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ACCA Strategic Professional · Advanced Performance Management · Management reports

Orlin Foods plans to use social media sentiment data scraped from public posts as an input to its brand performance dashboard. Which concern is the MOST significant limitation on the reliability of this data for performance reporting?

The key limitation is that the data may be unrepresentative or unverified. Posts come from a self-selected group of users and may include bots or fake accounts, so sentiment measures can be biased and unreliable as a performance indicator without validation and cross-checking against other sources.

  1. AThe data is available too frequently to be useful
  2. BThe data may be unrepresentative or unverified, as posts come from a self-selected sample and may include bots or false accountsCorrect
  3. CThe data can only be analysed using descriptive techniques
  4. DThe data is always more costly to collect than internal sales records

Explanation

Social media data is a self-selected sample and can contain bots, fake accounts and unverified claims, so conclusions may be biased. Frequency is usually an advantage, it can be analysed by predictive techniques, and cost is not always higher than internal data.

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