1. Business Research Methods William G. Zikmund
Chapter 11:
Observation Methods

2. Chapter 11: Observation Methods
Types of Observed Phenomena
Advantages and Disadvantages of Observation
Types of Observation Techniques

3. 1. Types of Observed Phenomena
Physical actions
Verbal behavior
Expressive behavior
Spatial relations and locations
Temporal patterns
Verbal and pictorial records

4. Examples for Observed Phenomena
Phenomena Example
Human behavior or physical Shoppers (buyers) movement
action pattern in a store
Verbal behavior Statements made by
airline travelers who wait
in line
Expressive behavior Facial expressions, tone of
voice, and other form of
body language

5. Examples for Observed Phenomena
Phenomena Example
Spatial relations How close visitors at an
and locations art museum stand to paintings
Temporal patterns How long fast-food customers
wait for their order to be served
Physical objects What brand name items are
stored in consumers’ pantries
Verbal and Pictorial Bar codes on product packages
Records

6. 2. Advantages and Disadvantages of Observation
“YOU SEE, BUT YOU
DO NOT OBSERVE.”
Sherlock Holmes

7. 2.1. Benefits of Observing Human Behavior
Communication with respondent is not necessary
Data without distortions due to self-report (e.g.: without social desirability) Bias
No need to rely on respondents memory
Nonverbal behavior data may be obtained

8. Benefits of Observing Human Behavior
Certain data may be obtained more quickly
Environmental conditions may be recorded
May be combined with survey to provide supplemental evidence

9. 2.2. Limitations of Observing Human Behavior
Cognitive phenomena cannot be observed
Interpretation of data may be a problem (e.g. misinterpretation)
Not all activity can be recorded
Only short periods can be observed
Observer bias possible (e.g. selective perception)
Possible invasion of privacy

10. selective perception

11. selective perception

12. misinterpretation

13. 3. Types of Observation Techniques
Natural versus Contrived Observation
Direct versus Indirect Observation
Disguised versus Nondisguised Observation
Physical-trace evidence Observation
Mechanical Observation

14. 3.1.Natural versus Contrived Observation
Natural Observation:
Reactions and behavior observed as they occur naturally in real-life situations
A wide variety of companies are sending researchers to the field to observe consumers in their natural environment.
Natural observation is also suited for ethnographic research on foreign cultures.

15. Contrived Observation:
Environment artificially set up by the researcher.
Researchers are increasingly relying on computers to conduct simulated market testing.
Offers a greater degree of control
Speedy
Efficient
Less expensive
However, it may be questionable as to whether or not the data collected does truly reflect a "real life" situation.

16. 3.2. Direct versus Indirect Observation
Direct observation captures actual behavior or phenomenon of interest
Indirect observation consists of examining the results of the phenomenon.
can give only relatively crude or imprecise indications of a phenomenon
More efficient use of research time
More efficient use of research budget
May be the only way to get data from situations impractical to observe directly.

17. 3.3. Disguised versus Nondisguised Observation
Respondents are aware that they are being observed
Data may be contaminated by respondent-induced errors.
Data gathered through using disguised observation might not be as rich as those from nondisguised observation.

18. Disguised Observation Respondents are unaware they are being observed
Allows for monitoring of the true reactions of individuals.
Unethical if disguised observation monitors
Normally private behaviors
Behaviors that may not be voluntarily revealed to researchers.

19. Mystery shopping
popular disguised observational technique
Mystery shopper
Unknown to the retail establishment
Visits the store
Uses a structured script
Observes and records the shopping experience.

20. 3.4. Physical-trace evidence Observation
Wear and tear of a book indicates
how often it has been read
garbology - looking for traces of purchase patterns in garbage
detecting store traffic patterns by observing the wear in the floor (long term) or the dirt on the floor (short term)

21. 3.5. Types of Mechanical Observation
Eye-Tracking
Response Latency
Voice Pitch Analysis
People Meter
Psychogalvanometer
Monitoring Web Site Traffic

22. Eye Tracking Measures unconscious eye movements
Records how the subject actually reads or views an advertisement, product packaging, promotional displays, websites, etc.
Measures which sections attract customers' attention and how much time they spend looking at those sections  
Oculometers - what the subject is looking at
Pupilometers - how interested is the viewer (This device observes and records changes in the diameter of the subject’s pupils)

23. Voice Pitch Analysis
Measures emotional reactions through physiological changes in a person’s voice
Used to determine
how strongly a respondent feels about an answer
how much emotional commitment is attached to an answer.
Variations from normal voice pitch is considered a measure of emotional commitment to the question's answer.

24. Response Latency
It measures the speed with which a respondent gives a decision about a choice between alternatives
It records the decision time necessary to make this choice.
For instance: it can measure the effectiveness of an advertisement on brand preferences.
It assumes that a quick expression of brand preference indicates a stronger preference.

25. People Meter Electronic device to monitor television viewing behavior
who is watching
what shows are being watched.

26. Psychogalvanometer Measures galvanic skin response
Involuntary changes in the electrical resistance of the skin
Assumption: physiological changes accompany emotional reactions