Wednesday, January 20, 2010

Accuracy of Primary Research

Despite the usefulness of primary research, it might not be always be accurate because of the following types of bias:

1) Sampling Bias, which means that the sample chosen does not completely represent the target market. This is why sample sizes need to be large so that the level of inaccuracy is minimized.

2) Questionnaire Bias, which means that the questions asked make respondents answer in a certain way. this limits its accuracy primarily because the company might be led to believe that their product will sell well even though that is not the case.

3) Other Forms of Bias which include People not being honest about their answers especially when it comes to personal interviews. this can lead to more inaccuracy.

References: Business Studies by Peter Stimpson