Marketing Research and Insight Glossary

Definitions, common uses and explanations of 1,500+ key market research terms and phrases.

What is Probability Proportionate to Size (PPS)?

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Probability Proportionate to Size (PPS) Definition

Used in cluster sampling when each cluster varies widely in size. Each cluster is given a chance of selection proportionate to size. Within each cluster, a fixed number of element (e.g., 5) is selected so that the probability of selecting each unit from the selected clusters is equal.

Probability proportionate to size (PPS) is a sampling method where the probability of selecting a unit (e.g., a city, store or household) is proportional to its size or importance within the population. Larger units have a higher chance of being selected, ensuring the sample better represents the population structure.

What are key aspects of probability proportionate to size (PPS) in marketing research?

  • Used in multi-stage sampling.
  • Selection probability is tied to unit size (e.g., population, revenue, sales volume).
  • Ensures proportional representation of large and small units.
  • Reduces sampling bias.
  • Requires accurate size data for sampling frame.

Why is probability proportionate to size (PPS) important in market research?

PPS helps produce a more statistically representative sample, especially when units vary significantly in size. It ensures that larger segments don’t get underrepresented, improving the reliability and accuracy of study findings.

Who relies on probability proportionate to size (PPS) in marketing research?

  • Government and academic researchers.
  • Polling organizations.
  • Market research firms conducting regional or national studies.
  • Consumer insights teams in large companies.
  • Health care and policy researchers studying population trends.

How do market researchers use probability proportionate to size (PPS)?

Market researchers use PPS when designing surveys that involve diverse or hierarchical populations. For instance, in a national retail study, cities might be selected based on their population size or store count – larger cities or chains having a higher chance of inclusion. This method improves the sample's representativeness and ensures that findings are not disproportionately influenced by small, atypical units. PPS is especially useful in the first stage of multi-stage sampling, where researchers aim to capture the full market spectrum while keeping fieldwork manageable and cost-effective.