SOURCES OF DATA

There are 2 different sources of data, namely primary and secondary. Primary data is information
specifically collected for the purpose of the survey, implying that primary sources of data are likely to be
the population participating in the survey.
On the other hand, secondary data refers to information which has already been collected by others,
perhaps for other purposes, but which fit in the context of the survey being actually carried out. For
Appalachian PLC, useful secondary sources of data would be:
1) Government statistics
One of the most important aspect to evaluate before dealing with a country, is the economic
situation of the country.
Economic indicators such as inflation level, unemployment rates, and Gross Domestic
Product (GDP) contribution will give an idea whether dealing with China will be
profitable.
If a high inflation is prevailing, people will be less likely to buy goods such as furniture,
as
it is mostly a luxury good, while if there is a low level of inflation, there will be a greater
demand for furniture.
If the furniture industry has a large contribution to the GDP, it implies that spending on
furniture is high, thus making the country a profitable destination for Appalachian PLC.
Import and export indicators show the relationship of a country with its dealing partners.
If China is importing more furniture than exporting them, it implies that it will be easier
for Appalachian PLC to sell its goods to them.
2) Internet Research
The internet is shelter to an uncountable number of information relating to worldwide subjects.
Appalachian PLC can use internet to gather information concerning:
The furniture industry of China.
It is important to have an idea of the prevailing furniture prices so as to provide
consumers with furniture at more competitive prices.
The choice and preference of the Chinese population with regards to furniture.
Information from surveys carried out on social networks or forums could be used to give
the company a view of the type of furniture mostly demanded by the Chinese consumers.
3) Business magazines
These usually contain results of surveys which have been carried out by consulting firms with the
objective of analyzing the trend of consumers with regards to furniture. Surveys which had a high
response rate are likely to be more reliable. Documents regarding the consumer behavior are also
available in business magazines.

4) Data from census

A census is carried out to plan the government budget effectively. It deals with information
relating to household budgets. Such data can be used in order to determine the proportion of
income that the Chinese households spend on furniture.

SURVEY METHODOLOGY AND SAMPLING FRAME

Survey methodology is a method of sociological investigation, using questions to collect information of a
populations thinking or behavior.

Before carrying out this process, it is necessary to fix the survey objectives, to determine a
sampling frame, to choose the sample size and to choose a method for data collection.
In the case of Appalachian PLC, surveys in the form of a questionnaire (see Appendix 1) will be
carried out in order to gather information about the furniture industry and consumer behavior in
China. Most helpful information would be:
1) Age group
2) Gender
3) Family status
4) Employment
5) Income level
6) Type of housing
7) Proportion of income allocated to furniture
8) Time interval to change furniture
9) Furniture brand preferred
10) Choice of furniture.
A sampling frame is to be chosen in such a way that every unit of the population has an equal
chance to occur in the sample. There are several sampling methods which can be used to
determine a sampling frame, namely:
Simple random sampling
Systematic random sampling
Stratified sampling
From the above-named methods, stratified random sampling is the most effective method of
obtaining a truly representative sample. Sampling units are selected according to different
factors. Despite being time-consuming and more costly than other methods, it would be
advisable for Appalachian PLC to use this to carry out its survey. The population can be divided
into groups according to age, gender, family status and area of residence, after which a sample
can be drawn randomly from each category.
Although easier to use, the simple random sampling method would not be representative as
participants would be chosen by random pick, which could lead to bias if there is more
individuals of one category compared to another.

Systematic random sampling is not recommended as it is limited to choose the nth number of the
population to establish a sampling frame, implying that it is less random.
A sample size, representative of the population of the countries should be determined. The
population of the new target market, China is estimated to be around 1,390,510,630 by the
World Population Statistics in 2014 for the survey of Appalachian PLC, our target will be
family householders. According to the 2010 Chinese Census, there are 401,517,330 family
households in China. For a population of 401,517,330 units, with a confidence level of 95%,
margin of error of +/- 2, the sample size should be 290. Now depending on the response rate
expected, suppose 50%, the number of people targeted should be 580.
The best method for data collection would be a pre-established questionnaire, consisting of openended and close-ended questions. A simple language should be used and questions should be
relevant, objective and non-personal. Before finalizing the questionnaire, it should be used on a
pilot basis to see the time taken to complete it and to rectify any problem.
The interview should be carried out by skilled and competent people, who have been specifically
trained for this job. They should be neutral during the process and not show any personal feelings
which could influence respondents.
Face to face interviews being too time-consuming and costly, online surveys would be
recommended.