Ethnography and Observation in Applied Marketing Research


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  • 20/08/10
  • Ethnography and Observation in Applied Marketing Research

    1. 1. Ethnography & Observation Week 5 (1) Dr. Kelly Page Cardiff Business School E: T: @drkellypage T: @caseinsights FB:
    2. 2. <ul><li>Develop a basic understanding of observational research; </li></ul><ul><li>Learn the approaches to observational research; </li></ul><ul><li>Understand the advantages and disadvantages of observational research; </li></ul><ul><li>Explore the types of human observation; </li></ul><ul><li>Understand the types of machine observation and their advantages and disadvantages; </li></ul><ul><li>Explore the impact of scanner-based research on the marketing research industry; </li></ul><ul><li>Learn about observation research on the Internet. </li></ul>Lecture Objectives
    3. 3. The Nature of Observation Research The systematic process of recording patterns of occurrences or behaviors without normally communicating with the people involved. <ul><li>The needed information must be either observable or inferable; </li></ul><ul><li>The behavior should be repetitive, frequent, or in some manner predictable; </li></ul><ul><li>The behavior must be relatively short in duration. </li></ul>Observation Research: Conditions for Using Observation:
    4. 4. The Nature of Observation Research <ul><li>Natural vs. Contrived: </li></ul><ul><ul><li>Is the setting made up by the researcher or are you observing a naturally occurring event? </li></ul></ul><ul><li>Open vs. Disguised: </li></ul><ul><ul><li>Does the subject know the purpose of the research? </li></ul></ul><ul><li>Structured vs. Unstructured: </li></ul><ul><ul><li>Is the researcher taking detailed notes or is the researcher making more general observations? </li></ul></ul><ul><li>“ Garbologist”: </li></ul><ul><ul><li>Going through one’s garbage – or “stuff” to analyze consumption patterns. </li></ul></ul>
    5. 5. <ul><li>Mechanical: </li></ul><ul><ul><li>Eye movement recorders; </li></ul></ul><ul><ul><ul><li>Pulpilometer </li></ul></ul></ul><ul><ul><li>Voice pitch analysis; </li></ul></ul><ul><ul><li>People monitors in TV; </li></ul></ul><ul><ul><li>Traffic counters; </li></ul></ul><ul><ul><li>People Reader / Meter; </li></ul></ul><ul><ul><li>Physiological measurement; </li></ul></ul><ul><ul><li>devices - lie detector </li></ul></ul><ul><ul><li>Galvanic skin responses; </li></ul></ul><ul><ul><li>Electroencephalograph; </li></ul></ul><ul><ul><li>Rapid Analysis Measurement System (RAMS); </li></ul></ul><ul><ul><li>Scanners - such as the grocery “BehaviorScan”. </li></ul></ul><ul><li>Ethnographic: </li></ul><ul><ul><li>The study of human behavior in its natural context, involving observation of behavior and physical setting. </li></ul></ul>
    6. 6. <ul><li>You see what people actually do - rather than what they say they do; </li></ul><ul><li>Firsthand information is less prone to biases; </li></ul><ul><li>The observational data can be executed quickly and relatively accurately; </li></ul><ul><li>Electronic collection such as scanners is more efficient than manual counts; </li></ul><ul><li>Clients can also observe their customers along with the researcher. </li></ul><ul><li>Only physical or behavior can be measured; </li></ul><ul><li>Can’t measure attitudes, beliefs, intentions, or feelings; </li></ul><ul><li>Not always a good representation of the general population; </li></ul><ul><li>Interpretation is somewhat subjective depending on observation type; </li></ul><ul><li>Data analysis is generally more qualitative than quantitative; </li></ul><ul><li>It can be expensive and time consuming if subjects not readily available; </li></ul><ul><li>Data can be time sensitive making predictive analysis tricky. </li></ul>Pros: Cons:
    7. 7. Mystery Shopping People who pose as customers and shop at a company’s own stores or those of its competitors to collect data about customer-employee interactions and to gather observational data; they might also compare prices, displays, and the like.
