The disconnect between what consumers say and what they do is prompting business to hire cultural anthropologists to teach them the science of observation.

Know your customer. That's the first rule for designing products that customers want and shaping marketing messages that they respond to. More and more successful companies are claiming that the kinds of insights that drive true innovation cannot be learned from traditional focus groups, which tend to be vulnerable to "group think" and eliciting "socially correct" opinions.

"Buyers are liars," says Dr. Dipak Jain, marketing expert and dean of the Kellogg School of Management, explaining a shortcoming of focus groups. "Ask people what channel they watch on TV and they will tell you PBS. But, in reality, 60% of the time they are watching World Wide Wrestling."

To understand real–life consumer behavior, more companies are turning to research firms staffed by anthropologists and social scientists. Skilled in ethnographic methods and theories, these anthropologists train designers, engineers and marketers how to observe and interview consumers in their own environment, whether at work, out shopping or in the home. Through audio and videotapes, they document their research. These studies go beyond watching consumers use and relate to a product in actual situations; they delve into cultural trends, attitudes and personal habits and get to the "why" of people's actions and choices. "We get into people's environments, try to understand those environments in their terms, build models, identify needs and then offer alternatives that satisfy those needs," explains Michael Barry, a principal in the research consulting firm, Point Forward.

"Ethnographic research is a remarkable fuel for design," adds Barry. "It has turned around the heads of designers who have invested in it. The more time designers and business people spend with customers, the better the product comes out."

This is an important goal for Barry, who teaches a course in "Need Finding in the Design Process" at Stanford University. He shared his class notes with @Issue, some of which we have integrated into the tips at right. For best results, we recommend that companies rely on ethnographic research firms. However, all designers and business people can benefit from becoming more astute observers of human behavior. Here are some points that may help.

1. Cast aside your biases, and listen and observe.

That sounds obvious, but it is too often ignored. When talking to consumers, be an empathic listener, but don't try to argue another point of view, sell them on the product or ask judgmental questions. If a consumer has erroneous views, don't try to correct them. Note the misunderstanding. Let subjects tell their own story, and listen for the things that cause them concern and frustration. Barry quotes the legendary Dale Carnegie: "If you want to find out what people really need, you have to forget about your problems and worry about their lives."

2. Note the contradictions between what people do and what they say.

A homemaker can take you through her laundry routine and tell you how much she loves the detergent, while never noticing that she is using a screwdriver to pry open the box and a stick to stir the granules in the water. Opportunities for innovation lie within the disconnect between action and words.

3. Listen to people's personal stories.

Let them relate their successes and failures. Stories encompass the implicit rules that govern and organize people's lives and reveal what they find normal, acceptable and true. They reveal moral codes, sources of pride, shames, shoulds and should–nots. In researching disposable diapers for Kimberly Clark years ago, Point Forward anthropologists kept hearing mothers complain about being asked whether their toddler was toilet–trained. Admitting their child was still in diapers made them feel defensive and inadequate. These stories led to the creation of a whole new diaper category—"pull–up" disposable training pants, which became an instant success.

4. Watch for "work arounds."

People make do and work around the shortcomings of products and situations. On a research trip to a hospital, designers at medical cart manufacturer, Modo, noted that a nurse had taped a coat hanger to a cart in an attempt to lift cables out of the way. This not only pointed out a problem with existing carts but provided a possible solution. In everyday life, we all come up with "work arounds," clumsy or clever. Take note.

5. Distinguish between needs and solutions.

Barry cites an example of a wrong assumption: "She needs a ladder." A right one would be: "She needs to get something on a high shelf." If you assume that the only solution is a ladder, then you may overlook the possibility of coming up with an entirely new and revolutionary product.

6. Look beyond the obvious.

If your research entails watching homemakers shop for vegetables or an office clerk operate a copier, the task may seem so routine and familiar that you may feel that there is nothing new to be learned. Boredom and frustration set in. Stay alert. Note everything from body language, surrounding objects, social interactions and distractions, insignificant comments, and sequence of steps to getting a job done. The epiphanies and insights emerge from the nuances.