Marketing Research Essentials 8th

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Chapter 7: Primary Data Collection: Observation

Multiple Choice
1. Which of the following are not observation situations?
a. people watching people
b. people watching phenomena
c. machines watching people
d. machines watching phenomena
e. All of the above are observation situations.

Ans: E
Difficulty: Easy
Response: See page 154
Ref: Nature of Observation Research
Learning Objective 7.2: To learn the approaches to observation research.

2. A machine at the front of a store tracks the number of people entering and leaving
at all points during the day in order to provide hi-traffic data to management.
a. people watching people
b. people watching phenomena
c. machines watching people
d. machines watching phenomena
e. none of the above

Ans: C
Difficulty: Medium
Response: See page 154
Ref: Nature of Observation Research
Learning Objective 7.2: To learn the approaches to observation research.

3. Target Stores is evaluating several locations for locating a new Super-Target

Super-Center. To do this, a traffic counting machine records the number of cars
passing each location every day of the week for a 3-month period. This is an
example of which kind of observation situation?
a. people watching people
b. people watching phenomena
c. machines watching people
d. machines watching phenomena
e. none of the above

Ans: D
Difficulty: Medium
Response: See page 154

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Ref: Nature of Observation Research
Learning Objective 7.2: To learn the approaches to observation research.

4. Wal-Mart has a highly sophisticated system of recording data and being able to
view results. For instance, Wal-Mart managers know from their scanner data that
five pair of Wrangler Blue Jeans were sold from 10:00 a.m. to 11:00 a.m. on a
certain day, and by what size. If the sales were made via credit card, Wal-Mart
also knows “who,” and has developed histories of what combinations of products
its customers buy. The preceding is an observational situation involving which of
the following?
a. people watching people
b. people watching phenomena
c. machines watching people
d. machines watching phenomena
e. All of the above are observation situations.

Ans: C
Difficulty: Medium
Response: See page 154
Ref: Nature of Observation Research
Learning Objective 7.2: To learn the approaches to observation research.

5. Starbuck’s offers customers a gold charge card that tracks their purchases, the
types of drinks purchased, and the time of day when purchased. They use the sales
history to provide coupons and promotional opportunities. What type of
observational situation is this?
a. people watching people
b. people watching phenomena
c. machines watching people
d. machines watching phenomena

Ans: C
Difficulty: Medium
Response: See page 154
Ref: Nature of Observation Research
Learning Objective 7.2: To learn the approaches to observation research.

6. Which of the following is not a condition conducive to observation?

a. The behavior of interest lasts over a long period of time.
b. The behavior must not be repetitive.
c. The behavior needs to be observable or inferable.
d. (a) and (b)
e. all of the above

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Ans: D
Difficulty: Hard
Response: See page 154
Ref: Nature of Observation Research
Learning Objective 7.1: To develop a basic understanding of observation research.

7. Which of the following is not a “natural” situation for observation?

a. getting people to participate in a simulated store situation so that their
behavior can be observed
b. when the observed has no knowledge that they are being observed
c. observer plays no part in the behavior of interest
d. (a) and (c)
e. all of the above

Ans: A
Difficulty: Hard
Response: See page 155
Ref: Nature of Observation Research
Learning Objective 7.2: To learn the approaches to observation research.

8. The process of monitoring people who know they are being watched
is__________.
a. open observation
b. disguised observation
c. contrived observation
d. forced observation
e. none of the above

Ans: A
Difficulty: Hard
Response: See page 155
Ref: Nature of Observation Research
Learning Objective 7.2: To learn the approaches to observation research.

9. A contrived observational environment would not:

a. allow the researcher to collect data faster.
b. allow for more control over things that might distort the behavior being
studied.
c. result in lower project costs.
d. provide a more realistic environment in which to observe the behavior in
question.
e. none of the above

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Ans: B
Difficulty: Hard
Response: See page 155
Ref: Nature of Observation Research
Learning Objective 7.2: To learn the approaches to observation research.

10. Observing consumers’ behavior through a one-way mirror is a common type of

_______.
a. open observation
b. disguised observation
c. structured observation
d. unstructured observation

Ans: B
Difficulty: Medium
Response: See page 155
Ref: Nature of Observation Research
Learning Objective 7.2: To learn the approaches to observation research.

