If you’re interested in the process behind testing a new product, you might wonder how consumer panel data is gathered. There are two primary ways to collect panel data: through surveying consumers in different age groups or by sending out an online questionnaire. Either way, the results are useful for improving business operations. Read on to learn more about the process behind consumer panel data. Here’s an example.
When Sam Barton formed the Mathematica unit of the MRCA, he began developing analytic tools that went beyond basic reporting. The company’s employees created the first model for estimating a product’s sales based on behavioral data. This project provided invaluable information for the early stages of consumer modeling. After the test marketing phase, panel data was used to inform the development of new products.
Consumer panels are often formed by marketing agencies and research companies. Companies use these panels to launch new products among selected consumers and study the response. Based on that feedback, they make changes in their products to ensure they meet the needs of their consumers. Consumer panel data can help organizations understand whether a product is popular with consumers and which marketing strategies will work best. Further, it can be used to improve the product’s price sensitivity.
How is consumer panel data collected during the test marketing stage of a new product? This research helps marketers improve their products and services, which ultimately results in more profitable products and higher revenues for the brand. During the test marketing phase of a new product, there are three primary approaches to collecting data on consumer panels. The first approach involves voluntarily surveying consumers to collect their preferences. The second approach involves conducting focus groups and questionnaires in key markets.
In the test marketing phase of a new product, consumer research panels can help to better position offerings by listening to their target audience. Panel members are typically recruited via online channels and organized into groups based on their demographics, such as age, location, profession, and personal interests. In addition to collecting consumer panel data, these panels can help companies iterate new ideas and products.
In a one-off survey, focus groups and surveys may yield qualitative data, but these studies are often flawed. Focus groups require expensive time to run and cannot re-convene the same survey respondents. Panels allow marketers to test different marketing strategies, including sampling and varying levels of promotion. This information is invaluable to marketers and can make the difference between success and failure.
Consumer panel studies are typically more reliable than single-shot surveys. A true panel study requires repeated data collection, at least twice. A broader panel should contain at least three panels. And it’s best to collect data from as many people as possible. This is because panel studies are more likely to reflect a sample’s true sentiment than a single-shot survey. If you’re interested in using consumer panel studies to test a new product, you should understand that they have several potential downsides.