Observations

While most research texts portray observation methods as a separate type of research design, isolating
them to their own chapter, we treat observational techniques as tools for collecting primary data in all types
of research designs (exploratory, descriptive, causal). Characteristic of all observational techniques is the
notion that researchers must rely heavily on their powers of observing rather than actually communicating
with people to collect primary data. Basically, the researcher depends on watching and recording what
people do. In marketing research, observation refers to the systematic process of witnessing and recording
the behavioural patterns of objects, people, and events without directly communicating with them. One of
the main reasons for using observation methods is to generate primary data structures as events occur or to
compile evidence of behaviours from records of past events. Normally, employment of observational
techniques requires a behaviour or event to be observed and a system of recording it. Recording can be
achieved by using such devices as videotapes, movie cameras, audiotapes, handwritten notes and logs, or
some other tangible recording mechanism.

1 Appropriate Conditions for Using Observational Techniques

Several conditions are required for the successful use of observation as an information research tool. The
information research objectives must clearly indicate that some type of event or behavior is to be
witnessed. For the most part, the event or behavior must be repetitive, frequent, and relatively predictable.
Finally, the behavior normally should take place in some type of public setting that allows the researcher to
observe the behavior directly.

1.1 Information Condition

If current behavior patterns are important to the success of the study, then the researcher must give
consideration to using an observational data collection technique. Trying to collect current-behavior data
using any other method might lessen the data's accuracy and meaningfulness due to faulty recall on the part
of the subjects. For example, people might not accurately recall the number of times they zap commercials
while watching their favorite one-hour TV program on Monday nights.

1.2 Type-of-Data Condition

If the researcher wants to know why an individual purchased one brand of cereal over the other brand>
available, observational techniques alone will not provide the answers. Observation methods do not allow
for accurately collecting the motivations, beliefs, attitudes, or feelings that may underlie the observable
behavior. Only in those cases when a respondent' feelings are relatively unimportant to the research
objective or believed to be readily inferable from the behavior might it be appropriate to use solely
observational techniques. For example, in studying children playing with toys, it is possible to use facial
expressions as an indicator of a child's attitudes or preferences toward the toys because children often react
with conspicuous physical expressions. However, this type of observation places extreme pressures on the
investigator's interpretive skills.

1.3 Time-Frame Condition

For observational techniques to be feasible, the investigated behaviors or events need to be completed
within a relatively short time span. That means they also must be repetitive and frequent. For example,
attempting to observe all the activities involved during the process of buying a new home or automobile
would be infeasible in terms of data collection costs and time.

1.4 Setting Condition

Activities are limited to those that the investigator can readily observe firsthand or through a mechanical
device such as a video camera. Normally, activities such as private worshiping or using in-home products
(e.g., products used when cooking, turning up and down air conditioning controls, or washing clothes) are
not readily observable.
It is important to recognize that all four conditions for using observational techniques apply to those
situations involving current events. They do not really hold for situations in which researchers are
interested in collecting data on past events, since it is impossible to observe those events firsthand. Some
experts suggest that indirect observational techniques can be used to accurately infer past behaviors or
events. What researchers normally observe in those situations is some type of artifact (e.g., a video- or
audiotape, a written transcript). These artifacts are often like secondary data. The main emphasis would be
on interpreting the reported outcomes and making preliminary inductive statements about the actual
behavior.

2 Unique Characteristics of Observational Techniques

There are four long-acknowledged general characteristics of observational techniques for collecting
primary data. Depending on the researcher's need for (I) directness, (2) subjects' awareness, (3)
structuredness, and (4) a certain type of observing/recording mechanism, he or she can choose from a
number of ways to observe events and record primary data. The main thing to remember about these
characteristics is that they directly influence the framework for conducting the observations. It is critically
important that the observation methods are designed to allow for the gathering of consistent and
generalizable primary data. With good designs, researchers can eliminate, or at least control for, possible
methodological differences or other problems that could confound the findings.

