Download Observational Research in the Retail Industry

Running Head: Applications of Observational Research in the Retail Industry
Applications of Observational Research in the Retail Industry
Marlon D. Hackett
Bellevue University
MSM 530, Assignment 3.4
1
Applications of Observational Research in the Retail Industry
Applications of Observational Research in the Retail Industry
As it pertains to the retail industry, observational research serves as a vital tool in business
decisions centered on marketing and pricing products. Marketing teams are devoted to study consumer
behavior so that they can make educated strategic positioning moves to drive profitability. To further
explain the techniques used, first the definition of observational research will be explained, followed by
its uses and techniques.
Observational research is research that is driven by studying the behaviors of subjects at a
distance. The versatility of observation makes it an indispensable primary source method and a
supplement for other methods (Cooper & Schindler, 2011). Retail companies use observational research
to study human reactions to marketing techniques, marketing props and pricing in person or online.
Studying consumers help firms and organizations improve their marketing strategies by understanding
many issues such as; the psychology of how consumers think, feel, reason, and select between different
brands. Secondly, the psychology of how the consumer is influenced by his or her environment; media,
signs, etc. Third, by understanding the behavior of consumers while shopping. Finally, by understanding
the limitations in consumer knowledge of a product and how that correlates to consumer purchasing.
When consumer behavior is studied from a distance as it pertained to all of the options mentioned,
marketing researchers can make changes to the appearance of products, location of product and more
importantly, how much shelf room or floor space a product needs in order to appeal more to consumers.
The Retail Industry thrives off consumers find appealing. To understand what’s appealing and what’s not
appealing, observational research serves as a vital instrument in understanding these phenomenons.
In closing, techniques for acquiring useful consumer data that drive retail sales comes from
observational research in many instances. Observational Research is necessary to observe natural human
behavior of consumers as well as the frequency of events that aid organizations in being a profitable as
they can possibly be.
Applications of Observational Research in the Retail Industry
References
Cooper, D. R., & Schindler, P. S. (2011). Business Research (11th ed.). New York, NY: McGraw-Hill
International Edition. pp. 176-194.