sampling Errors
• Types of sampling design
 Probability sampling design
 Non-probability sampling design
• Why Sampling?
 Lower Cost
 Speed of data collection
 Accuracy of Results
 Population Element
• Introduction of Organization
• Practical study
• Data collection method
• Significance of sampling
• Advantages & Disadvantages of Systematic sampling
• SWOT Analysis
• Conclusion
• Reference
 SAMPLING
Sampling is that part of statistical practice concerned with the selection of
an unbiased or random subset of individual observations within a population of
individuals intended to yield some knowledge about the population of concern,
especially for the purposes of making predictions based on statistical inference.
Sampling is an important aspect of data collection.
(www.wikipedia.org)
In simple words we can say that sampling is the process of selecting units
(e.g., people, organizations) from a population of interest so that by studying the
sample we may fairly generalize our results back to the population from which
they were chosen.
According to this definition we should explain few points here.

POPULATION:
The population or population of interest is the total group of people from
whom information is needed. Or a population can be defined as including all
people or items with the characteristic one wish to understand.

For example if human resource department want to know the motivation

level of employee. In this case the total number of employees will consider as
population.

ELEMENT:

Element refers to every single unit or member in population. Let’s take the
same example if human resource department want to know the motivation
level of 350 employees by selecting few of them. Then these 350 employees
will be elements in the population.

SAMPLING FRAME:

Sampling frame is the actual set of units from which a sample has been
drawn: in the case of a simple random sample, all units from the sampling
frame have an equal chance to be drawn and to occur in the sample. In the
ideal case, the sampling frame should coincide with the population.

(www.merriam-webster.com)

For example every organization has complete detail 0f there employees,

about there salaries, job, address, responsibility during a specified time
 period. This information can be used for research purpose. This complete list
for a specific time period will be sample frame.

SAMPLE:

A sample is actually a sub set of whole population whose prosperities are

studied to gain the informatio about whole population.
Characteristics For example if quality control officer select 100 items from 600
units to check the quality of the product. These 100 units are subset and will
represent the population of 600 products.

WHAT IS THE PURPOSE OF SAMPLING?

To draw conclusions about populations from samples, we must use
inferential statistics which enables us to determine a population’s characteristics
by directly observing sample of the population. We obtain a sample rather than a
complete enumeration of the population for many reasons. Obviously, it is
cheaper to observe a part rather than the whole.
ERRORS IN RESEARCH:
There are always errors in a research. By sampling, the total errors can be
classified into sampling errors and non-sampling errors.

1- SAMPLING ERROR IN RESEARCH:

Sampling error is the deviation of the selected sample from the true
characteristics, traits, behaviors, qualities or figures of the entire population. Or
in simple words sampling error comprises the differences between the sample
and the population that are due exclusively to the particular units that happen to
have been selected.

WHY DOES THESE ERRORS OCCUR?

Sampling process error occurs because researchers draw different subjects

from the same population but still, the subjects have individual differences.
Keep in mind that when we take a sample, it is only a subset of the entire
population; therefore, there may be a difference between the sample and
population.

1- BIASED SAMPLING:
The most frequent cause of the said error is a biased sampling
procedure. Every researcher must seek to establish a sample that is free
from bias and is representative of the entire population. In this case, the
researcher is able to minimize or eliminate sampling error.
 2- CHANCE ERROR:
Another possible cause of this error is chance. The process of
randomization and probability sampling is done to minimize sampling
process error but it is still possible that all the randomized subjects are not
representative of the population.
The most common result of sampling error is systematic error wherein
the results from the sample differ significantly from the results from the
entire population. It follows logic that if the sample is not representative of
the entire population, the results from it will most likely differ from the
results taken from the entire population.

2- NON-SAMPLING ERROR:
That arises from inaccurate sampling frame, data clarification or
verification methods, reporting or coding of data, and/or specifications. It may
also arise from poorly designed survey questionnaires, improper sample
allocation and selection procedures, and/or errors in estimation methodology.
1- COVERAGE ERRORS:
An error in coverage occurs when there is an omission, duplication or
wrongful inclusion of the units in the population or sample. Omissions are
referred to as under coverage, while duplication and wrongful inclusions
are called over coverage. These errors are caused by defects in the survey
frame which means inaccuracy, incompleteness, duplication, inadequacy
and obsolescence.

2- RESPONSE ERRORS:
Response errors result from data that have been requested, provided,
received or recorded incorrectly. The response errors may occur because of
inefficiencies with the questionnaire, the interviewer, the respondent may
provide wrong information or there might be problem with survey process.

3- ANALYSIS ERRORS:
Analysis errors include any errors that occur when using the wrong
analytical tools or when the preliminary results are used instead of the
final ones. Errors that occur during the publication of these data results
are also considered analysis errors.

