Observation in Marketing Research

WHAT IS OBSERVATION IN MARKETING RESEARCH?

The marketing research technique of observation generally involves watching how people or consumers behave in their natural setting.[1] These observations can be done in person or mechanically and can be very effective for gathering primary data.

In contemporary western society mechanical observation is becoming more frequently used. In malls and shopping centers a store owner may video tape a section on their store or a point of purchase display and study peoples reactions or attention to the display.[1] The observations can be analyzed for trends and areas of improvement to increase sales. Common areas of observation for collecting primary data may include: [2]

demographic characteristics

psychological characteristics

attitudes and opions

awareness or knowledge (of a subject or product)

motivation

behaviour

This technique can be very effective in all of these areas, however generalizations should not be made based purely on observations.

ADVANTAGES

The first important advantage of observation research is that often the respondent or consumer is unaware that they are being observed, allowing their behavior to be observed naturally. The lack of interaction minimizes data distortion. When using other methods of research such as surveys, focus groups, and experimental research people often act differently when they know they are being observed or there are unconscious motivations to tell the interviewer what they think the interviewer wants to hear (or in some cases what the interviewer does not want to hear).[1] Another advantage of direct observation is that it can be used regardless of whether or not the respondent is willing to report or not (Ethics of this will be further discussed later). In field surveys or interviews you will come across many people unwilling to provide you with information, but this problem does not occur in the case of observation. Furthermore, observation studies can be relatively cost effective and produce valid results.

DISADVANTAGES

Despite the key advantages there are also some downfalls to observation marketing research. Firstly it can be very time consuming and involve large amounts of inactivity. Also observations may lack depth and qualitative richness. Furthermore, observations can also be inconclusive and can not determine a person/consumer's attitude or opinion on a certain subject or their knowledge of a subject. An observer must also work in an ethical manner, failure to do so may result in legal action.

FIVE METHODS TO CONSIDER FOR AN OBSERVATION STUDY

1) Natural vs. Contrived Settings: Completing your study in a natural setting is observing your subject in their "real life" environment.[4] This can be time consuming but will likely produce the best results because there is no interference with the subjects behavior. On the other hand a contrived setting is one which the observer has created the setting for the research to take place. This can produce results for your study faster but they may not be as valid because the setting is unnatural and may alter the behavior of the subject.

2) Disguised vs. Non-disguised Observation: A disguised observation is when the subject does not know they are being observed. Similar to a natural setting, the advantage is you observe the subject acting naturally. A disguised observation should only be conducted in a public setting to observe public behavior. Observing someones private behavior is basically spying which is unethical and creepy, don't do it! A non-disguised study is when the subject knows they are being observed which is clearly more ethical but may skew the results. One benefit of this technique is you may be able to get a follow up interview with the subject to get further information on the observations for a deeper understanding.

3) Human vs. Mechanical Observation: As previously mentioned, human observation is when a person does the observing. Mechanical is when machines or cameras do the observing then researchers analyze the results. Video cameras are frequently used and are very effective. They are able to capture the results accurately and also the data can be saved for further review compared to just ones memory of the observation.

4) Direct vs. Indirect Observation: Direct is observing an actual event or behavior for the study. Indirect involves studying the result of a particular occurrence. If one was to study how much coffee is purchased from the cap college cafeteria a direct study would count how many people buy a coffee. Indirect would count how many coffee cups are in the garbage cans around the campus.

5) Structured vs. Non-structured Observation: Structured studies are conducted with distinct categories and areas of focus and the observer can simply check off a category. Non-structured studies focus on capturing everything that occurs.

ETHICS

Observation studies must always be carried out using proper ethical behavior and respect for the subject being studied. An observer must respect the act of CANADIAN CHARTER OF RIGHTS AND FREEDOMS. Also for specific studies or studies of private behavior the observer must always have consent from the subject and a signed waiver is a common and professional practice. Studies of general public behavior can be conducted without consent as long as it is general information and the studies will not intrude on any personal information of the subject. Also see "further reading" for more information on ethical behavior in marketing research.