CASE 14-1 Exercises in Sample Design 3. In each of the following situations, make recommendations as to the type of sample to be used, the method of selecting the sample, and the sample size. 1. 2. The manager of the appliance department of a local full-line department store chain is planning a major one-day nonprice promotion of food processors, supported by heavy advertising in the two local newspapers. The manager asks you to recommend a method of sampling customers coming into the department. The purpose is to assess the extent to which customers were drawn by the special advertisement, and the extent to which the advertisement inuenced their intentions to buy. A pretest of the questionnaire indicates that it will take about 3 minutes to administer. The manager is especially interested in learning whether there are signicant differences in the response to the questionnaire among (a) males versus females, (b) gift buyers versus other buyers, and (c) age groups. A major airline wants to run a preliminary study on the attitudes of university students toward air travel. The company's research director already has submitted an interview plan and has estimated that, on average, each interview will require between an hour and an hour-and-a-half to administer. It is estimated that the cost of interviewing CASE 14-2 Talbot Razor Products Company One of the products marketed by Talbot Razor Products Company is an after-shave lotion called Enhance. This brand is sold through drugstores, supermarkets, and department stores. Sales exceed $30 million per year but are barely protable because of advertising expenses that exceed $9 million. For some time the company and its advertising agency have felt the need to undertake a study to obtain more data on the characteristics of their users as contrasted to those of other leading brands. Both the company and the agency believe that such information would help them nd better ways to promote the Enhance brand. Preliminary discussions between the advertising department and the research department of the advertising agency resulted in the following study objectives. 1. To determine the characteristics of Enhance users versus competitors by such factors as age, income, 4. 2. 3. 4. and interpreting the interview will be roughly $75.00 per respondent. A small Caribbean island relies heavily on tourist income. There is a need to develop a study so that an estimate can be provided each month as to a. The number of tourists b. The length of stay c. Their activities d. Their attitudes toward some programs and activities The plan is to conduct a short interview with each respondent and to leave with them a short questionnaire to be completed and mailed after returning home. Several sampling plans are being considered. One is to generate a random sample of hotel rooms and to interview each occupant. Another involves sampling every nth person that passes a predetermined point in the city. Still another is to sample departing planes and ships. About six planes and three ships depart each day. Design a sampling plan so that each month 500 tourists are obtained in the sample. A sample of homeowners in the state of Illinois is desired for a major segmentation study conducted by a large nancial institution. A lengthy personal interview lasting over 1 hour will be conducted with each respondent. A sample size of 3,000 is targeted. occupation, marital status, family size, education, social class, and leisure-time activities. To determine the image of the Enhance brand versus competitors on such attributes as masculinity, expensiveness, and user stereotypes (such as young men, factory workers, young executives, and men living in small towns). To discover the meaning to consumers of certain words that were used to describe after-shave lotions. To examine the media habits of users by television programs, magazines, and newspapers. In discussing the sampling universe, the advertising manager thought the study results should be broken down by heavy versus light users of Enhance. In the manager's opinion, as few as 15 to 20 percent of the users might account for 60 percent of the total purchases. It was not clear how many containers a user would have to buy during a specied time period to qualify as a heavy or a light user. The research director and the advertising manager disagreed on a denition of user: The research 57