11. Recruiting people to do their shopping in a simulated supermarket so they can be

observed is a ____________________.
a. contrived
b. natural
c. disguised
d. none of the above

Ans: A
Difficulty: Medium
Response: See page 155
Ref: Nature of Observation Research
Learning Objective 7.2: To learn the approaches to observation research.

12. Counting how many people use the drive-in window at a bank during certain
hours is a good example of what type of observational research?
a. contrived
b. natural
c. disguised
d. none of the above

Ans: B
Difficulty: Easy
Response: See page 155
Ref: Nature of Observation Research

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Learning Objective 7.2: To learn the approaches to observation research.

13. Which of the following is not a primary advantage of observation research?

a. information gathered more quickly than with a survey
b. doesn’t depend on willingness of the respondent
c. ability to predict future behavior
d. not subject to biases that plague survey research
e. none of the above

Ans: C
Difficulty: Easy
Response: See pages 156–157
Ref: Nature of Observation Research
Learning Objective 7.3: To understand the advantages and disadvantages of
observation research.

14. Satellite companies such as DirectTV and Dish Network track how many shows
are DVR’d and when they are watched is ____________________.
a. people watching people
b. people watching phenomena
c. machines watching people
d. machines watching phenomena

Ans: D
Difficulty: Medium
Response: See page 154
Ref: Nature of Observation Research
Learning Objective 7.2: To learn the approaches to observation research.

15. Which type of research is most closely associated with human observation?
a. qualitative
b. quantitative
c. ethnographic
d. none of the above

Ans: C
Difficulty: Medium
Response: See page 157
Ref: Human Observation
Learning Objective 7.4: To explore the types of human observation.

16. Observational research is most effective if the observed behavior occurs _______.

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 a. intermittently
b. infrequently
c. rationally
d. frequently
e. none of the above

Ans: D
Difficulty: Medium
Response: See pages 156–157
Ref: Nature of Observation Research
Learning Objective 7.3: To understand the advantages and disadvantages of
observation research.

17. All of the following are advantages of ethnographic research

except_____________.
a. It is reality based, it show how consumers live with a product.
b. It can reveal unexpressed wants and needs.
c. It can discover unexploited consumer benefits.
d. It can reveal product problems.
e. These are all advantages

Ans: E
Difficulty: Medium
Response: See page 157-158
Ref: Nature of Observation Research
Learning Objective 7.3: To understand the advantages and disadvantages of
observation research.

18. Ethnographic research is derived from which field?

a. mathematics
b. anthropology
c. sociology
d. garbology
e. none of the above

Ans: B
Difficulty: Hard
Response: See page 157
Ref: Human Observation
Learning Objective 7.4: To explore the types of human observation.

19. The customer service department of a large department store recently received a
complaint about a store associate. The store associate’s manager has been unable

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 to detect any problems with the associate’s performance. Then the service
department received another complaint concerning the same associate. Which of
the following would be the best approach to investigate the situation?
a. depth interview with associate
b. mystery shoppers
c. depth interview with customers
d. close observation by the department manager
e. one-way mirror observations

Ans: B
Difficulty: Easy
Response: See pages 162–163
Ref: Human Observation
Learning Objective 7.4: To explore the types of human observation.

20. Which of the following is an example of machine observation?

a. mystery shoppers
b. one-way observation mirrors
c. people meters
d. none of the above

Ans: C
Difficulty: Hard
Response: See page 170
Ref: Machine Observation
Learning Objective 7.5: To understand the types of machine observation and their
advantages and disadvantages.

21. Which of the following best describes a Level 2 mystery shopper?

a. shopper investigates communication skills as visit involves a home loan or
auto purchase
b. shopper makes quick purchase and evaluates transaction and image of the
facility
c. interaction might involve the possible purchase of a cell phone
d. interaction might involve only a telephone call
e. none of the above

Ans: B
Difficulty: Hard
Response: See page 163
Ref: Human Observation
Learning Objective 7.4: To explore the types of human observation.

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22. A researcher who wants to measure emotional reactions to advertisements would
be most likely to use which type of observation technique?
a. pupilometer
b. EEG
c. Voice-pitch analysis
d. GSR
e. none of the above

Ans: D
Difficulty: Hard
Response: See page 166
Ref: Machine Observation
Learning Objective 7.5: To understand the types of machine observation and their
advantages and disadvantages.

