Ch

apte

r S

even

C

hap

ter

Sev

en

Copyright © 2004John Wiley & Sons, Inc.

Primary Data Collection:

Observation

John Wiley & Son, Inc 2

Learning Objective

1. To develop a basic understanding of observation research

2. To learn the approaches to observation research

3. To understand the advantages and disadvantages of observation research

4. To explore the types of human observation

Learning Objectives

John Wiley & Son, Inc 3

Learning Objective

5. To understand the types of machine observation and their advantages and disadvantages

6. To explore the tremendous impact of scanner-based research on the marketing research industry

7. To learn about observation research on the Internet

Learning Objectives

John Wiley & Son, Inc 4

Learning ObjectiveE

xhib

it 7

.1Observation Situations

People watching people

People watching phenomena

Machines watching people

Machines watching phenomena

Observers in supermarkets. Purpose: comparative shopping

Observer stationed at intersection counts traffic.

Video-cameras record consumers selecting frozen foods to determine popularity of choice.

Traffic-counting machines monitor the flow of traffic through an intersection.

John Wiley & Son, Inc 5

Learning ObjectiveTo develop a basic understanding

of observational research.

The Nature of Observation Research

• Observation Research Defined – The systematic recording of patterns of

occurrence or behaviors without communicating with the people involved.

• Conditions for Using Observation– The information must be observable– The behavior must be repetitive– Short duration

John Wiley & Son, Inc 6

Learning Objective

• Approaches to Observation Research– Natural Versus Contrived Situations– Open Versus Disguised Observation– Structured Versus Unstructured– Human Versus Machine Observers– Direct Versus Indirect

The Nature of Observation Research To develop a basic understanding

of observational research.

John Wiley & Son, Inc 7

Learning ObjectiveTo understand the advantages and

disadvantages of observational research.

The Nature of Observation Research

• Advantages of Observation Research– We can see what people actually do– Avoids interviewer bias– Quick data collection

• Disadvantages of Observation Research– Researcher does not learn motives– Time-consuming and expensive

John Wiley & Son, Inc 8

Learning ObjectiveTo explore the types of

human observation.

Human Observation

• Ethnographic Research– From anthropology – Recording people in their natural settings– Observation of behavior and physical setting

coupled with depth interviews

John Wiley & Son, Inc 9

Learning ObjectiveTo explore the types of

human observation.

Human Observation

• Mystery Shoppers– To gather observational data about a store

– To collect data about customer/employee interactions

• Four variations of mystery shopper:– Level 1 - a mystery telephone call

– Level 2 - a quick purchase, little or no interaction

– Level 3 - using a script, initiates a conversation

– Level 4 - requires excellent communication and knowledge of product

John Wiley & Son, Inc 10

Learning ObjectiveTo explore the types of

human observation.

Human Observation

• Mystery Shopper– Measuring employee training: most common use of

mystery shoppers.• Phase 1—evaluate existing customer service

• Phase 2—evaluations analyzed and training program developed

• Phase 3—shoppers return to evaluate the customer service post-training

John Wiley & Son, Inc 11

Learning ObjectiveTo explore the types of

human observation.

Human Observation

• Mystery Shopper– Preparing for New Competition

• Evaluation of the strengths and weakness

– Monitoring the Competition• Comparing one’s own store with that of a competitors

– Recognizing Good Employees• Recognizing employees who provide customers with outstanding

service builds employee morale and better customer satisfaction

John Wiley & Son, Inc 12

Learning ObjectiveTo explore the types of

human observation.

Human Observation

• One Way Mirror Observations– Clients to observe the

group discussion

– Used for focus groups

– Used to observe users of product

– Used to observe children at play

• Audits– Examination and

verification of the sale of a product

• Retail Audits

• Wholesale Audits

• Scanner Based Data

John Wiley & Son, Inc 13

Learning Objective

To understand the types of machine observation their advantages and disadvantages.

Machine Observation

• Traffic Counters– Machine-based observation

• Physiological Measurement– RAS: activation is stimulated via a subcortical

unit– EEG: electroencephalogram– GSR: galvanic skin response– Pupilometer: pupil dilation– Voice Pitch Analysis: measures emotion

John Wiley & Son, Inc 14

Learning ObjectiveMachine Observation

• Opinion and Behavior Measurement– People Reader

• Simultaneously records both the reading material and the readers eyes

– Rapid Analysis Measurement (RAMS)• Hand-held device records respondents feelings by their turning

a dial

– GPS Technology• Tracks motorist and pedestrian exposure to outdoor

advertising

– The People Meter• Used to measure national TV audiences that transmits

demographic information overnight

To understand the types of machine observation their advantages and disadvantages.

John Wiley & Son, Inc 15

Learning ObjectiveTo explore the tremendous impact of scanner-

based research on the marketing research industry.

Machine Observation

• Scanner Based Research– Laser Scanners—read UPC codes on products

and produces instantaneous information on sales

– Behavior Scan • Shopping with an ID card• Tracks each household’s purchases item by item,

over time• Panels split to test different products and ad• In-store variables may also be tested

John Wiley & Son, Inc 16

Learning ObjectiveMachine Observation

• Scanner Based Research– Behavior Scan allows marketing managers to

answer critical marketing questions• Impact on new advertising program

• How to minimize incremental media costs

• Do sales change if ad frequency changed

• Changes in sales for a year of new product

• Sales cannibalized from existing products by new product

To explore the tremendous impact of scanner-based research on the marketing research industry.

John Wiley & Son, Inc 17

Learning ObjectiveMachine Observation

– InfoScan Tracking Service • All store scanner data system

• More than 32,000 stores

– InfoScan Tracking• to benchmark retailer performance against other

retailers in same area

To explore the tremendous impact of scanner-based research on the marketing research industry.

John Wiley & Son, Inc 18

Learning ObjectiveTo learn about observation

research on the Internet

Observation Research on the Internet

• Clickstream data– Steps and behaviors of consumers on their way

to information, entertainment, and purchases• Can be supplemented with other customer data

• Predictive Networks– Software to track every site a Web surfer visits– Builds a digital silhouette or profile– Plans to target news content based on user’s

profile

John Wiley & Son, Inc 19

Learning ObjectiveTo learn about observation

research on the Internet

Observation Research on the Internet

• Vividence Corporation– Recruits Web surfers to fill out a profile sheet

which includes demographic and lifestyle information

– Uses it’s database to evaluate Web sites

• Conversation Trackers– Creates a summary of comments in

newsgroups, listservs, Webbased message boards and big corporate email threads

John Wiley & Son, Inc 20

Learning ObjectiveSUMMARY

– The Nature of Observation Research

– Human Observation

– Machine Observation

– Observation Research on the Internet

John Wiley & Son, Inc 21

Learning Objective

The End

Copyright © 2004 John Wiley & Son, Inc