KNOTs Research Online Methodology Quality Control ESOMAR 26 Questions

TABLE OF CONTENTS
Page

Company Profile Sample Source

- ESOMAR Question 1 - ESOMAR Question 2 - 6

3 7 14 21 26 31 34 43

Household Access & Recruitment - ESOMAR Question 7 11 Panel and Sample Management Policies and Compliance Partners Data Quality and Validation Appendix - ESOMAR Question 12 15 - ESOMAR Question 16 19 - ESOMAR Question 20 21 - ESOMAR Question 22 26

Company Profile ESOMAR Q1

About us
KNOTs Research is a full service market research agency that pioneered online research, using carefully and actively recruited respondents. KNOTs Research supplies global market research and intelligence to the world's leading companies, and offers clients more than a decade of extensive experience and a leading position in online research. KNOTs Research uses state-of-the art research methods to access a global online community of more than 46 million pre-qualified consumer respondents in countries across Europe, Asia, North, Middle and South America. KNOTs Research provides the client direct access to the world's markets and their consumers, providing accurate and reliable consumer profiling both via online and offline research. The research capabilities are backed by the unique technologies of ADK, a global leader in marketing and communication services. ADK is a member of WPP Group plc, the world's number one communications services group, and leading provider of market research services. KNOTs Researchs strength resides in combining in-house online fieldwork operations together with extensive reporting tools employing teams of research experts who are providing clients with in-depth industry analysis. The company has a deep understanding of the rapid changes in consumer behavior, and the movements in each of the world's markets. The companys philosophy is that the only way to keep pace with these changes is to be faster and more flexible than other research agencies. KNOTs Research global presence makes it simple to conduct a simultaneous study in more than 86 countries worldwide, and provide real-time feedback from consumers in every local market. KNOTs Research Global/ European headquarter is in close collaboration with its Asian office in Japan, which is considered to be one of Asia's most experienced online research companies. Studies are therefore not only focused on Europe but are also regularly conducted in Asia.

Company Profile Q1

What experience does your company have with providing online samples for market research?

History
1996 KNOTs Research Japan pioneers in online research, reaching 40.000 Japanese consumers; from here on the base for online research started to grow

Company Profile Q1

2001 KNOTs Research establishes a base in Europe. KNOTs research expands to Germany, UK, France, Italy, Spain and The Netherlands, communicating with almost 100,000 European consumers 2002 KNOTs Research aggressively expands to Scandinavia, most of Europe and USA. KNOTs Research also grows to include China/ Hong Kong, India,Taiwan, Korea, Singapore, Philippines, Thailand, Malaysia, Indonesia, as well as Brazil and Argentina 2003 KNOTs Research publishes its 1st Annual TechTrendsTM Europe Report. KNOTs Research has access to more than 11 million people in 52 countries 2004 KNOTs Research conducts cross-continental projects for global clients. KNOTs Research successfully manages to combine online and offline methodologies in complex studies 2006 KNOTs Research conducts its 2,000th International online study 2007 KNOTs Research has access to more than 30 million households 2009 KNOTs Research expands its access to more than 46 million households worldwide

What experience does your company have with providing online samples for market research?

KNOTs Research Network

Knowledge partner Worldwide Facilities for conducting Discussion Groups and Face to Face Interviews

Company Profile

Extensive Multilanguage Telephone Center desks

KNOTs Research Global Headquarter

Schiphol, The Netherlands Netherlands Research analysts Statistical data analysts Industry analysts Online consumer access coordinators Client relations KNOTs Research Japan Office China Office SE Asian Office

Knowledge partner Automotive and Pharmaceutical Research

Q1

Desk Research Centers in Germany / UK with access to large variety of information sources
6

Sample Source - ESOMAR Q2 - Q6

7

Actively managed Household Access: Recruitment

Access to a large amount of households requires a wide range of sources mainly to ensure that KNOTs Research avoids systematic bias inherent to certain sources:

Sample Source

Main recruitment from the large portals Yahoo, T-Mobile, Google in order to reach as varied access as possible Targeting of certain demographic segments that may be difficult to reach using single sources (i.e. mothers with children) Strong multiple sources are used in order to select the most dominant household access provider for each country

KNOTs Research regularly analyses household access composition on the bases of recruitment sources, quality of response and participation KNOTs Research constantly monitors the quality of the recruitment partners Importantly, KNOTs Research has the names and postal addresses of respondents, increasing the confidence in the precise respondents identity. It also ensures that test products can be sent by post, if necessary, and avoid certain geographical regions etc.

Q2

Please describe and explain the types of source(s) for the online sample that you provide (are these databases, actively managed panels, direct marketing lists, web intercept sampling, river sampling or other)?

Actively managed Household Access: Main Sources

KNOTs Research online access members are recruited in the following ways: Online recruitment: ISPs and other web properties have been used for both national and pan-European household access recruitment. This has been one of the primary sources of new respondents and includes direct emailing to portal members, pop up windows and banners Mail household access: KNOTs Research occasionally sends mail to households throughout Europe and the U.S. to ask if they would like to join the interactive online household access. This supplemental approach has the advantage that it ensures a good representation of "light" Internet users, who are typically under-represented in online recruitment approaches Affiliate deals: KNOTs Research works with affiliate marketing companies who operate opt-in marketing campaigns and meet the companies strict quality control (see Q20/ 21/ 24). By targeting visitors of certain kinds of websites this enables KNOTs Research to top up its household access with any demographic sub-segments that are under-represented Offline data collection methods: Wherever possible KNOTs Research asks respondents to join the online household access after they have completed the interview Word of mouth/ member brings member: Household access members are encouraged to refer other people to take part in market research Telephone recruitment: for specific multi social-cultural groups KNOTs Research sometimes uses specific local media partners and sources in each country

Sample Source Q2

Please describe and explain the types of source(s) for the online sample that you provide (are these databases, actively managed panels, direct marketing lists, web intercept sampling, river sampling or other)?

