Page 94 - DMGT209_QUANTITATIVE_TECHNIQUES_II

Unit 6: Research Design

Brands At T1 At T2 Notes
Brand X 500(25%) 600(30%)
Brand Y 700(35%) 650(32.5%)
Brand Z 400(20%) 300(15%)
Brand M 200(10%) 250(12.5%)
All others 200(10%) 250(12.5%)
200 100%

As can be seen between period T1 and T2 Brand X and Brand M has shown an improvement
in market share. Brand Y and Brand Z has decrease in market share, where as all other
categories remains the same. This shows that Brand A and M has gained market share at
the cost of Y and Z.

There are two types of panels:
 True panel
 Omnibus panel.
True panel: This involves repeat measurement of the same variables.

Example: Perception towards frozen peas or iced tea.
Each member of the panel is examined at a different time, to arrive at a conclusion on the
above subject.
Omnibus panel: In omnibus panel too, a sample of elements is being selected and
maintained, but the information collected from the member varies. At a certain point of
time, the attitude of panel members “towards an advertisement” may be measured. At
some other point of time the same panel member may be questioned about the “product
performance”.
Advantages of panel data:

 We can find out what proportion of those who bought our brand and those who did
not. This is computed using the brand switching matrix.

 The study also helps to identify and target the group which needs promotional
effort.
 Panel members are willing persons, hence a lot of data can be collected. This is
because becoming a member of a panel is purely voluntary.
 The greatest advantage of panel data is that it is analytical in nature.
 Panel data is more accurate than cross-sectional data because it is free from the error
associated with reporting past behaviour. Errors occur in past behaviour because of
time that has elapsed or forgetfulness.
Disadvantages of panel data:

 The sample may not be representative. This is because sometimes, panels may be
selected on account of convenience.

 The panel members who provide the data, may not be interested to continue as
panel members. There could be dropouts, migration etc. Members who replace
them may differ vastly from the original member.

 Remuneration given to panel members may not be attractive. Therefore, people
may not like to be panel members.

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