INTERNATIONAL MARKET RESEARCH

ASSIGNMENT

Submitted by

DIWAS SAPKOTA

MBA IB

ROLL NO: 15
 ITALY

Introduction

Italy is a unitary parliamentary republic in Europe. Located in the heart of the

Mediterranean Sea, Italy shares open land borders with France, Switzerland, Austria,
Slovenia, San Marino and Vatican City. Italy covers an area of
301,338 km2 (116,347 square mi) and has a largely temperate seasonal climate and
Mediterranean; due to its shape, it is often referred to in Italy as lo Stivale (the Boot).
With 61 million inhabitants, it is the fourth most populous EU member state.

Italy, a European country with a long Mediterranean coastline, has left a powerful mark
on Western culture and cuisine. Its capital, Rome, is home to the Vatican as well as
landmark art and ancient ruins. Other major cities include Florence, with Renaissance
masterpieces such as Michelangelos "David" and Brunelleschi's Duomo; Venice, the city
of canals; and Milan, Italys fashion capital.

Basic Information of Italy

Total Population 60,674,003(Estimate 2015)

59,433,744(Census 2011)
Land Area 301,338 km2(116,347 sq mi)
Language Italian Sardinian, Friulian, Neapolitan,
Sicilian, Ligurian, Piedmontese, Venetian
and Calabrian
Literacy 99.2%
Religions 83.3% Christianity
12.4% No religion
3.7% Islam
0.2% Buddhism
0.1% Hinduism
0.3% Other religions
GDP and Growth rate 2016 Estimate
Total: $2.213 trillion
Per capita Income 35,540 PPP dollars (2013)
Inflation Italy

Current inflation Italy (CPI Italy) the inflation is based upon the Italian
consumer price index. The index is a measure of the average price which
consumers spend on a market-based "basket" of goods and services. Inflation
based upon the consumer price index (CPI) is the main inflation indicator in
most countries. CPI Inflation Italy as per January 2017 is 0.90%.
Current harmonized inflation Italy (HICP Italy) the harmonized inflation is
based upon the Italian harmonized consumer price index. The index is a measure
of the average price which consumers spend on a for European countries market-
based "basket" of goods and services and is published by Eurostat to compare
inflation in European countries. HICP Inflation Italy as per December 2016 is
0.50%.

How and when census data is collected

Italian census records do not provide as much information as census records of other
countries. Church records and civil registration records are usually better sources for
Italy. Census records, however, can be valuable because they list much of the population,
and they can provide certain information if other records are incomplete or missing.
A record called the stato delle anime is similar to a census. See the ""Church Records"
section of this article for more information.
The first census of Italy was taken in 1871. Since then, a census has been taken every 10
years.
You will generally find more complete family information in censuses taken from 1911
to the present. The censuses contain the following information:
18711901. These censuses are of limited use and are not uniform in content. In most
regions, the census named only the head of household, his occupation, and the
number of persons in the house.
1911 and later. These censuses list the names, ages, occupations, relationships to the
head of the household, and birthplaces of each member of a household.
Use census information with caution, however, since the information may have been
given to a census taker by any member of the family or a neighbor. Some information
may have been incorrect or deliberately falsified.
Last census was taken on 2011.
Seasonality and Holidays in Italy
Officially Spring is during the months of March, April and May in Italy. Summer is
from June through to August. Autumn is during the months of September, October and
November and Winter is from December to February.

The Southern European nation of Italy currently celebrates 11 national holidays. Public
holidays in Italy are determined primarily by two Acts of parliament as well as by
collective and individual employment agreements. Act 260/1949 and Act 50/1954 created
four national public holidays as well as 11 other holidays.

Italians celebrate most Christian holidays, including Christmas and Easter. Pasquetta, on
the Monday after Easter, typically involves family picnics to mark the beginning of
springtime. November 1 commemorates Saints Day a religious holiday during which
Italians typically decorate the graves of deceased relatives with flowers. Many Italian
towns and villages celebrate the feast day of their patron saint. September 19, for
example, is the feast of San Gennaro, the patron saint of Napoli. The celebration of the
Epiphany, celebrated on January 6, is much like Christmas. Belfana, an old lady who flies
on her broomstick, delivers presents and goodies to good children, according to
legend. April 25 is the Liberation Day, marking the 1945 liberation ending World War II
in Italy in 1945.

