Bellboy Case Analysis

Wilson Lin 25485855

Professor Dale Griffin

8 November 2017

Bellboy Case Analysis

The Southwester Telephone Company conducted a survey designed to discover the “Substantial unmet demand” in the Dallas/ Fort Worth area, the type of companies that are interested in the service and lastly, the reaction to the three monthly charges. The survey led to an array of arguments whether it effectively directed the respondents and was “fair” enough in terms of the sample size, design of the questions and the approach of the survey itself. This case analysis pivots on whether the sampling strategy effectively determines the unmet market demand based on the sample size, questions and price levels provided.  

Sampling Bias

Pros: The sample size of 384 is considerably a fair number of customers with respect to the approximate population of the business/potential customers (74,789) in Dallas/ Fort Worth. The survey used systematic random sampling and the result is representative of the whole population. In addition, despite the fact that there was non-response rate, the primary listing was replaced with a random subsample listing, which ensures the completion of the survey. What’s more, although 23% of respondents replied that they were interested or maybe interested, it indicates that there was a potential market to explore, considering the market had been shared by the other two competitors at that time. 38% of the respondents said they were not familiar with the company and the service they were about to provide. This can be seen as a potential market opportunity since the area can be further educated on their product.

Cons: The survey merely shows the correlation between the interests and the types of business operating in that area. The random sampling methodology neglects the hidden segments of the sample. The types of business would not be entirely covered. Furthermore, while the survey shows that approximately 23% of the the respondents were interested, 19-53% of the respondents said no employee used pager service.

Consequently, the random sampling strategy proves effective with regard to the size of the sample.

Response Bias & Non-response Error

Pros: Regarding the survey questions and interviews, the result is unbiased on the the grounds that the company used standard script and the interviews were conducted via telephones rather than in person. With random sampling approach the result can substantially reflect the real market scope. Furthermore, due to holidays, there were non responses, which could also turn into potential customers.  

Cons: First, there exists response bias, for even via telephone interview, the voice can considerably sway the decision of the responses. Second, the survey did not ask the respondents if they used other services, which suggests that there was already enough demand in the market. Moreover, the non-response rate would not certainly turn into positive result. The statement that non-responses can turn into potential customers is somewhat inaccurate. There is no clear indication that if there had been more respondents, there would have been as big a market to explore. Lastly, it is hard to confirm whether the respondents replied with what they really thought, which also ties to response bias. There may be an estimated error between the intention and the behavior.