Marketing Management Presentation - Observation Research

8/3/2019 Marketing Management Presentation - Observation Research

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“Observation is the process by which facts become data”

Observation is a primary method of collecting data by human,

mechanical, electrical or electronic means.

Definition

Observation is a systematic process of recording behavioral patterns

of people, objects, and occurrences as they happen.

Features

• The observation is planned systematically.

• No Questioning or communicating with people is needed.

• Researchers who use this method either witness or recordinformation while watching events take place or take advantage of

some tracking system.

http://www.ryerson.ca/~mjoppe/ResearchProcess/ResearchDesignDataCollectionTechniquesandSelectionofSubjects.htm






Observation techniques can be part of qualitative research as well as

quantitative research techniques.Qualitative observation is largely unstructured - “participant observation”

• Observer immerses himself/herself

• It relies on the skills of the observer to recognize, record, andinterpret behaviors

The researcher can learn the most by participating and/or beingimmersed in a research situation.

Quantitative observation is structured

Observers are trained to count, record, and summarize data aboutpre-determined behaviors

Better suited to program evaluation

In quantitative research, the researcher is ideally an objective observerwho neither participates in nor influences what is being studied.



Observational studies gather a wide variety of information about

behavior. Observation studies emphasize and allow for the systematicrecording of non-verbal behavior.

For example:

Toy manufacturers such as Fisher Price use the observation technique

because children often cannot express their reactions to products. By

observing children at play with a proposed toy or game, marketing

researchers may be able to identify the elements of a potentially

successful product. Researchers may observe play to answer

questions like:

How long does the child’s attention stay with the product?Does the child put the toy down after two minutes or twenty

minutes?

Are the child’s peers equally interested in the toy?



Following table lists different kinds of observationalphenomenon.

Phenomenon ExamplePhysical action A shopper’s movement pattern

in a store

Verbal behavior Statements made by airlinetravelers while waiting in line

Expressive behavior Facial expression, tones of voices, and other forms of bodylanguage

Spatial relations and locations How close visitors at an artmuseum stand to paintings

Temporal patterns How long fast-food customerswait for their orders to beserved

Physical objects What brand-name items arestored in consumers’ pantries

Verbal and pictorial records Bar codes on product packages



Problems associated

Observation research cannot provide an explanation of why a behavior occurred or what actions were intended.

Another limitation is that the observation period isgenerally short. Observing behavior patterns that occur

over a period of several days or weeks generally is toocostly or even impossible.



Marketing researchers can observe people, objects, events, or other phenomena

using either human observers or machine designed for specific observationstasks.

Human observation is generally unobtrusive i.e. no communication takes placewith the respondent.

Example:

Rather than asking customers how much time they spend shopping in the store,a supermarket manager might observe and record the intervals between whenshoppers enter and leave the store.

Visible observation - A situation in which an observer’s presence is known to the

subject.Hidden (Unobtrusive) observation - A situation in which a subject is unawarethat observation is taking place.

This type of observation minimises respondent error.

The main problem with unobtrusive measures, however, is ethical. Issuesinvolving informed consent and invasion of privacy are paramount here.



Advantages

Although often costly and time-consuming, observation methods

help to avoid the problems of relying solely on self-report measures.

what they actually do rather than what they say

actual, not self reporting behavior

doesn’t rely on memory or willingness

real-time research - at time of occurrence

avoids bias

good for observing children



Disadvantages

Observation does not help understand what is happening within a

person (e.g. emotions, cognitions and perceptions).

cannot infer what caused behavior

public behavior only

limited future projection

time consuming (infrequent actions) labor intensive

expensive



Type of ObservationalMethod

Advantages Disadvantages

Naturalistic Observation •Particularly good for observing specific subjects.

•Provides ecologically valid recordings of naturalbehaviour.

•Spontaneous behaviours are more likely tohappen.

•Ethics: Where research is undisclosed consent willnot be obtained, where consent is not obtained -details may be used which infringe confidentiality.

Structured Observation Allows control of extraneous variables.

Reliability of results can be tested by repeating thestudy.

Provides a safe environment to study contentiousconcepts such as infant attachment.

•The implementation of controls may have an effecton behaviour.

•Lack of ecological validity.

•Observer effect.

•Observer bias.

Unstructured Observation •Gives a broad overview of a situation.

•Useful where situation/subject matter to bestudied is unclear.

•Only really appropriate as a "first step" to give anoverview of a situation / concept / idea.

