1. Chapter Six Copyright © 2006 John Wiley & Sons, Inc. Primary Data Collection: Observation

2. John Wiley & Son, Inc 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 Learning Objectives

3. John Wiley & Son, Inc 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 7.To learn about observation research on the Internet Learning Objectives

4. John Wiley & Son, Inc 4 Exhibit 6.1 People watching people People watching phenomena Machines watching people Machines watching phenomena Observers in supermarkets. Purpose: comparative shopping 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. Observation Situations

5. John Wiley & Son, Inc 5 To develop a basic understanding of observational research. The Nature of Observation 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

6. John Wiley & Son, Inc 6 Approaches to Observation Research –Natural Versus Contrived Situations –Open Versus Disguised Observation –Structured Versus Unstructured –Human Versus Machine Observers –Direct Versus Indirect To learn the approaches to observation research. The Nature of Observation Research

7. John Wiley & Son, Inc 7 To understand the advantages and disadvantages of observational research. 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

8. John Wiley & Son, Inc 8 To explore the types of human observation. Human Observation Ethnographic Research –From anthropology –Recording people in their natural settings –Observation of behavior and physical setting coupled with depth interviews

9. John Wiley & Son, Inc 9 To explore the types of human observation. Mystery Shoppers –To gather observational data about a store –To collect data about customer/employee interactions 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 Human Observation

10. John Wiley & Son, Inc 10 To explore the types of human observation. Mystery Shopper –Measuring employee training: most common use of mystery shoppers. 1.evaluate existing customer service 2.evaluations analyzed and training program developed 3.shoppers return to evaluate the customer service post-training Human Observation

11. John Wiley & Son, Inc 11 To explore the types of human observation. Mystery Shopper –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 Human Observation

12. John Wiley & Son, Inc 12 To explore the types of human observation. One Way Mirror Observations –Clients to observe the group discussion –Used for focus groups –Used to observe users of product –Used to observe children at play Audits –Examination and verification of the sale of a product Retail Audits Wholesale Audits Scanner Based Data Human Observation

13. John Wiley & Son, Inc 13 To understand the types of machine observation their advantages and disadvantages. 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

14. John Wiley & Son, Inc 14 Opinion and Behavior Measurement –People Reader Simultaneously records both the reading material and the readers eyes –Rapid Analysis Measurement (RAMS) Hand-held device records respondents feelings by their turning a dial –GPS Technology Tracks motorist and pedestrian exposure to outdoor advertising –The People Meter Used to measure national TV audiences that transmits demographic information overnight To understand the types of machine observation their advantages and disadvantages. Machine Observation

15. John Wiley & Son, Inc 15 To explore the tremendous impact of scanner-based research on the marketing research industry. Scanner Based Research –Laser Scanners—read UPC codes on products and produces instantaneous information on sales – Behavior Scan Shopping with an ID card Tracks each household’s purchases item by item, over time Panels split to test different products and ad In-store variables may also be tested Machine Observation

16. John Wiley & Son, Inc 16 Scanner Based Research –Behavior Scan allows marketing managers to answer critical marketing questions Impact on new advertising program How to minimize incremental media costs Do sales change if ad frequency changed Changes in sales for a year of new product Sales cannibalized from existing products by new product To explore the tremendous impact of scanner- based research on the marketing research industry. Machine Observation

17. John Wiley & Son, Inc 17 –InfoScan Custom Store Tracking All store scanner data system More than 32,000 stores –InfoScan Syndicated Store Tracking to benchmark retailer performance against other retailers in same area To explore the tremendous impact of scanner- based research on the marketing research industry. Machine Observation

18. John Wiley & Son, Inc 18 To learn about observation research on the Internet Observation Research on the Internet Clickstream data –Steps and behaviors of consumers on their way to information, entertainment, and purchases Can be supplemented with other customer data 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

19. John Wiley & Son, Inc 19 To learn about observation research on the Internet 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 Conversation Trackers –Creates a summary of comments in newsgroups, listserves, Webbased message boards and big corporate email threads Observation Research on the Internet

20. John Wiley & Son, Inc 20 SUMMARY –The Nature of Observation Research –Human Observation –Machine Observation –Observation Research on the Internet

21. John Wiley & Son, Inc 21 The End Copyright © 2006 John Wiley & Son, Inc