Chapter 8

• Observational technologies

  • Ethical issues particular to research using observation
• Observational technologies


  • Major types of mechanical observation
• Observational technologies


  • Role as marketing research tools
• Sherlock Holmes: '“You see, but you do not observe.”'
• Observation is a tool for scientific inquiry when it serves a formulated research purpose, is planned and recorded systematically, is related to general propositions rather than simply reflecting a set of interesting curiosities, and is subjected to checks or controls on validity and reliability
• Technological advances like internet, cellular, social networking, and near-field technologies have fueled big data analytics and enable data collection to be automated
• Observation method—researchers monitor people’s reactions
• Observation


  Systematic process of recording the behavioral patterns of people, objects, and occurrences as they are witnessed
• Advances in technology have given a bigger role to observational research tools in marketing research and can be a useful part of either qualitative or quantitative research
• Observational technologies

  Techniques for measuring physiological reactions
• Rationality in classical economic theory is a flawed assumption as people usually don't act rationally
• How can a company like Chiquita use observational research for their banana sales?
• The Wealth of Nations was written in 1776
• They leave behind a systematic recording of what people actually did
• Cognitive phenomena cannot be observed
• How might the results of observational research influence Chiquita when marketing bananas (4P’s)
• Not all activity can be recorded
• Observation can describe the event that occurred but cannot explain why the event occurred
• Unobtrusive Observation


  No communication with the person being observed is necessary so that he or she is unaware that he or she is an object of research
• Types of observable behaviors tracked by marketing research

  • Physical movements
  • Verbal behavior
  • Expressive behavior and physiological reactions
  • Spatial tensions and locations
  • Temporal patterns
  • Physical objects
  • Verbal and pictorial records
  • Neurological activity
  • Internet activities
  • Geographical information
  • Physical distribution
• Observer bias is possible
• These technologies enable data collection to be automated
• Rational


  (in classical economic theory) economic agents are able to consider the outcome of their choices and recognise the net benefits of each one
• Marginal utility is the additional utility (satisfaction) gained from the consumption of an additional product. If you add it up for each unit you get total utility
• Limitations of Observations in General
• Approaches to Observation Research

  • Natural vs. contrived situations
  • Visible vs. hidden observation
  • Human observation
  • Observation of physical objects
  • Content analysis
  • Mechanical observation
• Ways Chiquita can use observational research for their banana sales

  1. Sending teams to stores to watch how people choose bananas

  2. Identifying who purchases bananas

  3. Determining who influences the sale

  4. Observing how many bananas people buy in a bunch

  5. Noting if people break a bunch

  6. Determining if people prefer green or ripe bananas
• Observational research involves no two-way communication (no survey or interview), these types of data qualify as behavioral observational
• Interpretation of data may be a problem
• Observation over long periods is expensive or even impossible
• Observation may become an invasion of privacy
• Only short periods can be observed
• Visible Observation


  Observation in which the observer’s presence is known to the subject
• Behavioral scientists have recognized that nonverbal behavior can be a communication process by which individuals exchange meanings
• Hidden Observation


  Observation in which the subject is unaware that observation is taking place
• Human Observation

  • Mystery Shoppers
  • One-way mirrors
  • Shopper patterns
  • Humanistic or Naturalistic Inquiry
• Steps in the Research Process
• Expressive behavior


  • Facial expressions, tone of voice, and other forms of body language
• Authors: 'Babin & Zikmund, Page 189'
• Verbal behavior


  • Statements made by airline travelers who wait in line