Business Research Methods

1. Business Research Methods Observation Methods

2. Scientific Observation Is Systematic “YOU SEE, BUT YOU DO NOT OBSERVE.” Sherlock Holmes

3. Definition • It involves recording behavioural pattern of respondents without communicating with them

4. Observation Methods • Direct Observation • Contrived Observation • Content Analysis • Physical Trace • Pantry Audit • Participant Observation • Mechanical Device

5. Direct Observation • It is a method where human observer records the phenomenon being observed as it occurs in a tactful manner so as not to be noticed • Used in tracking behaviour of a shopper in a supermarket • Compliance of traffic rules by motorists

6. Direct Observation Benefits • Communication with respondent is not necessary • Data without distortions due to self-report (e.g.: without social desirability) Bias • No need to rely on respondents memory • Nonverbal behavior data may be obtained

7. Direct Observation Benefits • Certain data may be obtained more quickly • Environmental conditions may be recorded • May be combined with survey to provide supplemental evidence

8. Direct Observation 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 • Observer bias possible • Possible invasion of privacy

9. Contrived Observation • The creation of an artificial environment to test a hypothesis • Subjects are aware of being participant in the observational study but have no idea as to which aspects are being observed • Behaviour of respondents eating fast food in a test kitchen set up in a mall

10. Contrived Observation • Mystery shopping used in service sector ---Authorizing a person as a customer to observe timeliness (Within 30 minutes) in delivery process (Restaurants, banks) ---An observer pretending to be an airline passenger throws unnatural questions at an executive at an enquiry counter to notice & analyse the set of responses he gets

11. Content Analysis • Obtains data by observing and analyzing the content of advertisements, letters, articles, TV/Radio programmes etc. • Deals with the study of the message itself • Measures the extent of emphasis or omission • Material is analysed based on words used, themes ,characters & space • Helps in introducing required changes in communication process for better response rate

12. Physical Trace • It is a process of looking systematically into the immediate surroundings for any evidence of human interaction • Physical-trace evidence • Wear and tear of a book indicates how often it has been read • Dirt on floor to determine store traffic pattern • Computer cookie records ,records of credit card usage

13. Pantry Audit • Researcher inventories the brands ,quantities and package sizes of products in a consumer ’pantry • Pantry audits are generally carried out in the course of a personal interview • Reduces problems of response bias • Obtaining permission to examine consumers’ pantries may be difficult

14. Participant Observation • Researcher becomes a part of the group to be investigated • Establishes long term relationship with individuals in the group in their natural settings • Gets involved in the day to day activities of the subjects & the social settings under investigation • It helps in understanding the subjects thoroughly

15. Mechanical Observation • Mechanical devises rather than human observers record phenomenon being observed • On site cameras in stores while subjects are shopping • Eye tracking analysis or using oculometers to identify what subject is looking at and pupilometer to measure how interested the viewer is while watching ads. • Electronic checkout scanners to record UPC (universal product codes) on products allows for mechanized information collection regarding consumer purchases by product category, brand, store type, price & quantity • Turnstiles that record number of people entering or leaving a building • Traffic counters placed across streets to record number of vehicles passing certain locations

16. Mechanical Observation • Nielsen’s Audimeter & peoplemeter are used for tracking TV set watching • Voice pitch meters are used to measure emotional reactions • Psychogalvanometers are used to measure galvanic skin response which in turn indicates respondents’ interest level & attitude towards the stimuli • Response latency is the time respondent takes to answer a question & is used to measure relative preference for various alternatives • It may be easier to record behaviour of subjects but measuring precise level of reactions is questionable. Some of the devices are expensive to use. Creation of an artificial environment is another limitation

17. Mechanical Observation • Traffic Counters • Web Traffic • Scanners • Peoplemeter • Physiological Measures

18. Physiological Reactions • Eye tracking • Response latency • Pupilometer • Psychogalvanometer • Voice pitch

19. Eye Tracking Monitors • Record how the subject actually reads or views an advertisement • Measure unconscious eye movements

20. 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.

21. Pupilometer • This device observes and records changes in the diameter of the subject’s pupils.

22. Psychogalvanometer • Measures galvanic skin response • Involuntary changes in the electrical resistance of the skin • Assumption: physiological changes accompany emotional reactions • Respondent is fitted with small electrodes & shown ads, packages & slogans

23. Voice Pitch Analysis • Measures emotional reactions through physiological changes in a person’s voice

24. What Can Be Observed? Physical actions Verbal behavior Expressive behavior Spatial relations and locations Temporal patterns Verbal and pictorial records

25. What Can Be Observed Phenomena Example Human behavior or physical Shoppers movement action pattern in a store Verbal behavior Statements made by airline travelers who wait in line Expressive behavior Facial expressions, tone of voice, and other form of body language

26. What Can Be Observed Phenomena Example Spatial relations How close visitors at an and locations art museum stand to paintings Temporal patterns How long fast-food customers wait for their order to be served Physical objects What brand name items are stored in consumers’ pantries Verbal and Pictorial Bar codes on product packages Records