1. Primary Data Collection:
Observation
CHAPTER
six
Copyright © 2000 South-Western College Publishing Co.

2. Learning Objectives
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.

3. Learning Objectives
5. To describe the types of machine observation and their advantages and disadvantages.
6. To explore the tremendous impact scanner research has had on the marketing research industry in the past few years.

4. Observation Research Defined Watching what people do
To learn the approaches to observational research.
THE NATURE OF OBSERVATION RESEARCH
Observation Research Defined
Watching what people do
Conditions for Using Observation
the information must be observable
the behavior must be repetitive
short duration
Approaches to Observation Research
Natural Versus Contrived Situations
Open Versus Disguised Observation

5. Structured Versus Unstructured Human Versus Machine Observers
To understand the advantages and disadvantages.
Structured Versus Unstructured
Human Versus Machine Observers
Direct Versus Indirect
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

6. To gather observational data about a store
To explore the types of human observation.
HUMAN OBSERVATION
Mystery Shoppers
To gather observational data about a store
To collect data about customer/employee interactions
Level 1 - a mystery telephone call
Level 2 - a quick purchase, little or no interaction

7. Level 3 - using a script, initiates a conversation
To explore the types of human observation.
HUMAN OBSERVATION
Level 3 - using a script, initiates a conversation
Level 4 - requires excellent communication and knowledge of product

8. One Way Mirror Observations
To explore the types of human observation.
HUMAN OBSERVATION
One Way Mirror Observations
Allows clients to observe the group discussion as it unfolds
Shopper Patterns and Behavior
Tracing the flow of shoppers through the store
Content Analysis
To analyze written material (advertising copy) into meaningful units using rules

9. The researcher becomes part of the group he is studying
To explore the types of human observation.
HUMAN OBSERVATION
Humanistic Inquiry
The researcher becomes part of the group he is studying
An immersion process
Audits
An examination and verification of the sale of a product
retail audits: sale to final customer
wholesale audit: warehouses to retailers

10. Physiological Measurement EEG: electroencephalogram
To explore the types of machine observation.
MACHINE OBSERVATION
Traffic Counters
Physiological Measurement
EEG: electroencephalogram
GSR: galvanic skin response
Pupilometer: pupil dilation
Voice Pitch Analysis: to measure emotion
Opinion and Behavior Measurement
People Reader: reading habits

11. The People Meter Controversy: measures national TV audiences
To explore the types of machine observation.
MACHINE OBSERVATION
Rapid Analysis Measurement (RAMS): Turn dial when feeling more favorable
The People Meter Controversy:
measures national TV audiences
advertising losses
Scanner Based Research
Television meters and laser scanners which read the UPC codes on products and produce instantaneous information on sales

12. BehaviorScan: shopping with an ID card
To explore the impact of scanner research.
MACHINE OBSERVATION
BehaviorScan: shopping with an ID card
InfoScan: consumer packaged goods
1. Advertising Weight Testing
2. Copy Testing
IRI’s Software: optimal use of retail shelf space
Other IRI software Programs:
1. DataServer Analyzer:
A full range of analysis and reporting

13. analysis paths and predefined reports to determine causal factors
To explore the impact of scanner research.
MACHINE OBSERVATION
2. DataServer Partners
data-mining
analysis paths and predefined reports
to determine causal factors
3. DataServer Targeter
uses store level scanner and demographic data to estimate target sales
4. QuickStart
helps promote profitable trade promotion

14. Scanner Researchers ( behaviorists)
To explore the impact of scanner research.
MACHINE OBSERVATION
Behavioral Research Versus Attitude Research - The Growing Chasm in Marketing Research
Scanner Researchers ( behaviorists)
Quantitative, mathematical modelers, statisticians
Interested in what consumers do
Attitudinal Researchers
Scanner data too sterile
Must know feelings/attitudes

15. Will be able to communicate with personal computers in the home
To explore the impact of scanner research.
MACHINE OBSERVATION
The Future of Scanning
Scanner Plus:
Will be able to communicate with personal computers in the home
To analyze an individual household's consumption and offer menu projections and shopping lists
Keep track of coupons
Maintain a promotion bank

16. The End
Copyright © 2000 South-Western College Publishing Co.