Cultural Do and Donts

Italy is considered the birthplace of Western civilization and a cultural superpower. Italy
has been the starting point of phenomena of international impact such as the Magna
Graecia, the Roman Empire, the Roman Catholic Church, the Renaissance, the
Risorgimento and the European integration. During its history, the nation gave birth to an
enormous number of notable people.

Customs and traditions in Italy include the Lily Festival, Olive and Bruschetta Festival,
swordfish hunts and other celebrations of food, wine, religion, history, the arts and
agriculture. Religious festivals in Italy typically stem from Roman Catholic origins, and
include celebrations such as Epiphany and Carnival.

Consumer behavior of Italy

Italian consumers tend to base their purchases on the quality of the item and the after
sales service they will receive. Italians prefer packaging with clearly conveyed
information. When given the choice, Italians prefer products Made in Italy.
Environmental criteria are less influential on decision-making. Novelty is welcomed,
especially in the fashion sector.

Consumer Attitude of Italy

Consumer confidence has been on the decline. While Italians have tended to favor
consumption to saving, high inflation in recent years has contributed to a decrease in
purchasing power. Italian consumers are demanding of quality products, but are not very
concerned with operating hours, frequent special offers, loyalty programs or credit offers.

Myths of Italy

1. Italy is only about art, architecture and religion.

2. When you visit Italy, you should avoid doing the touristy things, like taking a
gondola ride in Venice, or hanging out on the Spanish steps in Rome, where you'll
only meet other tourists.
3. Women cannot go out alone in Italy without being harassed.
4. Its hard to get around in Italy.
5. Italy is unsafe.
6. Language may prove to be a hindrance while traveling in Italy.
7. All you get to eat in Italy is pizza and pasta

Useful tips of doing business in Italy

1. Italians are uneasy with the search for an absolute truth. The truth is a flexible
commodity, which can change shape and move position with great rapidity. The
search for an absolute answer is non-practical and over-rigid.
2. In-depth, long-term planning is not really expected or respected. Such planning is
pointless in a rapidly changing, volatile business and personal environment. Long-
term plans, if they exist at all, tend to be in grand-outline terms only.
3. The greatest amount of respect is not necessarily due to the person with the
greatest depth of technical merit. Personal qualities and loyalties are far more
important.
4. Decisions are rarely reached by voting. It is important to get consensus and buy-in
to a decision. If no real consensus is arrived at it is possible that dissidents could
undermine the group's work from within.
5. Leadership styles are varied in Italy but traditionally tend towards the
authoritative with direct instructions given by a strong leader. A sense of authority
is important and this derives more from the personal qualities of a leader than
their technical expertise.
6. Outbursts of emotion in the workplace are viewed positively and do not mean that
an individual is out of control or non-professional. It would be dangerous to
underestimate an Italian because of their emotive nature in meeting situations.
7. It is not always sufficient to get a verbal agreement - this may be given merely out
of politeness. Persuasion, insistence and follow-up are essential.
8. Relationships are all important in Italy. Everything flows from these networks of
relationships. An essential pre-requisite to successful co-operation in Italy is the
establishment of strong, long term ties. Do not view such relationship-building
exercises as time wasting.
9. Delegation tends to be on the basis of individual relationships rather than on
technical competence. This means that one individual may seem to have an
alarming variety of responsibilities. Job descriptions tend to be imprecise.
 10. Some small talk is usually engaged in before the meeting proper starts. This stage
of the meeting is, however, rarely protracted (five minutes or less.)
11. Family importance will extend to business relationships (e.g. affectionate hugs,
inclusion in family celebrations, gifts, and close familial-like correspondence).
12. Italians eat well, relax well, and dress well. They are astute business people. No
one wants to pay full price for anything (e.g. railway tickets, taxes, new car, or a
suit). Only naive Italians and foreigners pay full price.
13. English is widely spoken among better educated business people. Cocktail hour
with several rounds of drinks is uncommon in Italy, since wine is served with
every course. In Italian business circles, even mild intoxication is considered ill
mannered.
14. Men should wear business suits. They may dispense their ties and remove their
jackets if a room or hall is not air-conditioned - Italians do enjoy their creature
comforts. Women should dress with a traditional sense of elegance and chic.
Consider investing in a stylish, high quality wardrobe for business and social
events (e.g. elegant shoes, purse, briefcase, and jewelry).