4- PROCESSING ERRORS:
Processing errors sometimes emerge during the preparation of the final
data files. For example, errors can occur while data are being coded,
captured, edited or imputed. Coder bias is usually a result of poor training
or incomplete instructions, variance in coder performance data entry
errors.

5- ESTIMATION ERRORS:
If an inappropriate estimation method is used, then bias can still be
introduced, regardless of how errorless the survey had been before
estimation.

Business Research Methods by:

Donald R. Cooper and Pamela S. Schindler
www.statcan.gc.ca
www.wikipedia.org

Diagram from www.statcan.gc.ca

TYPES OF SAMPLING DESIGNS:
There are two major types of sampling designs

• Probability sampling design.

• Non-probability sampling design.

PROBABILITY SAMPLING DESIGN:

When every unit in the population has a chance of being selected in the
sample, and this probability can be accurately determined such sampling is know
as probability sampling. The combination of these traits makes it possible to
produce unbiased estimates of population totals, by weighting sampled units
according to their probability of selection. For example we want to know the
average age of the students of MBA class. There are 40 students and each student
has equal chance of being chosen. Probability sampling includes:
Simple Random Sampling or Unrestricted.
Complex Probability Sampling or Restricted.

SIMPLE RANDOM SAMPLING OR UNRESTRICTED:

In the simple random sampling every element in the population has a
known and equal chance of being selected as a subject.
Let us say there are 1,000 elements in the population, and we need a
sample of 100. Suppose we were to drop pieces of paper in a hat, each bearing the
name of one of the elements, and we were to draw 100 of those from the hat with
our eyes closed. We know that each one of those elements has a 100/1,000
chance of being drawn. In other words, we know that the probability of any one of
them being chosen as a subject is 1, and we also know that each single element in
the hat has the same or equal probability of being chosen.

COMPLEX PROBABILITY SAMPLING OR RESTRICTED:

As an alternative to the simple random sampling design, several complex
probability sampling designs can be used. These probability sampling procedures
offer a viable and sometimes more efficient alternative to the unrestricted design.
Some of the complex probability designs are as follows.

1- SYSTEMATIC SAMPLING:
The systematic sampling design involves drawing every nth element in the
population starting with a randomly chosen element between sample sizes.
For example if we want a sample of 35 households from a total population
of 260 houses in a particular locality, then we could sample every seventh
house starting from a random number from 1 to 7. Let us say that the random
number is 7, then houses numbered 7, 14, 21, 28, and so on, would be sampled
until the 35 houses are selected.

2- STRATIFIED RANDOM SAMPLING:

Stratified random sampling, as its name implies, involves a process of
stratification of segregation, followed by random selection of subjects from
each stratum. The population is first divided into mutually exclusive groups
that are relevant, appropriate, and meaningful in the context of the study.
For example if the president of a company is concerned about low
motivational levels or high absentee rates among the employees, it makes
sense to stratify the population of organizational members according to their
job levels. When the data are collected and the analysis done, we may find
that contrary to expectations, it is the middle-level managers who are not
motivated. This information will help the president to focus on action at the
right level and devise better ways to motivate this group.

Proportionate and Disproportionate Stratified Random Sampling:

Once the population has been stratified in some meaningful way, a sample
of members from each stratum can be drawn using either a simple random
sampling or a systematic sampling procedure. The subjects drawn from each
stratum can be either proportionate or disproportionate to the number of
elements in the stratum.

For instance, if an organization employs 10 top managers, 30 middle

managers. 50 lower-level managers, 100 supervisors, 500 clerks, and 20
secretaries and a stratified sample of about 140 people is needed for some
scientific survey the researcher might decide to include in the sample 20
percent of members from each stratum. That is, members represented in the
sample from each stratum will be proportionate to the total number of
elements in the respective stratum. This would mean that 2 from the top, 6
from the middle, and 10 from the lower levels of management will be included
in the sample. In addition, 20 supervisors, 100 clerks, and 4 secretaries will be
represented in the sample.

Disproportionate sampling decisions are made either when some stratums

are too small or too large, or when there are more variability suspects within a
particular stratum. As an example, the educational levels among supervisors,
which may be thought of as influencing perceptions, may range from
elementary school to master’s degrees. Here, more people will be sampled at
the supervisor’s level. Disproportionate sampling is also sometimes done
when it is easier, simpler, and less expensive to collect data from one or more
strata than from others.
 3- CLUSTER SAMPLING:
Cluster sampling is a sampling technique in which the entire population of
interest is divided into groups, or clusters, and a random sample of these
clusters is selected. Each cluster must be mutually exclusive and together the
clusters must include the entire population. After clusters are selected, then
all units within the clusters are selected. No units from non-selected clusters
are included in the sample.
This differs from stratified sampling, in which some units are selected
from each group. When all the units within a cluster are selected, the
technique is referred to as one-stage cluster sampling. If a subset of units is
selected randomly from each selected cluster, it is called two-stage cluster
sampling. Cluster sampling can also be made in three or more stages: it is
then referred to as multistage cluster sampling.
In cluster sampling, the clusters are the primary sampling unit (PSU’s)
and the units within the clusters are the secondary sampling units (SSU’s).

