Business Studies – 3.2.1 Methods of market research | e-Consult
3.2.1 Methods of market research (1 questions)
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Market research data accuracy can be influenced by several factors. Three key factors are:
- Sample Size and Representativeness: A small or non-representative sample can lead to inaccurate results. If the sample doesn't accurately reflect the target market (e.g., only surveying students when targeting adults), the findings will be biased.
- Question Wording and Bias: Poorly worded questions, leading questions, or questions that imply a desired answer can bias responses. This can skew the data and provide a misleading picture of customer opinions.
- Response Bias: Respondents may provide inaccurate answers due to social desirability bias (wanting to present themselves favorably), recall bias (difficulty remembering past events accurately), or non-response bias (certain groups are less likely to participate).
Businesses can mitigate these issues through the following:
- Increase Sample Size: A larger sample size generally leads to greater accuracy, provided the sample is representative. Statistical techniques can be used to determine an appropriate sample size.
- Pilot Testing: Conducting a pilot test of the questionnaire before the main survey helps identify and correct any ambiguous or biased questions.
- Ensure Anonymity and Confidentiality: Assuring respondents that their answers will be kept anonymous and confidential can encourage more honest and accurate responses.
- Employ Diverse Sampling Techniques: Using stratified sampling or other techniques to ensure the sample accurately reflects the demographic characteristics of the target market.
- Follow-up with Non-Respondents: Attempting to contact non-respondents can reduce non-response bias.