Participant Observation •

Gives an "insiders" view.

•Behaviours are less prone to misinterpretationbecause researcher was a participant.

•Opportunity for researcher to become an"accepted" part of the environment.

•

Observer effect.

•Possible lack of objectivity on the part of theobserver.

Non-Participant Observation •Avoidance of observer effect •Observer is detached from situation so relies ontheir perception which may be inaccurate

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Observation of Human behavior

Direct observation

This observation can produce detailed records of what people

actually do during an event.

The observer plays a passive role, making no manipulations in

the situation, instead merely record what occurs.

Example:

Recording traffic counts or observing the direction of traffic flows

within a supermarket can help managers design store layouts

that maximize the exposure of departments that sell impulsegoods.



Two commonly used types of direct observationsContinuous Monitoring

Time Allocation

Errors associated•The observer may may record events subjectively.

•Accuracy may suffer if the observer does not record every detailthat describes the persons, objects, and events in a given situation.

•

Wrong interpretation of observation data.

Ethical Issues in the observation of humansHidden observation raises the issue of the respondent’s right toprivacy.

Sometimes contrived observation is viewed as entrapment i.e. todeceive or trick into difficulty. The problem is of balancing values.

For Instance:If the researcher obtains permission to observe someone, the subject maynot act naturally.



Few aspects which can help address this problem are:

Is the behavior being observed commonly performed in

public where it is expected that others can observe thebehavior?

Is the behavior performed in a setting in which the

anonymity of the person being observed is assured?

Has the person agreed to be observed?



Content analysis

Content analysis is an observation technique used toanalyze written material into meaningful units, usingcarefully applied rules.

It is defined as the objective, systematic, and quantitativedescription of the manifest content of communication.

It includes observation as well as analysis.The unit of analysis may be words, characters, themes,space and time measures, or topics.

For example: content analysis of advertisements might

evaluate their use of words, themes, characters, or spaceand time relationships.



In many situations, the primary and sometimes the onlymeans of observation is mechanical rather than human.Video cameras, traffic counters, and other machines helpobserve and record behavior.

The techniques used are:

Television monitoring

Monitoring Website Traffic

Scanner-Based Research



Television monitoring

ACNielsen’s television monitoring system for estimatingnational television audiences - the best known marketing

research project involving mechanical observation and

computerised data collection.

The Nielsen Media research uses a computer panel and

a monitoring device called a PeopleMeter to obtain

ratings for television programs nationwide.

This meter gathers data on what each television in ahousehold is playing and who is watching it at the time.



Monitoring Website Traffic

Most organizations record the level of activity at their

websites. They may count the number of hits (mouse

clicks on a single page of a website).

Page views more conservatively indicate how many users

visit each individual page on the website and may also be

used to track the path or sequence of pages that each

visitor follows.



Scanner-Based Research

This technology allows researchers to investigatequestions that are demographically or promotionally

specific.

Scanner research has investigated the different ways

consumers respond to price promotions and the effects of

those differences on a promotion’s profitability.



Marketing researchers use different mechanical devices to evaluateconsumers’ Physical and Physiological reactions to advertisement,packaging etc.

The researchers use these means when they believe:

Consumers are unaware of their own reactions to the stimuli, orThat consumers will not provide honest responses.

Major categories of mechanical devices used are:

Eye-tracking monitor

PupilometersPsychogalvanometers

Voice-pitch analysers



Eye-tracking equipment records how the subject reads a

print ad or views a television commercial and how much

time is spent looking at various parts of the stimulus.

In Physiological terms, the gaze movement of a viewer’s

eye is measured with this instrument.

The device track eye movements with invisible infrared

light beams. The light reflects off the eye and the eye-

movement data are recorded while another tiny video

camera monitors which magazine page is being perused.

The data are analysed by computer to determine which

components in an ad were seen and which were

overlooked.



Other physiological observation techniques are based on a commonprinciple that:

Adrenaline is released when the body is aroused. This hormonecauses the heart to enlarge and to beat harder and faster. Thesechanges increase the flow of blood to the fingers and toes. The bloodvessels dilate, and perspiration increases, affecting the skin’s electrical conductivity.

Other physical changes following the release of adrenaline include:

Dilation of the pupils

More frequent brain wave activityHigher skin temperature

Faster breathing etc.

Methods that measure these and other changes associated with

arousal can apply to a variety of marketing questions, such assubjects’ reactions to advertising messages or product concepts.