Advantages: Size, Diversity & Quality

Global Reach: access to 46+ million households, in 86 Countries (See Q11) KNOTs Research expertise and experience helps determine appropriate screening criteria

Sample Source Q3

Modest and unbiased rewards lead to credible responses. All respondents are rewarded with points in order to incentivise respondents but not to appeal to incentives hunters. The points can be redeemed for vouchers of leading global department stores (i.e. the gifts are not biased towards certain types of respondents). (See Q14) Key profile information of the respondents is updated regularly. This means key target groups can be selected as sample in order to avoid (limit) screening out something people dislike. (Q10/12) High response rates (10-30%). This ensures predictability in terms of the returns and hence reliability in the findings of the survey. (See Q22) Full household access management controls are used to ensure that KNOTs Research does not over or under use respondents or conditions responses by over exposure to certain types of study. Rules are based on frequency of contact, category and methodology. (Q11/24) Regular member contact is important to ensure that household access lists are retained. The less frequently you contact a person the more likely it is that you could lose them. From a research perspective it is important to ensure response reliability and that KNOTs Research can take advantage of the data held on the individual. (Q15/25) Strong quality controls: Persistent non-responders are removed and survey responses are examined in order to identify and eliminate excessively quick responses to surveys and patterned responding. (Q24) Sample Balancing: Portions of the household access can be balanced to the general census population and internet population.
What do you consider to be the primary advantage of your sample over other sample sources in the marketplace?

10

Household access exclusively for market research

Since 1996 KNOTs Research has been working in Japan and since 2001 in Europe to manage active access to households worldwide. Households are solely contacted for the objective of Market Research.

Sample Source

KNOTs Research never uses its household access for anything but research purposes. According to the companies legal agreement with each member, KNOTs Research never shares or discloses any private data that would disclose a members identity. In particular, People are never invited or approached for any commercial, sales or marketing purposes. Besides, people are not asked an unnecessary amount of questions in the screening process, to obtain `free data. People are screened out as quickly as possible and immediately when not meeting the sample profile. Rewards are modest in order to incentivise respondents, but incentive hunters are avoided. Further, KNOTs Research provides incentives for each project undertaken, rewarding all participants as they are valuable for KNOTs Research.

Q4

If the sample source is a panel or database, is the panel or database used solely for market research? If not, please explain.

11

Collection of hard-to-reach profiles

KNOTs Research household access members will have completed a detailed questionnaire, providing the sample with 50+ personal attributes. This enables KNOTs Research to generate an accurate profile, which is used to provide highly accurate statistical reports for the clients.

Sample Source

In case of the data collection for a very hard-to-reach profile: Use of specific media and target specific online communities to reach special targets Sources Telephone recruitment: for specific multi social-cultural groups Banners: placement of banners on relevant, subject related websites and on newsletters of specific subject related groups to complete missing target groups. For example - when KNOTs Research needed a group of specific engineers it placed banners on engineering newsletters, which resulted in the recruitment of even more engineers than were needed for the particular study In some cases, KNOTs Research completes projects jointly with its exclusive quality partners which possess access to samples with the specific profiles. (See Q20/21/24 on KNOTs Research policy with regard to partner panels and the quality control system)

Q5

How do you source groups that may be hard-to-reach on the internet?

12

What are people told when they are recruited?

All respondents are explained the purpose of their cooperation and membership. It is stressed that open responses and opinions are important and appreciated and that there are no right or wrong answers, all their opinions are invaluable and influence brand and product decisions.

Sample Source

People are informed that KNOTs Research does not try to sell to them or pass their personal information on to others. People are asked to opt-in to an online access of respondents that conducts market research studies only and abides by all relevant industry standards, ethical codes of conduct (ESOMAR), and data protection/ privacy laws conforming to EUs directive on data protection. They are clearly informed about KNOTs Research reward system with gift certificates for the world's largest department stores. KNOTs Research rewards members with heterogeneous gifts, vouchers which can be redeemed at various large department stores. Therefore members are unbiased with respect to the type of reward, which substantially increases the quality of the sample. Rewards are modest, in order to incentivise respondents but avoid incentive hunters. All participants receive a reward for every survey undertaken. Unlike other online research providers, KNOTs Research does not use lottery prizes to reward one-in-X times, as it would be unfair to not reward people for their invaluable time used for filling out (lengthy) questionnaires. Follow the link to see the presentation for new potential members, the privacy policy and signup process: www.knotsclub.com/

Q6

What are people told when they are recruited?

13

Household Access & Recruitment - ESOMAR Q7-Q11

14

Household Access Characteristics

KNOTs Research household access exists since 1996 for Japan and since 2001 for European consumers. Turnover, attrition and retention are calculated annually*: Approximate Annual Turnover: 9% 5%

Recruitment Q7

Approximate Annual Attrition:

* Average 2005 2007

If the sample comes from a panel, what is your annual panel turnover/ attrition/ retention rate and how is it calculated?

15

Opt-in Process
KNOTs Research currently uses a triple opt-in process: 1. 2. Respondents are asked to sign up, provide basic personal information and define a personal login name and password. Before they can continue they are asked to confirm by checking a box that they wish to participate in online research and that they have read the terms and conditions of KNOTs Club membership (see appendix). They can also read KNOTs Research privacy policy. Next, they are asked to complete a survey from which KNOTs Research is able to profile them along 50+ attributes. After finishing the survey the new panelist is sent a verification email with a link that they have to click in order to complete the signing up process.

