Page 156 - DMGT521_PROJECT_MANAGEMENT

Unit 9: Financial Estimates and Projections

Due to the above mentioned limitations of the census survey, the market survey, in practice, is Notes
typically a sample survey. In such a survey a sample of population is contacted or observed and
relevant information is gathered. On the basis of such information, inferences about the
population may be drawn.
The information sought in a market survey may relate to one or more of the following:

1. Total demand and rate of growth of demand
2. Demand in different segments of the market
3. Income and price elasticities of demand
4. Motives for buying

5. Purchasing plans and intentions
6. Satisfaction with existing products
7. Unsatisfied needs
8. Attitudes toward various products

9. Distributive trade practices and preferences
10. Socio-economic characteristics of buyers

Steps in a Sample Survey

Typically, a sample survey consists of the following steps:
Define the Target Population: In defining the target population the important terms should be
carefully and unambiguously defined. The target population may be divided into various
segments which may have differing characteristics. For example, all television owners may be
divided into three to four income brackets.
Select the Sampling Scheme and Sample Size: There are several sampling schemes: simple random
sampling, cluster sampling, sequential sampling, stratified sampling, systematic sampling, and
non probability sampling. Each scheme has its advantages and limitations. The sample size,
other things being equal, has a bearing on the reliability of the estimates – larger the sample
size, the greater the reliability.
Develop the Questionnaire: The questionnaire is the principal instrument for eliciting information
from the sample of respondents. The effectiveness of the questionnaire as a vice for eliciting the
desired information depends on its length, the types of questions, and the wording of the
questions. Developing the questionnaire requires a thorough understanding of the product and
service and its usage, imagination, insights into human behavior, appreciation of subtle linguistic
nuances, and familiarity with the tools of descriptive inferential statistics to be used later for
analysis. It also requires knowledge of psychological scaling techniques if the same are employed
for obtaining information relating to attitudes, motivations, and psychological traits. Industry
and trade market surveys, in comparison to consumer surveys, generally involve more technical
and specialised questions.
Since the quality of the questionnaire has an important bearing on the results of the market
survey, the questionnaire should be tried out in a pilot survey and modified in the light of
problems/difficulties noted.
Recruit and Train the Field Investigators: Recruiting and training of field investigators must be
planned well since it can be time consuming. Great care must be taken in recruiting right kind
of investigators and imparting the proper kind of training to them. Instigators involved in

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