key term - Stratified Sampling

Definition

Stratified sampling is a probability sampling technique where the population is divided into distinct subgroups or strata based on shared characteristics, and a random sample is then drawn from each stratum. This method ensures that the final sample is representative of the overall population, allowing for more accurate and reliable inferences.

5 Must Know Facts For Your Next Test

1. Stratified sampling helps to reduce sampling error and increase the precision of estimates compared to simple random sampling.
2. The strata used in stratified sampling are typically based on demographic characteristics, geographic location, or other relevant variables that are known to influence the variable of interest.
3. Stratified sampling can be particularly useful when the population is heterogeneous, as it ensures that all subgroups are represented in the final sample.
4. Proportionate stratification, where the sample size from each stratum is proportional to the size of the stratum in the population, is a common approach to ensure the sample is representative.
5. Stratified sampling can be more complex and time-consuming to implement compared to simple random sampling, as it requires additional information about the population and the creation of strata.

Review Questions

• Explain how stratified sampling can be used in market research to ensure a representative sample.
  • In the context of market research, stratified sampling can be used to ensure that the sample of respondents is representative of the target population. Researchers can divide the population into distinct strata based on relevant characteristics, such as demographic factors (e.g., age, income, location) or behavioral traits (e.g., product usage, brand loyalty). By drawing a random sample from each stratum, the final sample will reflect the proportions of these key subgroups in the overall population, allowing for more accurate insights and projections about the market opportunity.
• Describe how stratified sampling can help with market opportunity recognition.
  • Stratified sampling can assist with market opportunity recognition by providing a more comprehensive understanding of the target market. By dividing the population into distinct strata and analyzing the characteristics and needs of each subgroup, researchers can identify specific market segments that present the greatest opportunities for growth and profitability. This information can inform product development, pricing strategies, and marketing campaigns that are tailored to the unique preferences and behaviors of different customer segments, ultimately enhancing the organization's ability to recognize and capitalize on market opportunities.
• Evaluate the role of stratified sampling in defining a target market.
  • Stratified sampling is a crucial tool in defining a target market, as it allows researchers to gain a nuanced understanding of the population and identify the most promising segments to focus on. By dividing the population into strata based on relevant characteristics, such as demographics, psychographics, or behavioral patterns, organizations can better understand the unique needs, preferences, and purchasing behaviors of different customer groups. This information can then be used to develop targeted marketing strategies, tailor product offerings, and allocate resources more effectively to reach and engage the most valuable target market segments, ultimately leading to improved business performance and growth.

Related terms

Simple Random Sampling: A method of selecting a sample where each individual in the population has an equal chance of being chosen, without any specific criteria or grouping.

Cluster Sampling: A sampling technique where the population is divided into mutually exclusive and exhaustive groups (clusters), and a random sample of these clusters is selected for further analysis.

Proportionate Stratification: A stratified sampling approach where the size of each stratum's sample is proportional to the size of the stratum in the overall population.