Explanation:

Observational research is the wide-ranging set of methods businesses use to collect information by directly or indirectly “watching” consumers act in natural (and sometimes planned) environments. As such, it’s used primarily in B2C contexts. What observational research ultimately offers is behavioral data… but it measures behavior directly, rather than relying on consumers’ (sometimes inaccurate) self-reporting. While the subject of observational research might know that data is being collected, they aren’t explicitly involved in collecting it (by filling out survey answers, for example). Often, in fact, there’s no interaction whatsoever—which is why it can be one of the more unobtrusive market research methods out there.

The “observer” takes one of three forms: human, software, or mechanical device. Human observation may be as simple as walking into a brick-and-mortar store and watching consumers pick up your product and your competitor’s product and compare them. Online observation includes tracking devices and web metrics to map user and consumer behavior; Google Analytics and heatmaps fall into this category. Mechanical observation entails the use of devices—such as cameras or footfall counters—that track consumer behavior in the non-virtual world.