Recruitment

3.

Q8

Please describe the opt-in process.

16

Identity Confirmation
KNOTs Research has a 10 step quality control system in order to confirm the identity of members, prevent false identities and duplicates in the database when people sign up, but also before, during or after any online study. KNOTs Research uses a triple opt-in process, which verifies that email addresses exist, belong to a desired participant and are active.

Recruitment

KNOTs Research database system meticulously monitors and prevents duplicate identities. KNOTs Research has key information about the respondents, such as age, gender, geographic location and key product ownership. All of this required critical data is always re-validated in the ad-hoc questionnaire. For example, if KNOTs Research invites a person who is male, 37 years old and the owner of a specific product, then - for confirmation purposes, this person will be asked some personal information in the ad-hoc questionnaire. Any information discrepancy will screen out the potential respondent. By this double confirmation method, future troubles (removing unsuitable respondents, result validity, etc.) can be avoided. Anyone invited to participate in a study is provided with a new unique ID, valid only for that study. ID-checks monitor the respondents entrance, which allows the person to enter the questionnaire only once. KNOTs Research sends the redeemed vouchers to the actual physical address which provides KNOTs Research with confirmation of identity and location.

Q9

Do you have a confirmation of identity procedure? Do you have procedures to detect fraudulent respondents at the time of registration with the panel? If so, please describe.

17

Profile Data
New respondents are required to fill in a questionnaire that supplies KNOTs Research with more than 50 attributes from which the sample profile is built. This member data is updated regularly, people are constantly encouraged to update their personal information through easy-to-use online facilities Demographic representations are updated every quarter to make sure that KNOTs Researchs consumer access reflects the national representation

Recruitment Q10

Among others the following types of information are stored: *Demographics: Geographical Location, Age, Gender, Marital Status, Educational Background etc. ** Occupation: Job Classification, Industry/ Profession, Position/ Responsibility, Size of company *** Ownership: Car Usage, Car brand Note that in every survey the relevant profile data is validated through a specific screening process. KNOTs Research have the above profiling information on almost 2 million households globally. Moreover, KNOTs Research has access to 46+ million households with mainly demographic information through carefully chosen partners who conform with KNOTs Research quality standards.

What profile data is kept on panel members? For how many members is this data collected and how often is this data updated? 18

Size/ Capacity of the panel

In 2009, KNOTs Research have access to 2 million member households. Worldwide, KNOTs Research has access to 46+ million households with mainly demographic information, either as members of KNOTs Research database or through carefully chosen partners. KNOTs Research household access allows for continuous and ad-hoc research capability, which is defined as the availability of specific target groups and completion rates. The following ensure that KNOTs Research has sufficient availability without compromising the quality of the data. About 75% of the members are active (completed a survey, updated profile or registered to join within the last 12 months). Members can be invited up to 7 times a year, but not more than twice a month. Also, unless a client specifies otherwise, members are not invited to participate in a study on the same product/ brand/ industry more than 4 times a year. Completion rates vary depending on the survey, the screening criteria and the incidence rate (see Q22). By setting up weighting systems the response quota/ incidence rate/ over usage of certain sample profiles and target group issues are avoided. Please note that if necessary KNOTs Research can use some of its exclusive quality partners that have access to samples with the specific profile. (See Q20/21/24 on KNOTs Research policy with regard to partner panels and the quality control system).

Recruitment Q11

What is the size and/or the capacity of the panel, based on active panel members on a given date? Can you provide an overview of active panelists by type of source?

19

Household Consumer Access

Canada USA

3,934,000 10,747,000

Argentina 560,000 Belize 12,000 Bolivia 24,000 Brazil 1,236,000 Chile 637,000 Colombia 363,000 Costa Rica 84,000 Dominican Rep. 14,000 Ecuador 85,000 El Salvador 6,000 Guatemala 15,000 Haiti 29,000 Honduras 41,000 Jamaica 55,000 Mexico 1,832,000 Nicaragua 47,000 Panama 77,000 Paraguay 43,000 Peru 417,000 Puerto Rico 21,000 Uruguay 69,000 Venezuela 327,000

Austria Belgium Bulgaria Croatia Czech Republic Denmark Estonia Finland France Germany Greece Hungary Ireland Italy Latvia Lithuania Netherlands Norway Poland Portugal Romania Russian Federation Slovenia Spain Sweden Switzerland Turkey United Kingdom Ukraine

193,000 720,000 16,000 1,200 103,000 212,000 8,000 132,000 1,551,000 1,420,000 48,000 241,000 257,000 603,000 10,000 11,000 491,000 134,000 241,000 608,000 197,000 694,000 7,000 2,358,000 494,000 115,000 414,000 2,314,000 44,000

Algeria Bahrain Egypt Iraq Israel Jordan Kuwait Lebanon Libya Morocco Oman Palestine Qatar Saudi Arabia Sudan Syria UAE Yemen

45,000 25,000 236,000 17,000 103,000 78,000 43,000 13,000 9,000 108,000 25,000 17,000 26,000 312,000 10,000 50,000 123,000 11,000

2,522,000 China 392,000 Hong Kong 1,187,000 India 146,000 Indonesia 3,120,000 Japan Korea (South) 969,000 219,000 Malaysia 105,000 Philippines 242,000 Singapore 956,000 Taiwan 107,000 Thailand 19,000 Vietnam

