Advantages of consumer panels are:
1. Consumer Behaviour
Consumer panels can be used to evaluate buying patterns, behavioural and attitudinal changes, product development etc.
It is an economical method of continuous data collection. A major part of the panel cost is spent on recruiting, training and maintaining panel members. However, the recurring cost of data collection from the panel may be less, because a group of individuals is interviewed at one time. Further, there is not\ need to conduct sample survey every time.
3. Study Brand Loyalty
Since same people are interviewed every time, it is possible to identify individuals who change or do not change their brands. This enables to study consumers who prefer brand shifting and brand loyalty. Accordingly, the segment of the population can be separated for effective advertising and promotional efforts.
The repeated interviews of the panel members spread over a period of time may generate free and frank response. This is because continuous exposure of members enable then to become familiar with the problem it is possible to collect qualitative and quantitative information about each person over a period of time. This can be used as a data for motivational studies.
Panels can also be used for experimental purpose. This can be done by dividing members into experimental and control group. For example, panel can be used for testing the effectiveness of advertising programmes.
6. Accurate Date
Consumer panels supply more and accurate data. Normally, people who have a liking for research and are willing to cooperate with the researcher for a long time are only selected. Therefore, panel members are sincere and serious about reporting their behaviour.