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Purpose of Sampling in Marketing Research

Determining sampling and sample size is an important component and one of the benefits to conducting market research. The number of surveys or interviews that will held is important in establishing the confidence level of the sample size. The confidence level is the likelihood that the results will be similar to a specific percent of the actual population. They will commonly correspond to those obtained if every person were surveyed or interviewed in the population. The confidence level that is recommended for a sample size should be the industry standard of 95%.

The benefit of sample size determination is the reliability of the final results that are generated in the study. By holding a confidence level of 95%, this guarantees that they will be representative of the population and that they are reliable. This is a significant benefit because the total number of people that need to be surveyed or interviewed to satisfy the confidence level can be calculated and a budget for this can be established. The budget put towards the study will limit the number of surveys and interviews conducted. This is because the surveys or interviews make up most of the cost of the study.

Let’s say for example were trying to sell a product or service to a large population.  We need to know what our target audience is looking for. In this case we will take a small group of respondents from that target audience and conduct a research and hope that our research findings from the sample will be representative of the overall population.

Benefits:

Even a relatively small sample size can provide useful research insights.

Using sampling before marketing decisions can reduce risks and costs.

Sampling is flexible and relatively quick

Drawbacks

Big risk of choosing a sample that is not representative of the population, leading to incorrect conclusions.

Risks of not using the right method.

Less useful in market segments where customer tastes and needs are changing rapidly.

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