Observational Research Methods PDF

Observational Research 1-1  Nature of Observation Research Systematic process of recording patterns of behaviors without communicating with people being observed o Mystery shopping is an exception! Two critical questions: 1. Will you get the...

Observational Research 1-1  Nature of Observation Research Systematic process of recording patterns of behaviors without communicating with people being observed o Mystery shopping is an exception! Two critical questions: 1. Will you get the answers you are looking for just by observations? 2. Do you need a long or short observation time to figure the answers out? 9-2  Potential Observation Situations Situation Example People watching people Observers in Apple stores watch shoppers select an iPhone model for understanding how much comparison- shopping is at play People watching phenomena Observers stationed at a new strip mall count vehicles moving in various directions to establish the best location for a coffee shop. Machines watching people Store cameras record consumers evaluating different iPhone models Machines watching Google Analytics recording which online display or search phenomena ads are clicked by who, when, and how many times 9-3  Types of Observation Research 1. Natural versus contrived situations 2. Open versus disguised observation 3. Human versus machine observers 4. Direct versus indirect observation. 9-4  Natural versus Contrived Contexts Natural Contexts: The observer does not play a role or affect the observed behavior. o Counting the number of people entering or exiting an Apple store during the weekend Contrived Contexts: Instructing people to perform certain behaviors without waiting for natural occurrences o e.g. simulated retail test markets o Artificial contexts o The observed behavior may be different in real life! 9-5  Open versus Disguised Observation Open observation: When people know they are being watched o Common in ethnographic research (-) If people know they are being observed, they may behave differently (-) The appearance, communication and behaviors of the observer may bias people’s behaviors Disguised observation People are unaware that they are watched o E.g. focus group room with one way 9-6  Human versus Machine Observers Machines can do the job less expensively, more accurately, or more easily 9-7  Direct versus Indirect Observation Some observation is direct observation of current consumption behavior o E.g. observing women applying mascara or lipstick to learn how much product they use etc. In some cases, past behavior must be observed indirectly o e.g. sorting through people’s garbage to analyze household consumption patterns o Handing out product samples and requiring participants to return the unused product (e.g. dish soap, shampoo) 9-8  Advantages and Disadvantages of Observation Research Advantages (especially when machines are used) o Information is not subject to interpretation biases o Quick and accurate Disadvantages o You cannot understand the reasons behind consumer decisions o Only public behavior can be observed o Observed behavior may not be repeated in the future o We may have to wait a long time to observe if the behavior occurs infrequently 9-9  Mystery Shoppers Used to gather observational data about a store and to collect data about customer–employee interactions Mystery shopping gives managers nearly instant feedback on employee performance o Many companies tie bonuses to performance on mystery inspections, giving employees an incentive to be nice 9-10  Mystery Shopping Levels Level 1 The mystery shopper makes a mystery telephone call Level 2 The mystery shopper visits and makes a quick purchase Level 3 The mystery shopper visits and initiates a conversation with a representative using a script Level 4 The mystery shopper makes a visit to assess excellent communication skills and knowledge of a product or service 9-11  Mystery Shopping Benefits Provides natural feedback from a real customer’s perspective on staff training and expertise Monitors product and facility conditions as seen by the customer Serves as an employee motivational tool Can be used to benchmark competitors Improves customer retention 9-12  Machine Observation Neuromarketing Galvanic skin response Eye tracking Gender and age recognition systems In-store tracking Television and video audience measurement and tracking 9-13  Neuromarketing Analyzing the brain and certain physiological reactions of consumers to marketing stimuli o Electroencephalograph (EEG) records the brain’s electrical activity o MRI measures the blood flow o Physiological measures (biometrics) include blood pressure, heart rate, and sweating EEG, MRI, EKG, heart monitors, eye tracking, and galvanic skin response (GSR) are all implicit measures No way to understand psychological causes (Yadava et al. 2017) We rather infer what is happening inside the brain from biological responses 9-14  Galvanic Skin Response and Eye Tracking Galvanic skin response (GSR): a change in the electric resistance of the skin related to a marketing stimulus Eye tracking is used to precisely measure what someone is looking at Eye tracking can document: 1. Visibility 2. Engagement 3. Viewing patterns/communication hierarchy 9-15  Gender and Age Recognition Systems Used to recognize gender and approximate age of consumers in malls, airports, and other retailers Messages can be tailored to people as they walk by 9-16  In-Store Tracking In-store security cameras can be used to track shopper behavior o E.g. Cameras can be combined with motion sensors to determine how often a brand is picked up but not placed in the shopping cart, age and gender of the participant There are four standard methods to in-store customer tracking: 1. WIFI tracking 2. Tracking through mobile apps 3. Cameras 4. Passive network By tracking the flow of people, businesses can adjust the store 9-17  Observable Phenomena Artifacts (belongings, clothing, accessories) of individuals Body language (e.g. posture, gestures) Eye contact Spatial behavior Facial expressions Movements (e.g. in the store) Response times 9-18  Television and Streaming Measurement and Tracking TV is still an important medium for communications in the developing countries Nielsen Media measures 40% of the world’s TV viewing behavior o 208 local markets in the US so local advertisers can reach their target customers effectively o Acquires big data from third parties to capture mobile viewing Streaming Tracking o E.g. on platforms such as Roku and Disney Channel 9-19  Household Purchase Panels Recruited households record all of their supermarket purchases, with a handheld in-home scanning device The Nielsen Homescan is a continuous household purchase panel that receives purchasing data from its member households o Average amount of product purchased by each household during a specific period o Total projected category or product volume sold and the number of shopping trips o Projected number of households that purchased the category or product within the specific period 9-20  Online Tracking Fundamentally a form of observation research Traditionally done via cookies; needs to use alternative solutions o E.g. Lotame’s beacons Even if you delete all of your cookies and “opt out” it is possible to still follow you through digital fingerprinting o Helps create a digital fingerprint based on past visits, IP address, operating system, screen size/resolution, language, time zone, etc. 9-21  Social Media Tracking Awario : A social media monitoring tool with advanced targeting options to track mentions, keyword phrases, and competitor mentions Sendible : All-in-one social media management tool BuzzSumo: Shows what topics are being shared Pinterest, Twitter and Facebook Analytics Source: Awario 9-22  Virtual Reality and Augmented Reality An emerging area for data collection as products such as Oculus become more mainstream VR’s advantages for data collection: 1. Realistic 2. Changes to the environment (e.g. products, layout) can be made easily 3. Fast and accurate data collection 4. Low costs because displays are created electronically 9-23