Lecture Marketing research - Chapter 6: Primary data collection: Observation

CHAPTER Six

Learning Objectives

Primary Data
Collection:
Observation

Copyright © 2004
John Wiley & Sons, Inc.


Learning Objectives

Learning Objectives
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

Learning Objectives
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

The Nature of
Observation Research

To develop a basic understanding
of observational 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
Approaches to Observation Research
•Natural Versus Contrived Situations
•Open Versus Disguised Observation


Table 6.1

Observation Situations

Situation

The Evolving
People watching people
Structure
Corporate Marketing
Research Departments
People watching phenomena

The Marketing
Research Industry
Machines
watching people
The Internet
Impact

Users of Marketing
Research
Machines
watching phenomena
Strategic
Partnering
and
Global Research

Learning Objectives
To learn about the various types of
firms and their functions in
research.
Example

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.


The Nature of
Observation Research

Learning Objectives
To understand the advantages and
disadvantages of observational
research.

•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


Learning Objectives

Human Observation

To explore the types of human
observation.

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


Learning Objectives

Human Observation

To explore the types of human
observation.

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


Learning Objectives

Human Observation

To explore the types of human
observation.

Measuring employee training: most common use of
mystery shoppers.
• Phase 1—evaluate existing customer service
• Phase 2—evaluations analyzed and training program
developed
• Phase 3—shoppers return to evaluate the customer
service post-training


Learning Objectives

Human Observation

To explore the types of human
observation.

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


Learning Objectives

Human Observation

To explore the types of human
observation.

One Way Mirror Observations
• Clients to observe the group discussion
Shopper Patterns and Behavior
• Tracing the flow of shoppers


Learning Objectives

Machine Observation

To describe the types of 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


Learning Objectives

Machine Observation

To describe the types of machine
observation.

Opinion and Behavior Measurement
• Radio Listenership Track
MOBILTRAK
• Peole Reader
• Rapid Analysis Measurement (RAMS)
• The People Meter


Learning Objectives

Machine Observation

To describe the types of machine
observation.

Scanner Based Research




Electronic Monitoring Tools
Television Meters
Laser Scanners
Behavior Scan
- Shopping with an ID card
- Answer Critical Marketing Questions:
- Impact of new advertising?
- Minimize media costs?
- Change ad frequency?


Learning Objectives

Machine Observation

To describe the types of machine
observation.

• 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

Table 6.2 How InfoScan Works Learning Objectives

UPCs scanned
Sent to IRI
The Evolving
Structure

Panel
members
present ID
card at
checkout

Corporate Marketing
Research Departments
Sent to IRI

To learn about the various types of
firms and their functions in
research.
IRI field
Panel
personnel
members are
visually
selected for
surveys
television
stores

monitoring
Sent to IRI

Sent to IRI

The Marketing
Research Industry
The Internet Impact
IRI Computers
Users of Marketing
Neural Network Quality
Research
Control System
Strategic Partnering
and
Global Research

Completed databases
transferred to:
• hard copy
• magnetic tape
• diskette


Learning Objectives

Machine Observation

To describe the types of machine
observation.

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


Learning Objectives

Observation Research on
the Internet

To explore the impact of scanner
research on the marketing industry.

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.


Learning Objectives

Observation Research on
the Internet

To explore the impact of scanner
research on the marketing industry.

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


Learning Objectives

SUMMARY

• The Nature of Observation Research

• Human Observation

• Machine Observation

• Observation Research on the Internet


Learning Objectives

The End

Copyright © 2004, John Wiley & Sons, Inc.