1. Primary Data Collection:
Observation
CHAPTER Six
Copyright © 2004
John Wiley & Sons, Inc.

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 understand the types of machine observation and their advantages and disadvantages.
To explore the tremendous impact of scanner-based research on the marketing research industry.
To learn about observation research on the internet

4. The Nature of Observation Research
To develop a basic understanding of observational 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
Approaches to Observation Research
Natural Versus Contrived Situations
Open Versus Disguised Observation

5. Observation Situations
To learn about the various types of firms and their functions in research.
Situation
Example
Table 6.1
The Evolving
Structure
People watching people
Observers in supermarkets. Purpose: comparative shopping
Corporate Marketing
Research Departments
People watching phenomena
Observer stationed at intersection counts traffic.
The Marketing
Research Industry
Video-cameras record consumers selecting frozen foods to determine popularity of choice.
The Internet Impact
Machines watching people
Users of Marketing
Research
Machines watching phenomena
Strategic Partnering
and
Global Research
Traffic-counting machines monitor the flow of traffic through an intersection.

6. The Nature of Observation Research
To understand the advantages and disadvantages of observational research.
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

7. Ethnographic Research From anthropology
Human Observation
To explore the types of human observation.
Ethnographic Research
From anthropology
Recording people in their natural settings
Mystery Shoppers
To gather observational data about a store
To collect data about customer/employee interactions

8. Four variations of mystery shopper: Level 1 - a mystery telephone call
Human Observation
To explore the types of human observation.
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

9. Measuring employee training: most common use of mystery shoppers.
Human Observation
To explore the types of human observation.
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

10. Preparing for New Competition Evaluation of the strengths and weakness
Human Observation
To explore the types of human observation.
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

11. One Way Mirror Observations Clients to observe the group discussion
Human Observation
To explore the types of human observation.
One Way Mirror Observations
Clients to observe the group discussion
Shopper Patterns and Behavior
Tracing the flow of shoppers

12. Machine-based observation Physiological Measurement
Machine Observation
To describe the types of 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

13. Opinion and Behavior Measurement Radio Listenership Track MOBILTRAK
Machine Observation
To describe the types of machine observation.
Opinion and Behavior Measurement
Radio Listenership Track
MOBILTRAK
Peole Reader
Rapid Analysis Measurement (RAMS)
The People Meter

14. Scanner Based Research Electronic Monitoring Tools Television Meters
Machine Observation
To describe the types of machine observation.
Scanner Based Research
Electronic Monitoring Tools
Television Meters
Laser Scanners
Behavior Scan
- Shopping with an ID card
- Answer Critical Marketing Questions:
- Impact of new advertising?
- Minimize media costs?
- Change ad frequency?

15. InfoScan Tracking Service All store scanner data system
Machine Observation
To describe the types of machine observation.
InfoScan Tracking Service
All store scanner data system
More than 31,000 stores
InfoScan Tracking
to benchmark retailer performance against other retailers in same area

16. Table 6.2 How InfoScan Works
To learn about the various types of firms and their functions in research.
UPCs scanned
Sent to IRI
Panel members present ID card at checkout
Sent to IRI
IRI field personnel visually surveys stores
Sent to IRI
Panel members are selected for television monitoring
Sent to IRI
The Evolving
Structure
Corporate Marketing
Research Departments
The Marketing
Research Industry
The Internet Impact
IRI Computers
Neural Network Quality Control System
Completed databases transferred to:
hard copy
magnetic tape
diskette
Users of Marketing
Research
Strategic Partnering
and
Global Research

17. A multi-outlet panel of 55,000 households IRI’s Software
Machine Observation
To describe the types of machine observation.
Shopper’s Hotline
A multi-outlet panel of 55,000 households
IRI’s Software
Decision-making software
The Future of Scanning
Will analyze individual household consumption

18. Observation Research on the Internet
To explore the impact of scanner research on the marketing industry.
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
Virgin Entertainment
Gives free Internet appliances to customers willing to be tracked online.

19. Observation Research on the Internet
To explore the impact of scanner research on the marketing industry.
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
Digimarc Corporation
Plants codes in advertisements to send reader to product Web sites.
Forbes Magazine
Wired

20. SUMMARY
The Nature of Observation Research
Human Observation
Machine Observation
Observation Research on the Internet

21. The End
Copyright © 2004, John Wiley & Sons, Inc.