Pupilometer

Observes and records changes in the diameter of a subject’s

pupils.

This method of research is based on the assumption thatincreased pupil size reflects positive attitudes toward and interest

in the advertisement.

Psychogalvanometer

Measures galvanic skin response (GSR), a measure of involuntary

changes in the electrical resistance of the skin.

This device is based on the assumption that physiological

changes, such as increased perspiration, accompany emotionalreactions to advertisements, packages, and slogans.

Excitement increases the body’s perspiration rate, which

increases the electrical resistance of the skin.

The test is an indicator of emotional arousal or tension.



Voice-pitch analyzers

A relatively new physiological measurement technique

that gauges emotional reactions as reflected in

physiological changes in a person’s voice.

Abnormal frequencies in the voice caused by changes in

the automatic nervous system are measured with

sophisticated, audio adapted computer equipment.

This technique, unlike other physiological devices, does

not require the researcher to surround subjects with

mazes of wires or equipment.



Problems with these devices

No strong theoretical evidence supports the argument thatsuch a physiological change is a valid measure of futuresales, attitude change, or emotional response.

Another problem is the calibration (sensitivity of measuring devices). Identifying arousal is one thing but

precisely measuring levels of arousal is another.

Most of these devices are expensive.

The subjects are placed in artificial settings, such aswatching television in a laboratory rather than at home andthey know they are being observed.



There are many different ways to design an observation study,

depending on the objective of the study, the type of data

being collected, and the resources available for the study.

Following are five different features that you should consider

when designing the ideal observation study for your project:

Natural or Contrived

Disguised vs. Non-disguised Observation

Human vs. Mechanical Observation

Direct vs. Indirect Observation

Structured vs. Non-structured Observation



Natural or Contrived

•Conducting the study in a natural setting essentially means thatthe observer is simply observing the subjects in their "real life"

environments.•Because the observer has no way of influencing what thesubjects are doing, this method can be time consuming togather the information.

•Alternatively, the data that is collected in a natural setting does

have more accuracy in reflecting "real life" behavior rather than"contrived" behavior.

•A contrived setting is one where the specific situation beingstudied is created by the observer.

•The contrived setting offers the observer greater control over

the gathering of data and specifically will enable to gather theinformation more quickly and efficiently. However, it may bequestionable as to whether or not the data collected does trulyreflect a "real life" situation.



Disguised vs. Non-disguised Observation

•Disguised observation is made when subjects do not know they are being observed.

•Subjects tend to act more naturally and the data collected tends to reflect their truereactions.

•The primary concern with disguised observation is the ethical concern overrecording behavioral information that would normally be private or not voluntarilyrevealed to a researcher.

•However, if the researcher is simply observing a subject's behavior in a public settingthen by definition, their behavior is no longer private.

•Non-disguised observation takes place when the subjects know they are beingobserved.

•Using the non-disguised observation technique alone alleviates ethical concerns,however, since the subjects are aware that they are being watched, the advantagesof using the observational technique are neutralized and a survey technique wouldbe equally effective.

•There is one exception: the non-disguised approach offers the advantage of allowing

the researcher to follow up the observations with a questionnaire in order to getdeeper information about a subject's behavior.



Human vs. Mechanical Observation:

•Human observation is using human observers to collect

data in the study.

•Mechanical observation involves using various types of

machines to collect the data, which is then interpreted by

researchers.

The most commonly used and least expensive means of

mechanically gathering data in an observation study is a

video camera. A video camera offers a much more precise

means of collecting data than what can simply be recordedby a human observer.



Direct vs. Indirect Observation:

Direct observations involve looking at the actual behavior or

occurrence rather than a result of that occurrence, whichwould be an indirect observation.

For example, if one is interested in seeing how much candy

was purchased by a particular neighbourhood, one could

gather the information in one of the two following ways:

Direct observation: observe customers in a store and count

how many bags of candy they purchase.

Indirect observation: look through trash cans on garbageday to see how many empty candy bags are in each trash bin

Indirect observation tends to be used when the data cannot

be gathered through direct means, or when gathering the

data through direct observation tends to be too expensive.



Structured vs. Non-structured Observation:

•Structured observations are made when the data that is

being collected can be organized into clear categories or

groups so that the observer can record the data by simply

marking off or checking a category on an observation form.

•Non-structured observations are not looking for specificfacts or actions, but rather are capturing everything that

occurs.

Marketing Management Presentation - Observation Research

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