Question 1: Ethnographic Research Role in Learning Buyer Behavior
Using ethnographic analysis and ethnographic research are relatively new tools used in the world of business, but they are actually relatively established techniques in the worlds of anthropology and social science. Basically, ethnographic analysis and ethnographic research in business work on the premise that stated behavior is frequently different from actual behavior. Oftentimes, qualitative or quantitative research is criticized because results from these techniques don't mirror customers' actual behaviors in the marketplace.
Ethnographic analysis and ethnographic research try to address this gap. An ethnographic analysis observes how consumers or clients behave at point of sale. If we use a grocery store as an example, an ethnographic analysis would observe how long the customer stays in a certain section of the store, where her eyes track looking for a product, whether or not she picks up one or several products, whether she looks for coupons or reads the label, etc. Oftentimes the consumer is interviewed on the spot to question motivation (Sanday, 1979).
Ethnographic analysis and ethnographic research are also conducted where the product or service is used, whether that is in the home, at work or on the road. Researchers observe how the product is or isn't used, what difficulties consumers have using the product, etc. From this observational research, clients can obtain a wealth of understanding about how their product is used, insights into what goes into the buying decision and what consumers like or don't like about their product. Corporate ethnography isn't just for innovation anymore. It's central to gaining a full understanding of customers and the business itself. The ethnographic work at my company, Intel, and other firms now informs functions such as strategy and long-range planning (Lauer & Asher, 1988).
Ethnography is the branch of anthropology that involves trying to understand how people live their lives. Unlike traditional market researchers, who ask specific, highly practical questions, anthropological researchers visit consumers in their homes or offices to observe and listen in a nondirected way. Our goal is to see people's behavior on their terms, not ours. While this observational method may appear inefficient, it enlightens us about the context in which customers would use a new product and the meaning that product might hold in their lives (Hammersley, 1990).
Ethnography at Intel initially focused on new markets. The company had provided products only for the workplace, but in 1995 managers wondered whether users at home would become a distinct market. Ethnographic research showed so much potential that Intel set up a business unit to concentrate on processors and platforms for home use (Giroux, 1998).
Recently, Intel ethnographers have veered into strategic questions. Like many high-tech companies, Intel makes long-term bets on how markets will play out. Will television and PC technology converge? Are baby boomers retaining their PC and TV habits as they age, or are they comfortable shifting to new media? Will smartphones take over most of the functions of personal computers?