Australia New Zealand

696,000 77,000

South Africa

63,000

Q11

20

Panel and Sample Management ESOMAR Q12 Q15

21

Panel and Sample Management

Sampling Process
For every questionnaire, KNOTs Research can either select a random sample, use a specific sample on a clients request or avoid specific groups and sample profiles: KNOTs Research has the capability to randomise samples. However, as each sample is designed for the specific needs of a particular study not all studies have the need for a random component. The sampling software can replicate a given population on a much smaller scale, and can include or exclude people based on the household access management rules. Samples can easily be deployed as batches according to time zone, geographical location, using exact profile conditions or avoiding those using the database system. The client can specifically decide whether respondents from previous surveys should be invited a second time or not. Samples are selected on the basis of available socio-demographic data, with the aim of matching the sample to the population on these characteristics. Each sample is selected to meet the needs of the study in a custom-made manner. Quotas can be generated from the database, which is already balanced, or from distribution percentages provided by the client. Unlike traditional methods of interviewing which use "broad" quotas such as sex, age and social grade independently and usually within broad bands, use of an access household allows use of interlocking quotas and tight bands, in order to produce precise samples. Individuals are randomly selected from within the quota groups. In cases where two or more matched cells are required, an unprecedented level of accuracy can be achieved by selecting identical groups of people (or households), giving absolute confidence of the comparability of the cells - something virtually impossible to achieve via traditional methods.
Please describe your sampling process including your exclusion procedures if applicable. Can samples be deployed as batches/ replicates, by time zones, geography, etc? If so, how is this controlled?

Q12

22

Panel and Sample Management

Invitation
Members are randomly selected according to the sample profile, members participation history and the clients needs, to take part in a survey. They are notified by email about the possibility to participate in a questionnaire and earn KNOTs Points, which can be redeemed for gift vouchers. A link is provided that brings them to the questionnaire. An example invitation:
XXX KNOTs* points for our survey on the latest technology products Dear Mr/ Ms ^last name^, Are you interested in the newest trends? Then this survey is for you, and we will reward your efforts with XXX KNOTs* points! Some short screening questions will make sure that this study is actually relevant and interesting for you. The survey will only take about XX minutes. The survey will be taken offline once we reach the required number of responses, or on Thursday XXth January XXXX at XX.XXam whichever comes first. So dont wait: go for it! Taking part in this survey is very easy: Click on this link or copy-paste it into your browsers address bar: ^link^ Enjoy your time, and earn great KNOTs points! Best regards, KNOTs Team www.knotsclub.com ----------------------------------------------------------------------------------------------------------------------------------------If you have any questions regarding this survey or other topics, please drop us a line at contact@knotsclub.com. Thanks! Please remember that you were selected based on the information you gave us. If you feel that you should not be included within the scope of this particular survey, we apologize and ask you to keep your KNOTs profile up to date, so that we can send you only surveys that are relevant to you. Thank you. Please note that those members who don't match with the above-mentioned criteria are not the goal of this research. We ask them kindly not to participate to this questionnaire. Therefore, in this case no KNOTs points can be credited to the account.

Q13

Explain how people are invited to take part in a survey. What does a typical invitation look like?

23

Panel and Sample Management

Incentive system
KNOTs Research provides an attractive reward system, unlike other online research providers who reward one-in-X times with lottery prizes. KNOTs Research does not believe in a lottery and wants to communicate to the respondents that each of them makes a valuable contribution. All respondents are rewarded for EVERY survey they participate in, and their reward can be redeemed for vouchers of leading global department stores. Due to the heterogeneity of possible gifts, a bias caused by the type of gift is prevented, significantly increasing the quality and diversity of the household access. On average people get 200 KNOTs Points for a 15 minute survey. 1100 KNOTs points can be redeemed for a Euro 10 gift voucher. The KNOTs points which a respondent receives are calculated depending on the questionnaire length and the desired completion date. In certain cases, i.e. hard-to-find consumer groups are rewarded extra. However, KNOTs Research makes sure that consumers cannot tell beforehand which type of respondent is required for the survey and thus prevents incentive hunters. People who are in the process of completing a survey while in the meantime the quota is reached are not screened out, receive their reward and are added to the result. Though the rewards could be sent by e-mail, KNOTs Research employs a strict policy of sending the rewards to the physical addresses of the respondents, in order to confirm the identity of the respondents. This special reward system ensures more commitment from the members, which leads to a higher-than-average response rate and a shorter response time. See www.knotsclub.com/uk/reward/reward.shtml for more details on the rewards system.
Please describe the nature of your incentive system(s). How does this vary by length of interview, respondents, characteristics, or other factors you may consider ?

Q14

24

Panel and Sample Management

Amount of Contact
Regular and frequent contact with careful control is important to ensure that household access lists are retained. The less frequently you use a person the more likely it is that you could lose them. However, from a research perspective this is important to ensure response reliability and that KNOTs Research can take advantage of the data held on the individual. This way KNOTs Research maintains a strong capacity of its household access. On average a panel member is contacted once a month with either an invitation to participate in a questionnaire or with a request to update and maintain the personal profile. However, members can participate in a questionnaire only up to 7 times per year to ensure response reliability and avoid overuse of the specific profile the member satisfies. Besides, a member will not be invited to participate in a study on the same product/ brand/ industry more than 4 times a year. KNOTs Research Helpdesk is available 24/7 and aims to answer respondents questions, problems and suggestions within a few hours. KNOTs Research considers every problem and criticism seriously and is open to suggestions.

Q15

How often are individual members contacted for online surveys within a given time period? Do you keep data on participation history and are limits placed on the frequency of contact and participation in surveys?

