Grounded Theory

In this approach, researchers are responsible for developing other theories that emerge from observing a group. The theories are "grounded" in the group's observable experiences, but researchers add their own insight into why those experiences exist. In essence, grounded theory attempts to "reach a theory or conceptual understanding through step wise, inductive process" (Banning 1995).

http://writing.colostate.edu/guides/research/observe/com3a5.cfm