Bellboy Case Analysis

...

In sum, the response bias would substantially change the end result despite the fact that the methodology indicates no response bias. If Bellboy had overestimated the end result, there would have been overestimated market demand.

Contextual Bias: Price Levels & Product Features

Pros: One of the biggest advantages for Bellboy is its feature of pocket size pager, which allows the company to attract the original customers in that region. Pertaining to prices, Bellboy provided three price levels to examine the market price sensitivity. The survey result suggests that as the price given decreases, the demand would go up, which helps illustrate a sensible response with regard to price.

Cons: The contextual bias of the unreasonable price levels enables SWB to maneuver its respondents within the answering environment provided. There were three price levels, which one may argue is for the purpose of price sensitivity. However, with no market price provided, the respondents were left influenced and the result would have a significant effect on the market. Aside from price levels, the product feature was introduced but with no comparison given, it was hard for the respondents to compare and contrast.

Accordingly, the price levels in the survey did not reflect market price and the product feature lacks comparison with the competitors’, making the survey less reliable.

Conclusion

The argument states that the survey result does not necessarily reflect the need in the market. This case analysis includes both arguments for and against the survey. The arguments against the survey indicated in several parts of the survey there was insufficient information to suggest a market opportunity. Albeit there is a substantial sample size, response bias and contextual bias influenced the respondents and the structure of the survey could have been designed in a way that covers more aspects. For instance, questions should have been tailored to the specific need of pager service instead of generalization. Not only the design of the survey but also the interpretation of the survey leaves much room for improvement.