    8. 8. Mystery Shopping Levels The mystery shopper calls the business with a script with questions and notes the experience; The mystery shopper visits the business and makes a quick purchase with little or no customer-employee interaction; Level II : Level I :
    9. 9. The mystery shopper visits the business for a more involved experience to include a scripted scenario to gauge the customer-employee interaction. Level III usually does not involve a purchase - although detailed discussion about the product or services will likely occur; The mystery shopper visits the business with great knowledge about the products. This knowledge can be used to test the employees. A purchase - and/or issues related to the purchases - might likely be involved. Level IV : Level III :
    10. 10. Conducting Mystery Shopping <ul><li>Measuring employee training; </li></ul><ul><li>Preparing for or monitoring new competition ; </li></ul><ul><li>Comparison shopping; </li></ul><ul><li>Recognizing good employees; </li></ul><ul><li>To build a profile of the shoppers’ patters of behavior. </li></ul><ul><li>Audits: </li></ul><ul><ul><li>Examination and verification of product sales; </li></ul></ul><ul><li>One-Way-Mirror-Observation: </li></ul><ul><ul><li>Practice of watching behaviors and activities from behind a one-way-mirror; </li></ul></ul><ul><li>ESOMAR - formerly the European Society for Opinion Research offers mystery shopping guidelines. </li></ul>Reasons: Methods:
    11. 11. Electronic Observation Week 5 (2) Dr. Kelly Page Cardiff Business School E: T: @drkellypage T: @caseinsights FB:
    12. 12. Lecture Objectives <ul><li>Understand the types of machine and electronic observation </li></ul><ul><li>Understand how machine compare to human observation </li></ul><ul><li>Explore the impact of technology observing the following types of activities or behaviour: </li></ul><ul><ul><li>Transactional behaviour (e.g., shopping, bill payment) </li></ul></ul><ul><ul><li>Movement or Traffic behaviour (e.g., product movement, transportation) </li></ul></ul><ul><ul><li>Viewing or Usage behaviour (e.g., TV, Radio) </li></ul></ul><ul><ul><li>Combination of 1, 2 & 3 (e.g., Internet Behaviour) </li></ul></ul><ul><li>Learn about technology and measuring behavioural responses </li></ul>“ You See, But You Do Not Observe!” Sherlock Holmes
    13. 13. Observation <ul><li>Observation: Recording behavioural patterns of people, objects, and occurrences without (!!) questioning or communicating with them </li></ul>WHAT PEOPLE PHENOMENA HOW PEOPLE Researcher observing people shopping in a retail setting Researcher counting traffic flow at an intersection or observing product flow in a distribution centre MACHINES Machine records people shopping in a retail setting (e.g., video camera) Machine records traffic flow at an intersection or observing product flow in a distribution centre (e.g., RFID)
    14. 14. Human versus Mechanical Observation <ul><li>Human observer is more flexible -- may make adjustments during observation period </li></ul><ul><li>Mechanical observers are most accurate </li></ul><ul><li>May be able to measure things humans cannot observe </li></ul><ul><li>However, some mechanical observers “cause” certain events to occur (i.e., response) </li></ul>Criteria Person Mechanical Degree of structure Low Low to high Degree of disguise Medium Low to high Ability to observe in natural setting High Low to high Observation bias High Low Analysis Bias High Low to Medium General remarks Most Flexible Can be Intrusive
    15. 15. Mechanical or Electronic Observation <ul><li>Eye movement recorders (e.g., Pulpilometer) </li></ul><ul><li>Voice pitch analysis; </li></ul><ul><li>People monitors in TV; </li></ul><ul><li>Traffic counters; </li></ul><ul><li>People Reader / Meter; </li></ul><ul><li>Physiological measurement </li></ul><ul><ul><li>Galvanic skin responses; </li></ul></ul><ul><ul><li>Rapid Analysis Measurement System (RAMS); </li></ul></ul><ul><li>Scanners - such as the grocery optical scanners “BehaviourScan”. </li></ul>