2.1 Directness of Observation

Simply put, direct observation is the process of observing actual behavioral activities or events and
recording them as they occur. Direct observation uses a human being, rather than a mechanical device, for
observing and recording actual behaviors. For example, if researchers were interested in conducting a field
experiment to find out how often people read tabloid magazines while waiting to check out at a
supermarket, they could use any of several different direct observation techniques. In contrast, some
experts believe that indirect observation techniques can be used to capture subjects' past behaviors in
special situations. As discussed earlier, indirect observation focuses on directly observing the artifacts
that, at best, represent specific behaviors from some earlier time. It can be easily argued that this direct
observing of artifacts of past human behavior is really nothing more than a trained investigator interpreting
a form of secondary data. While indirect observation might allow a researcher some preliminary insights
into past behaviors, those insights should be viewed as tenuous, at best. For example, management of Tech
Data, a company that sells computer systems nationwide, can review and interpret the company's telephone
logs to find out how many long-distance telephone calls its sales department made during the previous
month. After interpreting the logs, management might make general inferences concerning the impact of
cold-calling behaviors of highly productive salespeople compared to less productive salespeople.
Secondary sources that record past behavior tend to be referred to as archives, physical audits, or traces. 25
These types of artifacts simply represent tangible evidence of some past event. For example, a retail chain
looking to expand its operations to new locations might directly observe the amount of graffiti on existing
buildings around proposed site locations to estimate the potential crime factor in those areas.

2.2 Subjects' Awareness of Being Observed

This characteristic refers to the degree to which subjects consciously know their behavior is being
observed and recorded. When the subjects are completely unaware that they are being observed, the
observation method is termed disguised observation. A popular and easy-to-understand example of
disguised observation is the "mystery-shopper" technique used by many retailers. A retailer such as Wal-
Mart hires a research firm to send in well-trained observers disguised as ordinary shoppers to observe how
well the stores' employees and staff interact with customers. The observers might look for interpersonal
behavior that would demonstrate attributes like friendliness, courtesy, helpfulness, and store/product
knowledge. The resulting data can aid Wal-Mart's management in determining how its employees'
interpersonal skills can enhance the customers' overall shopping experience. Wal-Mart's management can
use other methods (e.g., one-way mirrors and hidden cameras) to prevent its employees from knowing or
becoming aware that they are being observed. Disguised observations are used because, if people know
they are being watched, they naturally tend to modify their normal behavior. The resulting behavior would
therefore be atypical. For example, if you were a salesclerk for Wal-Mart, how would you act if the store
manager told you that she would be watching you for the next several hours? Most likely you would be on
your best behavior for that time period. Researchers may, however, face situations in which it is impossible
to keep the subjects from knowing that they are being observed. Take, for example, observing such
activities as the interpersonal behavior of a new waiter or waitress with customers at a restaurant like
T.G.I.E in Washington, D.C., or textbook sales representatives' behavior with faculty members on sales
calls. Nielsen Media Research would find it difficult to use its audiometers on in-home TV sets without the
subjects' knowledge or awareness. Whenever the subjects are aware that they are being watched, the
process is termed undisguised observation. As a general practice, the presence of the observer should be
minimized to avoid the possibility of atypical behavior by subjects.

2.3 Structuredness of Observation

This characteristic refers to the degree to which the behaviors or events are specifically known to the
researcher prior to the observation. When a researcher knows specifically which behaviors or events are to
be recorded, a structured observation technique is most appropriate. In these situations, all other behaviors
are ignored by the trained observer. Some type of checklist or standardized recording form is used to help
the observer restrict his or her attention to just those prespecified behaviors or events.
In contrast, unstructured observation formats place no restrictions on the observer regarding what should
be recorded. Ideally, all events would be observed and recorded. In employing an unstructured technique,
what usually happens is that the trained observers are briefed on the research objectives and information
requirements and then allowed to use their own discretion (based on interest and relevancy) in determining
what behaviors are actually recorded. For example, let's say that the director of parks and recreation in
your town or city wanted to develop a proposal for renovating several of the city's aging parks. Not sure
what type of equipment should be included in the renovations, he sends out two park supervisors to
observe people using the facilities at several of the city's most popular parks. The primary data collected
could prove to be useful in not only redesigning the aging parks but also in providing ideas about how to
make the parks more safe for people.

2.4 Type of Observing Mechanism

This characteristic relates to how the behaviors or events will be observed. The researcher can choose
between human and mechanical observers. With human observation, the observer is either a person hired
and trained by the researcher or part of the researcher team itself. To be effective, the observer must have
strong observation skills and a good understanding of the research objectives. There are many situations
where it might be more desirable to use a mechanical device, instead of a person, to collect the primary
data. Such devices may reduce the cost and improve the flexibility, accuracy, or other functions of the
research. An example would be a traffic-flow study. In this case, air pressure lines could be laid across the
road and connected to a mechanical counter box that would be activated every time a car's tires rolled over
the lines. While the data collected would be limited to the number of vehicles passing by within a specified
time span, this method would be less costly and more accurate than using human observers to record traffic
flows. Other examples of appropriate mechanical observation include using security cameras at ATM
locations, using scanning devices to count the number and types of products purchased at a retail
establishment, and taking turnstile counts of fans at major sporting or entertainment events. With advances
in high technology, telecommunications, and computer hardware and software, mechanical observation
techniques are rapidly becoming very useful and cost-effective for collecting certain types of primary data?
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3 Selecting the Appropriate Observation Method

