Understanding the confidence level is crucial for interpreting the reliability of online surveys. In this blog, we'll explore the concept of confidence levels and how they indicate the accuracy of market research results.
Defining Confidence Level
Confidence level in market research is defined as the amount of certainty that the true values of the data lie within the stated number in your market research study.
The industry standard for confidence level in market research is typically 95%. Though, other common confidence levels used in market research are 90% or 99%.
Confidence Level vs Confidence Interval
Oftentimes the terms confidence level and confidence interval are used interchangeably, although they do refer to different concepts in statistical analysis.
The key difference between the two is…
- Confidence Level: Refers to the probability of certainty that a confidence interval contains the true population representation. It indicates how confident you are in your estimate (e.g., 95% confidence level means you are 95% confident that the interval includes the true value).
- Confidence Interval: Refers to the range of values within the stated totals of the survey data. It identifies an upper and lower bound for the estimate (e.g., if the sample mean is 50 with a margin of error of 5, the confidence interval might be 45 to 55).
How to Interpret Confidence Level
Confidence interval usually ties into a margin of error in market research which is typically aimed to be +/- 5% or lower.
For example, if you are reading a report that states the margin of error is +/- 5% at the 95% confidence interval, what this means is that if the survey was conducted 100 times, 95 out of the 100 times, the results would yield within 5% of each stated total in the report.
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Drive Research is a full-service market research firm, specializing in online surveys. Our team of seasoned research professionals ensures every survey offers a 95% confidence level so our clients can feel confident in the results.
To learn more about our services or to get a quote, contact our team today.
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Emily Rodgers
A SUNY Cortland graduate, Emily has taken her passion for social and content marketing to Drive Research as the Senior Marketing Manager. She has earned certificates for both Google Analytics and Google AdWords.
Learn more about Emily, here.
