Exploring Marketing Research

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Exploring Marketing Research

• Chapter 10 Observation

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Primary Research

• Qualitative Research

• To understand explain how why consumers feel
  based on their perspective.
• Methods- Focus groups, Projective Techniques and
  Indepth interviews
• Characteristics Subjective, flexible and small
  samples

• Quantitative Research

• putting numbersto the variables under
  investigation
  Methods Observation,
  surveys and experiments Characteristics
  Objective, controlled and large samples

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Scientific Observation is Systematic
You see, but you do not observe.Sherlock
Holmes
You listen, but you do not hear.
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Observation Research

• Observation - The systematic process of recording
  the behavioral patterns of people, objects, and
  occurrences as they are witnessed.
• Observation is a scientific inquiry tool 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.
• Is subjected to checks or controls on validity
  and reliability.

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What Can Be Observed?

• Spatial relations and locations
• How close visitors at an art museum stand to
  paintings
• Temporal patterns
• How long fast-food customers wait for their order
  to be served
• Verbal and pictorial records
• Bar codes on product packages

• Physical actions/objects
• The movement pattern of shoppers in a store
• Pantry/shelf audit of brands
• Verbal behavior
• Statements made by airline travelers waiting in
  line
• Expressive behavior
• Facial expressions, tone of voice, and other
  forms of body language

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• Observational Learning (physical, expressive,
  temporal and spatial) - watching the behavior of
  others and noting the benefits received

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Nonverbal Communication Status and Power Gestures
Source Nancy M. Henley, Body Politics Power,
Sex, and Nonverbal Communication (New York Simon
Schuster, 1977), p. 181.
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Categories of Observation

• Human versus Mechanical
• Visible (subject knows) - Hidden (unawareness)
• Direct (real life)
• Scientifically Contrived Observation the
  creation of an artificial environment to test a
  hypothesis
• - Environment may increase the frequency of
  certain behavior patterns to be observed

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Easy Targets of Bullies
Hidden Camera Example

• Disabled kids 6
• Black kids 4
• White kids 3
• Asian kids 3
• Latino kids 2
• Fat kids 11
• Kids who dress different 12
• Kids thought to be gay 24

Source Natl Mental Health Assoc.,2002 survey of
760, 12-17 yr/olds, in Efforts to Protect Face
Opposition, WSJ, 20Feb03,pg. B1
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Observation Benefits of Human Behavior

• Communication with respondent is not necessary
• No need to rely on respondents memory
• Nonverbal behavior data may be obtained
• Certain data may be obtained more quickly
• Environmental conditions may be recorded

• Advantages of Observation over Surveying
• Data are free from distortions, inaccuracies, or
  other response biases due to self-reporting
  (e.g. without social desirability, acquiescence,
  etc.)
• Data are recorded when actual and nonverbal
  behavior takes place (timely).

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Observation of Human Behavior
Limitations

• Cognitive phenomena cannot be observed
• Interpretation of data may be a problem
• Not all activity can be recorded
• Only short periods can be observed
• Possible invasion of privacy

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Limitations of 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

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Hand Washers Rise, but to Only 78
Applied Marketing
WSJ, Sept 2003, Laura Janowitz
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• Washing your hands could really have a powerful
  impact on the way we manage the spread of
  infectious diseases and newer public health
  threats, like SARS and the Norwalk virus.

• Hurried schedules
• Misconceptions People think you go to the
  washroom is to protect yourself against yourself-
  but thats incorrect. Youre protecting yourself
  against an environment soiled by others.

• 7,541 people at airports in New York, Chicago,
  San Francisco, Dallas, Miami, and Toronto
• Toronto had a 95 rate of cleanliness

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A New Federal Requirement for Doctors
Applied Marketing

• A new Clinical-Skills Assessment test is
  required to assess Doctors on their bedside
  manners to promote safety.

• Est. Costs 25 million to design a new test,
  38.6 million to develop test materials and build
  test centers, 28 million to run the testing
  program.
• 975 fee to take the test plus 1,500 for the
  licensing exam.

A New Requirement for Med Students Dealing with
Patients, WSJ, 10June2004 by Amir Efrati
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Research Methodology

• 500 actors hired at 18 an hour to act as
  patients (role playing).
• Med students will see 10 patients for 15 mins.
  each. (observation)
• Additional 10 mins. to record patients history
  and diagnosis.

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Grading

• Ability to communicate with and gather patient
  information
• Perform physical exams and diagnose illnesses

• Grades-pass or fail.
• Senior physicians score medical notes.
• Actors score language and communication skills.
• Asked right questions?
• Replied clearly to patients concerns?
• Showed sensitivity to their emotions?

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• Observational Learning watching others (image)

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• Observational Learning watching the behavior of
  others and noting the benefits received

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Ethical Issues in the Observation of Humans

• Issues
• Respondents 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.

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Observation of Physical Objects

• Physical-trace evidence
• Wear and tear of a book indicates how often it
  has been read
• Clean floors . . . Sanitary

Garbage Analysis University of Arizona
w3fp.arizona.edu/bara/
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Response Latency

• Recording the decision time necessary to make a
  choice between two alternatives
• It is presumed to indicate the strength of
  preference between alternatives.
• - the longer the choice time , the closer the two
  alternatives in preference rank

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Content Analysis

• The systematic observation and quantitative
  description of the manifest content of
  communication.
• Obtains data by observing and analyzing the
  content of advertisements, letters, articles,
  etc.
• Deals with the study of the message itself
• Measures the extent of emphasis or omission

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Pay attention to details... Say marketing
expert(s)

• Fresh Flowers
• Hours of operation to match customer availability
• Different languages for diverse audiences
• Success depends on skillful management of
  details.

