Ethnographic market research places major emphasis on natural-setting observation. That is, seeing people interact with products or people where they usually do — on the street, in the home, at the office, or at city hall. When users are observed interacting with products (or other people for services) they reveal detailed information that may not show up in surveys or get discussed in focus groups. In addition to providing rich data, observation can verify that consumer actions are consistent with their words. The observation component of ethnographic market research provides real life information.

Ethnographic market research is an essential tool for developers of services and products. It enables an increased understanding of user needs, wants, and usage environments. This insight enables developers to create meaningful new products, services, features and extensions that exceed market expectations.

Strictly speaking, ethnographic research combines multiple techniques within a single study. For instance — observation, one-on-one interviews, and a quantitative survey are combined to study a particular subject. This type of triangulation can greatly improve the validity and reliability of study results. In general, it is always wise to combine qualitative and quantitative techniques in order to maximize understanding and verify qualitative findings for the population of interest. One of the most important client benefits to ethnographic research is in the report. Presentations include audio recordings, pictures and video clips of customers (or prospects) using real products or services in their natural environment. Multimedia-based presentations enable the direct delivery of user settings, interactions, comments and emotions to clients.