1. Learning Objectives 1 Copyright © 2002 South-Western/Thomson Learning Primary Data Collection: Observation CHAPTER seven

2. Learning Objectives 2 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 3 5. To understand the types of machine observation and their advantages and disadvantages. 6. To explore the tremendous impact of scanner- based research on the marketing research industry.

4. Learning Objectives 4 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 To develop a basic understanding of observational research. The Nature of Observation Research

5. Learning Objectives 5 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 To understand the advantages and disadvantages of observational research. The Nature of Observation Research

6. Learning Objectives 6 To learn about the various types of firms and their functions in research. The Evolving Structure Corporate Marketing Research Departments The Marketing Research Industry The Internet Impact Users of Marketing Research Strategic Partnering and Global Research Observation Situations Observers in supermarkets. Purpose: comparative shopping SituationExample People watching people Table 7.1 People watching phenomena Machines watching people Machines watching phenomena Observer stationed at intersection counts traffic. Video-cameras record consumers selecting frozen foods to determine popularity of choice. Traffic-counting machines monitor the flow of traffic through an intersection.

7. Learning Objectives 7 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 To explore the types of human observation. Human Observation

8. Learning Objectives 8 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 Measuring employee training: most common use of mystery shoppers. To explore the types of human observation. Human Observation

9. Learning Objectives 9 One Way Mirror Observations Clients to observe the group discussion Shopper Patterns and Behavior Tracing the flow of shoppers Audits Verification of the sale of a product Retail audits Wholesale audits To explore the types of human observation. Human Observation

10. Learning Objectives 10 Traffic Counters Machine-based observation Physiological Measurement EEG: electroencephalogram GSR: galvanic skin response Pupilometer: pupil dilation Voice Pitch Analysis: measures emotion Opinion and Behavior Measurement Radio Listenership Track To describe the types of machine observation. Machine Observation

11. Learning Objectives 11 People Reader Rapid Analysis Measurement (RAMS) The People Meter Scanner Based Research BehaviorScan shopping with an ID card Impact of new advertising? Minimize media costs? Change ad frequency? To describe the types of machine observation. Machine Observation

12. Learning Objectives 12 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 InfoScan Reviews Provide aggregate data on 266 InfoScan consumer package goods product categories To describe the types of machine observation. Machine Observation

13. Learning Objectives 13 To learn about the various types of firms and their functions in research. The Evolving Structure Corporate Marketing Research Departments The Marketing Research Industry The Internet Impact Users of Marketing Research Strategic Partnering and Global Research Table 7.2 How InfoScan Works IRI Computers Neural Network Quality Control System Completed databases transferred to: hard copy magnetic tape diskette 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

14. Learning Objectives 14 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 To describe the types of machine observation. Machine Observation

15. Learning Objectives 15 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. To explore the impact of scanner research on the marketing industry. Observation Research on the Internet

16. Learning Objectives 16 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 To explore the impact of scanner research on the marketing industry. Observation Research on the Internet

17. Learning Objectives 17 The Nature of Observation Research Human Observation Observation Research on the Internet Machine Observation SUMMARY

18. Learning Objectives 18 The End Copyright © 2002 South-Western/Thomson Learning