Why do companies use surveys?

Answer 1

Companies have been using focus groups for decades as a method of finding out how customers respond to products. Opinion surveys are simply a more generalized version of this method of research.

Answer 2

Satisfaction surveys are used for companies to determine which areas of their business they are excelling at and which areas need improvement. This gives executives an outside perspective from a customer or consumer about their experience with their service or product.

Answer 3

You need information to make decisions. That information can be obtained by doing a comprehensive study - a census - a smaller study - a survey. A census is likely to be much more expensive and slower to produce results. Although the results of a survey will be estimates of the true values, a well organised survey can deliver sufficiently accurate results more quickly and cheaply.

Surveys can be particularly useful for interpolation between censuses on which they are benchmarked - although when conducted, the survey is usually extrapolating.

Answer 4

Surveys are carried out to collect statistical information about a set of units - called the population. This can be achieved by obtaining the information for each individual in the population but that may not be possible, and is also likely to require a lot of time and financial resources. A well-designed survey should produce reliable estimates cheaper and faster.

Another reason is that of non-destruction. For example, the only way for a baker to be sure that his cakes are cooked properly is to try a bit from each cake. But if he does that then he will not have any left to sell!