"Whenever you draw games at home, especially goalless ones, you have to look at it in a balanced way," he said.
"After last week's heavy defeat we had to get a response, and we know home form is going to be important.
"There were more positives than negatives out there, but I know there are areas of our game where we need to improve."
Pearson also claimed Jay Simpson is the man who can help to solve Hull's goalscoring problems, having signed the striker from Arsenal in a deal worth up to 1m. "We have only scored two goals in three games and it has been a bit of a problem in the past," admitted Pearson.
"It was tough for him as he's only trained with us once, so he was thrown in at the deep end (on Saturday). I know he'll be a good acquisition and will help us to be more penetrating."
Watford created the better chances after the break following a dire first half.
Martin Taylor headed wide from six yards following Don Cowie's inswinging free-kick from the left flank, before Matt Duke performed goalkeeping heroics to keep Watford at bay.
Duke tipped wide Graham's snap-shot from 18 yards and then parried a stinging half-volley from Mutch to keep the score goalless.
Watford manager Malky Mackay, who admitted he had feared a backlash from Hull after their 4-0 defeat to Millwall the previous weekend, said: "I was delighted with the performance.
"We have come up to Hull to a team that has just come down from the Premier League.
"They have an experienced manager and have brought in Jay Simpson and Robert Koren, who are very good players.
"They were coming off a bad result last week and desperate to prove something."
Hull City: Duke, McShane, Zayatte, Cooper, Dawson, Bostock (Garcia 69), Ashbee, Kilbane (Cullen 56), Cairney, Koren, Simpson (Barmby 69). Unused substitutes: Oxley, Anthony Gardner, Atkinson, Solano.
Watford: Loach, Hodson, Taylor, Mariappa, Doyley, Cowie, Eustace, McGinn (Walker 76), Buckley (Mutch 59), Graham, Sordell (Deeney 59). Unused substitutes: Bond, Jenkins, Bennett, Henderson.
Referee: S Mathieson (Cheshire).
Man of the match: Matt Duke.
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