Chapter Six Copyright © 2006 John Wiley & Sons, Inc. Primary Data Collection: Observation.

Chapter SixChapter Six

Copyright © 2006John Wiley & Sons, Inc.

Primary Data

Collection:Observatio

n

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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

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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

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Exh

ibit

6.1

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.

Observation Situations

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To 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

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

To learn the approaches to observation research.

The Nature of Observation

Research

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To understand the advantages and disadvantages of observational

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

The Nature of Observation

Research

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To 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

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To explore the types of 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

Human Observation

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To explore the types of human observation.

• Mystery Shopper– Measuring employee training: most common use

of mystery shoppers.1. evaluate existing customer service

2. evaluations analyzed and training program developed

3. shoppers return to evaluate the customer service post-training

Human Observation

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To explore the types of 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

Human Observation

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To explore the types of 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

Human Observation

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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

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• 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.

Machine Observation

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

• 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

Machine Observation

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• 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.

Machine Observation

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– InfoScan Custom Store Tracking • All store scanner data system

• More than 32,000 stores

– InfoScan Syndicated Store 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.

Machine Observation

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To 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

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To learn about 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, listserves, Webbased message boards and big corporate email threads

Observation Research on the

Internet

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SUMMARY

– The Nature of Observation Research

– Human Observation

– Machine Observation

– Observation Research on the Internet

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The End

Copyright © 2006 John Wiley & Son, Inc