Question

What are the advantages and disadvantages of using consumer panels? Try to give an example of a panel you would create.

Answer 1

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Answer-

-The advantages oh customer panel-

A consumer panel refers to a research technique designed for measuring markets that utilize the same respondent sample, or group of people, on an ongoing basis. This research technique has advantages over other techniques as an efficient means of measuring behaviors and markets.

Trends

Consumer panels help marketers understand trends in areas such as brand improvement. Consumer panels measure the purchasing behavior and subsequent usage patterns of a respondent sample, often over an extended period of time. Marketers can then study the impact of changes in marketing inputs, such as packaging, promotions and pricing.

Planning Tool

Consumer panels can be used to identify changes in consumer habits. Marketers use key factors such as trial (how many consumers try the new brand) and repeat purchase (how many people purchase the brand a second time.) Consumer panels consist of a static sample of respondents representative of the overall market, and are asked to report their daily purchases on a continuous basis, thereby making it possible to measure those key factors.

Distribution Information

Marketers use consumer panels to analyze the availability and effectiveness of key distribution outlets. Consumer panels enable marketers to sample trends in various outlets, then analyze the contributions from each outlet and make strategic decisions during trade negotiations.

-The Disadvantages of customer panel-

Consumer panels are groups of customers or potential buyers of a product or service who provide companies with information to help them improve the marketing of their goods and services. This type of research can help companies get information they might not otherwise obtain from more objective data, but they can also produce less objective results. Understanding the pitfalls of using consumer panels can help you determine when and how to use them in your marketing activities.

Types of Consumer Panels

Businesses use consumer panels for one-time research needs and longer-term tracking. One-time panels, often called focus groups, bring 10 to 12 people with a specific background together to answer questions and discuss specific questions in a free-form manner. They might discuss a product they use or one they haven’t used and are asked to sample. Longer-term consumer panels provide regular feedback, often on a monthly or quarterly basis, through a survey. This helps business track attitudes and behaviors over time.

Poor Sample

One of the disadvantages of using consumer panels is the difficulty of getting a random sample, or a group of individuals who accurately reflect the type of consumer you need to study. To get the maximum benefit from a consumer panel, you will need to create a group with the same demographic characteristics, such as age, sex, race, income level, frequency of product use and product or service knowledge as your target customer. Work with your sales and marketing departments to develop the type of participant you want and make sure each person you invite fits the target profile.

Biased Feedback

Another problem with using consumer groups is that participants might begin to provide you with inaccurate feedback. This might be because they want to help you, they wish to continue to be asked to participate in your panels or they think they are now experts and start providing answers they think they should give rather than more truthful feedback.