McDaniel & Gates – Marketing Research, 9th Edition Instructor’s Manual
CHAPTER 8
Primary Data Collection: Observation
LEARNING OBJECTIVES
1. To develop a basic understanding of observation research.
3. To understand the advantages and disadvantages of observation research.
5. To understand the types of machine observation and their advantages and disadvantages.
7. To learn about observation research on the Internet.
KEY TERMS
Observation research
Open observation
Disguised observation
Garbologists
Ethnographic research
Mystery shoppers
One-way mirror observation
Audit
InfoScan Custom Store Tracking
Traffic counters
Electroencephalograph (EEG)
Galvanic skin response (GSR)
Pupilometer
People reader
Portable people meters
CHAPTER SCAN
This chapter examines the systematic process of recording patterns of occurrences or behaviors
without questioning or normally communicating with the people involved. For observation to be
(1) natural versus contrived situations, (2) open versus disguised observation, (3) human versus
machine observers, and (4) direct versus indirect observation.
The biggest advantage of observation research is that researchers can see what people actually do
CHAPTER OUTLINE
1. Nature of Observation Research
I. Observation Research
A. Observation Research Defined
2. Human Observation
I. Ethnographic Research
A. Ethnographic Research Defined
B. Advantages of Ethnographic Research
3. Machine Observation
I. Traffic Counters
1. Electroencephalograph (EEG)
3. Eye Tracking
4. Facial Action Coding Service (FACS)
A. Gender and Age Recognition Systems
B. People Reader
4. Observation Research on the Internet
5. Observation Research and Virtual Shopping
I. Virtual Shopping Technology
6. Summary
CHAPTER SUMMARY
1. NATURE OF OBSERVATION RESEARCH
I. Observation Research
A. Observation Research Defined–the systematic process of recording the behavioral patterns
See Exhibit 8.1 Observation Situations (pg. 236)
II. Conditions for Using Observation
A. Three conditions Needed to Conduct Observation Research:
1. Must be either observable or inferable from behavior that is observable
3. Must be of relatively short duration.
1. Natural–those being observed should have no idea they are under observation. The observer
plays no role in the behavior of interest
2. Contrived–recruiting people to participate in an activity so that their behavior can be studied
a. allows the researcher to better control extraneous variables that might have an impact on a
B. Open versus Disguised Observation
1. Open–Create bias, if people know they are being observed, they may behave differently and
2. Disguised–process of monitoring people who do not know they are being watched–common
1. Human–actual person is watching the situation
2. Machine– observation can be done less expensively, more accurately, or more readily–traffic-
counting devices, movie cameras and audiovisual equipment, electronic scanners–can provide
1. Garbologists–are archaeologists who sort through people’s garbage to analyze household
consumption patterns
2. Pictures – used to see what people have done in certain situations (e.g., photographing
kitchens)
See Exhibit 8.2 Pictures Can Help Understand Global Consumers (pg. 238)
IV. Advantages of Observation Research
A. Advantages
2. Some forms of data are gathered more quickly and accurately by observation
3. Scanners record purchases more accurately and is more efficient than asking a shopper to
enumerate them
V. Disadvantages of Observation Research
A. Disadvantages
2. Only public behavior is observed not private behavior
4. Can be time-consuming and costly if the observed behavior occurs rather infrequently
2. HUMAN OBSERVATION
I. Ethnographic Research
1. Ethnographers, as “participant observers,” can use their intimacy with the people they are
1. Steps Needed to Conduct Ethnographic Research
a. First step–find an informant–a participant who can introduce the researchers to a particular
group of people and explain the meaning behind the rituals, language, and general goings on
b. Second step–data is recorded in the form of field notes–photographs, audio, video, and
collection of artifacts when possible are collected
c. Third step–analyze and interpret all of the data collected to find themes and patterns of
meaning
d. Triangulation–process of checking findings against what other people say and against similar
research already conducted
See Global Research: Ethnography Is an Enriching Process (p 221)
Examples of insights delivered through use of ethnography:
• No person can fully report his or her own unconscious behavior. During a home interview in
Venezuela, a researcher noticed that the interviewee’s bathroom contained body soap where
bits of body soap had been compressed onto new soap when they had become too small.
None of the previous interviewees had reported such behavior but all subsequent participants
acknowledged doing the same when asked. Hence the client abandoned its plan to change the
shape of its soap.
a simple sheet correlating the different degrees of gray with increasingly adverse
consequences for the truck’s performance.
See Practicing Marketing Research: Taking Ethnography Online (pg. 223-224)
• Participants might be asked to take digital pictures related to the focus of the study (it could
be photos of their refrigerators, pantries, backyards, or bedrooms).