23. Which of the following is not a physiological measurement device for

observational research?
a. pupilometer
b. EEG
c. voice pitch analysis
d. GSR
e. people meter

Ans: E
Difficulty: Medium
Response: See page 165–169
Ref: Machine Observation
Learning Objective 7.5: To understand the types of machine observation and their
advantages and disadvantages.

24. Which of the following types of research would be least likely to use
physiological measurement devices?
a. response to advertising
b. attitude toward products
c. opinion of specific celebrity endorsers
d. customer satisfaction research

Ans: D
Difficulty: Easy
Response: See page 165–169
Ref: Machine Observation
Learning Objective 7.5: To understand the types of machine observation and their
advantages and disadvantages.

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25. __________________ is/are used to measure magazine or newspaper reading
habits.
a. RAMS
b. Peoplemeters
c. MOBILTRAK
d. People Reader
e. none of the above

Ans: D
Difficulty: Medium
Response: See page 169
Ref: Machine Observation
Learning Objective 7.5: To understand the types of machine observation and their
advantages and disadvantages.

26. ______________ is a device that measures a person’s alertness level, especially

with regard to reactions to advertisements.
a. RAMS
b. Peoplemeters
c. Electroencephalograph (EEG)
d. People Reader
e. none of the above

Ans: C
Difficulty: Hard
Response: See pages 165–166
Ref: Machine Observation
Learning Objective 7.5: To understand the types of machine observation and their
advantages and disadvantages.

27. Which company provides scanner based data to its clients?

a. Predictive Networks
b. Virgin Entertainment
c. IRI
d. MRA
e. none of the above

Ans: C
Difficulty: Hard
Response: See pages 170–171
Ref: Machine Observation
Learning Objective 7.5: To understand the types of machine observation and their
advantages and disadvantages.

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28 The first step in conducting Ethnographic Research is___________________.

a. Assess the information at hand

b. Find participants
c. Seek answers
d. Analyze information

Ans: B
Difficulty: Medium
Response: See page 158
Ref: Human Observation
Learning Objective 7.3: To understand the advantages and disadvantages of
observation research.

29. Which of the following is the type of data that mystery shopping firms attain?

a. Facility conditions
b. Guest experience
c. Dress code compliance
d. Parking lot condition
e. All of the above

Ans: E
Difficulty: Medium
Response: See pages 162–163
Ref: Human Observation
Learning Objective 7.3: To understand the advantages and disadvantages of
observation research.

30. _______________ are used to measure vehicular flow over a particular stretch of
roadway.

a. Traffic signals
b. Traffic cops
c. Traffic stands
d. Traffic counters

Ans: D
Difficulty: Medium
Response: See page 165
Ref: Machine Observation

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Learning Objective 7.5: To understand the types of machine observation and their
advantages and disadvantages.

True /False
31. If a lot is already known about the behavior of interest, a structured observation
approach will work best.

Ans: True
Difficulty: Medium
Response: See page 154
Ref: Nature of Observation Research
Learning Objective 7.2: To learn the approaches to observation research.

32. The primary objective of a mystery shopper is to measure employee training.

Ans: True
Difficulty: Medium
Response: See page 163
Ref: Human Observation
Learning Objective 7.2: To learn the approaches to observation research.

33. Clients who observe through a one-way mirror can note consumer reaction,
actions, and more.

Ans: True
Difficulty: Medium
Response: See page 163
Ref: Human Observation
Learning Objective 7.2: To learn the approaches to observation research.

34. One of the advantages of observation research is its ability to predict future
behavior.

Ans: False
Difficulty: Easy
Response: See pages 156–157
Ref: Nature of Observation Research
Learning Objective 7.3: To understand the advantages and disadvantages of
observation research.

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35. If the type of behavior in question occurs infrequently, observation would be
preferable to survey research.

Ans: False
Difficulty: Hard
Response: See page 157
Ref: Nature of Observation Research
Learning Objective 7.3: To understand the advantages and disadvantages of
observation research.