    16. 16. Mechanical Observation <ul><li>Mechanical recording behavioural patterns of people, objects, and occurrences without (!!) questioning or communicating with them </li></ul><ul><li>Participation </li></ul><ul><ul><li>Direct involvement (e.g., behavioural response) </li></ul></ul><ul><ul><li>No Direct Involvement (e.g., internet usage) </li></ul></ul><ul><li>Activity or Behaviour Type </li></ul><ul><ul><li>Transactional behaviour (e.g., shopping, bill payment) </li></ul></ul><ul><ul><li>Movement or Traffic behaviour (e.g., product movement, transportation) </li></ul></ul><ul><ul><li>Viewing behaviour (e.g., TV, Radio) </li></ul></ul><ul><ul><li>Combination of 1, 2 & 3 (e.g., Internet Behaviour) </li></ul></ul><ul><li>Behavioural Response </li></ul><ul><ul><li>Sensual / Behavioural </li></ul></ul>
    17. 17. Participation <ul><li>Do not require respondents' direct participation. </li></ul><ul><ul><li>The AC Nielsen peoplemeter </li></ul></ul><ul><ul><li>Turnstiles that record the number of people entering or leaving a building. </li></ul></ul><ul><ul><li>On-site cameras (still, motion picture, or video) </li></ul></ul><ul><ul><li>Optical scanners in supermarkets </li></ul></ul><ul><li>Do require respondent involvement.  </li></ul><ul><ul><li>eye-tracking monitors </li></ul></ul><ul><ul><li>pupilometers </li></ul></ul><ul><ul><li>psychogalvanometers </li></ul></ul><ul><ul><li>voice pitch analyzers </li></ul></ul><ul><ul><li>devices measuring response latency </li></ul></ul>
    18. 18. Transactional Behaviour <ul><li>Optical Scanners </li></ul><ul><li>UPC codes on products and produces instantaneous information on sales </li></ul><ul><li>Shopping with an ID card (e.g., Tesco Club Card) </li></ul><ul><ul><li>Tracks each household’s purchases item by item, over time </li></ul></ul><ul><ul><li>Panels split to test different products, advertising, and promotional offers </li></ul></ul><ul><ul><li>In-store variables may also be tested (e.g., placement) </li></ul></ul><ul><li>Electronic File Transfer at POS (EFTPOS or EPOS) </li></ul>
    19. 19. Movement or Traffic Behaviour <ul><li>CCTV – in store traffic flows & how consumers interact with the displays </li></ul><ul><li>Traffic Counters – turnstiles, road vehicle counters </li></ul><ul><li>Optical Scanners & Universal Product Codes (UPC) report movement of goods </li></ul><ul><li>GPS Technology </li></ul><ul><ul><li>Tracks mobile phone users, targets motorist and pedestrian exposure to outdoor advertising </li></ul></ul><ul><li>Satellite tracking & photos (e.g., competitor or market intelligence) </li></ul><ul><li>RFID </li></ul><ul><ul><li>Allows remote tracking of object (people) around a defined space. Consists of: tags, readers, and middleware systems. </li></ul></ul><ul><ul><li>Many promising applications </li></ul></ul><ul><ul><ul><li>Inventory management; car toll transponders; Access & proximity cards subway/underground systems; Anti-theft keys for vehicles; Marathon timing chips; also payment cards … </li></ul></ul></ul>
    20. 20. Inside “Once Famous” - Downtown Minneapolis, (Marquette and 6th Street)
    21. 22. 10 year old child uses her ID card to indicate that she is getting off her school bus! Sensors that track movements and closely monitor students’ activities will be available
