Some researchers call self-reported research the Achillie’s heal of survey data collection in terms of reliability.
The reason? Self-reported research is sometimes inaccurate and thwarted by a consumer’s misguided perception.
For example, research states that some polls reported that 40% of Americans attended church every week. However, when Marlar and Hadaway (2005) examined actual church attendance records, they found the actual percentage was closer to fewer than 22% attendance every week. This is a prime example of self-reporting gone wrong.
Additionally, Seth Stephens-Davidowitz found that sometimes survey respondents outright lie about their perceptions on sensitive topics to present a better view of themselves.
If the reliability of survey research comes into question, and market researchers need accurate data to inform marketing, product, and business decisions, what is the solution?
The answer? Observational research.
This article will dive deeper into what observational research is, when you should use it, and what the three types of observational research are.
What Is Observational Research?
Observational research is a qualitative research technique where researchers observe participants’ ongoing behavior in a natural situation.
Depending on the type of observation research and the goal of the study, the market researcher will have varying levels of participation in the study. Sometimes the researcher will insert themselves into the environment, and other times, the researcher will not intervene in the setting and observe from a distance or in a laboratory setting.
The purpose of this type of research is to gather more reliable insights. In other words, researchers can capture data on what participants do as opposed to what they say they do.
When Should A Market Researcher Use Observational Research?
As a market researcher, you have several different research methodologies at your disposal, including surveys, interviews, observations, etc.
Using observational data is best when one of the following situations apply:
- You need to gather sensitive information, and you don’t trust your participants will be honest with their self-reporting.
- You need to understand the how or what of a research question.
- The topic is new, and you need robust data to explain consumer behavior.
- When behavior in a natural setting is vital to your research question.
- When behavior in a controlled setting is critical to your research question.
- If you are concerned that self-reported data about behaviors will differ from actual actions, even if it’s unintentional.
- When you need more information about a specific research question to formulate a more complete and accurate survey.
If any of these situations describe you or your current research state, then an observational study may be just what you need.
The Three Types of Observational Research
When it comes to observational research, you have three different types of methodologies: controlled observations, naturalistic observations, and participant observations.
Let’s quickly look at what each type of observation includes, how they differ, and the strengths and weaknesses of each type of observation.
1. Controlled Observation
Controlled observations are typically a structured observation that takes place in a psych lab. The researcher has a question in mind and controls many of the variables, including participants, observation location, time of the study, circumstances surrounding the research, and more.
During this type of study, the researcher will often create codes that represent different types of behaviors. That way, instead of writing a detailed report, they can classify behavior into different categories and analyze the data with more ease.
Advantages
- High reliability due to standardized protocols
- Codified data is efficient to quantify and analyze
- Faster execution because conditions are pre-designed and predictable
Limitations
- Participants may modify behavior because they know they are being observed
- Artificial settings may limit ecological validity
2. Naturalistic Observation
Naturalistic observation is another type of observation research method used by market researchers. This type of observation is when market researchers study the behaviors of participants in a natural surrounding. There are typically no predetermined behavioral codes. Instead, the researcher will take rigorous notes and code the data later.
Advantages
- Strong ecological validity because participants behave naturally
- Generates new concepts, hypotheses, and strategic problem-framing
- Provides authentic data that eliminates common self-reporting gaps
- Expands the researcher’s field of vision to unexpected behaviors and patterns
Limitations
- Limited control of external variables, reducing replicability
- Scaling can be resource-intensive
- Requires highly skilled observers to avoid overlooking critical behaviors
- No ability to manipulate variables that could clarify causation
3. Participant Observation
The last type of observation method is participant observation. This is a type of naturalistic observation in the fact that market researchers will observe participants in their natural habitat. The difference is market researchers will insert themselves into the environment.
Advantages
- Enables partial control of conditions while maintaining natural context
- Generates high-resolution insight into complex behavioral patterns
- Surfaces inaccuracies in self-reported data by observing firsthand
Limitations
- Taking notes openly may reveal the researcher’s role
- Reliance on memory introduces potential error if note-taking is constrained
- Risk of researcher over-identification, which can compromise objectivity
Each methodology delivers unique benefits. The selection depends on study goals, operational constraints, and the level of behavioral fidelity required.
Wrap-Up
If you are looking to conduct a reliable study and answer your research question more robustly, then one of the three types of observation research methods can help.
Remember, quantifying observation research doesn’t have to be difficult when you have the right tools to help you. For more information about observation research tools, request a Fuel Cycle demo today.
