Observational Research

Observation Market Research

Observation market research is a method of collecting data about consumers by observing their behavior in a natural or controlled setting. This type of research is used to gain insights into how consumers interact with products, packaging, and advertising in real-world situations. It is often conducted in combination with other research methods, such as surveys and focus groups, to provide a more complete understanding of consumer behavior and preferences.

Types of Observation in Research

Types of observation in research include:

1. Naturalistic and controlled observation

2. Participant and non-participant observation

3. Structured and unstructured observation

4. Overt and covert observation

Naturalistic and controlled observation

Naturalistic observation involves observing people in their natural environment without manipulating variables, while controlled observation involves observing people in a controlled environment where variables can be manipulated to create specific conditions. For example, naturalistic observation could involve observing people's behavior in a public park, while controlled observation could involve observing people's behavior in a laboratory setting.

Participant and non-participant observation

Participant observation happens when the observer becomes a part of the group being studied and actively participates in the activities being studied. In contrast, non-participant observation involves observing from a distance without becoming a part of the group. For example, participant observation could involve joining a group therapy session and taking notes on the interactions between group members, while non-participant observation could involve observing a public meeting from a distance and taking notes on the behavior of attendees.

Structured and unstructured observation

Structured observation refers to observing people in a structured setting with predetermined activities, while unstructured observation involves observing people without predetermined activities to observe. For example, structured observation could involve observing children's behavior during a specific game, while unstructured observation could involve observing the behavior of patrons in a coffee shop.

Overt observation and Covert observation

Overt observation involves observing people with their knowledge and consent, while covert observation involves observing people without their knowledge or consent. For example, overt observation could involve observing people in a focus group discussion, while covert observation could involve observing people through hidden cameras in a retail store.

Advantages of Observational Research

Observational research comes with many benefits, including:

More accurate insights

The customers may not remember the full detail of their actions or do something different from what they say. In such cases, the information collected can be inaccurate, resulting in wrong conclusions. To improve the reliability of data collected, researchers can watch customers interact in their environment.

Some data can only be observed

Some information, such as people's eye movements when visiting a shop or how people behave in a group, is not something researchers can collect with a questionnaire. The subjects themselves may not be aware of their own behaviour. The only way to collect such data is through observation.

Remove biases

People's answers can be biased due to their desire to impress others or the question's wording. Observing customer behaviour will eliminate these biases and give the researcher more accurate data.

Remove sampling errors

Other research approaches, such as surveys or experiments, involve collecting data from a sample.

Sampling saves time and money, but there's a lot of room for errors as individuals in the same group can differ significantly in certain aspects. With observational research, there is no sampling, and thus researchers can avoid sampling errors.

Disadvantages of Observational Research

There are two significant drawbacks to observational research:

Some data are not observable

Researchers cannot observe data such as customers' beliefs, motivation, and awareness via actions or situations. Thus, observational research may not be the best approach to studying what people think about a business.

Time-consuming

In some observational studies, researchers can't control the environment. That means they have to wait patiently for the customer to perform a task and collect data, resulting in a lot of dead time due to inactivity.

Observational Research Design

The observational research design process is composed of six steps:

The first three steps answer the questions - Who? Why? How?

1. Who is the subject of the research?

2. Why is the research carried out?

3. How is the study conducted?

The last three steps include data collection, organisation, and analysis.

Here is a more detailed breakdown of the process:

Step 1: Identify the research target

This step answers the 'who' question. Who is the target audience? To which customer group do they belong? Is there any information about this target group that the researcher can use to assist the research?

Step 2: Determine the purpose of the research

Once the target group is defined, the next step is to decide on the research's goals and purpose. Why is the research conducted? What problem does it help solve? Is there a hypothesis the study tries to verify?

Step 3: Decide on the method of the research.

After defining 'who' and 'why', researchers need to work on the 'how'. This involves determining the method of observational research.

Step 4: Observe the subjects

This step is where the actual observation takes place. The researcher can watch their subject in the natural or contrived environment, directly or indirectly, based on the research method.

Step 5: Sort and organise data

During this step, raw data is synthesised and organised to suit the purpose of the research. Any irrelevant information will be left out.

Step 6: Analyse the data collected.

The final step is data analysis. The researcher will assess the data collected to draw conclusions or confirm a hypothesis.

Marketing Observation Examples

There are many observational research examples in market research:

Shop-along

Shop-along happens when the researcher observes a subject's behaviour in a brick-and-mortar store and asks questions about the experience.¹

Some examples of questions that the researcher may pose:

• What placement catches your attention?

• What distracts you from getting what you want to buy?

• Does the packaging influence your buying decision?

• Does the shop's layout make it easy to find what you want?

Fig. 2 Shop along to observe customer behaviour, Pexels

Eye-tracking or heat map

Another example of observational research is eye-tracking. Eye-tracking refers to using technology to observe the subjects' eye movements to see what draws their attention. On an online platform, heat maps track viewers' eye movements. Heat maps visualise customer data such as website clicks, scrolls, or mouse movements with appealing colours.

Here's an example of what it looks like:

Eye-tracking with heatmap, Macronomy

Utility testing

Utility testing is also a common form of observational research. Here, the researcher will ask the subject to perform a task, then observe and ask for feedback on their experience. This kind of research comes in handy when the researcher wants to identify a problem, an opportunity for their product, or collect data on customer behaviour.²