Market Research (MR)
Definition:
The mostly widely accepted definition of marketing research is given
by American Marketing Association (AMA). The AMA has defined marketing
research as “the systematic gathering, recording and analyzing of data about
problems relating to the marketing of goods and services.” This definition suggests
the following features of MR:
a) Marketing research is concerned with systematic gathering, recording and
analyzing of information.
b) In MR, information is to be collected objectively and accurately.
c) MR is a tool for solving marketing problems.
Marketing Research include “Observation Method” which is one of the
extensively used method for recording and collecting of data about problems
related to marketing.
Observational Method:
Observation method (observational research) is one extensively used method
of primary data collection. Observation research means gathering of primary data
by observing relevant people, actions and situations.According to Oxford
Dictionary, observation means “accurate watching and noting of phenomena as
they occur in nature with regard to cause and effect or mutual relation”. Here,
consumer behavior is observed directly and conclusions are drawn. As a result, the
defects inherent in direct questioning are avoided.
Observation is a process of noting people, objects and occurrences rather than
directly asking for information. For example, instead of making consumers what
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brand they buy, the researcher arranges to observe their behavior at the sales
counter and the way in which they select a particular brand. In addition, hidden
video cameras, one way mirrors, assessment of wear and tear of flooring in display
areas are some more methods used in mechanical observation. Closed video
monitoring is a common method technique used in the observation method of
primary data collection.
Observational technique includes various methods/types of observation
as per techniques used, place and purpose which are as follows:
1) Simple Direct Observation.
2) Indirect Observation.
3) Structured Observation.
4) Unstructured Observation.
5) Mechanical Observation.
6) Manual/Human Observation.
7) Disguised Observation.
1) Simple Direct Observation:
Here, the observer looks and acts like a shopper. The other regular
shoppers do not realize that they are being observed. Thus, the observer
studies the purchase procedure and the behavior of the customers while
they purchase goods. The behavior of a person/customer is observed as
it occurs.
2) Indirect Observation:
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Indirect observation is meant to study the past behavior. This is
possible with the help of past records, films, photographs, etc. Films are
frequently used to study past behavior of shoppers, etc. Here, the
behavior itself is not observed, but its effects are observed. For example,
in order to find out liquor consumption in a household, an observer
would like study the empty liquor bottles in the garbage.
3) Structured Observation:
Here, the purpose of observation is clearly defined and the observer
knows what to observe as regards the consumers who are busy in their
shopping work. The observations are done according to clearly defined
objective.
4) Unstructured Observation:
Here, the observer observes whatever he thinks pertinent. It is
similar to unstructured questioning.
5) Mechanical Observation:
Here, observation is made with the aid of electro-mechanical
devices. Such mechanical observations are done through devices like
Audiometer, eye camera, tape-recorder, VCR, etc.
6) Manual/Human Observation:
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Human observation is done manually. Here, human beings are
appointed to observe and record the data. He does observation without
the use of electro-mechanical devices.
7) Disguised &Undisguised Observation:
In disguised observation, the subjects do not know that they are
being observed by some specially appointed observer. For example,
observer may enter the shop as a regular customer and may interact with
fellow consumers without disclosing his identity and purpose of
interaction. In undisguised observation, the purpose of observation is
brought to the notice of respondents before the commencement of
observation.
Merits of Observational Technique:
a) Accuracy:
Observational techniques are highly accurate. They reduce interviewer’s
bias. The information available/collected from observation is more objective
and reliable than available through survey method.
b) Factual information collected:
It provides factual information into new areas of research.
c) Records events as they occur:
Here, the researcher is not dependent on the respondent for the supply of
correct information.
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d) Economical:
Observational method is economical as preparation of a questionnaire,
etc. are not required.
e) Objective data available:
Here, an attempt is made to avoid biases through memory, lapses, halo
effects or other sources by observing respondents behavior to gain accurate
data.
f) More accuracy in mechanical devices:
Mechanical devices can be used to collect facts which will reduce the
cost of data collection and the information collected is also accurate.
g) Effective method:
Observational method is found to be quite effective and useful in
researches related to marketing problems.
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Limitation of Observational Technique:
a) Certain elements are missed:
This technique of data collection has no capacity to observe attitudes,
motivations and intentions of customers. These elements can be observed
only when they are converted into action. It is also difficult to pinpoint them
as human behavior is the net result of many drives and urges.
b) Human errors possible:
Observational methods of collecting data are used by observers who are
human beings and are subject to errors and mistakes. Even highly
experienced observers are likely to make mistakes while observing their
respondents.
c) Purpose is defeated, if secrecy is not maintained:
In some observational studies, the respondent gets the idea that he is
participating in a test. He knows that he is being observed. Such situation
will defeat the every purpose of observation.
d) Costly method under certain situations:
This method proves costly when the events to be observed do not occur
at rapid intervals. In addition, properly trained observers are required to be
appointed. This makes survey work expensive.
e) Observer’s bias:
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Field observer’s bias may creep in and thereby making the observations
faulty and this may prove to be dangerous.
f) Limited application:
This method has limited application. It tells about what actually happened
but it cannot tell as to why it so happened.
g) Needs support of personal interview:
Observation method needs the support of personal interview in order to
understand the motives, attitudes and opinions of individuals/consumers. It
is useful as a supplement of personal interview method.
