CODE OF PRACTICE of the Market Research Society of NZ Inc.

1 INTRODUCTION

Effective communication between the suppliers and consumers of goods and services of all kinds is vital to any modern society. Growing international links make this even more essential. For a supplier to provide what customers need in the most efficient way they must understand their differing requirements; how best to meet these requirements; and how they can most effectively communicate the nature of the goods and services they are offering.

Helping a business develop this understanding is the role of Marketing Research. It applies in both private and public sectors of the economy Similar approaches are also used in other fields of study: for example in the measurement of the public’s behaviour and attitudes in respect to social, political and other issues by government and public bodies, the media and academic institutions. Marketing and Social Research have many interests, methods and problems in common although the subjects of study tend to be different.

Such research depends upon public confidence: confidence that it is carried out honestly, objectively, without unwelcome intrusion and without disadvantage to Respondents, and that it is based upon their willing cooperation. This confidence must be supported by an appropriate professional Code of Practice governing the way in which Marketing Research projects are conducted.

The latest 1994 ICC/ESOMAR Code forms the basis of this Code of Practice. This new version of the Code sets out appropriate ethical and business principles as concisely as possible. It specifies the rules which are to be followed in dealing with the general public and with the business community, including Clients and other members of the profession.

The basic principles are relatively unchanging. There may be additional national Codes, or requirements relating to the application of this Code, which may go further in dealing with specific points of practice. These national requirements should in such cases be followed. Research practice must of course in all cases conform to the New Zealand legislation and legal practice and in particular to the requirements of the 1993 Privacy Act.

There are a number of specific ICC/ESOMAR and Market Research Society

Guidelines on various topics available from the Society’s Secretary which give more detailed guidance on how the Code should be applied. These are not mandatory.

2 BASIC PRINCIPLES

This Code sets out the basic principles which must guide the actions of those who carry out or use Marketing Research. No variation in the application of Rules is permissible without express authorisation of the Market Research Society of New Zealand. Individuals and organisations who subscribe to it must follow not just the letter but also the spirit of these rules.

No Code can be expected to provide a completely comprehensive set of rules which are applicable to every situation which might arise. Where there is any element of doubt people should therefore ask for advice and meanwhile follow the most conservative interpretation of these principles.

Individuals do not always have complete responsibility for, or absolute control over, all the activities of the organisation to which they belong. They are however always responsible for ensuring that other people in their organisation are aware of, and understand, the principles laid down in this Code. They must use their best endeavours to ensure that the organisation as a whole conforms to the Code.

3 DEFINITIONS

(a) Marketing Research is the function which links the consumer, customer and public to the marketer through information - information used to identify and define marketing opportunities and problems; generate and refine and evaluate marketing actions; improve understanding of marketing as a process and of the ways in which specific marketing activities can be made more effective.

Marketing Research specifies the information required to address these issues; designs the method for collecting information; manages and implements the data collection process; analyses the results; and communicates the findings and their implications.

Marketing Research includes such activities as quantitative research; qualitative research; media and advertising research; business-to-business and industrial research; research among minority and special groups (such as those involved in pharmaceutical or financial research); and desk research - especially where these activities are concerned with collecting original data and not simply the secondary analysis of already available data.

For the purposes of this Code the term Marketing Research also covers social and opinion research, insofar as these use similar approaches and techniques in the study of issues not directly connected with the marketing of goods and services.

Database marketing and any other activity where the names and addresses of the people contacted are to be used for individual selling, promotional, fund-raising or other non-research purposes can under no circumstances be regarded as marketing research since the latter is based on preserving the complete anonymity of the respondent.

(b) Researcher is defined as any individual, research agency, organisation, department or division which carries out (or acts as a consultant on) a Marketing Research project or offers their services to do so. The term includes any department etc, which belongs to the same organisation as that of the Client. Such a ‘Client-linked’ Researcher has the same responsibilities under this Code vis-à-vis other sections of the Client organisation as does one who is completely independent of the Client organisation.

The term also covers responsibility of the procedures followed by any subcontractor from whom the Researcher commissions any work (data collection or analysis, printing, professional consultancy, etc) which forms any part of the research project. In such cases the Researcher is responsible for ensuring that any such subcontractor fully conforms to the provisions of this Code.

(c) Client is defined as any individual, organisation, department or division (including one which belongs to the same organisation as the Researcher) which requests, commissions or subscribes to all or any part of a Marketing Research project.