25

Policies and Compliance - ESOMAR Q16 Q19

26

Privacy Policy/ Data Protection

Policies and Compliance

KNOTs Research Privacy Policy complies with all E.U. regulations and ICC/ ESOMAR guidelines. Visitors of the household access website are informed about the privacy policy as follows:
OUR PRIVACY POLICY - HOW DO WE KEEP YOUR PRIVACY? As a KNOTs Club member, your participation is very important to us and we value all the information you provide to us. You will see this reflected in our strict code of ethics below: Your co-operation is always voluntary 1) KNOTs will avoid infringing on the privacy of KNOTs members. Your co-operation will be voluntary at all times. No personal information, in addition to that already available, will be sought from or about you without your prior knowledge and agreement. 2) We will always inform you about the nature and the scope of the research. You have the right, at any stage of the survey, or afterwards, to ask for cancellation of some or all of the records of your survey, and we will comply with any such request, when reasonable. Our identity will always be disclosed 3) In all the communication we send to our members, well always clearly state our identity and our contact address. Your right to anonymity will be safeguarded 4) Your anonymity will always be preserved unless you have given your informed consent to the contrary. Data security 5) We take every precaution to protect data security. We also take reasonable measures to ensure that any confidential information provided by you, as a KNOTs Club member, is protected against unauthorised access (i.e. by a firewall). 6) The KNOTs Club protects your privacy using SSL (Secure Socket Layer) Encryption. Our web server supports SSL security technology. All information transmitted over the network by SSL compatible browser systems is encrypted. Surveying children and young people 7) We observe all relevant laws specifically related to children and young people, although we recognise that the infallible identification of children and young people is not possible on the Internet at this time. You are eligible for membership if you are over 16 years. From members younger than 18 years, we require the permission from their parents or caretakers before participation to any survey. Unsolicited e-mail 8) We will not send unsolicited e-mail messages to you if you have communicated that you don't wish to receive such messages relating to research projects or to any follow-up resulting directly from it. We will reduce any inconvenience or irritation such an e-mail might cause to you by clearly stating its purpose in the subject heading and well try to keep the total message as brief as possible. (Privacy and Security Principles, based on ICC/ESOMAR - European Society for Opinion and Marketing Research Guidelines for Conducting Research Online)

People that become a member must have read the terms and conditions which contain information on the policies. (See Appendix)
Is there a privacy policy in place? If so, what does it state? What data protection/security measures do you have in place?

Q16/17

27

Privacy/Data Protection

Policies and Compliance

KNOTs Research provides the Most Advanced Security realising the 5-Layers of Confidentiality The following 5 layers of data protection are compliant with todays market standards

Screen-out Unwanted target 1

Input ID and password Checking on the screen for Certification of User

Inviting Respondents through E-mail

Only a defined target can access the designated Questionnaire website 4

URL of Survey page always changes 3 Answering Screen Respondents are prevented from answering more than once

Panel Database and Archive are stored on the most secured servers in the market 5

The results of the survey are sent as a code to a SSL server.

Q16/17

Is there a privacy policy in place? If so, what does it state? What data protection/security measures do you have in place?

28

Quality Management System

Policies and Compliance Q18

Since the establishment of KNOTs Research European office in 2001 its mission has been to keep in line with ICC/ ESOMAR quality standards. Currently, KNOTs Research is in the process of updating and reviewing the current quality management system according to the new ISO (International Standard) for market research companies.

An ISO standard consists of a document which describes how to do something in a consistent way which can be checked by an auditor. In the case of market research, the ISO standard follows the standard project lifecycle. It goes from design and proposal to data collection, coding, editing, reporting and presentation but in a way which can be generalised to apply to projects that do not follow this standard route, like omnibus surveys, qualitative research or media measurement panels, for example. [Research World, November 2005, ESOMAR]
KNOTs Research strives to meet, monitor and maintain the new standards, requesting an audit to obtain the ISO certification for market research companies.

Do you apply a quality management system? Please describe it.

29

Research with Children

Policies and Compliance Q19

Whenever KNOTs Research targets children under 18 special care is taken. By ESOMAR standards and European regulations, KNOTs Reseach does not invite directly any potential respondent under the age of 16. To become a member of the household access one has to be older than 16 years. KNOTs Research invites parents/ responsible adults of children under 16 to fill questionnaires jointly with their children and let them ask their children. KNOTs Research makes sure to abide by the ICC/ ESOMAR International Code.

Do you conduct online surveys with children and young people? If so, please describe the process for obtaining permission.

30

Partners - ESOMAR Q20 Q21

31

Do you supplement using Partners?

On some occasions, in case of a hard-to-reach sample or a certain size of quota to be reached, KNOTs Research supplements its own sample with samples from partner providers. KNOTs Research discusses with its client which and how many partners to select for supplementation. Partner Providers are carefully selected using the companies strict standards of quality control. (see Q24)

Partners

The partner always refers its respondents to KNOTs Research servers so that KNOTs Research always maintains control over the running questionnaires, the screening and the de-duplication of combined samples. KNOTs research demands the same security and privacy policies of its partners as it maintains itself. In particular, KNOTs Research ensures that a partner adopts the same strong quality control as itself. If a partner provides KNOTs Research with `bad respondents in terms of response behaviour, accuracy and attention, it will not pay its partner for providing that respondent.

Q20

Do you supplement your samples with samples from other providers. How do you select these partners? What other policies are in place regarding notifying the client and de-duplication of the sample?

32

How do you maintain quality with multiple samples?