Hofstede model and research in Italy

Power Distance

This dimension deals with the fact that all individuals in societies are not equal it
expresses the attitude of the culture towards these inequalities amongst us. Power
Distance is defined as the extent to which the less powerful members of institutions and
organisations within a country expect and accept that power is distributed unequally.

With a score of 50, Northern Italy tends to prefer equality and a decentralisation of power
and decision-making. Control and formal supervision is generally disliked among the
younger generation, who demonstrate a preference for teamwork and an open
management style. Bear in mind that the high score on Individualism accentuates the
aversion of being controlled and told what to do.

Individualism

At a score of 76 Italy is an Individualist culture, me centered, especially in the big and

rich cities of the North where people can feel alone even in the middle of a big and busy
crowd. So family and friends becomes an important antidote to this feeling; but the word
friend should not be misinterpreted because in business it has a slightly different
meaning: someone that you know and can be useful for introducing you to the important
or powerful people.

Masculinity

A high score (Masculine) on this dimension indicates that the society will be driven by
competition, achievement and success, with success being defined by the winner / best in
field a value system that starts in school and continues throughout organisational
behaviour.

A low score (Feminine) on the dimension means that the dominant values in society are
caring for others and quality of life. A Feminine society is one where quality of life is the
sign of success and standing out from the crowd is not admirable. The fundamental issue
here is what motivates people, wanting to be the best (Masculine) or liking what you do
(Feminine).

At 70 Italy is a Masculine society highly success oriented and driven. Children are
taught from an early age that competition is good and to be a winner is important in ones
life. Italians show their success by acquiring status symbols such as a beautiful car, a big
house, a yacht and travels to exotic countries. As the working environment is the place
where every Italian can reach his/her success, competition among colleagues for making
a career can be very strong.

Uncertainty Avoidance

At 75 Italy has a high score on Uncertainty Avoidance which means that as a nation
Italians are not comfortable in ambiguous situations. Formality in Italian society is
important and the Italian penal and civil code are complicated with clauses, codicils etc.
What is surprising for the foreigner is the apparent contradiction between all the existing
norms and procedures and the fact that Italians dont always comply with them. But in a
bureaucratic country one learns very soon which the important ones are and which are
not, in order to survive the red tape. In work terms high Uncertainty Avoidance results in
large amounts of detailed planning. The low Uncertainty Avoidance approach (where the
planning process can be flexible to changing environment) can be very stressful for
Italians.

Long Term Orientation

Italy's high score of 61 on this dimension shows that Italian culture is pragmatic. In
societies with a pragmatic orientation, people believe that truth depends very much on
situation, context and time. They show an ability to adapt traditions easily to changed
conditions, a strong propensity to save and invest, thriftiness, and perseverance in
achieving results.

Indulgence

A low score of 30 indicates that Italian culture is one of Restraint. Societies with a low
score in this dimension have a tendency to cynicism and pessimism. Also, in contrast to
Indulgent societies, Restrained societies do not put much emphasis on leisure time and
control the gratification of their desires. People with this orientation have the perception
that their actions are Restrained by social norms and feel that indulging themselves is
somewhat wrong.
Major research Agencies- government and private

Consiglio Nazionale delle Ricerche (CNR) or National Research Council

Ales Market Research S.R.L
Sinaptica S.R.L.
Brandvoyant

Reference:

1. http://students.depaul.edu/~jborger/
2. https://www.lonelyplanet.com/italy
3. http://wikitravel.org/en/Italy
4. https://familysearch.org/wiki/en/Italy_Census
5. https://en.wikipedia.org/wiki/Italy
6. http://businessculture.org/southern-europe/business-culture-in-italy/
7. https://www.walksofitaly.com/blog/travel-tips/italy-travel-tips
8. https://www.todaytranslations.com/doing-business-in-italy