(d) Respondent is defined as any individual, group or organisation from whom any information is sought by the Researcher for the purposes of a Marketing Research project, regardless of the type of information sought or the method or technique used to obtain it. The term therefore covers not only cases where information is obtained by verbal interviewing techniques but also cases where other methods such as observation, postal and other self-completion questionnaires, mechanical/electronic equipment, observation and any other method where the identity of the provider of the information may be recorded or otherwise traceable.

(e) Interview is defined as any form of direct or indirect contact (including the use of non-verbal methods such as those referred to above) with Respondents where the objective is to acquire data or information which could be used in whole or in part for the purposes of a Marketing Research project.

(f) Record is defined as any brief, proposal, contact sheet, questionnaire, respondent identification, check list, record sheet, audio or audio-visual recording or film, tabulation or computer print-out, computer data storage system or other storage medium, formula, diagram, report, etc, in respect of any Marketing Research project, whether in whole or in part. It covers records produced by the Client as well as by the Researcher.

It includes not only original data records but also anything needed to evaluate those records such as quality control documents.

4 RULES

A. General

Article 1 Marketing Research must always be carried out objectively and in accordance with established scientific principles.

Article 2 Marketing Research must always conform to the national and international legislation including data protection and the privacy of the individual, which may apply in any of the countries involved in a given research project.

B. The Rights of Respondents

All Respondents must be sure when they agree to take part in any Marketing Research project they are fully protected by the provisions of this Code and that the Researcher will conform to its requirements. This applies to Respondents interviewed as private individuals and to those interviewed as representatives of organisations.

Article 3 Respondents’ cooperation in a Marketing Research project is entirely voluntary at all stages. They must not be misled when being asked for their cooperation.

Article 4 With the exception noted below, further interviews within the context of a particular research project or survey with the same Respondents shall be carried out only if:

a) The Respondent’s permission has already been obtained at a previous interview; or

b) It is pointed out to Respondents at the time they are re-contacted that this interview is consequent upon one they have previously given and they then give their permission before the collection of further data.

The only exception to this procedure is in the case where it is an essential feature of the research technique involved that Respondents do not realise that this further interview is consequent upon one they have previously given.

Article 5 If the Respondent is supplying information not in a private capacity but as an officer of an organisation or firm then it may be desirable to list the Respondent’s organisation in the report. The report shall not, however, enable any particular piece of information to be related to any particular organisation or person, except with prior explicit permission from the relevant Respondent, who shall be told of the extent to which it will be communicated. This requirement does not apply in the case of secondary analysis of published data.

Article 6 The Researcher must avoid unnecessary intrusions on Respondents’ privacy.

Article 7 Respondents’ anonymity must always be strictly preserved unless they have explicitly agreed to the contrary. The Researcher must ensure that the information they provide cannot be linked to specific individuals or organisations without such permission. It is the Researcher’s responsibility to inform Clients of Respondents’ anonymity rights.

Article 8 In any case where Respondents are asked for permission to disclose their name and/or address to anyone outside the research agency:

a) the Respondents must first be told to whom the information would be supplied and the purposes for which it will be used, and also

b) the Researcher must ensure that:

(i) the information will not be used for any non-research activity

(ii) the information will not be published in a form that could
reasonably be expected to identify the Respondents; and

(iii) the recipient of the information has agreed to conform to
the requirements of this Code.

Article 9 The Researcher must take all reasonable precautions to ensure that Respondents are in no way directly harmed or adversely affected as a result of their participation in a research project.

In the case of product trials, the Researcher must in particular ensure that arrangements are agreed with the Client regarding the responsibilities for product safety and for dealing with any complaints or damage arising from faulty products or product misuse. Such responsibilities will normally rest with the Client, but the Researcher must ensure that products are correctly stored and handled while in the Researcher’s charge and that Respondents are given appropriate instructions for their use.

Article 10 Respondents must be told at the time of the interview when observation or recording techniques are to be used, except where these are used in a public place. If a Respondent so wishes, the record or relevant section of it must be destroyed or deleted. Respondents’ anonymity must not be infringed by the use of such methods.

Article 11 Respondents must be able to check without difficulty the identity and bona fides of the Researcher and to obtain an answer to any reasonable query about the purposes and content of the research.

Each interviewer must be able to be identified in a way that specifies his or her name and organisation. The name and address/telephone number of the Research Company must be made available to the Respondent at the time of the interview.

Article 12 The Researcher must take special care and precautions when interviewing children and young people under 15 years of age. The informed consent of the parent or responsible adult must first be obtained for interviews with children. In obtaining this permission, the Interviewer shall describe the nature of the interview in sufficient detail to enable the responsible person to reach an informed decision. The responsible person shall also be specifically informed if it is intended to ask children to test any products or samples.

