Business Research Methods William G. Zikmund

1. Business Research MethodsWilliam G. Zikmund Chapter 11: Observation Methods

2. Chapter 11: Observation Methods • Types of Observed Phenomena • Advantages and Disadvantages of Observation • Types of Observation Techniques

3. 1. Types of Observed Phenomena • Physical actions • Verbal behavior • Expressive behavior • Spatial relations and locations • Temporal patterns • Verbal and pictorial records

4. Examples for Observed Phenomena Phenomena Example Human behavior or physical Shoppers (buyers) movement action pattern in a store Verbal behavior Statements made by airline travelers who wait in line Expressive behavior Facial expressions, tone of voice, and other form of body language

5. Examples for Observed Phenomena Phenomena Example Spatial relations How close visitors at an and locations art museum stand to paintings Temporal patterns How long fast-food customers wait for their order to be served Physical objects What brand name items are stored in consumers’ pantries Verbal and Pictorial Bar codes on product packages Records

6. 2. Advantages and Disadvantages of Observation “YOU SEE, BUT YOU DO NOT OBSERVE.” Sherlock Holmes

7. 2.1. Benefits of Observing Human Behavior • Communication with respondent is not necessary • Data without distortions due to self-report (e.g.: without social desirability) Bias • No need to rely on respondents memory • Nonverbal behavior data may be obtained

8. Benefits of Observing Human Behavior • Certain data may be obtained more quickly • Environmental conditions may be recorded • May be combined with survey to provide supplemental evidence

9. 2.2. Limitations of ObservingHuman Behavior • Cognitive phenomena cannot be observed • Interpretation of data may be a problem (e.g. misinterpretation) • Not all activity can be recorded • Only short periods can be observed • Observer bias possible (e.g. selective perception) • Possible invasion of privacy

10. selective perception

11. selective perception

12. misinterpretation

13. 3. Types of Observation Techniques • Natural versus Contrived Observation • Direct versus Indirect Observation • Disguised versus Nondisguised Observation • Physical-trace evidence Observation • Mechanical Observation

14. 3.1.Natural versus Contrived Observation Natural Observation: • Reactions and behavior observed as they occur naturally in real-life situations • A wide variety of companies are sending researchers to the field to observe consumers in their natural environment. • Natural observation is also suited for ethnographic research on foreign cultures.

15. Contrived Observation: • Environment artificially set up by the researcher. • Researchers are increasingly relying on computers to conduct simulated market testing. • Offers a greater degree of control • Speedy • Efficient • Less expensive • However, it may be questionable as to whether or not the data collected does truly reflect a "real life" situation.

16. 3.2. Direct versus Indirect Observation Direct observation captures actual behavior or phenomenon of interest Indirect observation consists of examining the results of the phenomenon. • can give only relatively crude or imprecise indications of a phenomenon • More efficient use of research time • More efficient use of research budget • May be the only way to get data from situations impractical to observe directly.

17. 3.3. Disguised versus Nondisguised Observation Nondisguised observation: • Respondents are aware that they are being observed • Data may be contaminated by respondent-induced errors. • Data gathered through using disguised observation might not be as rich as those from nondisguised observation.

18. Disguised Observation • Respondents are unaware they are being observed • Allows for monitoring of the true reactions of individuals. • Unethical if disguised observation monitors • Normally private behaviors • Behaviors that may not be voluntarily revealed to researchers.

19. Mystery shopping • popular disguised observational technique • Mystery shopper • Unknown to the retail establishment • Visits the store • Uses a structured script • Observes and records the shopping experience.

20. 3.4. Physical-trace evidence Observation • Wear and tear of a book indicates how often it has been read • garbology - looking for traces of purchase patterns in garbage • detecting store traffic patterns by observing the wear in the floor (long term) or the dirt on the floor (short term)

21. 3.5. Types of Mechanical Observation • Eye-Tracking • Response Latency • Voice Pitch Analysis • People Meter • Psychogalvanometer • Monitoring Web Site Traffic

22. Eye Tracking Measures unconscious eye movements Records how the subject actually reads or views an advertisement, product packaging, promotional displays, websites, etc. Measures which sections attract customers' attention and how much time they spend looking at those sections   • Oculometers - what the subject is looking at • Pupilometers - how interested is the viewer (This device observes and records changes in the diameter of the subject’s pupils)

23. Voice Pitch Analysis • Measures emotional reactions through physiological changes in a person’s voice • Used to determine • how strongly a respondent feels about an answer • how much emotional commitment is attached to an answer. • Variations from normal voice pitch is considered a measure of emotional commitment to the question's answer.

24. Response Latency • It measures the speed with which a respondent gives a decision about a choice between alternatives • It records the decision time necessary to make this choice. • For instance: it can measure the effectiveness of an advertisement on brand preferences. • It assumes that a quick expression of brand preference indicates a stronger preference.

25. People Meter • Electronic device to monitor television viewing behavior • who is watching • what shows are being watched.

26. Psychogalvanometer • Measures galvanic skin response • Involuntary changes in the electrical resistance of the skin • Assumption: physiological changes accompany emotional reactions