Discussion Questions
1. Which do you think reveals the most insights—traditional ethnography or online ethnography?
2. Which is most difficult to conduct?
3. Would you rather participate in an online or traditional ethnographic study?
II. Mystery Shoppers
A. Mystery Shoppers Defined–used to gather observational data about a store (e.g., are the
shelves neatly stocked?) and to collect data about customer–employee interactions; they may
also compare prices, displays, and the like
B. Four Basic Levels of Mystery Shopping
1. Level I–conducts mystery telephone call
2. Level 2–visits an establishment and makes a quick purchase; little or no customer–employee
3. Level 3–visits an establishment and, using a script or scenario, initiates a conversation with a
service and/or sales representative
4. Level 4–a visit that requires excellent communication skills and knowledge of the product–
home loan, purchasing a new car
See Practicing Marketing Research: Undercover with a Hotel Spy (pg. 226)
The Windsor Court Hotel in New Orleans has been invaded by a mystery shopper who is
determined to find something wrong with the service or quality of the hotel. The Windsor Court
is a member of the Preferred
Discussion Questions:
1. Do you think that mystery shopping is beneficial to the Windsor Court? Why?
2. Do you think that Mr. Richey’s observations would be meaningful to Motel 6? Why?
C. Objectives of the Mystery Shopper
1. Measuring Employee Training–done in three phases
2. Preparing for the New Competition–evaluation of the strengths and weakness which could
then be addressed in a bid to stave off new competition
3. Monitoring the Competition–comparing one’s own store with that of a competitors
4. Recognizing Good Employees–recognizing employees who provide customers with
outstanding service builds employee morale and better customer satisfaction
III. One-Way Mirror Observations
A. One-Way Mirror Observations Defined–allows clients to observe the respondent/subject to
be observed
B. Use of One-Way Mirrors in Observation Research
1. Used for focus groups
3. Used to observe children at play
McDaniel & Gates – Marketing Research, 9th Edition Instructor’s Manual
3. MACHINE OBSERVATION
2. Outdoor advertisers use this information to determine place of a bill board or the number of
exposures per day
II. Physiological Measurement Devices
A. Devices Used to Measure Activation—The sight of products or advertisement can activate
1. Electroencephalograph (EEG)–measures electrical potentials on the scalp and generates a
record of electrical activity in the brain.
a. Most versatile and sensitive procedure for detecting arousal, however, the researcher maybe
2. Galvanic Skin Response (GSR)–measures changes in the electric resistance of the skin
3. Eye Tracking– measures the rapid motion of viewers’ eyes—the subtle eyeball vibrations that
increase when we see something of interest.
See Exhibit 8.3 Eye Tracking at Work (p 229)
4. Facial Action Coding Services (FACS)–43 muscle movements responsible for all human
facial expression have been identified
a. 3,000 combinations of the muscle movements have been categorizing and the emotions they
convey
McDaniel & Gates – Marketing Research, 9th Edition Instructor’s Manual
b. Using electrodes attached to the side of the mouth and above the eyebrow will measure appeal,
the electrodes attached to two fingers will measure “impact”
See Exhibit 8.4 Which One is Blowing Smoke? (p 230)
A. Gender and Age Recognition Systems
NEC Electronics of Japan has developed technology to recognize gender and approximate age of
B. People Reader–a device that looks like a lamp. It simultaneously records both the reading
material and the readers’ eyes.
1. 40 percent of all readers either start from the back of a magazine or fan a magazine for
interesting articles and ads
3. In most magazines 35 percent of each of the ads receives less than two seconds’ worth of
voluntary examination
5. Brand confusion is caused by ads that hide the name of the advertiser and do not show a close
up of the product
6. A strong ad that is above average in stopping power and communication will work regardless
of which section in the magazine it is placed
C. Television Audience Measurement and the Portable People Meter
The trend is away from traditional people meters to direct measurement from “set–top boxes”
I. The Portable People Meter
Device worn by people that measures the radio and TV programming to which the participant
was exposed during the day.
D. Symphony IRI Consumer Network
The Symphony IRI Consumer Network is a continuous household purchase panel that receives
purchasing data from the National Consumer Panel (NCP), a joint venture between Symphony
4. OBSERVATION RESEARCH ON THE INTERNET
I. comScore
comScore approaches Internet tracking using a different methodology. The firm has created a
panel of over 2 million Internet users who have given comScore permission to capture their
browsing and purchase behavior.