C. The Professional Responsibilities of Researchers

This Code is not intended to restrict the rights of Researchers to undertake any legitimate Marketing Research activity and to operate competitively in so doing. However, it is essential the general public’s confidence in the integrity of Marketing Research is not eroded in any way.

Article 13 Researchers must not knowingly or negligently act in any way which could bring discredit on the Marketing Research profession or lead to a loss of public confidence in it.

Article 14 Researchers must not make false claims about their skills and experience or about those of their organisation.

Article 15 Researchers must not unjustifiably criticise or disparage other Researchers.

Article 16 Researchers must always strive to design research which is cost effective and of a quality adequate to meet the Client’s needs, and then to carry this out to the specifications agreed with the Client.

Article 17 Researchers must at all times ensure the security of all research records in their possession.

Article 18 Researchers must not knowingly allow the dissemination of conclusions from a research project which are not adequately supported by the data. They must always be prepared to make available the technical information necessary to assess the validity of any published findings.

Article 19 No activity shall be deliberately or inadvertently mis-represented as Marketing Research. Specifically, the following activities shall in no way be associated, directly or indirectly or by implication, with Marketing Research interviewing or activities. Any such activities must always be clearly separated and differentiated from the organisation and the conduct of Marketing Research.

(a) Enquiries whose objectives are to obtain personal information about private individuals per se, whether for legal, political, supervisory, private or other purposes

(b) The compilation, updating or enhancement of lists, registers or databases which are not exclusively for research purposes

(c) The acquisition of information for use for credit-rating or similar services

(d) Sales or promotional approaches to Respondents

(e) The collection of debts

(f) Fund-raising

(g) Direct or indirect attempts to influence a Respondent’s opinions, attitudes or behaviour on any issue.

D. The Mutual Rights and Responsibilities of Researchers and Clients

The Code is not intended to regulate the details of business relationships between Researchers and Clients except insofar as these may involve principles of general interest and concern.

Article 20 These rights and responsibilities will normally be governed by a written contract between the Researcher and the Client. By prior written agreement the parties may amend the provisions of Articles 23-27 below but the other requirements of this Code may not be altered in this way. Marketing Research must also always be conducted according to the principles of fair competition, as generally understood and accepted.

Article 21 The Researcher must inform the Client in advance if the work to be carried out for that Client is to be combined or syndicated in the same project with work for other Clients, but does not disclose the identity of such clients. The Client shall not give any of the results of a multiclient study to other potential purchasers of the study unless the Researcher’s permission to do this has first been obtained.

Article 22 The Researcher must inform the Client as soon as possible in advance when any part of the work for that Client is to be subcontracted outside the Researcher’s own organisation (including the use of any outside consultants). On request the Client must be told the identity of any such subcontractor.

Article 23 The Client does not have the right, without prior arrangement between the parties involved, to exclusive use of the Researcher’s services or those of his organisation, whether in whole or in part. The Researcher must not disclose the identity of any Client, or any confidential information about the latter’s business to any third party without the Client’s permission.

Article 24 The following Records remain the property of the Client and the Researcher may not disclose (unless required to do so under the Privacy Act 1993) such data or findings to any third party without Client permission:

(a) Marketing Research briefs, specifications and other information provided by the Client

(b) the research data and findings from a Marketing Research project (except in the case of syndicated or multi-Client projects or services where the same data are available to more than one Client).

Respondents have a right of access, under the Privacy Act 1993, to personal information held about them. This refers to identifiable individuals and Researchers must disclose this information to Respondents who make a proper access request. Respondents must also be allowed to correct identifiable information if they so desire.

The Client has however no right to know the names or addresses of Respondents unless the latter’s explicit permission for this has first been obtained by the Researcher (this particular requirement cannot be altered under Article 20).

Article 25 The research techniques and methods used in a Marketing Research project do not become the property of the Client, who has no exclusive right to their use. The following Records remain the property of the Researcher:

(a) Marketing Research proposals, discussion papers and quotations (unless these have been paid for by the Client). They must not be disclosed by the Client to any third party, other than to a consultant working for the Client on that project (with the exception of any consultant working also for a competitor of the researcher). In particular, they must not be used by the Client to influence proposals or cost quotations from other Researchers.

(b) the contents of a report in the case of syndicated or multi-Client projects or services where the same data are available to more than one Client and where it is clearly understood that the resulting reports are available for general purchase or subscription. The Client may not disclose the findings of such research to any third party (other than to his own consultants and advisers for use in connection with his business) without the permission of the Researcher.