    22. 23. The Where….Examples RFID applications <ul><li>Retail </li></ul><ul><ul><li>Lower labour costs </li></ul></ul><ul><ul><li>Out-of-stock triggers </li></ul></ul><ul><ul><li>Reducing shrinkage </li></ul></ul><ul><ul><li>Reducing inventories </li></ul></ul><ul><ul><li>Locating products </li></ul></ul><ul><ul><li>Real-time supply/demand data </li></ul></ul><ul><ul><li>Smart shelves </li></ul></ul><ul><ul><li>Self check-out </li></ul></ul><ul><ul><li>Reverse logistics </li></ul></ul><ul><ul><li>Customer convenience </li></ul></ul><ul><li>Healthcare/ Pharma </li></ul><ul><ul><li>Tracking hospital equipment </li></ul></ul><ul><ul><li>Patient ID and tracking </li></ul></ul><ul><ul><li>Preventing medication errors </li></ul></ul><ul><ul><li>Tracking samples/ vials etc </li></ul></ul><ul><ul><li>Environmental monitoring (e.g. blood samples) </li></ul></ul><ul><ul><li>Anti-counterfeit measures </li></ul></ul><ul><ul><li>Product recalls </li></ul></ul><ul><li>Manufacturing </li></ul><ul><ul><li>Quality control </li></ul></ul><ul><ul><li>Lot Tracking </li></ul></ul><ul><ul><li>Recalls </li></ul></ul><ul><ul><li>Government regulations </li></ul></ul><ul><ul><li>Inventory accuracy and visibility </li></ul></ul><ul><ul><li>Labour & material costs </li></ul></ul><ul><ul><li>Asset utilization </li></ul></ul><ul><ul><li>Contract manufacturing </li></ul></ul><ul><ul><li>Supplier Management </li></ul></ul><ul><ul><li>Customer relations </li></ul></ul><ul><ul><li>Supply chain management </li></ul></ul><ul><ul><li>WMS </li></ul></ul><ul><ul><li>Inventory </li></ul></ul><ul><ul><li>Gray markets/ theft </li></ul></ul><ul><ul><li>Shrinkage </li></ul></ul><ul><ul><li>Shop floor execution </li></ul></ul><ul><li>Government </li></ul><ul><ul><li>Homeland security </li></ul></ul><ul><ul><li>Military/ defense asset tracking </li></ul></ul><ul><li>Transportation & Logistics </li></ul><ul><ul><li>Asset utilization and tracking </li></ul></ul><ul><ul><li>Volume planning </li></ul></ul><ul><ul><li>Automated sorting </li></ul></ul><ul><ul><li>Automated data capture </li></ul></ul><ul><ul><li>Shipment route tracing </li></ul></ul><ul><ul><li>Delivery reliability/ efficiency </li></ul></ul><ul><ul><li>Contract pricing verification </li></ul></ul><ul><ul><li>Reduced claim costs </li></ul></ul><ul><li>Construction </li></ul><ul><ul><li>Asset utilisation and tracking </li></ul></ul><ul><ul><li>Automated data capture </li></ul></ul><ul><ul><li>Yard control </li></ul></ul><ul><ul><li>Safety equipment tracking </li></ul></ul><ul><li>Other </li></ul><ul><ul><li>Farm animal tracking </li></ul></ul><ul><ul><li>Contactless payment systems </li></ul></ul><ul><ul><li>Sensor/ sensing applications </li></ul></ul><ul><ul><li>Theme park applications </li></ul></ul><ul><ul><li>Airport tracking of baggage/ passengers€ </li></ul></ul>
    23. 24. Media Viewing or Usage Behaviour <ul><li>The AC Nielsen People Meter </li></ul><ul><ul><li>Used to measure national TV audiences that transmits demographic information overnight </li></ul></ul><ul><ul><li>Digital and Interactive TV, TiVo etc </li></ul></ul><ul><li>Radiocontrol System </li></ul><ul><ul><li>Electronic Measurement of Radio Audiences </li></ul></ul><ul><ul><li>Wristwatch records and stores audio for one week </li></ul></ul><ul><ul><li>Control Centre records and stores radio stations’ output </li></ul></ul><ul><ul><li>Audio-matching reveals what watch-wearer is listening to and when </li></ul></ul><ul><li>Voter Meters </li></ul><ul><ul><li>used to identify positive and/or negative policies and ‘power phrases’/sound bites </li></ul></ul>
    24. 25. Internet Analytics <ul><li>Every HTTP request from client to server </li></ul><ul><ul><li>URL for page you want </li></ul></ul><ul><ul><li>URL for page you’re leaving </li></ul></ul><ul><ul><li>Time </li></ul></ul><ul><ul><li>IP address of browser </li></ul></ul><ul><ul><li>Browser brand & version </li></ul></ul><ul><ul><li>OS brand & version </li></ul></ul><ul><li>All recorded in a “log” file on server </li></ul><ul><li>Server’s administrator can analyze the logs </li></ul><ul><li>Common analysis produces summary site </li></ul><ul><li>But you can go further… </li></ul><ul><ul><li>Try to extract picture of each browsing user </li></ul></ul><ul><ul><li>Sequence and timing of accesses </li></ul></ul><ul><ul><li>But identified only by IP address </li></ul></ul>Server Logs Clickstream! Virtual foot prints!
