International marketing research

1. International marketing research ‘Most … cultural blunders stem from inadequate market research’ Kotabe and Helsen, (2001), ‘Global Marketing Management’ , 2nd ed, Wiley

2. Learning objectives • Appreciate the information needs of an international company • See notes from Seminar 1 • Understand the differences between domestic market research and international market research • Understand the requirements of an effective international market research programme

3. The self-reference criterion (Lee, 1966) • Most international MR is hindered by the unconscious tendency ‘to fall back on one’s own cultural norms and values to interpret a given business situation’ • Worse than ethnocentrism • Proposes a 4-step SRC correction mechanism

4. Correcting for the SRC 1. Define the problem/goal in terms of your own culture. 2. Define the problem/goal in terms of the host culture. 3. Isolate the SRC effect and see how it interferes with the business problem/goal. 4. Re-define the business problem without the SRC interference and identify the solution. E.g. the Barbie Doll in Japan

5. Two sources of data • Secondary • Already exists: governments, international orgs, trade assoc, directories, websites. • Eg Eurostat: EU statistics, OECD: developed country statistics, WTO: world trade statistics • See Keegan p.193 for websites • Readily available • Comparable • Low cost • Useful for environmental scanning • Not tailored to the needs of the company

6. Primary data 1. Collected to meet the needs of a specific company or group of companies • Ad hoc: a one-off project • E.g., to determine the product attributes required by consumers in a country or region- do we offer the standard product or not?

7. Primary data 2. Continuous research: collecting the same data from a panel at regular intervals • E.g., annual monitoring of the strength of a brand, country by country in terms of: • Awareness levels • Brand associations • Brand loyalty • To determine its brand equity

8. Primary data 3. Syndicated research: same data collected regularly on behalf of a group of client companies • E.g., market share and prices by country per quarter 4. Omnibus surveys: a collection of different questions from different company clients collected regularly by one agency

9. A C Nielsen China omnibus • Coverage : 10 cities • 4 times p.a. • Sample: 500 interviews per city • Methodology:Random, stratified demographically, face to face, • Individuals: 9+ • Typical questions: • Do you use X? • How often do you use X? • How much did you pay for X? • Have you seen any ads for Y?

10. Stages in the international research process • Specifying the research problem • Why do we want the data and what will we do with it? • E.g. a BMW product positioning study in Europe addressed 3 issues: • What do motorists demand of their cars? • What do they believe they are getting from various brands? • What does this imply about positioning BMW across borders?

11. Develop a research plan • Methodology • Budget • Time schedule • Who’s responsible for what?

12. Data collection • Primary or secondary or both? • Qualitative or quantitative? (what do you want vs. why do you want it?) • Qualitative methods: • Depth interviews • Group discussions/focus groups • Quantitative • Questionnaires: personal interviews, mail and telephone surveys • The most popular method by far

13. The internet as a global research tool • Pros: • Large samples in small amount of time • Global access to the internet • Significantly cheaper • Offers anonymity • Data can port directly in analysis programmes

14. The internet as a global research tool • Cons: • In many countries, access is limited • Sample bias and self selection bias • Incorrect email addresses • Poor connections • Multiple responses from one person

15. Steps 3, 4 & 5 • Sampling: • What should it be representative of? • i.e. the sampling population • Random vs. quota • Controls: gender, income, age etc • Size: accuracy vs. cost and time • Analysis • Presentation of the findings

16. Key distinguishing issues in international market research • Language • Eg ‘popular’ is a positive word in English in Japanese it means ‘regular’ or ‘plain’ • Eg ‘unique’ is also a positive word in English in Japanese it means ‘strange’ or ‘unusual’

17. Language (3000 in the world)– good practice • Use local translators and interviewers • To identify errors use: • Back translation • Parallel translation • Hold interviewer briefings to identify problems before they arise • Hold interviewer de-briefs

18. The problem of equivalence and comparability • Products differ in their significance • In the UK bikes are for recreation • In China they are an important means of transport • In LDCs the black market is often bigger than the researched market.

19. The problem of equivalence and comparability • Research infrastructure differs between countries • E.g, in LDCs • communication infrastructure makes research more difficult • Secondary data is less well developed and less accurate • In China local authority sanctioned research gets higher response rates

20. Scalar equivalence • Typical rating scale question? “On a scale of 1 to 5 how would you rate this lecture”? • Need to ensure scalar equivalence: • In US/UK :5 or 7 pt scales • In France :20 pt scales • South Americans use the top end • Asians use the middle • Need to standardise the results

21. Cross country comparisons:The need for standardisation • Four key areas: • Briefing • Interviewing and fieldwork control • Analysis of data • Interpretation of data • More difficult with qualitative research

22. Agency structure • Multinational agencies: e.g., A.C. Nielsen, Research International, • Subsidiaries globally • Offer global quality control • Agency alliances • National research agencies • Sometimes unknown quantities • Require individual briefings • Arms length control • Problems of comparability of results

23. Problem areas in International MR

24. Useful websites • http://www.acnielsen.com/ • http://www.wto.org/ • http://www.imf.org/ • http://www.europa.eu.int/en/comm/eurostat/