(c) all research records prepared by the Researcher (with the exception of the report to the Client in the case of non-syndicated projects and also the research design and questionnaire where the costs of developing these are covered by the charges paid by the Client).

Article 26 The Researcher must conform to currently agreed professional practice relating to the keeping of such Records for an appropriate period of time after the end of the project. The requirements of the Privacy Act 1993 that personal information not be kept longer than is properly required should be borne in mind. On request the Researcher must supply the Client with duplicate copies of such records provided that such duplicates do not breach anonymity and confidentiality requirements; that the request is made within the agreed time limit for keeping the records; and that the Client pays the reasonable costs of providing the duplicates. (The provision of duplicate records does not apply in the case of a project or service where it is clearly understood that the resulting reports are to be available for general purchase on a syndicated or subscription basis).

Original records must be kept for a minimum of six months and secondary records/stored research data for a minimum of two years after completion of the study, unless explicitly agreed with the Client. If no secondary records exist, then the original records must be kept for a minimum of two years, unless explicitly agreed with the Client.

Article 27 The Researcher must not disclose the identity of the Client, or any confidential information about the latter’s business to any third party without the Client’s permission.

Article 28 The Researcher must on request allow the Client to arrange for checks on the quality of the fieldwork and data preparation, provided that the Client pays any additional costs involved in this. Any such checks must conform to Respondent anonymity requirements of Article 7. In the case of a multi-client study, the Researcher may require that the observer in charge of checking the quality of fieldwork (and/or data preparation) is independent of any of the Clients.

Article 29 The Researcher must always provide the Client with all appropriate technical details of any research project carried out for that Client. The Client is entitled to the following information about any Marketing Research project to which they have subscribed:

(1) Background

- organisation for whom and organisation by whom the study
was conducted

- the purpose of the study

- names of subcontractors and consultants performing any
substantial part of the work

(2) Sample

- a description of the intended and actual universe covered

- the size, nature and geographical distribution of the sample (both planned and achieved); and where relevant, the extent to which any of the data collected were obtained from any part of the sample

- details of the sampling method, any weighting methods used and/or quota sampling used

- where technically relevant, a statement of response rates and a discussion of any possible bias due to non-response

(3) Data collection

- a description of the method by which the information was collected

- a description of the field staff, briefing and field quality control methods used

- the method of recruiting Respondents; and the general nature of any defrayment of expenses offered to secure their cooperation

- when the fieldwork was carried out

- (in the case of "desk research") a clear statement of the sources of the information and their likely reliability

(4) Presentation of results

- the relevant factual findings obtained

- bases of percentages (both weighted and unweighted, unless the results of weighting is referred to elsewhere in the report)

- general indications of the probable statistical margins of error to be attached to the main findings, and of the levels of statistical significance of differences between key figures

- questionnaires and other relevant documents and materials used (or, in the case of a shared project, that portion relating to the matter reported on).

The report on a project should normally cover the above points or provide a reference to a readily available separate document which contains the information.

An exception to this Article is in the case where it is agreed in advance between the Client and the Researcher that it is unnecessary to include all the listed information in the formal report or other document. Any such agreement shall in no way remove the entitlement of the Client to receive any and all of the information freely upon request. Also this exception shall not apply in the case where any or all of the research report of findings are to be published or made available to recipients in addition to the original Client.

Article 30 When reporting on the results of a Marketing Research project the Researcher must make a clear distinction between the findings as such, the Researcher’s interpretation of these and any recommendations based on them.

Article 31 Where any of the findings of a research project are published by the Client the latter has a responsibility to ensure these are not misleading. The Researcher must be consulted and agree in advance the form and content for publication. Where this does not happen the Researcher is entitled to:

(a) refuse permission for his/her name to be used in connection with the published findings

(b) publish the appropriate technical details of the project

(c) correct any misleading aspects of the published presentation of the findings.

Article 32 Researchers must not allow their names to be used in connection with any research project, as an assurance that the latter has been carried out in conformity with this Code, unless they are confident that the project has in all respects met the Code’s requirements.

Article 33 Researchers must ensure that Clients are fully aware of the existence of this Code and of the need to comply with its requirements.

E. Implementation of the Code

Article 34 Any person or organisations involved in, or associated with, a Marketing Research project and/or proposal is responsible for actively applying the Rules and this Code in the spirit as well as the letter.

Breaches of the Code may result in membership being withdrawn by the National Council.