Path: utzoo!utgpu!news-server.csri.toronto.edu!cs.utexas.edu!usc!sdd.hp.com!think.com!mintaka!spdcc!iecc!johnl
From: johnl@iecc.cambridge.ma.us (John R. Levine)
Newsgroups: comp.org.eff.talk
Subject: Re: Point of Sale
Message-ID: <1991Jan30.040405.13261@iecc.cambridge.ma.us>
Date: 30 Jan 91 04:04:05 GMT
References: <1991Jan28.131402.29179@com50.c2s.mn.org> <1991Jan28.204538.17471@bronze.ucs.indiana.edu> <15362@milton.u.washington.edu>
Organization: I.E.C.C.
Lines: 31

Let me tell you about a company called Information Resources, Inc.  In 1978,
they decided they wanted to do really superior market research.  So here's
what they did: They went to some medium sized cities, such as Pittsfield MA,
and made a deal with all the supermarkets in town to install POS scanners in
return for giving IRI the data collected from them.  They also signed up
local consumers into "shoppers panels," in which the shopper identified
herself (typically a her) at the grocery store with a card whose number is
entered into the register each time she goes shopping.  Each time a card is
used, it is an entry into an annual drawing for some prizes.  It doesn't
matter where in town one shops, all of the supermarkets and now all of the
drug and many other stores are online.

Furthermore, IRI has made arrangements with the local cable TV and newspaper
so that from time to time when IRI does marketing experiments, they can
substitute test TV commercials and newspaper ads for the regular ones
delivered to some of the shoppers, then use POS data to see how purchasing
behavior changes over the ensuing days.  This was a revolution in marketing
data since it got answers back in days rather than weeks or months for older
manual methods.

All this has been in place since 1980.  IRI makes no secret of what they do,
and they are quite well known in marketing circles.  The development of this
system and some other related stuff are described in the Harvard Business
School's cases number 9-583-053 and 9-584-044, available for $3.50 each.
(Call 617-495-6117 with a credit card, minimum order $10, or order through
a book store.)

-- 
John R. Levine, IECC, POB 349, Cambridge MA 02238, +1 617 864 9650
johnl@iecc.cambridge.ma.us, {ima|spdcc|world}!iecc!johnl
" #(ps,#(rs))' " - L. P. Deutsch and C. N. Mooers