Response bias can have several adverse effects on business decisions:
- Inaccurate Market Research: If the data collected is not reflective of the true opinions and behaviors of the target market, businesses might make misguided decisions regarding product development, pricing, and marketing strategies.
- Misleading Employee Feedback: When response bias skews employee feedback surveys, companies might fail to identify critical issues within the workplace, leading to decreased morale and productivity.
- Flawed Customer Insights: Businesses rely on customer feedback to improve their products and services. Response bias can result in misleading insights, causing companies to invest in changes that do not align with customer needs.