Why might businesses choose observational methods over surveys for their market research?

Businesses may choose observational methods over surveys for market research due to their accuracy and real-time data collection.

Observational methods involve directly watching and analysing the behaviour of consumers. This can provide businesses with more accurate and reliable data than surveys, as it eliminates the risk of respondents providing inaccurate or dishonest answers. For instance, a customer might claim they prefer healthy food options in a survey, but observational research in a supermarket might reveal they often purchase junk food. This discrepancy can lead to misguided business decisions if only survey data is considered.

Moreover, observational methods allow businesses to gather real-time data. This means they can observe how consumer behaviour changes in response to different variables, such as price changes or new product introductions, in the actual moment. This can provide more immediate and relevant insights than surveys, which often rely on respondents recalling past behaviours or predicting future ones. For example, a business might observe that customers spend longer in their store when background music is playing, providing a valuable insight that a survey might not capture.

Another advantage of observational methods is that they can capture non-verbal cues and behaviours that surveys cannot. This includes body language, facial expressions, and other physical reactions that can provide valuable insights into how consumers truly feel about a product or service. For example, a business might observe that customers often look confused when trying to use a new piece of technology, indicating a need for clearer instructions.

Finally, observational methods can be less intrusive than surveys. Customers often find surveys to be bothersome or time-consuming, and this can negatively impact their perception of the business. In contrast, observational methods can often be conducted without the customer's knowledge, allowing for more natural behaviour to be observed.

However, it's important to note that observational methods also have their limitations. They can be time-consuming, costly, and may raise ethical concerns if customers are not aware they are being observed. Therefore, businesses should carefully consider these factors when deciding which market research method to use.