Question

How can observational studies and focus groups be used in global marketing research? What are the different methods by which these studies are conducted?

Answer 1

In the observation method, one or more trained observers or a mechanical device watch and record the behavior of actual or prospective buyers. The research results are used to guide marketing managers in their decision making. For example, observations are done as to how male or female customers open the door of cars and sit. This simple act can be of tremendous help in designing the doors of cars and the adjustment of seats. Similarly, observing how consumers are picking items in a grocery store or observing the items in shopping carts can give a better understanding of the actual purchase behavior of consumers. It should be noted that since consumers are unaware of being watched, actual behavior can be recorded and interpreted. Marketers can also observe the eating behavior by observation or the plate wastages after dinner to assess the food preferences of consumers. Companies using observation as a research methodology must be sensitive to public concerns about privacy issues, particularly if the subjects know that they are being watched. In focus group research, a trained moderator facilitates discussion of a product concept, a brand's image, and personality, advertisement, social trends, or other related topics with a group comprised of 6 to 10 people. The selection of focus group participants has to be done very carefully since the number of participants is very limited. They should also meet the criteria which closely fit the overall population under study. Usually, focus group meetings are conducted in a special equipment room in an undisturbed environment. The questions are carefully framed and answers are solicited from all participants in an organized manner. Recordings are made of the entire process and analyzed after the conclusion of the session. A one-way mirror or a video screening is simultaneously conducted where focus group participants are being watched. Also, the trained moderator is connected by earphones with others including business managers, so that appropriate instant questions may be prompted to be used in the discussion. Focus group research yields qualitative data that does not lend itself to statistical projection. Such data are extremely valuable in the exploratory phase of a project and are typically used in conjunction with data gathered via observation and other methods.