    25. 26. Cookies <ul><li>Data, not food </li></ul><ul><li>Data, not software </li></ul>Browser (client) 1. Send request to server ? Web server 3. Send cookie back with future requests to that server ? 2. Send web page and cookie
    26. 27. Why Cookies? <ul><li>Web servers are stateless </li></ul><ul><ul><li>They process a sequence of independent requests </li></ul></ul><ul><ul><li>No way to link new request with earlier requests </li></ul></ul><ul><li>Cookies provide state </li></ul><ul><ul><li>Server sends info it wants to remember, as a cookie </li></ul></ul><ul><ul><li>Browser stores cookie, possibly for months </li></ul></ul><ul><ul><li>Browser sends cookie with new requests </li></ul></ul><ul><li>Cookie state allows interactive applications </li></ul><ul><ul><li>“ Shopping basket” </li></ul></ul><ul><ul><li>Automatic log-in </li></ul></ul><ul><ul><li>Customized home pages </li></ul></ul><ul><ul><li>Personalized “what’s new” listings </li></ul></ul><ul><li>Server can thus track your movements </li></ul><ul><ul><li>What pages you fetch, what images you see </li></ul></ul><ul><ul><li>How long between fetches </li></ul></ul><ul><ul><li>What advertisements you’ve seen </li></ul></ul><ul><ul><li>What preferences you chose </li></ul></ul>
    27. 28. <ul><li>CORRELATING DATA </li></ul><ul><li>The real danger comes from correlation </li></ul><ul><ul><li>Merging information collected in one way </li></ul></ul><ul><ul><li>With information collected in another way </li></ul></ul><ul><li>Biggest concern: </li></ul><ul><ul><li>Data collected about “anonymous” surfer </li></ul></ul><ul><ul><li>… is linked with an identified surfer </li></ul></ul><ul><li>COOKIES FOR ADVERTISING </li></ul><ul><li>Consider on-line advertising agency </li></ul><ul><ul><li>E.g., </li></ul></ul><ul><ul><li><IMG> tag leads your browser to fetch ad from agency </li></ul></ul><ul><ul><li>Agency sends cookie along with image </li></ul></ul><ul><ul><li>Cookies help them to avoid repeating ads </li></ul></ul><ul><li>CO OKIES ACROSS SITES </li></ul><ul><li>Many Web sites reference that agency’s ads (network) </li></ul><ul><li>Agency sees every page you reference on every server that sells to Agency </li></ul><ul><ul><li>Recall the “referring URL” is sent with every request </li></ul></ul><ul><li>Agency can correlate surfing patterns across servers </li></ul><ul><li>LEARNING YOUR IDENTITY </li></ul><ul><li>If one web site learns your identity </li></ul><ul><ul><li>Sell the information to agency </li></ul></ul><ul><ul><li>Agency uses cookie to locate your surfing pattern </li></ul></ul><ul><li>Agency then </li></ul><ul><ul><li>uses (or sells) your name and surfing pattern, or </li></ul></ul><ul><ul><li>sells your name to other web servers, in real time </li></ul></ul>
    28. 29. Physiological or Behavioural Response <ul><li>Eye Tracking </li></ul><ul><ul><li>Record how the subject actually reads or views an advertisement </li></ul></ul><ul><ul><li>Measure unconscious eye movements </li></ul></ul><ul><li>People Reader </li></ul><ul><ul><li>Simultaneously records both the reading material and the readers eyes </li></ul></ul><ul><li>Pupilometer </li></ul><ul><ul><li>This device observes and records changes in the diameter of the subject’s pupils. </li></ul></ul><ul><ul><li>pupil dilation </li></ul></ul><ul><li>Psychogalvanometer </li></ul><ul><ul><li>Measures galvanic skin response (GSR) </li></ul></ul><ul><ul><li>Involuntary changes in the electrical resistance of the skin </li></ul></ul><ul><ul><li>Assumption: physiological changes accompany emotional reactions </li></ul></ul><ul><li>Voice pitch </li></ul><ul><ul><li>Measures emotional reactions through physiological changes in a person’s voice </li></ul></ul><ul><li>Rapid Analysis Measurement (RAMS) </li></ul><ul><ul><li>Hand-held device records respondents feelings by their turning a dial </li></ul></ul>
    29. 32. Summary Slide <ul><li>The Nature of Observation Research </li></ul><ul><li>Mystery Shopping </li></ul><ul><li>Observation </li></ul><ul><li>Human versus Mechanical Observation </li></ul><ul><li>Mechanical or Electronic Observation </li></ul><ul><li>Mechanical Observation </li></ul><ul><li>Participation </li></ul><ul><li>Transactional Behaviour </li></ul><ul><li>Movement or Traffic Behaviour </li></ul><ul><li>The Where….Examples RFID applications </li></ul><ul><li>Media Viewing or Usage Behaviour </li></ul><ul><li>Internet Behaviour </li></ul>
    30. 33. The content of this work is of shared interest between the author, Kelly Page and other parties who have contributed and/or provided support for the generation of the content detailed within. This work is licensed under a Creative Commons Attribution-NonCommercial-Share Alike 2.0 UK: England & Wales. Kelly Page (cc)