II. Scraping
The researcher selects a number of search terms, much like a search engine, and then the tool
5. OBSERVATION RESEARCH AND VIRTUAL SHOPPING
I.Virtual Shopping Technology
Advances in computer technology allow researchers to simulate an actual retail store
A. Advantages
Computer-simulated shopping environments offer a number of advantages over older research
methods. First, unlike focus groups, concept tests, and other laboratory approaches, a virtual
B. Collaboration with Retailer
Kimberly-Clark’s virtual testing lab uses a U-shaped floor-to-ceiling screen that re-creates in
vivid detail interiors of the big retailers that sell the company’s product and combines it with a
6. SUMMARY
QUESTIONS FOR REVIEW AND CRITICAL THINKING
1. You are charged with the responsibility of determining whether men are brand-
conscious when shopping for racquetball equipment. Outline an observation research
procedure for making that determination.
Invite a group of men who are known to play racquetball to a room equipped with a one-way
mirror. Let them know that they are going to discuss racquetball equipment. Have several brands
of equipment in the room. Have a discussion guide available to prompt the questions if
2. Fisher-Price has asked you to develop a research procedure for determining which of its
prototype toys is most appealing for 4- and 5-year-olds. Suggest a methodology for making
this determination.
Put three or four children in a room with the toys. Observe them from behind a one-way mirror.
Count the number of times a child goes back to a toy or the length of time the children play with
each one. Since children’s’ attention spans can be brief, those toys which are played with for the
3. What are the biggest drawbacks of observation research?
4. Compare and contrast the advantages and disadvantages of observation research with
those of survey research.
With survey research, the researcher can collect a large quantity of data on many different
5. It has been said that “people buy things not for what they will do, but for what they
mean.” Discuss this statement in relation to observation research.
People often buy objects for social status, prestige, for what others think about their purchases,
and what it does for their self-concept. If we assume this hypothesis to be correct, then
6. You are a manufacturer of a premium brand of ice cream. You want to know more
about your market share, your competitors’ pricing, and the types of outlets where your
product is selling best. What kind of observation research data would you purchase? Why?
7. How might a mystery shopper be valuable to the following organizations: (a) JetBlue
Airlines, (b) Macy’s Department Store, (c) H&R Block.
JetBlue Airlines – A mystery shopper could find out competitor’s pricing, flight schedule, types
of services rendered on specific short and long flights, compare first class service and coach
service, and check for punctuality. The mystery shopper could also judge JetBlue’s level of
service in comparison with the competitors.
8. Use ethnographic research to evaluate the dining experience at your student center.
What did you learn?
9. Do you think that tracking beacons should be outlawed? Why or why not?
10. Describe how tracking research can benefit an online retailer.
Tracking allows the recording and analysis of consumer behavior as they surf the Web. What
sites did they visit? How long did they view each screen? What links did they click? Did they go
back to previous screens or did they tend to press ahead in their surfing? We can learn a lot about
11. Do you think that virtual shopping will replace other forms of marketing research?
Why or why not?
12. Divide the class into teams of five. Each team should select a different retailer (services
are okay for mystery shopping.) Two members of the team should prepare a list of 10 to 15
questions to be answered. The remaining three members of the team should become
mystery shoppers with the goal of answering the questions created by the team. After the
shopping is complete, the team should combine its findings and make a report to the class.
Results will vary.
WORKING THE NET
1. Go to www.symphonyiri.com and www.nielsen.com and report what types of observation
research are being conducted by the two research firms.
Experiences will vary.
2. Go to www.doubleclick.com and read its latest research findings. Make an oral
presentation to your class.
Responses will vary over time.
3. Go to www.mysteryshop.org to learn more about mystery shopping.
REAL-LIFE RESEARCH
Case 8.1— A Glad Trash Bag Breakthrough (pg. 239)
Key Points:
• There hasn’t been much successful innovation in the $1.03B trash bag category since
McDaniel & Gates – Marketing Research, 9th Edition Instructor’s Manual
Questions
1. How else might the decision-making information have been gathered besides
ethnographics?
2. What are the disadvantages to Glad if they only used ethnographics?
In addition to requiring special training and labor intensive work, ethnographic research
3. Could this research have been done using virtual reality? Why or why not?
Not effectively. Using a trash bag is a physical, tactile experience. It is hard to imagine a
4. Could the location of the ethnographic research influence the research outcome?
Explain.
Certainly. Studying the way consumers use trash bags in an urban setting, where trash
aggregation and collection exist would likely produce very different results from studying
Case 8.2 – Stovetops and Laptops (pg. 240)
Key Points:
• Every year On-Site Research conducts a cross-country ethnographic study called Cyber
Census. Members of the research team drive an RV across 20 states to track a core group
Questions:
1. How might this type of research benefit GE, Viking, or Jenn Air?
2. Should qualitative research be undertaken before any actual strategies are developed?
Why?
3. What other types of research could have been used to gather this information?
4. This research was conducted in less than half of the states. Might this bias the survey
findings? If so, how?