Top 3 Cognitive Biases That Can Skew Market Research Outcomes
Apr 11, 2018 | Chemicals & Materials | FMI
Market research firms have a proven track record of success in discovering and developing standards of excellence across a range of industries. They are partly responsible for establishing insights-driven business groups using their global team of analytics professionals with deep expertise in acquiring and interpreting data. Their mission is to assist businesses in creating a set of useful skills that helps to uncover any information that is pertinent to their circumstance.Crucial decision making among investors is mainly based on several market research reports. Investors prefer carefully considering every aspect of the market to weigh the merits of their investments.The breadth and quality of market research insights and the efficiency with which these findings are translated into action determine its capacity for upward mobility.
The course of Expedition for Market Research Teams:
- Deriving facts and numbers through the examination of many forms of data.
Locating and acquiring pertinent internal and external information that assists in updating the required data repository is the very first step. Strong emphasis is put on speed since the data gathered is more often than not huge in volume.
- Recognizing trends centered on the findings from diverse data sets.
Mathematical models for optimization and predictions are adopted for obtaining main value drivers. They collaborate with executives and front-line customers to identify internal procedures, rewards, and cultures that help in profitable decision-making.
- Generating both short- and long-term performance goals backed by near-perfect estimates.
Creating easy-to-use models for client companies to derive future targets based on the market numbers they have in their records. Often software and IT solution assistance are offered to straighten up the intricacies.
Customers’ opinions and market insights aid businesses in fostering innovation, identifying the most potential avenues for development, besides creating or preserving popular goods and brands. Businesses can learn why the consumers they serve respond as they do at each step of their journey to get associated. They also understand their client experiences and delve into their best client retention drivers with the aid of both quantitative and qualitative marketing research outcomes.
To make accurate and informed investment decisions, investors and leading companies are spending on market research reports that offer precise, updated, and quality data. However, too often the research analysts tend to embed their preconceived notions in the content compiled in the research reports. Designing reports on the basis of your preconceived notions can reflect conflicting and inaccurate information, which can direct your content and brand name into jeopardy.
By turning insights from advanced data analytics into actions for consumer-facing businesses, market research centers have successfully accelerated the potential of big data. The future prospects lie in the development of big data analysis models that can strike a compromise between complexity and usability.
To strike a balance and ensure the quality of imperative statistics and content, the collected information is verified through validation procedures to warrant its precision. While it is convenient to identify logical, linguistic, and grammatical errors, maintaining the accuracy of the information compiled in the report is difficult. For the editors to spot preconceived notions embedded in the information continues to remain a rigorous task. In order to maintain the quality and accuracy of the information compiled in the report, leading companies are taking initiatives to educate their employees and research analysts about cognitive bias. Here is how your cognitive bias can impact the imperative information compiled in the market research reports and conversions.
- Irrational Escalation:
Irrespective of the hierarchy followed in a company, cognitive bias such as irrational escalation and preconceived notions of an individual can encroach on your strategy unapologetically. As the need to generate market research reports detailed with quality and accurate insights persist, research analysts are required to be as objective as possible while conducting and considering a new research. Disregarding research evidence that undermines or overrides implemented decisions can impugn the outcome of your reports. Checking irrational escalation while making important decisions regarding market research can help in generating a quality report and encourage clients to return.
- Social Desirability Bias:
More often than not, individuals tend to become conscious of projecting their perceptions while making conversations. To project a socially accepted view, individuals tend to over-report a good behavior or under-report an undesirable behavior. While considering opinions and conducting analysis through statistics generated on consumer behavior and preference, cognitive bias such as social desirability bias can skew the collected information. Research analysts need to frame their questions in a way that encourages survey respondents to offer perspective, reflecting their true feelings and thoughts.
- Knowledge Bias:
While conducting surveys to enrich your market research reports with unique data, survey respondents tend to favor a particular brand as well as products and services offered by them. Many times, survey respondents and the research analysts tend to form an opinion on the launch of new product lines based on the experience from the previous products. Incorporating these responses while conducting analysis and generating reports can skew the outcome and project contradicting growth prospects for that particular market.
In essence, disregarding interference of our cognitive bias while generating crucial market research reports can result in client loss, revenue, and resource investment. As the need for quality and accurate research reports among investors persist, research analysts need to be objective while incorporating important information and statistics. Discounting cognitive bias among the research analysts, marketing executives, and survey conductors can put the brand identity in jeopardy. To avoid contradicting results, leading companies need to verify the accuracy of data compiled in the reports.