Scanner data come from two types of data collections: (1) point-of-sale (retail) collections, which use the universal product code (UPC) of products sold at retail checkout counters to identify products and quantities sold and their prices; and (2) household scanner panels, which are usually random samples of households in which household members are asked to scan in the UPC of the items they have purchased, using scanners provided to them. Businesses or governments can purchase scanner data from marketing research vendors, which can be timely and cost-effective. ACNielsen and Information Resources, Inc. (IRI), are the two major producers of these types of datasets. For point-of-sale data, ACNielsen and IRI purchase price and item data from the scanner systems of cooperating retailers. Supermarket scanner data do not include fruits and vegetables, some prepared foods, and other products that lack UPC codes. They also do not cover restaurants or other food outlets. Household scanner panel data are generated by randomly selected households, in which a household member scans in the households food purchases from all types of stores over a weeks time. Both ACNielsen and IRI conduct these types of panel surveys for nationally representative samples of more than 61,500 and 50,000 households, respectively.

ASSIGNMENT INSTRUCTION: Answer the following questions in your own words:

1. What are the differences between scanner data and survey data?

2. In what way or situations scanner data is more useful to marketing researchers?

3. What is the limitations or shortcomings of scanner data?