Tuesday, November 27, 2012

Research Supplier Ethics


Some of the unethical behavior on the part of research suppliers are listed below.

Low-Ball Pricing
Research suppliers should quote and demand the price for a marketing research program based on
1.       Incidence rate (percentage of the respondents who qualify to complete the survey (from the selected sample))
2.       Length of the questionnaire and the time required to complete it.

The contract price varies with the change in the 2 parameters mentioned above.
Low-ball pricing is in reality quoting an unrealistically low price in order to secure a firm’s project and then using different modes to systematically increase the cost (by a substantial amount) of the entire project.

Example: After pocketing the research project, placing the demand in front of the firm the cost of connecting and calling the respondents (say for qualitative research) would be separate.


Allowing Subjectivity into the Research
Research suppliers must avoid the following in any research condition:
1.       Using biased samples
2.       Misusing statistics
3.       Ignoring relevant data
4.       Creating a research design with the goal of supporting a predetermined objective

Advocacy studies: These are studies that are commissioned by companies to advocate or prove a position of the company or for public relations purposes. Most of the times the advocacy studies are done on samples that are not representative of the population. This sort of research will bring subjectivity into the researcher.


Abusing Respondents
Respondent abuse can take several forms like:
1.       Perhaps the most common is lengthy interviews. Due to lengthy questionnaires and sales pitches, more and more people (who are aware of this) refuse to participate in a survey research.
2.       Misrepresenting the interview duration (if the actual duration is long) to attract respondents, will cause the respondents to feel disconnected and cheated in the entire process.
3.       Predictive dialers call up people ahead based on system information on availability of interviewers. But if mismanaged, predictive dialers will call people and then will make them wait or disconnect the line because on non-availability of the interviewers.
4.       Data collected during interview process is confidential, as it includes personal data of the respondent. Leaking out this data to other sources is infringing on the privacy of the respondent.


Selling unnecessary Research
This includes increasing the sample size to an irrelevant level, increasing the numbers and complexity of a research questionnaire etc.
One of the ways to tackle this situation is by presenting multiple research design proposals, informing the company of the pros and cons of each and the different pricing levels for each.
Then, based on the focus of the research and the requirements, a suitable design should be chosen.


Violating Client Confidentiality
During the course of interaction and working for the client, research firms gain a lot of information on the client, their business activities, plan etc. this information should not be revealed to any third party.
Evan after a project is over, there a lot of data sitting with the research firm and this should not be misused in helping the competitors in any way. 

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