Observational Research

Researchers can collect customer data in many ways, from surveys to interviews and experiments. However, not all data can be gathered by asking questions, as customers might not be aware of their actions. This is where observational research comes in. Observational research is a method where the researcher watches people in their natural environment. This form of research helps researchers see how people interact in different situations and which environmental factors influence their behaviour. In this explanation, you will learn all about observational research — How it is conducted, its benefits and drawbacks. Let's dive right in.

Observational Research Definition

Observational research is a primary data collection method where the researcher observes how people interact in a natural setting. The research can directly or indirectly engage the subjects.

Any data can become observational, including text, numbers, videos, and images. By collecting and analysing observational data, the researcher can determine how customers behave in a particular situation and which factors influence their decisions. Observational research can sometimes help describe a phenomenon.

One common type of observational research is ethnographic observation. This happens when the researcher can observe the subject interacting in everyday situations, such as in an office or home.

Methods of Observational Research

The methods of observational research are varied, including:

1. Natural vs contrived research

2. Disguised vs open research

3. Direct vs direct research

4. Structured vs non-structured research

Here's a table summarising these methods:

Table 1. Methods of Observational Research, StudySmarter Originals

Advantages and Disadvantages of Observational Research

Observational research helps study behaviour that other types of research could otherwise not observe. However, besides the obvious advantages, this approach has several drawbacks.

Observational research advantages

Observational research comes with many benefits, including:

More accurate insights

The customers may not remember the full detail of their actions or do something different from what they say. In such cases, the information collected can be inaccurate, resulting in wrong conclusions. To improve the reliability of data collected, researchers can watch customers interact in their environment.

Some data can only be observed

Some information, such as people's eye movements when visiting a shop or how people behave in a group, is not something researchers can collect with a questionnaire. The subjects themselves may not be aware of their own behaviour. The only way to collect such data is through observation.

Remove biases

People's answers can be biased due to their desire to impress others or the question's wording. Observing customer behaviour will eliminate these biases and give the researcher more accurate data.

Remove sampling errors

Other research approaches, such as surveys or experiments, involve collecting data from a sample.

Sampling saves time and money, but there's a lot of room for errors as individuals in the same group can differ significantly in certain aspects. With observational research, there is no sampling, and thus researchers can avoid sampling errors.

Observational research disadvantages

There are two significant drawbacks to observational research:

Some data are not observable

Researchers cannot observe data such as customers' beliefs, motivation, and awareness via actions or situations. Thus, observational research may not be the best approach to studying what people think about a business.

Time-consuming

In some observational studies, researchers can't control the environment. That means they have to wait patiently for the customer to perform a task and collect data, resulting in a lot of dead time due to inactivity.

Observational Research Design

The observational research design process is composed of six steps:

The first three steps answer the questions - Who? Why? How?

1. Who is the subject of the research?

2. Why is the research carried out?

3. How is the study conducted?

The last three steps include data collection, organisation, and analysis.

Here is a more detailed breakdown of the process:

Step 1: Identify the research target

This step answers the 'who' question. Who is the target audience? To which customer group do they belong? Is there any information about this target group that the researcher can use to assist the research?

Step 2: Determine the purpose of the research

Once the target group is defined, the next step is to decide on the research's goals and purpose. Why is the research conducted? What problem does it help solve? Is there a hypothesis the study tries to verify?

Step 3: Decide on the method of the research.

After defining 'who' and 'why', researchers need to work on the 'how'. This involves determining the method of observational research.

Step 4: Observe the subjects

This step is where the actual observation takes place. The researcher can watch their subject in the natural or contrived environment, directly or indirectly, based on the research method.

Step 5: Sort and organise data

During this step, raw data is synthesised and organised to suit the purpose of the research. Any irrelevant information will be left out.

Step 6: Analyse the data collected.

The final step is data analysis. The researcher will assess the data collected to draw conclusions or confirm a hypothesis.

Observational Research Examples

There are many observational research examples in real-life:

Shop-along

Shop-along happens when the researcher observes a subject's behaviour in a brick-and-mortar store and asks questions about the experience.¹

Some examples of questions that the researcher may pose:

• What placement catches your attention?

• What distracts you from getting what you want to buy?

• Does the packaging influence your buying decision?

• Does the shop's layout make it easy to find what you want?

Shop along to observe customer behaviour, Pexels

Another example of observational research is eye-tracking. Eye-tracking refers to using technology to observe the subjects' eye movements to see what draws their attention. On an online platform, heat maps track viewers' eye movements. Heat maps visualise customer data such as website clicks, scrolls, or mouse movements with appealing colours.

Here's an example of what it looks like:

Eye-tracking with heatmap, Macronomy

Utility testing

Utility testing is also a common form of observational research. Here, the researcher will ask the subject to perform a task, then observe and ask for feedback on their experience. This kind of research comes in handy when the researcher wants to identify a problem, an opportunity for their product, or collect data on customer behaviour.²