Business Research Methods 9e

Zikmund
Babin
11
Carr Observation Methods
Griffin

Chapter 11
Observation Methods

©2013 Cengage Learning. All Rights Reserved. May

not be scanned, copied or duplicated, or posted to a
publicly accessible website, in whole or in part.
LEARNING
OUTCOMES

1. Discuss the role of observation as a business

research method
2. Describe the use of direct observation and
contrived observation
3. Identify ethical issues observation studies
4. Explain the observation of physical objects and
message content
5. Describe major types of mechanical observation
6. Summarize techniques for measuring physiological
reactions

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 11-2
 Mystery Dine at Seasons Restaurant

• Mystery shoppers (or

mystery diners or mystery
employees) can help
inspect and evaluate a
variety of activities.
• Over 400 companies
belong to the Mystery
Shopping Providers
Association (MSPA)
located around the world.

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 11-3
 Observation in Business Research
• Observation
• The systematic process of recording actual
behavioral patterns of people, objects, and
events as they happen.

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 11–4
 What Can Be Observed?
• Physical actions
• Verbal behavior
• Expressive behavior
• Spatial relations and locations
• Temporal patterns
• Physical objects
• Verbal and pictorial records

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 11–5
 What Cannot Be Observed?
• Limitations of Observations in General
• Observation can describe the event that
occurred but cannot explain why the event
occurred.
• Observation over long periods is expensive or
even impossible.

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 11–6
 The Nature of Observation Studies
• Visible Observation
• Observation in which the observer’s presence is
known to the subject.
• Hidden Observation
• Observation in which the subject is unaware
that observation is taking place.
• Advantages of Observation over Surveying
• Data are free from distortions, inaccuracies, or
other response biases.
• Data are recorded when actual and nonverbal
behavior takes place.

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 11–7
 This Trend Brought to You by DDB
SignBank
• Trend spotting – researchers
trying to catalog behaviors
that may signal the beginning
of important trends.
• Controversial because it’s
subjective and unsystematic.
• A service called SignBank has
people classify observations
and enter them into a
database, which is searched
for signs related to clients’
advertising objectives.
• One observation: consumers
have shifted from “herds” to
“swarms.”

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 11-8
 Observation of Human Behavior
• Complementary Evidence
• Observation provides an additional source of
information that helps explain other research
findings.
• Response Latency
• The amount of time it takes to make a choice
between two alternatives; used as a measure
of the strength of preference.

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 11–9
 Direct and Contrived Observation
• Direct Observation
• A straightforward attempt to observe and
record what naturally occurs.
• Contrived Observation
• Observation in which the investigator creates
an artificial environment in order to test a
hypothesis.
• Environment may increase the frequency of
certain behavior patterns to be observed.

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 11–10
 Errors Associated With Direct
Observation
• Observer Bias
• A distortion of measurement resulting from the
cognitive behavior or actions of a witnessing
observer.
◗ Recording events subjectively
◗ Recording events inaccurately
◗ Interpreting observation data incorrectly

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 11–11
 Ethical Issues in the Observation of
Humans
• Issues
• Respondent’s right to privacy
• Contrived observation as entrapment
• Researchers feel comfortable collecting
observational data if:
• The observed behavior is commonly performed in
public where others can observe the behavior.
• The behavior is performed in a setting that assures
the anonymity of the person being observed.
• The observed person has agreed to be observed.

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 11–12
 Observation of Physical Objects and
Content Analysis
• Physical-Trace Evidence
• A visible mark of some past event or
occurrence.
• Example:
◗ Wear on library book
◗ Packages in trash
• Content Analysis
• The systematic observation and quantitative
description of the manifest content of
communication.
©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 11–13
 Mechanical Observation
• Television Monitoring
• Computerized mechanical observation used to
obtain television ratings.
• Monitoring Website Traffic
• Hits and page views
◗ Unique visitors
• Click-through rate (CTR)
◗ Proportion of people exposed to an Internet ad who
actually click on its hyperlink to enter the Web site;
click-through rates are generally very low.

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 11–14
 ATTI, Inc. Shadows the Fleet

• Advanced Tracking
Technologies, Inc. (ATTI)
has developed
sophisticated
monitoring and tracking
devices for fleet
vehicles.
• Uses GPS to pinpoint
the location of any
equipped vehicle.
• Like having a manager
riding with every driver.

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 11-15
 Mechanical Observation (cont’d)
• Scanner-Based Research
• Scanner-based consumer panel
◗ A type of consumer panel in which participants’
purchasing habits are recorded with a laser scanner
rather than a purchase diary.

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 11–16
 Measuring Physiological Reactions
• Eye-Tracking Monitor
• Records how the subject actually reads or
views an advertisement.
• Measures unconscious eye movements.
• Pupilometer
• Observes and records changes in the diameter
of the subject’s pupils.

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 11–17
 Measuring Physiological Reactions
• Psychogalvanometer
• Measures galvanic skin response—involuntary
changes in the electrical resistance of the skin.
• Assumes that physiological changes
accompany emotional reactions.
• Voice Pitch Analysis
• Measures emotional reactions through
physiological changes in a person’s voice.

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 11–18
 Neuroco Peers into the Consumer’s
Brain
• Neuromarketing
• Quantified
electroencephalography
(QEEG)

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 11-19