Observation is a primary data collection method that involves recognizing and noting facts or occurrences without asking questions. It can be used to study things like sales techniques, customer movements, and brand preferences. Some advantages are that it can be used regardless of willingness to report and with those unable to respond, like infants. Limitations include only being able to observe current behaviors, not attitudes or opinions, and it being slow for large groups. There are structured and unstructured, disguised and undisguised, and direct and indirect observation methods.

1. Observation method
The two main methods by which primary data can be
collected are observation and communication.
Observation is the act of recognizing and noting
facts or occurrences. No questions are asked in data
collection.
Observation method can be used to study-
Sales technique
Customer movement
Customer responses in retail stores
Pantry check in the kitchen of housewife for brands
bought
Fashion and style acceptances

2. Advantages of Observation Method
• It can be used regardless of whether the
respondent is willing to report or not.
• It can be used even when it pertain to
those who are unable to respond such as
infants and animals.

3. Limitations of Observation method
• Only the current behaviour of a person or
a group of persons can be observed.
• Observation does not help us in gauging a
person’s attitude or opinion on a certain
subject nor his knowledge of the same.
• The observational method is very slow
and when a large number of persons are
to be contacted , it becomes unsuitable.

4. Methods of Observation
Structured and Unstructured Observation –
Structured observation is used when the
research problem has been formulated
precisely and the observers have been
told what is to be observed.
Unstructured
observation implies that observers are free
to observe whatever they think relevant
and important.

5. Disguised-Undisguised Observation
In the case of disguised observation, the subjects
do not know that they are being observed.
In case of undisguised observation,
the subjects know that they are being
observed.

6. Direct-Indirect observation
In the case of direct observation , the
event or the behaviour of a person is
observed as it occurs. In contrast , indirect
observation implies that some record of
past behaviour is observed. In other
words, the behaviour itself is not
observed.