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.