Retail measurement services providers maintain global standards for sampling error, reflecting the acceptable tolerance level of error, at specified level of confidence, for their retail audits. For instance, NielsenIQ’s global standard for sampling error, set at 90% level of confidence and applicable to categories that are available in 80% of the universe, is as follows:
According to this standard, the sample should be configured such that for a national market, the probability that estimated sales value will lie within ± 3% of actual value is 90%.
Note also that accuracy standards are dependent on the availability of the category being measured. If it is available only in a small proportion of stores, the effective sample for the category is much lower, and that adversely impacts data accuracy. Hence the stipulation above, that the global standard applies to categories that are present in at least 80% of the universe of stores.
Use the Search Bar to find content on MarketingMind.
In an analytics-driven business environment, this analytics-centred consumer marketing workshop is tailored to the needs of consumer analysts, marketing researchers, brand managers, category managers and seasoned marketing and retailing professionals.
Is marketing education fluffy too?
Marketing simulators impart much needed combat experiences, equipping practitioners with the skills to succeed in the consumer market battleground. They combine theory with practice, linking the classroom with the consumer marketplace.