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Sample size refers to the number of people engaged in a particular market research effort, such as a survey or a focus group.
Businesses conduct market research to better understand their customer base’s identities, interests, and needs. Sample size refers to the number of existing or potential customers they include in those controlled market research efforts.
When deciding on the right approach for a particular initiative, many businesses take into account who the customer segment is, how they intend to capture those customer’s insights, what the best method for doing so is, and what the margin for error might be.
After outlining these details and conducting the research, they’ll then use the sample size to analyze their effectiveness.
If a business wants to know if a particular ad will resonate with customers ages 18-25, they might put out a survey asking for their opinions. Then, they’ll subtract the margin of error (people who responded but are outside the age range) from the total number of responses to determine their sample size.