CHAPTER Six Learning Objectives Primary Data Collection Observation

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 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. • Info. Scan Tracking Service • All store scanner data system • More than 31, 000 stores • Info. Scan Tracking • to benchmark retailer performance against other retailers in same area

Table 6. 2 How Info. Scan Works Learning Objectives To learn about the various types of firms and their functions in research. UPCs scanned Sent to IRI The Evolving Structure Panel members present ID card at checkout Corporate Marketing Research Departments Sent to IRI field personnel visually surveys stores Panel members are selected for television monitoring 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