When KNOTs Research uses partner databases for a project the following measures are always in place: All invitations, the questionnaire and responses run through KNOTs Research servers, i.e. the members of a partners database are sent an invitation with a link that directs them to a survey run on KNOTs Research servers. De-duplication takes place by checking email addresses and basic demographics, also results from respondents are removed if an interview is finished under a pre-set time, gave inconsistent answers, shows a pattern of responses that suggests a non-serious response behaviour, or signals other deviant response behaviour. In particular, KNOTs Research system is able to check response logic flow, so that if respondents have carelessly answered impossible combinations of possible answers their data will be erased. Because the surveys always run and are controlled by KNOTs Research all `guest respondents are monitored by the quality control system. (See Q24) Also, if additional samples are required for particular countries, KNOTs Research will never use two partners with samples for the same country. This greatly lowers the chance of duplication.

Partners Q21

Do you have a policy regarding multi-panel membership? What efforts do you undertake to ensure that survey results are unbiased given that some individuals belong to multiple panels?

33

Data Quality and Validation ESOMAR Q22 Q26

34

Participation Rates

Data Quality and Validation

Start rate (SR)

Percentage of people invited that started a questionnaire, whether they finished it, or were screened out or not. Percentage of invited people who started the questionnaire including those that were screened out or started when the quota was reached based on incidence rate Percentage of people that started the questionnaire who did not complete the questionnaire Percentage estimated of the occurrence of a specific target group within the total population (for example, VW drivers represent 12-15% IR, while Ferrari drivers represent 0.3% IR)

Completion rate (CR) Percentage of people invited who completed the questionnaire Response rate (RR) Drop out rate (DR) Incidence Rate (IR)

These rates differ per questionnaire, depending on country and desired sample profile, but on average the following rates are registered: SR CR RR DR IR On average 10%, depending on country, it varies from 8% to 15% Depends very much on the project; in some cases it is 5%, other cases 95%, as some surveys have very strict screening conditions and others have not This depends on the drop out rate and the time a project is kept running after quotas are reached, on average about 10% From those that start an interview around 3% - 5% (about 5% of those initially invited) will leave the interview half way Defines how many people should be sent invitations in order to achieve the required sample
1,000 150 45 2 (out of the 45 that started it) 40 (out of the 45 that started) varies greatly, could be 10, 20 or 45 105 (out of the 150 that started) 35

A typical example: 1. Invited 2. Started an interview (15% SR/ RR) 3. Qualified to participate (30% IR) 3. Abandon the interview (5% DR) 4. Successful interviews (90% CR) 5. Screened-Out/ Quotas Filled

Q22

What are likely survey start rates, drop-out and participation rates in connection with a provided sample? How are these computed?

Individual Level Data

Data Quality and Validation Q23

KNOTs Research keeps certain individual level data apart from their general demographic data and consumer profile. Specifically, the history of all respondents is stored in order to make sure that respondents are not over-used, in general or for particular types of surveys, to check for consistency in response behaviour and to maintain the validity of respondents profiles. KNOTs Research is able to supply this information to the client. However, KNOTs Research is very reluctant to do this as it infringes on a respondents privacy. Furthermore, all ad hoc results are the sole property of the client who commissioned the study NONE of the results will ever be used by KNOTs Research for any purpose.

Do you maintain individual level data such as recent participation history, date of entry, source, etc., on your panelists? Are you able to supply your client with a per job analysis of such individual level data?

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Data Quality Analysis (1/4)

Data Quality and Validation

KNOTs Research has implemented a strict 10 step quality control system Updated and cleaned data Identities checked and checked again Only relevant samples invited Questionnaire language and structure Strict screening Programming and logic flow Respondents needs Extensive fieldwork monitoring Questionnaire responses rigorously checked Credible reward system

Q24

Do you use data quality analysis and validation techniques to identify inattentive and fraudulent respondents? If yes, what techniques are used and at what point in the process are they applied?

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Data Quality Analysis (2/4)

Data Quality and Validation Q24

In particular, All potential respondents start the questionnaire with screening questions, based on the client's requests (age, gender, brand + owned product, etc.) Only those who qualify, based on the screening requirements, are allowed to continue to the main study. Once respondents are screened out (=not qualified), there is NO way back - they cannot go back and change their answers. This ensures a high response quality. The project managers verify the quality of responses. The interview length is checked whether a respondent could have completed the interview in the time recorded. If a respondent answers in less than the estimated time their data will be erased. Any respondent who has filled the questionnaire in less than half of the average time required to fill the questionnaire, will be taken off the completed respondent list, and the person would automatically be deleted from KNOTs Research access list. Once the fieldwork has started and when there are already a few completed interviews, KNOTs Research runs a check on the results to double-check their validity and the flow of the answers. Only if everything is ok, a bigger sample is invited to fill out the survey. KNOTs Research carefully checks the results of the Open-Answers. The entire interviews of those respondents who did not provide valid answers (reasonable answers to Open-Questions in the survey) are erased. These respondents are not invited anymore to participate in future studies. Furthermore, it is possible to check for Response Patterns i.e. overuse of dont know as another quality check. Key target groups can be pre-selected to avoid (limit) screening out something people dislike. The benefit is that no responses are given only to earn rewards, which may bias the results.
Do you use data quality analysis and validation techniques to identify inattentive and fraudulent respondents? If yes, what techniques are used and at what point in the process are they applied?

