Your research data cannot come from aliens. Except that they do.
Issue #2: The Pitfalls of Market Research: Lessons Learned and Future Directions
Hey there,?
Sharekh here! ?? Welcome back to The Research Mag! In our last issue, we explored the rich history of market research, tracing its evolution from ancient practices to modern methodologies. Today, we shift our focus to the challenges and pitfalls that have emerged over the years. Understanding these issues is crucial for improving the reliability and effectiveness of market research.
?? Quick Recap:
The Insanity of Fraud in Research
This is what I meant by your research data coming from aliens. Meaning most of it is fraud. Could be a bot, could be an alien behind a screen on Mars. You get my point. As market research has evolved, so too have the methods of fraud that threaten its integrity. Fraud has become a significant problem, with Discord groups and online forums offering individuals the opportunity to become fake survey respondents for a fee. This practice undermines the integrity of data, leading to skewed results and poor decision-making. Historical trends show that as incentives for participation have grown, so has the sophistication of fraudulent tactics.
It’s estimated that close to 40% of responses in high-volume research done with traditional panel-based methods are fraudulent. Needless to say the 40% that’s recognizable as fishy and fraudulent, no one really knows how credible is the other 60%.
?? The Tale of the Phantom Respondent:
Imagine launching a survey and receiving responses from John Doe, Jane Smith, and… Darth Vader? This might sound like a joke, but these “phantom respondents” are real and can wreak havoc on your data. Always verify your participants to avoid data from galaxies far, far away!
? Have you ever encountered obviously fake responses in your research?
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Incentives and Their Challenges
Offering incentives is a common strategy to boost survey participation, but it comes with its own set of challenges. In B2C surveys, participants might receive $5 per response, while B2B respondents could earn $50-100 per survey. This gap is even bigger in developing countries, where such amounts are very tempting, leading to more fraud.
The stakes are higher in B2B research, where the value of each response is significantly greater. Here, the incentive structure often leads to a higher risk of fraud, with respondents motivated to provide false information to gain monetary rewards. In many cases, the lack of proper verification mechanisms can make this issue worse, resulting in data that is unreliable and potentially misleading.
The Identity Crisis in B2B Market Research ??
Historically, the copy-paste approach of B2C methods into B2B environments has led to significant discrepancies in data quality. Without proper identity verification, the collected data often lacks reliability. Many companies view market research as a mere formality, opting for cheaper, high-volume data collection methods that do not ensure the quality or authenticity of the responses ((yes, I said it!)
??????GDPR Follies
Navigating GDPR regulations can feel like walking a tightrope while juggling flaming torches. “Do I have consent? Is this data compliant? Am I supposed to know who the person behind this data is?” It’s a circus act! But mastering it is crucial to keep your research ethical and legal.
More on this in a future issue!
Incentivizing Fraudulent Behavior ??
Financial incentives motivate fraudulent behavior. Respondents may lie about their qualifications or complete surveys multiple times to maximize their earnings. This is particularly prevalent in regions where the offered incentives can represent a significant side income. The problem is further compounded by panel providers who, driven by the need to maintain high response volumes, may overlook the verification processes necessary to ensure data integrity. It’s estimated that up to 40% of survey responses can be fraudulent.
领英推荐
?? The principles to spotting a fake respondent
Look out for inconsistent answers, unusually fast completion times, and nonsensical responses. A little detective work can save your data!
Lessons Learned ?
To combat these issues, it’s essential to implement robust verification methods. Additionally, balancing the act of programming your studies in a way that they are not build just to catch fraudulent respondents but also the programming and technology doesn’t punish legitimate respondents.
Verification Methods: Ensuring the authenticity of respondents is crucial. Techniques such as digital fingerprinting, two-factor authentication, social proof, and AI can help ensure respondent authenticity.and can help verify the identities at participant level, reducing the risk of fraudulent responses.
Ethical Practices: Maintaining ethical standards in market research is paramount. Ensuring transparency and fairness in the incentive process builds trust and encourages honest participation.
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Fraud Prevention at CleverX ????
At CleverX, we understand the critical importance of maintaining the integrity of our market research data. To combat fraud, we utilize advanced technologies and robust verification methods.
Fingerprinting and Device Recognition: One of the primary tools we use is getting a device fingerprint, which allows us to identify and analyze multiple device signals to create unique user profiles. This helps us detect fraudulent behavior by recognizing patterns that are indicative of bots or multiple entries from the same user. By analyzing over 100 unique signals from a device, such as IP address, browser configuration, and device type, we can ensure that each response is genuine and unique.
Passive and Active Verification: We employ both passive and active verification techniques, including LinkedIn verification of all profiles. Passive methods include digital fingerprinting and cross-referencing participant information with multiple third-party databases. This allows us to verify identities without disrupting the user experience. Active methods, like two-factor authentication and real-time behavioral analysis, further enhance our fraud detection capabilities.
AI and Machine Learning: Our use of AI and machine learning helps us stay ahead of fraudsters by continuously learning and adapting to new fraudulent behaviors. These technologies allow us to detect anomalies and suspicious patterns in real-time, flagging potential fraud before it impacts our data quality.
Understanding the pitfalls of market research is the first step towards improving its practices. By addressing issues of fraud and incentive-induced biases, we can ensure more accurate and valuable insights.
That’s all for today! Stay tuned for the next issue! If you liked reading this issue, please leave us your feedback, as well as ideas as to what you’d like to know more about!
Best,
The Research Mag
Founder @CleverX