©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 8 Observation

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2 OoM

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. LEARNING OUTCOMES 1.Discuss the role of observation as a marketing research tool 2.Know the difference between direct and contrived observation 3.Identify ethical issues particular to research using observation 4.Explain the observation of physical objects and message content 5.Describe major types of mechanical observation 6.Summarize techniques for measuring physiological reactions 3

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Neuroco Peers into the Consumer’s Brain Neuromarketing Quantified electroencephalography (QEEG) 4

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Observation in Marketing Research Observation The systematic process of recording actual behavioral patterns of people, objects, and events as they happen. Can be a useful part of either qualitative or quantitative research. 5

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. EXHIBIT Different Types of Observable Behaviors Tracked by Marketing Researchers 6 8.1

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Limitations of Observation Cannot observe cognitive phenomena such as attitudes, motivations, and preferences. Observation can describe the event that occurred but cannot explain why the event occurred. Observation period generally is short because long periods are expensive or even impossible. 7

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Feel Like You Are Alone? Think Again Way-finding refers to the study of human movements within an environment. Research showed that customers are attracted to eye-catching but small items. These items can lead them to higher-priced items! 8

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. The Nature of Observation Studies Unobtrusive No communication with the person being observed is necessary so that he or she is unaware of being an object of research. Visible Observation Observation in which the observer’s presence is known to the subject. Hidden Observation Observation in which the subject is unaware that observation is taking place. 9

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Observation of Human Behavior Communication with respondent is not necessary Data not distorted by self-report bias (e.g., without social desirability) No need to rely on respondents’ memory Nonverbal behavior data may be obtained Certain data may be obtained more quickly Environmental conditions may be recorded May be combined with survey to provide complementary evidence 10

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. EXHIBIT Observing and Interpreting Nonverbal Communication

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Observation of Human Behavior Complementary Evidence Observation provides an additional source of information that helps explain other research findings. Response Latency The amount of time it takes to make a choice between two alternatives; used as a measure of the strength of preference. 12

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Direct and Contrived Observation Direct Observation A straightforward attempt to observe and record what naturally occurs. Contrived Observation Observation in which the investigator creates an artificial environment in order to test a hypothesis. Environment may increase the frequency of certain behavior patterns to be observed. 13

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Errors Associated With Direct Observation Recording events subjectively Observer Bias A distortion of measurement resulting from the cognitive behavior or actions of a witnessing observer. Recording events inaccurately Interpreting observation data incorrectly 14

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Clean as We Say, or Clean as We Do? 91% of adults say they always wash their hands after using a public restroom But observational research reveals only 77% actually do! 15

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. EXHIBIT When is Observation Ethical?

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Observation of Physical Objects Artifacts Things that people made and consumed within a culture that signal something meaningful about the behavior taking place at the time of consumption. Inventories Count and record physical inventories through retail or wholesale audits. Pantry audit Content Analysis The systematic observation and quantitative description of the manifest content of communication. 17

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Mechanical Observation Television and Radio Monitoring Computerized mechanical observation used to obtain television ratings. Monitoring Web site Traffic Hits and page views Unique visitors Click-through rate (CTR) Proportion of people exposed to an Internet ad who actually click on its hyperlink to enter the Web site; click- through rates are generally very low. Conversation volume A measure of the amount of Internet postings that involve a specific name or term. 18

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. EXHIBIT Using Web Stat Providers

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Mechanical Observation (cont’d) Scanner-Based Research Scanner-based consumer panel A type of consumer panel in which participants’ purchasing habits are recorded with a laser scanner rather than a purchase diary. Camera Surveillance Smartphones 20

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Measuring Physiological Reactions Eye-Tracking Monitor Records how the subject actually reads or views an advertisement. Measures unconscious eye movements. Pupilometer Observes and records changes in the diameter of the subject’s pupils. Voice Pitch Analysis Measures emotional reactions through physiological changes in a person’s voice. 21

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Measuring Physiological Reactions Psychogalvanometer Measures galvanic skin response—involuntary changes in the electrical resistance of the skin. Assumes that physiological changes accompany emotional reactions. Neurological Devices Magnetic resonance imaging (MRI) A machine that allows one to measure what portions of the brain are active at a given time. 22