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Consumers in the modern world are complicated. They express one idea, and in the next moment contradict themselves. They convey inadequate trust in various brands and increasing cynicism about the marketing process.  Using surveys and focus group interviews, marketing executives gather information about changing consumer wants and needs. Oftentimes, however, consumers unconsciously lie when they speak about life, brands, and their lives. Brand researchers understand that it is their job to grind beneath the surface to uncover consumers' inner feelings and habits. 
Observational research is an increasingly popular marketing research method that that will enable brand owners to obtain deeper insights.

Types of Observational Research
1. Ethnography
A new form of market research, popular in the United States and other parts of the world, is the ethnographic research. The origins of ethnographic study are derived from anthropology. The word itself hints at its meaning: 'ethno' means people and 'graphy' means describe. Ethnographic research is conducted in the natural environments of the consumer (e.g., homes or stores) where consumers use brands, products, and service.  Because of this, consumers will not act unnaturally and will be not be afraid to freely speak their minds. This type of market research is most applicable when market researchers require in-depth information about consumers (e.g., life styles or shopping behavior) that cannot be adequately explored using traditional survey research techniques.
Ethnography is an effective approach to obtaining deeper insights on: consumer segments, complex consumer environments, factors affecting product/ service usage. It brings research to the people, enabling them to describe their world as they perceive it and observing them at home, at work, the car or the department store. These studies might include personal diaries or the consumer being videotaped, with the results discussed by the interviewee, the researcher and the client.

Mystery Shopping Sample
In the example below, the mystery shopper discovers possible product quality concerns in a fast food restaurant. A manager of the restaurant is approached and she shows good customer service skills such as smiling and being calm. However, the video suggests that service quality in the store may still need improvement. This type of research provides companies with invaluable information and enables them to act immediately before there are any serious repercussions. 
Observational Research (Ethnography)
Mystery Shopping Sample
Business Private Eye specializes in conducting Mystery Shopping- using individuals trained to measure a customer service process by acting as potential customers, then reporting their experiences in detail. Our shoppers are trained to provide inconspicuous observation of the full shopping experience, from initial customer reception, to engaging employees’ assistance regarding product differentiation, to quality of product and to final purchase. We then organize and analyze the data using statistical methods, so that results are relevant and significant.

Mystery shopping is an effective way to measure service level from customer waiting lines to product quality to cleanliness of surroundings to employees' ability. However, it is not primarily intended to catch  employees making mistakes, rather the process is meant as a positive reinforcement, to analyze strengths and weaknesses and assess ways to improve. Many service related companies use mystery shopping to research their competitors and their own sales staff, to improve customer services.

In the example below, the mystery shopper discovers possible product quality concerns in a fast food resataurant. A manager of the restaurant is approached. The video may suggest that service quality in the store needs improvement. This type of research provides companies with invaluable information and enables them to act immediately before there are any serious repercussions.