4- DOUBLE SAMPLING:
This plan is restored to when further information is needed from a subset
of the group from which some information has already been collected. A
sampling where a sample is used in a study to collect some preliminary
information of interest, a later a sub sample of this primary sample is used to
examine the matter more detail, is called double sampling.

NON-PROBABILITY SAMPLING DESIGN:

Non-probability sampling is any sampling method where some elements
of the population have no chance of selection or where the probability of selection
can't be accurately determined. It involves the selection of elements based on
assumptions regarding the population of interest, which forms the criteria for
selection. Hence, because the selection of elements is non-random, non-
probability sampling does not allow the estimation of sampling errors. These
conditions place limits on how much information a sample can provide about the
population. Information about the relationship between sample and population is
limited, making it difficult to extrapolate from the sample to the population.
The non-probability sampling designs, which fit into the broad categories
of convenience sampling, purposive sampling and snowball sampling.

CONVENIENCE SAMPLING:
As its name implies, convenience sampling involves collecting information
from members of the population who are conveniently available to provide it.
One would expect that the Pepsi Challenge contest was administered on a
convenience sampling basis. Such a contest, with the purpose of determining
whether people prefer one product to another, might be held at a mall visited by
many shoppers. Those inclined to take the test might form the sample for the
study of how many people prefer Pepsi over Coke.

PURPOSIVE SAMPLING:
When the sampling is confined to specific types of people who can provide
the desired information, either because they are the only ones who possess it, or
conform to some criteria set by the researcher is called purposive sampling.

1- JUDGMENT SAMPLING:
Judgment sampling involves the choice of subjects who are in the best
position to provide the information required. For instance, if a researcher
wants to find out what it takes for women managers to make it to the top, the
only people who can give firsthand information are the women who have risen
to the positions of presidents, vice presidents, and important top-level
executives in work organizations. By virtue of having gone through the
experiences and processes themselves, they might be expected to have expert
knowledge and might perhaps be able to provide good data or information to
the researcher. Thus, the judgment sampling design is used when a limited
number or category of people have the information that is sought.

2- QUOTA SAMPLING:
Quota sampling, a second type of purposive sampling, ensures that certain
groups are adequately represented in the study through the assignment of a
quota. Generally, the quota fixed for each subgroup is based on the total
numbers of each group in the population. However, since this is a non-
probability-sampling plan, the results are not generalizable to the population.

3- SNOWBALL SAMPLING:
Snowball sampling is the process of selecting a sample using networks. In
this sampling technique we start with few individuals in a group and collect
information form them. This group is then asked to identify others in the
group then once again information is collected from new members. These
members become the part of the sample. These members are then asked aging
to identify other peoples.
Book by:
Donald R. Cooper and Pamela S. Schindler
www.statcan.gc.ca
www.wikipedia.org
WHY SAMPLE?
When organizations require data they either use data collected by
somebody else (secondary data), or collect it themselves (primary data). This is
usually done by Sampling that is collecting data from a representative Sample of
the population they are interested in. Sampling is used because:

Lower Cost:

Sampling techniques are adopted for data or information collection

because it saves cost then the normal procedure of data collection. For
complete count huge funds are required. There is always the problem of
finances. A small sample can be studied in a limited cost. For complete count,
we need a big team of supervisors and enumeration who are to be trained and
they are to be paid properly for the work they do.

Speed of data collection:

In sampling technique we are selecting samples from the whole population
to collect information. As the size of the sample is small as compared to the
population, the time involved on sample study are much less than the
complete counts. These samples represent the whole population.

Accuracy of Results:
Sampling also provides accuracy of results. According research finding
more then ninety percent error occurred in surveys which are conducted on
non-sampling sources and only 10 are of from random sampling error.

Population Element:
A Population need not be human. In statistics we define a population as
the collection of all the items about which we want to know some
characteristics. Examples of populations are hospital patients, road accidents,
pet owners, unoccupied property or bridges. It is usually far too expensive and
too time consuming to collect information from every member of the
population, exceptions being the General Election and The Census, so instead
we collect it from a sample. The population we want to know about is called
the target population, as it is the one we are interested in and targeting.