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Data Quality Analysis (3/4)

Data Quality and Validation Q24

Automatic Closing Feature: Calculates the feedback quantity per member/ attribute and `closes the study once the attribute - quota has been reached. KNOTs Research can view respondents answers in REAL TIME. As a result, KNOTs Research can determine with the client at any moment whether to extend/ shorten the fieldwork timing, or to continue to invite extra members to participate. Respondents have NO IDEA which target group KNOTs Research is looking for and what brand or other variables are needed to complete the study, ensuring a reliable screening process. If a client asks to invite only people who own/ intend to buy product or brand X,Y,Z then KNOTs Research puts the required products or brands X,Y,Z among a long list of options. Only those who choose the specifically required product or brand X,Y,Z will qualify to continue to the main questionnaire. Each questionnaire goes through a careful proofreading procedure, which checks the Logic Flow, and makes sure that Respondent-Friendly language is used in order to avoid any confusion or possible misunderstandings. The questions are posed in an objective manner, to prevent the respondents from feeling pushed towards certain answer options that could decrease the validity of the answers. Questionnaires are translated by professional translators into the respondents mother language. KNOTs Research requires that the translators live in the country where the study will be conducted, in order to adjust the questionnaire within its relevant cultural context. The order of the answer options can be randomly shown to the respondents to avoid any list-order effect and response bias. For example: a list of 8 different products/ brands/ TV Commercials: each respondent will see them in a different order.

Do you use data quality analysis and validation techniques to identify inattentive and fraudulent respondents? If yes, what techniques are used and at what point in the process are they applied?

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Data Quality Analysis (4/4)

Data Quality and Validation Q24

KNOTs Research programming team always makes sure that Error Messages carry simple and clear instructions on how to complete the questionnaire. Every question will be shown on one single screen with no or little scrolling, to reduce the respondents efforts to a minimum. Should the Respondent-Friendly language still remain unclear to a respondent, he/ she can click on the HELP button that appears on each screen. In this way the respondents can communicate with the KNOTs Team, who aims to respond within a few hours. When the questionnaire is longer than 12 minutes, respondents do not have to complete it at once. They could take a break by clicking on the I want to interrupt this survey button and continue any time they want by clicking on the link in the invitation e-mail. This will automatically take the respondent back to where he/ she left the questionnaire, and his/ her input will be saved. People are not asked unnecessary questions during the screening process to obtain `free data, as it annoys respondents and may affect the quality of responses. Besides, people are immediately screened out when not meeting the sample profile and not kept in the screening process unnecessarily long. KNOTs Research regularly analyses the household access composition on the bases of recruitment sources, quality of response and participation. Overall, KNOTs Researchs experience is that the vast majority of respondents dont take advantage of the panel, one of the best indicators of this is interview length. See www.knotsresearch.com/10_proven_steps.php for a summary of the quality control system.

Do you use data quality analysis and validation techniques to identify inattentive and fraudulent respondents? If yes, what techniques are used and at what point in the process are they applied?

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Respondent Satisfaction

Data Quality and Validation

KNOTs Research Helpdesk is available during week days and in case of an urgent project - 24/7 and aims to answer respondents questions, problems and suggestions within a few hours. KNOTs considers every problem and criticism seriously and is very open to suggestions. It is always stressed in any communication that respondents should contact KNOTs Research with questions, problems, and suggestions anytime. On a daily basis the KNOTs Research helpdesk processes dozens of respondents questions, problems and suggestions and strives to answer respondents communication within hours. KNOTs Research constantly improves its questionnaire structure, respondents instructions and communications based on valuable recommendations from respondents world-wide.

Q25

Do you measure respondent satisfaction?

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Debriefing the Client

Data Quality and Validation

Contact with the client typically goes through the following phases: Set up Phase Discuss the objectives, size, requirements, constraints of the study. Determine questionnaire length, countries and languages.

Questionnaire building Phase Translation and programming of the survey in close contact with client. Testing logic flow and for the desired output. Questionnaire Running Phase Client is continuously updated on the start, response, dropout and completion rates, the fulfilment of the set quota and any encountered obstacles. Initially, the results of a few completed interviews are checked and communicated to the client, after which the decision is made to invite a bigger sample to the survey. KNOTs Research can determine with the client at any moment whether to extend/ shorten the fieldwork timing, or to invite extra members to participate. Result/Output Phase Full Description of the Sample Profile, Start Rates, Response Rates, Dropout and Completion Rates, Incidence Rate and any obstacles encountered in the process. Statistical analysis and excel output document. Data Analysis and Power Point Visual Presentation with Executive Summary, Conclusions and Recommendations. Presentation to the client. Feedback Phase The client is asked if all data is clear and complete. If necessary additional data and analysis is provided.

Q26

What information do you provide to debrief your client after the project has finished?