36. Ethnographic research is based on the field of anthropology.

Ans: True
Difficulty: Medium
Response: See page 157
Ref: Nature of Observation Research
Learning Objective 7.4: To explore the types of human observation.

37. Much eye tracking research has been done to determine the best placement for ads
on a website.

Ans: True
Difficulty: Medium
Response: See page 166
Ref: Machine observation
Learning Objective 7.2: To learn the approaches to observation research.

38. Ethnography research can be conducted online.

Ans: True
Difficulty: Medium
Response: See page 161–162
Ref: Human Observation
Learning Objective 7.4: To explore the types of human observation.

39. Mystery Shoppers have been used to evaluate the service employees are providing
customers.

Ans: True
Difficulty: Easy
Response: See pages 162–163
Ref: Human Observation

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Learning Objective 7.4: To explore the types of human observation.

40. The most common type of machine observation is a traffic counter.

Ans: True
Difficulty: Easy
Response: See page 165
Ref: Machine Observation
Learning Objective 7.5: To understand the types of machine observation and their
advantages and disadvantages.

41. Consumers’ physiological reactions to stimuli can be measured if the researcher

has the proper equipment.

Ans: True
Difficulty: Easy
Response: See page 165
Ref: Machine Observation
Learning Objective 7.5: To understand the types of machine observation and their
advantages and disadvantages.

42. A People Reader measures eye reactions and responses to reading material.

Ans: True
Difficulty: Medium
Response: See page 169
Ref: Machine Observation
Learning Objective 7.2: To learn the approaches to observation research.

43. Laser scanners can produce instantaneous information on sales.

Ans: True
Difficulty: Hard
Response: See pages 171–172
Ref: Machine Observation
Learning Objective 7.5: To understand the types of machine observation and their
advantages and disadvantages.

44. The use of tracking data to determine website visits and monitor their browsing
and purchasing habits is a form of machine observation.

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Ans: True
Difficulty: Medium
Response: See page 172
Ref: Machine Observation
Learning Objective 7.2: To learn the approaches to observation research.

45. IRI is the founder of scanner-based research.

Ans: True
Difficulty: Medium
Response: See pages 170–171
Ref: Machine Observation
Learning Objective 7.5: To understand the types of machine observation and their
advantages and disadvantages.

46. A consumer’s level of arousal while watching an ad can be measured with

observational research.

Ans: True
Difficulty: Medium
Response: See pages 165–166
Ref: Machine Observation
Learning Objective 7.5: To understand the types of machine observation and their
advantages and disadvantages.

47. Observation researchers learn about consumer motives, attitudes, and intentions.

Ans: False
Difficulty: Medium
Response: See page 156
Ref: The Nature of Observation Research
Learning Objective 7.2: To learn the approaches to observation research.

48. Disguised observation is generally not done from behind a one-way mirror.

Ans: False
Difficulty: Medium
Response: See page 155
Ref: The Nature of Observation Research
Learning Objective 7.2: To learn the approaches to observation research.

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49. Facial Action Coding Service (FACS) is especially valuable when the client
wants to evaluate rationally based advertising.

Ans: False
Difficulty: Hard
Response: See page 167–168
Ref: Machine Observation
Learning Objective 7.5: To understand the types of machine observation and their
advantages and disadvantages.

50. If a researcher wants to know why an individual purchased a new Toyota

automobile rather than a Ford automobile, observation research will give the
answer.

Ans: Falsee
Difficulty: Medium
Response: See page 154
Ref: The Nature of Observation Research
Learning Objective 7.2: To learn the approaches to observation research.

51. Clickstreams are the most basic way to measure online marketing programs.

Ans: True
Difficulty: Medium
Response: See pages 171–172
Ref: Observation Research on the Internet
Learning Objective 7.7: To learn about observation research on the Internet.

52. Internet tracking is fundamentally another form of observation research.

Ans: True
Difficulty: Medium
Response: See page 171
Ref: Observation Research on the Internet
Learning Objective 7.7: To learn about observation research on the Internet.

53. In Scraping, the researchers selects the terms, much like a search engine, and then
the tool crawls in the Web in search of UGC (user-generated content) relating to
these search terms.

Ans: True
Difficulty: Hard

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Response: See pages 172–173
Ref: Observation Research on the Internet
Learning Objective 7.7: To learn about observation research on the Internet.