Books:
Research Methodology by: Ranjit Kumar
Business Research Methods by:
Donald R. Cooper and Pamela S. Schindler
 “Significance of
sampling”

Organization visited
TCS PVT ltd
 INTRODUCTION TO ORGANIZATION:
TCS is a Pakistan based courier service. The company was started in 1983
and now it serves five continents and has over 2,000 locations in Pakistan. The
company also has an airline for cargo purposes only which it uses at many of the
airports in Pakistan.
TCS is a progressive master enterprise offering services in diversified
industries including express, logistics, warehousing, distribution, mail order,
travel & tours, visa drop box, management development, event management &
publications.
TCS has emerged as a leading business enterprise - with a team of over
4000 employees and 300 offices worldwide. Today TCS continues to grow on its
humble beginnings and enjoys great leverage on its worldwide infrastructure and
operating strengths with the experience of over 2 decades in the industry.

PRACTICAL STUDY

In this report I discussed h0w effective is the consignment delivery

systtem of TCS is?

DATA COLLECTION
To collect data I have personally visited the organization and with the
permission of their head of sales (Regional office) I have granted a permission to
visit Sales department and they have given me opportunity to check daily and
monthly sales detail. I also interview sales manager about sales and deliveries so
that I am able to understand about my topic in a practical way all of the data I am
going to present is given to me by Sales manager of TCS PVT ltd (Regional office).
And information I am going to present in my report is based on reports which I
have got from sales team and question and answer replies by Sales manager.

SAMPLING TECHNIQUE
 For my practical stydy I choose systematic sapling technique. The
systematic sampling design involves drawing of every nth element in the
population starting with a randomly chosen element between sample sizes.

Skip interval (K) = Population size/Sample size

POPULATION

The pupation size is the total no of one day’s overland consignments in the
TCS. The population size is 800 overland consignments booked in one day.

SAMPLES

The sample chosen for the study consist of 100 consignments out of the
total population of 800 consignments.

REPORT

I choose 100 samples out of 800 populations. For these 100 samples I
used systematic formula to find skip interval. Skip interval is: k= 800/100=8. I
have chosen first random number which is 8ht consignment number in the
report. By skipping next 8th consignment I have selected 100 samples. I used
http://www.tcscouriers.com for tracking the consignment numbers. While
tracking number I found that most of consignments are delivered at Karachi
other consignments are delivered on time. As overland committed to deliver
heavy material to its destinations before 48 hours but only Karachi and other
area which are very far took 3 days. I did not fond any delivery failure out of 100
samples. This shows that TCS PVT Ltd is provide services to its customer very
well.

SIGNIFICANCE OF SAMPLING

Systematic sampling is I think very important for business research

project. Because the technique and design of systematic sampling is quite simple
and organization or even its employee can perform systematic sampling. By using
sampling techniques organization can:

• Improve customer service.

• Can increase profits.
• Can plan remedies for better management.
• Can develop new office where services are affected.
• Can point out areas where most of material is booked and picked and then
can find new sales and business.
 Significance of sampling in study is very crucial because the sample chosen is
representing the population of our study. So if the sample chosen is not correct or
the sample selected is biased then the result of our report will not be correct.

Advantages

• Spreads the sample more uniformly over the population.

• Easier to conduct than a simple random sample.
• Cost is less
• Time saving

Disadvantages

• The system may interact with some hidden pattern in the population, e.g.
every third house along the street might always be the middle one of a
terrace of three
• It is not useful when there are no similar subgroups.
 SWOT ANALYSES

Strengths

• Easier to conduct
• Its saves cost
• Its saves time

Weaknesses

• May skip member which may have more characteristics

• When the subgroups are not similar its not useful
• Not properly followed

Opportunities

• Improve customer service.

• Profits raising is possible
• Remedies for better management
• Research & Development

Threats

• Bias information can result in loss

• Better use of sampling by competitor can capture the clients
 CONCLUSION

Systematic sampling is a random sampling technique which is frequently

chosen by researchers for its simplicity and its periodic quality. In systematic
random sampling, the researcher first randomly picks the first item or subject
from the population. Then, the researcher will select each n'th subject from the
list. The procedure involved in systematic random sampling is very easy and can
be done manually and the results are representative of the population unless
certain characteristics of the population are repeated for every n'th individual
which is highly unlikely.

Since systematic random sampling is a type of probability sampling, the

researcher must ensure that all the members of the population have equal
chances of being selected as the starting point or the initial subject.
 REFERENCE

1- www.statcan.gc.ca
2- www.merriam-webster.com
3- www.wikipedia.org
4- www.experiment-resources.com
5- Book material:
 Research Methodology by Ranjit Kumar
 Business Research Methods