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Classical ConditioningPairing of Two Unrelated
Stimuli

• Unconditioned Stimulus
• Conditioned Stimulus
• Conditioned Response

Song Happy

• The stimulus that elicits the desired response
• A neutral stimulus

• Repeated Pairings
• Decay - Association weakens if not reinforced

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Mechanical Observation

• Eye Tracking
• Pupil meter
• Psycho galvanometer
• Voice Pitch

• Traffic Counters
• Scanners
• People meter

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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
  website click-through rates are generally very
  low.

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Mechanical Observation (contd)

• 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.
• At-home scanning systems
• Systems that allow consumer panelists to perform
  their own scanning after taking home products,
  using handheld wands that read UPC symbols.

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Eye Tracking Monitors

• Record how the subject actually reads or views an
  advertisement
• Measure unconscious eye movements

Pupil meter

• This device observes and records changes in the
  diameter of the subjects pupils.

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Mechanical measures of physiological processes
include eye movement, pulse rate, eye dilation,
and as shown below, changes in facial
expressions. Marketers can adjust offers
accordingly.
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Psycho galvanometer measures galvanic skin
response, Involuntary changes in the electrical
resistance of the skin
Voice Pitch Analysis measures emotional
reactions through physiological changes in a
persons voice

• Assumption physiological changes accompany
  emotional reactions

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Nielsen Adapts Its Methods as TV EvolvesWall
Street Journal Sept. 29, 2003By Franco Alvisi
Justin Popek.
Case example Observation

• Neilson Media Research finds volunteers that
  allow Neilson to keep track of what they watch
• National sample of 5000 viewers provides data for
  TV audiences.
• Nielsen augments (replacing) paper diaries with
  people meters

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Away-from-home viewers
Mechanical observation

• Nielsen has joined forces with Arbitron Inc.
  to track away-from-home viewers . .
  . ex. treadmill walkers in gyms, travelers
  staying in hotels.
• Test subjects were selected randomly via
  telephone interviews to wear a portable people
  meter (wrist watch) to measure TV and radio
  programming
• U.S. testing began in 2001 in Wilmington, Del.
  with 300 people then an additional 1,500 in
  Philadelphia
• Testing Con the away-from-home meter can pick
  shows not being watched by the consumers if the
  show is on a nearby TV

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Products
Case Example Observation

• Tide laundry detergent
• Pampers diapers
• Crest toothpaste
• Old Spice
• Cover Girl
• Pantene

• 98 of U.S. households buy PGs products..
  
• 1/3 of the worlds population buys PGs products

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PG Checks Out Real Life-Giant Marketer Plans to
Visit Peoples Homes to Record (Almost) All
Their Habits (WSJ, May 17, 2001)
Case Example Observation

• Objective to learn about the lifestyles and
  habits of young couples, families, and empty
  nesters.
• PG chose video based marketing research to
  focus on consumer behavior in foreign markets.
• PG put video clips on its secure company
  website, PG conducts 4000-5000 studies of
  consumer behavior per year.

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Research Objectives

• To invent new products to solve problems that
  consumers didnt know they had
• To gain a competitive advantage
• To increase global sales higher than their 2.5
  annual sales growth

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Research Design

• Research started in July 2002 in the U.K., Italy,
  Germany, and China
• Video crews went into 80 households (globally)
• Capturing daily lives and routines that
  traditional research methods may have missed
• Everyday Lives Ltd, a London research firm,
  conducted the ethnographic research
• The video research is combined with PGs
  database of 50,000 studies

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Rules and Regulations
Observation In Home Video Research

• Subjects are paid between 200 and 250 a day
• Four day research period (average)
• No bedroom or bathroom footage
• All guests coming into the research subjects
  homes must be aware of the cameras prior to
  entering

Limitations Possible Downfalls

• Subjects may not carry out daily routines or act
  normal due to the video surveillance
• Privacy Concerns

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Some Text Applications

• Performing Applied Research, a consumer
  orientation (Marketing Concept)
• Stresses Global activities (Chapter 1)

• Used Databases and Data Warehousing to store and
  manage the results of the study (chapter 2)

• Trying to identify the nature of unknown
  problems, trying to invent new products,
  Exploratory research (chapter 3)

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Text Applications

• Ethical issues subjects will follow societal
  norms when they know they are being observed
  (chapter 4)
• Informed Consent Subjects are aware of the
  goals of the research and waive their rights to
  privacy

• Visible Observation Subject is aware of the
  observers presence (Chapter 10)
• Direct Observation An attempt to observe and
  record what naturally occurs

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People Time
Anticipate The Perils of Starting a Business

• Supervision of employees
• Employee turnover, reliability, motivation,
  performance
• Bonuses for good attendance, motivation and good
  manners.

• Laws and regulations
• Intellectual property
• Product Liability
• Zoning Rules
• Unions - Workers councils