54. Advances in computer technology have not enable researchers to simulate an

actual retail store environment on a computer screen.

Ans: False
Difficulty: Hard
Response: See page 173
Ref: Observation Research and Virtual Shopping
Learning Objective 7.7: To learn about observation research on the Internet.

55. Natural situations are always preferred over contrived.

Ans: False
Difficulty: Medium
Response: See page 163
Ref: Human Observation
Learning Objective 7.2: To learn the approaches to observation research.

Essay Questions
56. A manufacturer of a new product is conducting a test market. Two of the test
market objectives were trying to estimate total market sales and examining the
consumer’s in-store decision process. How would you collect data to support
those two objectives?

Ans: To accomplish the market sales estimate, the marketer would need to monitor
sales in the test market, and extrapolate the purchase rate to the population of the
total market. To examine the in-store decision process, the researcher could
utilize a video camera positioned directly above the area in which the test product
is placed. Then the recorded behavior could be reviewed to assess the consumer’s
in-store decision process.
Difficulty: Medium
Response: See pages 154–157
Ref: Nature of Observation Research
Learning Objective 7.2: To learn the approaches to observation research.

57. Compare several of the key advantages and disadvantages of observation and
survey research.

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Ans: Observation research does away with interviewer bias, the willingness and ability
of the consumer to provide information, and the respondent’s tendency to provide
false information. It allows the researcher to directly record the events of interest.
However, unlike survey research, respondent intentions, motives and plans cannot
be observed. Only survey research can provide those answers.
Difficulty: Medium
Response: See page 154–157
Ref: Nature of Observation Research
Learning Objective 7.2: To learn the approaches to observation research.

58. What is Ethnographic research and list at least 5 advantages of it in marketing

research?

Ans: Ethnographic research deals with observing people and collecting information
about their behavior in the natural settings in which they work and live. Pages
157–158 list a number of advantages of ethnographic research.
Difficulty: Easy
Response: See pages 157–158
Ref: Human Observation
Learning Objective 7.4: To explore the types of human observation.

59. Describe the mystery shopper and how they are used by marketing researchers.

Ans: Mystery shoppers pose as consumers and shop at the company’s own stores or
competitor stores to collect data about customer-employee interactions and gather
observational data. These shoppers can gather data that is of value to marketers,
including comparing prices, evaluating employee-customer interactions,
discussing aspects of the product offering and store conditions, and discussing
products.
Difficulty: Medium
Response: 162–163
Ref: Human Observation
Learning Objective 7.4: To explore the types of human observation.

60. How is online tracking a type of observation research? How can it be of value to
the marketing researcher?

Ans: $25 billion is spent each year for advertising on the Internet. Online tracking
through the use of “cookies” allows marketers to follow the search patterns
persons online as they surf from ad to ad looking for a particular product or
service. Hence, via tracking, market researchers know which online ads are being
“hit-on” the most, thereby indicating greater exposure of the product/service in
question via the ad.

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Difficulty: Medium
Response: See pages 171–173
Ref: Observation Research on the Internet
Learning Objective 7.7: To learn about observation research on the Internet.

61. Describe the different levels of mystery shoppers and why clients would need to
maintain varying levels of these types of shoppers.

Ans: The mystery shopping concept has four basic levels which differ in the depth and
type of information collected. A level 1 may make a phone call and evaluate
customer service over the phone versus a level 4 who visits a bank or car
dealership to extensively evaluate the customer service they receive.
Difficulty: Medium
Response: See page 163
Ref: Human Observation
Learning Objective 7.4: To explore the types of human observation.

62. Describe how ethnography works online.

Ans: Online ethnography begins by pulling a sample that is representative of the target
market, typically from an online panel. One of the advantages here is that panel
members are accustomed to surveys and therefore more likely to participate than
the average man or woman on the street. Online ethnography doesn’t require
anyone to visit a home, which increases a sense of security. Trained moderators
can help respondents explore and describe their behaviors, routines, thoughts,
feelings, and more than may be relevant to their purchasing decision.
Difficulty: Medium
Response: See page 161
Ref: Taking Ethnography Online
Learning Objective 7.4: To explore the types of human observation.

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