Many professional services firms research their clients’ experiences and preferences. Firms usually do this by engaging a third-party agency to benefit from their expertise in creating and sending surveys and ensuring the objectivity of the findings.
Collecting reliable data through online market research surveys has become increasingly challenging in the digital era. Respondent fatigue, privacy concerns and email screening technology are just a few of the hurdles market researchers face in their quest for research integrity and large, high-quality response rates.
For third-party market research consultants like Beaton, one way to increase respondent engagement is to inform the respondent of the identity of the commissioning organisation before the survey begins. This is known as market research sponsorship, sponsorship for short.
Sponsorship refers to utilising a third-party researcher or the commissioning organisation letting respondents know in advance who is interested in their views and/or provided their contact details to the researcher. We often get asked whether this disclosure risks biasing the survey outcomes.
This article explores the academic and independent literature on this topic.
How does research sponsorship help?
The first reason firms need more research is to inform the decisions that constitute their business strategy.
Countless hours will go into innumerable pages of analysis to support discussions at partners’ retreats. To what end? Decisions will be made–that’s the easy part. The saying that strategy is 10 per cent inspiration (i.e. formulation) and 90 per cent perspiration (i.e. implementation) is apt for partnership-based cultures. The problem is firms are all too frequently not very good at the first, formulation, or the second, implementation.
Why? The are several reasons. Partners tend to collude and thereby avoid tough issues. They are excessively internally focused (because they usually lack strategic benchmarks). They too often plan with the lowest common denominator (i.e. the weakest link) in mind. They have an aversion to saying no. They tend to follow the herd (believing it’s safer). They have a bias for intuition rather than factual evidence. And they focus on the short term.
So, what do savvy firms do to overcome these blockers? One of their solutions is to use hard evidence. Professional people are rational thinkers. Facts persuade, especially when they are independently sourced and on point.
When an email recipient sees a survey from a third party they have not heard from before or do not recognise, they are unlikely to respond.
What are the risks of research sponsorship?
As noted above, one downside of sponsorship is the increased risk of bias. In this context, the sponsor’s name and influence risk skewing research results or causing respondents to tweak their responses and report in the sponsor’s favour – or the converse.
In this post, we investigate different aspects of research sponsorship and analyse their potential negative and positive impacts on a research survey.
1. Response bias
Despite the potential for a higher response rate and therefore more responses, there is a risk that informing respondents about the commissioning or sponsoring firm can introduce response bias.
Michael Larsen, a researcher in mathematics and statistics and Kenneth Rasinski highlighted in their 2002 article that respondents might tailor their answers to align with what they perceive to be the commissioning firm’s interests or desired outcomes. Attitude is “a psychological tendency expressed by rating a particular entity with some degree of approval or disliking” (Leone, 1995). This concept has important implications in survey research, as respondents might react negatively to surveys commissioned by firms they distrust or dislike, leading to nonresponse or deliberately misleading answers.
However, Thomas J. Leeper, a behavioural scientist and Emily A. Thorson, a specialist in experimental methodology, show that these risks are minor in the broader picture. Their research suggests there is, in fact, minimal impact of sponsorship on overall survey behaviour. They note that while the sponsor’s identity might influence specific aspects of response behaviour, it does not universally affect the quality or consistency of survey responses across different conditions. Moreover, when the sponsor is viewed positively or as credible, sponsorship can enhance respondent engagement and trust (Nguyen, D. T., & Vu, H. T. 2022), increasing response rates and reducing incomplete responses.
2. Transparency, disclosure and trust
In his 2017 article, Authur Lupia from the University of Michigan highlighted transparency and disclosure as vital aspects of survey sponsorship. They ensure participants are aware of the survey’s purpose and sponsor, which enhances the credibility and reliability of the collected data.
Transparent practices make participants more likely to trust the process and provide honest responses (Kang, 2023). Disclosing the survey’s purpose and the use of the data, as well as adhering to strict ethical standards to protect participant privacy and data integrity, is a crucial strategy to foster trust (Morey et al., 2015).
Most studies say that when respondents are informed about the firms behind the survey and its purpose, they feel reassured about its legitimacy. Disclosure thus leads to higher engagement and a greater willingness to participate.
When the sponsor is viewed positively or as credible, sponsorship can enhance respondent engagement and trust, increasing response rates and reducing incomplete responses.
3. Anonymity
Studies indicate that when respondents are assured anonymity, they are more likely to provide honest and candid responses. This further reduces bias and improves the reliability of results (Singer, Von Thurn, & Miller, 1995).
Practical strategies, including robust encryption methods and clear communication of anonymity policies, are essential for safeguarding respondent anonymity and fostering a conducive survey environment (Kang, 2023). By ensuring respondents’ anonymity and privacy, researchers can enhance the validity and accuracy of their data collection efforts.
4. Using a third-party researcher
In cases where sponsorship bias is a concern, using a third-party research partner further increases trust and anonymity, encouraging respondents to provide honest feedback.
Third-party research companies are commonly seen as neutral entities, reducing potential biases and conflicts of interest that might arise if the survey were conducted internally (Bozoyan & Vogt, 2016). They are experts in their field, and remaining impartial is crucial to their reputation – so it makes sense that third-party research organisations would take no risks with survey bias.
When an independent firm clearly communicates the privacy safeguards it is implementing, it reassures participants. This reassurance can lead to higher response rates and more reliable data (Kang, 2023). Indeed, studies have shown that third-party involvement maintains data quality and often improves it (Quetulio-Navarra, 2015).
What Beaton is doing to ensure data reliability and quality
At Beaton, we constantly evaluate and evolve our methodological approach as the online survey landscape changes.
In our communication with respondents, we have always emphasised the anonymity of the feedback provided and been clear about the purpose of the survey and how respondents’ details were sourced. That has not changed.
In recent years, we have also increased trust and transparency by openly communicating the name of the professional services firm that provided a respondent’s details to us. We encourage firms to reach out to their clients who are invited to respond before the start of the survey to inform them that it is coming and to allow them to opt-out. These actions are all intended to increase participation while ensuring the transparency, privacy and security needed for respondents to give honest, quality feedback.
Conclusion
Sponsored surveys offer numerous benefits, including higher response rates, transparency, trustworthiness, improved data quality, and thoughtful responses. On the other hand, sponsored surveys do not appear to skew findings, particularly when paired with using a third-party research agency. By emphasising transparency, trust, and anonymity, researchers can enhance the credibility of their surveys and obtain valuable insights, ultimately driving firms to make better decisions and building stronger relationships with their clients.
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