To determine the most appropriate type of observation method for collecting primary data, researchers
must integrate their knowledge and understanding of the defined research objective, specific information
requirements, conditions for using observations, and characteristics of observation methods.
The first step in determining the right observation method is for the researcher to understand the specific
information requirements and give consideration to how that information will be used later on. Without
this understanding, the task of deciding a technique's appropriateness becomes significantly more difficult.
The researcher must answer the following questions prior to method selection: (1) What types of behavior
are pertinent to the defined research problem?; (2) How simple or complex are the behaviors?; (3) How
much detail of the behavior needs to be recorded"; and (4) What is the most appropriate setting (natural or
contrived) for the behavior? Only after the researcher gains at least a basic understanding of the
information needs can he or she undertake the second step.
The second step involves integrating the researcher's knowledge of the conditions for observing behavior
and the characteristics of observation methods in order to develop an objective method of observing and
recording the specified behavior. The issues that must be addressed include the following: (1) How
complex is the required public setting? Is it available for observing the specified behaviors or events?; (2)
To what extent are the desired behaviors or events repetitious and frequently exhibited"; (3) What degrees
of directness and structuredness should be associated with observing the behaviors or events?; (4) How
aware should the subjects be that they and their behaviors are being observed?; and (5) Are the observable
behaviors or events complex enough to require the use of a mechanical device for observing the behavior?
If so, which specific method would be most appropriate?
The last step focuses on the cost, flexibility, accuracy, efficiency, and objectivity factors associated with
observational techniques, as well as the ethical issues. Prior to implementing any observation method, the
researcher must assess the proposed method's ability to accurately observe and record the specified
behavior. The costs-time, money, manpower-involved must be determined and compared to the expected
efficiency of collecting the data based, in part, on the number of subjects needed in the investigation. In
addition, the researcher must consider the possible ethical issues that might exist with the proposed
observation method. The Ethics box discusses ethical issues associated with observation methods,

4 Highlights of the Benefits and Limitations of Observational

Techniques
Observational data collection techniques have several specific strengths and weaknesses worthy of
discussion. Probably the most obvious benefit is that observational techniques allow for very accurate
gathering of consumers' actual behavior patterns or marketing events rather than reported activities. This is
especially true in those situations where the subjects are observed in a natural public setting using a
disguised technique. In situations where the behaviors or events are complex and unstructured, mechanical
observation techniques are particularly useful. In addition, observational techniques can help in reducing
potential subject recall error, response bias, and refusal to participate, as well as in reducing potential
observer errors. In many situations, observational techniques, especially mechanical devices, afford the
researcher the opportunity to gather and record in-depth details about current behavior or events. Usually,
the data can be collected in less time and at a lower cost than through other types of collection procedures.
Observational techniques do have several limitations. One of the ongoing shortcomings of observational
techniques is that they produce data and information that are difficult to generalize. It is difficult to make
accurate inferences about larger groups of subjects beyond those test subjects who were actually observed.
Typically, observation methods are integrated in research projects that focus on a small number of subjects
(between 5 and 60) under unique or special circumstances, thus reducing the representativeness of larger
groups of people. Given the nature of observation methods, it is extremely difficult for the researcher to
logically explain why the observed behaviors or events took place. This inability to interrogate the subjects
on their attitudes, motives, feelings, and other nonobservable factors means that any resulting insights into
the behavior should be considered preliminary and subjective. Complete understanding of the observed
behavior is severely limited to "intellectual guesses."
In those situations where the natural public setting includes a large number of subjects, it is very difficult
even for trained observers to note all the activities occurring at the same time. While an observer is focused
on the behavior of one particular subject, she or he is likely to completely miss that of the other subjects in
the setting during that same time frame. Disguised observation situations pose an additional limitation in
that the human observers cannot instantaneously or automatically record the behavior activities as they
occur. There is some amount of lag time between observing the behavior or event and recording what was
observed. With this natural lag time, there is the potential for faulty recall on the part of the observer. One
way to overcome these potential limitations is that the observations should be made with the appropriate
mechanical device whenever possible.