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Appendix
43

Our Terms and Conditions for Households willing to participate in studies

Your registration as a member will give you free access to all the KNOTs services and great reward opportunities offered by the KNOTs Club, established by KNOTs Europe B.V. Upon registering as a member you agree with the KNOTs Club Conditions of Membership as listed below. 1. 1.1. 1.2. 1.3. KNOTs Membership Members of the KNOTs Club must be over 16 years old and they must be permanent residents of one of the countries where KNOTs is fully operational (currently these countries are: the United Kingdom, Germany, France, Italy, Spain, The Netherlands and Belgium). People between 16 and 18 years of age must have the consent of their parent(s) or guardian(s), in order to validly apply for Membership of the KNOTs Club. You will become a Member only after completing and submitting the entire "KNOTs Club entry questionnaire". In case of any irregularity in your completion of the entry questionnaire or in the submission procedure, your registration as a Member will not be processed. Upon acceptance of your registration, KNOTs will confirm your unique Identification Code and password, which you will have created during the registration procedure. The Identification Code and password will give you access to the various services of KNOTs. You will be rewarded for participating in the activities of KNOTs in accordance with Article 2. The benefits of KNOTs Club membership As a Member you may use all services and participate in all activities offered from time to time by KNOTs. KNOTs will notify you of any organised activity by e-mail and/or via the Members Only section of our web site www.knotsclub.com. As a Member you will have the right to participate in any general activity. In all events, KNOTs will notify you in advance of any rewards related to the activity at issue. In such an event and subject to the satisfactory completion of your participation in any such activity in accordance with all relevant instructions, you will be entitled to the relevant rewards. The invited members are not obliged to participate to the current activity and their decision not to participate in a specific activity will not have any consequences for future invitations. If not indicated otherwise, KNOTs will reward you in KNOTs points, that can periodically be redeemed for e-gift certificates which can be exchanged in their turn to hard copy vouchers of leading stores all over Europe on our partner Globoforces website. Please note that the 'KNOTs Club Conditions of Membership' and Disclaimer apply to the redemption scheme. Our members acknowledge that additional terms and conditions of Globoforce and/ or the selected department stores may apply to the point redemption procedure. KNOTs shall be free at any time to determine other manners of rewarding its members for their participation in the KNOTs activities. The members will be informed about these different rewards in advance. After this notice the KNOTs members are expected to accept the mentioned rewards and they will not be eligible to any other reward, consideration, remuneration or compensation. If applicable, rewards will be sent to the regular address of the Member as listed in the KNOTs database. Its the responsibility of the KNOTs members to update their personal details in case of eventual changes. Redeemed KNOTs points are non-refundable and cant be reaccredited. Rewards are neither transferable, negotiable nor refundable. Neither KNOTs, nor any of its affiliates shall be liable for any direct or indirect damages resulting from member usage of the services offered by KNOTs or from participating in any of the activities organised by KNOTs. KNOTs doesnt represent or warrant an undisturbed availability of its website. Member's obligations The accuracy of your registration details is of eminent importance to the KNOTs Club. Your membership remains valid as long as your registration details are accurate. We therefore encourage you to edit and update these details at any time by notifying KNOTs through the KNOTs website at www.knotsclub.com - MY KNOTs Personal data update section. The KNOTs Membership is personal and not transferable. Consequently, the Identification code and password provided to you by KNOTs are personal and may not be transferred or given to any third party. Your membership of the KNOTs Club is unique. This means that it is not allowed for one member to have more than one (1) KNOTs account. Upon discovery of the event of one person who obtains more than one KNOTs account, KNOTs Europe has the right to close all the additional accounts till only one of them is left. The accumulated KNOTs points of the closed accounts can't be refunded, neither compensated. All the information that you provide to KNOTs has to be complete, accurate and correct. You are solely responsible for any information provided to KNOTs. 3.5 You will not use abusive, discriminating or defamatory language and you will not upload to the KNOTs' website any libellous, defamatory or otherwise unlawful material.

2. 2.1. 2.2.

2.3

2.4. 2.5. 2.6. 2.7. 2.8. 3. 3.1. 3.2. 3.3. 3.4.

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Our Terms and Conditions for Households willing to participate in studies

4. 4.1. 4.2. Data and privacy protection KNOTs respects your privacy and will do its utmost to protect your privacy and the information you provide KNOTs with, all in accordance with the applicable laws of the country of your residence. Please review our privacy policy and the measures that we have implemented to safeguard your personal data and to satisfy the requirements of the relevant privacy authorities. You acknowledge that the information you provide to us is used for (international) market research. KNOTs will only provide anonymous information of the KNOTs' members to our customers, other research bureaus or other third parties. Your information will never be communicated or disclosed to any third party on an individualised basis without your prior written consent, with the exception of (i) communication to those parties whose participation and support will be necessary for the supply of their services and the completion of their activities and/or (ii) communication in such situations that the disclosure of non- anonymous data is required by law. The information you provide to KNOTs will be partly processed by KNOTs on the servers of other companies of the Asatsu Group that are located outside the EU. Limited to the aforementioned purposes and for processing purposes only, you give KNOTs your unambiguous consent to make the information you have provided to KNOTs available to other companies of the Asatsu Group outside of the EU. Termination You may terminate your membership of KNOTs at any time by notifying KNOTs in accordance with these KNOTs Club Conditions of Membership. You can give notice through the KNOTs' website (MY KNOTs- Unsubscribe) or in writing through e-mail. Your unsubscription request must always include your personal Identification Code, registered e-mail address and a termination request. KNOTs may terminate your membership of the KNOTs Club by notifying you in accordance with these Conditions of Membership, in case you violate the KNOTs Club Conditions of Membership, or after performing a check-up by KNOTs Europe, it turns out that you have not participated in any activity for a long period of time, or you have not updated your personal and household information, as initially provided by you in the Membership Questionnaire for a period of 24 months or longer. Once KNOTs has terminated your membership for reasons set out under (a) above, you arent allowed to register as a Member again. Upon the effective date of termination of your Membership you will no longer have access to the activities or to any rewards offered by KNOTs. Your collected KNOTs points will lose their validity and they will not be refunded. Notices All notices and other communications to be delivered under these KNOTs Club Conditions of Membership shall be delivered by e-mail and shall take effect from the time they have been sent to the addressee. In the case of KNOTs, such e-mails will be sent to contact@knotsclub.com and in the case of Members, such e-mails will be sent to their last known e-mail address. Changes KNOTs may, at its discretion, change any of the KNOTs Club Conditions of Membership from time to time. KNOTs shall notify its members by e-mail and/ or via the Members Only section of our web site www.knotsclub.com of any such change. Governing law and consent to jurisdiction These KNOTs Club Conditions of Membership shall be governed by and construed in accordance with the laws of The Netherlands. You irrevocably and unconditionally submit for all purposes in connection with these KNOTs Club Conditions of Membership to the jurisdiction of the competent courts of Amsterdam, The Netherlands.

4.3.

5. 5.1. 5.2. a. b. c. 5.3. 5.4. 6.

7.

8. 8.1. 8.2.

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