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May 2001 Volume 2.07



The Benefits of CVA (Part Two)
by Rodger Gallagher

Running The Survey

If you are going to make business decisions based on survey results then the base data needs to be sound. People often regard fieldwork as a commodity and select the lowest priced supplier. But fieldwork quality varies immensely and it is critical to have high quality fieldwork to ensure that the base data is sound. To get this we need a survey that has both high precision and high accuracy.

"It is very important to use sample sizes that are large enough to deliver research results with a low margin of error". Most people would accept this as a true statement and one of the most important factors to consider when running a survey. Sample size is put under the microscope because it is easy to measure, but what people often mean when they talk about sample size is the number of completed responses to the survey. It is this that determines the precision of the research (what margin of error will we tolerate?) But what is even more important, but often spoken of in hushed tones, are sampling coverage and non-sampling error.

The right coverage

By sampling coverage, we mean both that the sample we have drawn reflects the same population we are interested in, and that the sample has been drawn randomly so a complete range of views in the population is represented. This is important as it determines the accuracy of the research. This is especially so in CVA research where we are interested primarily in the views of decision makers. So first we need to ensure that we have the right population to draw the sample from. This needs to be defined and specified in the Developing The Research step. For example, in business-to-business research we may wish to only include customers with either current or potential high sales revenue in the research. And which people in each business are the decision makers that we need to contact? If named decision makers are available then that increases the chance of contacting the right person and obtaining their views. Once the population is defined then a probability sample must be drawn from the entire population using a random sampling technique. This needs to be large enough in size to provide the target number of completed survey responses.

But supplied lists of customers may contain stale information where people have moved to other roles or companies. Or the best list available may be one of users rather than decision makers. To overcome this or when supplied contact names are not available, questions in the survey must be used to ensure that only the views of the defined population are captured by the research. So a combination of careful sample selection and screening questions in the survey is necessary to ensure that we have the right coverage.

The unspoken error

A simple way of reducing the cost of market research is to only survey people who are easy to contact. Possible respondents are contacted once only using as many contact names as needed, until the desired number of completed responses is obtained. This means that views of people who were not available for one reason or another on the initial contact are excluded from the survey. In surveys of consumers it is usually easier to contact people who are unemployed or retired. If a broader mix of coverage is required than this, then research results based on these responses may well be wrong. If any part of the target population is inaccessible, and therefore not available for surveying, then this opens the potential for biased statistics. Completed survey responses determined by convenience/ accessibility/ availability introduces the potential for unknown and unknowable biases in statistics and does not enable their precision to be measured.

To ensure that this type of bias is minimised it is critical to measure the response rate. This is the percentage for the number of responses, divided by the number of valid contacts made:

With well managed research, and if respondents are interested in the subject, response rates can go as high as 70% but responses of 40% are more typical. To achieve high response rates it is important to use reminders for postal and Web based surveys. For telephone surveys, a number of follow-up calls must be made across a number of days, at different times of the day to improve the contact rate, with appointments made for interviews at times that suit the person being surveyed. If this is not done the number of 'no replies' or 'voice mail' contacts will bias the data collected towards the views of people who are easy to contact.

By applying standards to the way the population is specified, the sample is drawn, and the fieldwork is conducted, the CVA approach ensures that data to be used for business decision-making is sound.



BELIEVING THE ADVERTISING

It was just before lunch and I was in the soup aisle of the supermarket. I spotted a can of Tomato and Bacon soup with an attractive label showing little bits of bacon floating on the soup. So off to the checkout it went and then home to prepare a culinary delight with a trusty can opener. After carefully following the instructions I ladled the soup into a bowl. But it didn't look anything like the bowl of soup on the label of the can. What had I done wrong? Perhaps I had opened the can clockwise instead of anti clockwise? Come to think of it, bacon would sink to the bottom of a bowl of soup anyway. Well anyway the soup did taste of bacon and I did find a few bits of the bacon on the bottom of the bowl.

But what was the photo on the can's label meant to depict? Well I didn't find that out by reading the label, but what I did find in letters one millimetre high were the two words "serving suggestion". It didn't say what it was a serving suggestion for. I rang the 800 number on the label to ask what the photo was meant to depict, and twice received the message "all of our operators are busy". Perhaps too many other people were ringing after lunch to find out what the photo was of? On calling back a third time I finally got through. The person did not have a can label to look at but thought it might be squares of toast or croutons in the soup. Since when have croutons looked like pieces of bacon that float? My complaint was to be passed on to the product manager. I suspect that it wasn't even recorded.

Is it any wonder then that people are very sceptical when it comes to believing the claims made in advertisements? They prefer instead to believe what their friends, relatives, and work mates tell them about products and services. Well I won't be recommending a particular brand of Tomato and Bacon soup to anyone. But if you are after a can of soup I do recommend, then try Campbell's Homestyle Pea and Ham. The contents look like the photo on the label and it tastes great.

Regards,


Rodger Gallagher

 

 

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