Business Surveys in South Africa: testing the ground for Internet-based surveys keeping the impact on response rates in mind Pieter Laubscher 14 November 2005 Joint EC-OECD Workshop on International Development of Business and Consumer Tendency Surveys Presentation outline Introduction The BER panel of respondents Sectors Size groups Regions The special BER survey: background details Question1: the current mode of response Question2: the preferred mode of response Question3: access to the Internet Conclusions Introduction The Internet medium & BTS / CTS The postal response mode: BER since the 1950s Engaging the Internet medium: a special BER survey (2005Q1): Obvious advantages: cost & efficiency Constraints: user “resistance” & access Improving response rates? The current mode of response The preferred mode of response Access to the Internet What conclusions can we draw regarding the future development of Internet-based surveys at the BER? The BER panel of respondents Composition of the BER panel (2005Q1): sectors Manufacturing Retail Building & construction Food 90 Retail: durable goods 150 Architects 128 Beverages 30 Retail: semi-durable goods 139 Building contractors (incl. sub) 435 Textiles 47 Retail: non-durable goods 229 Quantiry surveyors 180 Clothing 59 TOTAL: 518 Civil engineers 96 Footwear 13 Wood products 38 Motor trade Furniture 45 New & used vehicles 179 Paper 52 TOTAL: 179 Printing & publishing 37 Leather products 8 Whole sale Rubber 20 Wholesale: consumer goods 140 Chemicals 91 Wholesale: non-consumer goods 169 Non-metal minerals 91 TOTAL: 309 Basic metals 64 Metal products 81 Machinery 77 Electrical machinery 64 Transport 78 Plastics 72 TOTAL 1057 TOTAL: GRAND TOTAL: 839 2902 Size & sectoral distribution of BER respondents (2005Q1) Sectors Number % Manufacturing 383 38.1 Retail 198 Motor trade Number % Small 414 46.0 19.7 Medium 318 35.3 79 7.9 Large 168 18.7 Wholesale 125 12.5 Building & construction 219 21.8 1004 100 TOTAL: 900 100 TOTAL: Size groups Regional distribution of BER respondents (2005Q1) Region Number % Gauteng 352 35.1 Western Cape 230 22.9 KwaZulu-Natal 211 21.0 Eastern Cape 110 11.0 Free State 35 3.5 Other provinces 34 3.4 Northern Cape 32 3.2 1004 100 TOTAL: The special survey: background details Special questions included in the BER survey (2005Q1) Special survey on preferred response method (Optional) Reason for the special survey The BER depends on you to complete and return the questionnaires in order to conduct the business surveys. With this survey, we wish to find what response method you prefer. Please tick the appropriate boxes. 1. At present, how do you return the questionnaire to us? ⌂ Pre-paid envelope ⌂ Fax ⌂ E-Mail 2. In future, how would you prefer to respond to the questionnaire? ⌂ Pre-paid envelope ⌂ Fax ⌂ Internet 3. How do you connect to the internet at work? ⌂ No access to the internet at work ⌂ Via a dial-up service ⌂ Via a local area network (LAN) 4. Any comments? …………………………………………………………………………. ……………………………………………………………………………………………. Question 1: How do BER participants currently respond? Current mode of response: sectors TOTAL 92.1 Wholesale 90.1 Retail 98.4 Quantity surveyors 93.3 Motor trade 93.6 Manufacturing 88.6 Civil engineering 85.7 Building contractors 92.1 Architects 98.3 0% 20% 40% Envelope 60% Fax 80% E-mail 100% Current mode of response: size groups TOTAL 91.7 large 89.9 medium 90.9 small 93.0 0% 20% 40% Envelope 60% Fax E-mail 80% 100% Current mode of response: regions TOTAL 92.1 Other 100 Gteng 90.1 KZN 93.8 Fstate 85.7 Ncape 93.8 Ecape 96.4 Wcape 91.3 0% 20% 40% Envelope 60% Fax E-mail 80% 100% Question 2: What is the preferred mode of response according to BER participants? Preferred mode of response: sectors TOTAL 61.5 27.9 Wholesale 62.0 26.4 Retail 74.0 Quantity surveyors 18.2 46.7 Motor trade 40.0 57.4 Manufacturing 31.9 52.8 35.5 Civil engineering 62.9 Building contractors 64.2 Architects 28.6 23.0 75.9 0% 20% 40% Envelope 19.0 60% Fax 80% Internet 100% Preferring Internet as mode of response: sectors Quantity surveyors 40.0 Manufacturing 35.5 Motor trade 31.9 Civil engineering 28.6 TOTAL 27.9 Wholesale 26.4 Building contractors 23.0 Architects 19.0 Retail 18.2 0 10 20 30 Internet 40 50 Preferred mode of response: size groups TOTAL 61.1 large 58.3 medium 60.1 small 28.0 33.9 26.1 63.0 0% 20% 27.1 40% Envelope 60% Fax 80% Internet 100% Preferred mode of response: regions TOTAL 61.5 Other 27.9 73.5 Gteng 26.5 58.0 KZN 30.4 64.0 Fstate 28.0 60.0 25.7 Ncape 71.9 Ecape 70.9 Wcape 15.6 23.6 57.0 0% 20% 28.3 40% Envelope 60% Fax Internet 80% 100% Question 3: BER participants’ access to the Internet BER participants’ access to the Internet: sectors TOTAL 16.5 Wholesale 17.4 Retail Quantity surveyors 41.7 43.8 32.3 24.0 66.7 8.5 10.9 Civil engineering 17.1 Building contractors 53.2 34.3 48.1 48.6 18.2 5.2 0% No response 24.4 31.9 Manufacturing Architects 29.8 39.1 6.7 Motor trade 35.5 31.4 49.1 26.1 53.4 20% 40% No access 34.5 60% Dial-up 80% LAN 100% BER participants’ access to the Internet: firm size groups TOTAL 17.7 large 10.1 35.9 32.7 medium 17.9 small 20.5 0% 40.0 20% No response 54.2 37.4 36.8 44.9 40% 27.8 60% No access 80% Dial-up LAN 100% BER participants’ access to the Internet: firm size groups TOTAL 40.0 large 35.9 32.7 medium 54.2 37.4 small 36.8 44.9 0 20 27.8 40 Dail-up 60 LAN 80 100 Conclusions Close to 30% of BER respondents prefer Internet mode (92% currently use postal mode) Necessary to develop Internet mode; however, there are pitfalls: Imperative to have a mixed survey mode Gradual transition from postal to Internet/ long process Relatively small preference for the fax mode A too aggressive move to the Internet risks damaging response rates Consistent with international experience 80% have Internet access, only 28% prefer this mode Smaller firms face access constraints/ have lower preference for the Internet Regional / sectoral disparities regarding Internet preference Lower response rates with Internet mode compared to postal mode Item non-response higher? Small firms - lower Internet preference / weaker response rate Different response behaviour: Internet vs. postal? BER has to be careful regarding development of the Internet mode Response rates already low by international standards Additional costs / administrative burden Bureau for Economic Research Economic information that works for you Website: www.ber.sun.ac.za E-mail: pl@ber.sun.ac.za Tel No: 021-887 2810