1. Primary Data Collection: Observation Chapter Five

2. Chapter Five Objectives Develop a basic understanding of observation research Learn the approaches to observation research Understand the advantages and disadvantages of observation research Explore the types of human observation Understand the types of machine observation and their advantages and disadvantages Explore the impact of scanner-based research on the marketing research industry Learn about observation research on the Internet Chapter Five

3. Systematic process Recording patterns of occurrences or behaviours Do not normally communicate with those being observed Conditions for Observation Research: Information must be either observable or inferable Behaviour should be repetitive, frequent, or predictable Behaviour must be relatively short in duration Nature of Observation Research Chapter Five

4. Natural vs. Contrived Open vs. Disguised Human vs. Machine Direct vs. Indirect Nature of Observation Research Chapter Five

5. You see what people actually do First-hand information; less prone to biases Data can be executed quickly and relatively accurately Electronic collection is more efficient than manual counts Clients can observe their customers along with the researcher Nature of Observation Research Chapter Five Advantages of Observation Research:

6. Only physical behaviour can be measured; can’t measure attitudes, beliefs, intentions, or feelings Not always a good representation of the general population; generally qualitative in nature Interpretation can be subjective depending on observation type May be expensive and time consuming Predictive analysis may be challenging Nature of Observation Research Chapter Five Disadvantages of Observation Research:

7. Ethnographic Research Study of human behaviour Done in a natural context Observe behaviours Need an “informant” Data is noted in field notes / journals Human Observation Chapter Five

8. Mystery shoppers: 1.Pose as customers 2.Shop at retailers (client’s and client’s competitors) 3.Collect data on customer-employee interactions 4.Also collect observation information 5.May also compare prices, displays, selection, availability, etc. Mystery Shoppers Chapter Five

9. Mystery shopper calls/contacts the business Uses a script with questions and notes the experience Mystery shopper visits the business Makes a quick purchase Little or no customer-employee interaction Mystery Shopping Levels Chapter Five Level 1 Level 2

10. Visit business for a more involved experience Includes a scripted scenario Gauges the customer-employee interaction Does not make a major purchase Discussion about the product or services will likely occur Visits business with in-depth knowledge about products Knowledge is used to test employees A purchase (and/or issues related to purchases) might be involved Mystery Shopping Levels Chapter Five Level 3 Level 4

11. Mystery shopping is done for the following reasons: 1.Measure employee training 2.Prepare for or monitor new competition 3.Comparison shopping 4.Recognize good employees 5.Build a profile of the shoppers’ patterns of behaviour Conducting Mystery Shopping Chapter Five

12. Other types of human observation: 1.One-way mirror observations 2.Audits Human Observation Chapter Five

13. Traffic Counters Physiological Measurement Devices fMRI EEG GSR Pupilometer Voice pitch analysis FACS Opinion and Behaviour Measurement Devices People Reader Scanner-Based Research Homescan Consumer Panel MarketTrack Machine Observation Chapter Five