In Marketing research Methodological foundations Chapter 11

In Marketing research: Methodological foundations, Chapter 11: Applications and problems, Number 8, read the scenario. Complete the items (Parts A through E) as detailed below. The paper must be two to three pages in length (not including the title and reference pages), be formatted according to APA style as outlined in the Ashford Writing Center, and use at least two scholarly sources in addition to the text.

The Nevada National Bank, headquartered in Las Vegas, has some 400,000 users of its credit card scattered throughout the state. The application forms for the credit card ask for the usual information about name, address, phone, income, education, and so on, that is typical of such applications. The bank is interested in determining if there is any relationship between the uses of the card and the socioeconomic characteristics of the user (e.g., is there a difference in the characteristics of those people who use the credit card for major purchases only [e.g., appliances] and those who use it for minor as well as major purchases?).

a) Identify the population and sampling frame that would be used by the bank.

b) Discuss how you would draw a simple random sample from the sampling frame identified in Part A.

c) Describe how you would draw a stratified sample from the sampling frame.

d) Describe how you would draw a cluster sample from the sampling frame.

e) Explain which method would be preferred and why.

Solution

Credit card user throughout the state = 400000 users.

collecteting information about user = Name, Address, Phone, Income, Education,.....

here population are heterogeneous in nature, user have different income group as well as education.

a.     Here population unit is credit card user of the Nevada National Bank. according to the education,     income and location of the user are important for analysis the credit card user. so here possiable to startified and cluster sampling is used as sampling frame...

b.    Randomely sample are selected in such a way that , within the strata sample is homogenous in nature and between the starata samples are hetrogenious in nature in the case of startified random sampling. according to the address information we construct a clusters .

c. In startified sampling according to the education and income of the user we construct the strata for the startified random sampling. whine the strata sample units are homogenious in nature but between the strata sample units are heteroginious in nature.

d. In cluster sampling , we construct a cluster according to address i.e. location we cluster make and do the analysis and selected the sample and draw the conclusion,