An Advantage of Using a Panel of Consumers for Marketing

question 285

Multiple Choice

An advantage of using a panel of consumers for marketing research is

• A) the discussion leader can help change negative panel responses into positive ones.
• B) the company can find out if consumers change their purchasing behavior over time.
• C) panel members often help each other by bringing up ideas for discussion that others didn't initially think of but that were important to them.
• D) there will usually be one panel member who dominates the discussion and helps keep the conversation focused.
• E) panel members are highly defined demographically, so it is relatively simple to replace an individual member without losing continuity.

---

Definitions:

Substitution Effect

The change in consumption patterns due to a change in relative prices, holding the consumer's utility level constant.

Income Effect

The change in an individual's consumption choices resulting from a change in real income, due to changes in price.

Optimal Consumption Bundle

The mix of products and services that optimizes a buyer's satisfaction within their spending limit.

Cappuccino

A coffee drink made with espresso, hot milk, and steamed milk foam, often served with a sprinkle of cocoa powder or cinnamon on top.