Observation

Observation is a method market researchers use to record people’s overt behavior. Researchers use a variety of observation methods, from simply looking at car license plates in parking lots to rigging special cameras to detect the order in which consumers read and time spent reading parts of an advertisement. Observation provides information about how people behave, but not what motivates them. Results can be biased by the researcher conducting the observation study and also by subjects if they know they are being observed. In states with license plates issued by county, parkinglot observation can tell marketers where people live and the amount of business competitors are doing. One company measured the rust on rail ties to estimate how often a competitor was shipping PRODUCTS. The Louvre museum in Paris studied the wear patterns on their wood floors to determine which exhibits were the most popular. Mechanical devices can be used to determine the number of people entering a store or department. Most state highway departments use mechanical counters to measure the volume of traffic moving along roads; traffic-flow data is useful for businesses choosing new locations. Instore scanners record sales electronically and, combined with store bonus cards, allow marketers to determine who is purchasing what products. Double-click Corporation developed software to track website viewer patterns; its data have been the subject of numerous privacy debates. Video cameras are also used in observation research. Companies study CONSUMER BEHAVIOR in bars, clothing stores, and other environments to better understand who is buying their products and what choices and comparisons people make. Observation methods are limited by the capabilities of the methods available and may not provide insights into why people behave the way they do.
See also MARKET RESEARCH.