Discussion Questions

1. Discuss how the shift from making “market entry” decisions to “continuous operations”
decisions creates the need for different types of information and data. What assistance
does an MMIS provide?
The fundamental difference hinges on the type of information necessary for the two
different decisions. Market entry decisions require information that may be, for all
practical purposes, important only in the original decision to enter or not to enter a
market. Those kinds of information that help the marketer make a decision on
short-term as well as long-term demand for his product or the profitability of his
product after entry are the types necessary to decide market entry. Once a decision
to enter a market has been made and a beachhead established, then the marketer
needs the constant monitoring of his relative position in the new market, as well as
his market share, to continue his operations within that country. This kind of
information requires a constant or continuous monitoring of one's market position.
Thus, some continuous system designed to generate, store, catalogue, and analyse
information from sources within the firm and external to the firm are necessary for
decision making. MMIS is designed specifically to provide this kind of continuous
flow of information.

2. Using the hypothetical situation, illustrate how an MMIS might be established and how
it would be used at different levels.
This is an individual project.

3. Discuss the breadth and scope of international marketing research. Why is

international marketing research generally broader in scope than domestic marketing
research?
The information requirements of foreign market research can be divided into at least
three different types. These three types are: (1) general information about the
country, area, and/or market, (2) the study of specific information used to solve such
problems as advertising, pricing, distribution, and product development in a
marketing of specific products, and (3) forecasting future marketing requirements by
anticipating social, economic and consumer trends in specific markets or countries.
A researcher's activities are frequently much broader than those of a domestic
marketer and can involve all types of information essential to conducting business
abroad. It would not be unusual to expect a foreign marketer to provide all the
information relevant to the question of a firm entering a new market–political stability
of a country, cultural attributes, geographical characteristics, and market
characteristics as well as projections of potential economic growth. In addition, a
foreign research department might be expected to be a source of information
necessary to compensate for the possible lack of empathy within a strange
environment. Research should provide assistance for adequate foreign market
information. This would include foreign factors which can vary from country to
country or quite frequently from area to area within a country.
International marketing research is generally broader in scope than domestic
marketing research because the foreign marketer must make up for a lack of
knowledge which the domestic marketer has gained from years of business
 experience within a single market. For the foreign marketer, each market is a
completely new market, and thus the kinds of information that a domestic marketer
would be expected to know from his general experience and from having lived within
a country must be attained for every new market the foreign marketer enters.

4. What is the task of the international market researcher? How is it complicated by the
foreign environment?
The task of the international market researcher is to answer questions with current,
valid information that a marketer can use to design and implement successful
marketing programmes. This task is complicated by the foreign environment in the
case of secondary data by a lack of collected data, or data which has been poorly
collected, and the reliability of the secondary data available. In many countries,
national pride comes before statistical accuracy, and frequently secondary data are
opinions rather than fact. Another difficulty with secondary data involves the
comparability and currency of available data. Oftentimes, data is not comparable
from period to period, nor is it current or collected on a predictable basis.

5. Discuss the stages of the research process in relation to the problems encountered.
Give examples.
The research programme should include the following steps:
Define the research problem and establish research objectives.
Develop a research plan.
Gather the relevant data from secondary and/or primary sources
Analyse and interpret the collected data
Summarize findings and present the results.
The task of the research is to execute each of these steps with maximum objectivity
and accuracy within the limits of cost and time. The major difficulty in defining the
problem and establishing research objectives is translating the business problem
into a research problem with a set of specific research objectives. This first stage
frequently goes astray because of improper problem definition. The problem may be
more acute in foreign marketing research than in domestic marketing research,
since unfamiliarity with the foreign environment tends to cloud problem definition,
thereby complicating the process. Most difficulties arise when the researcher fails to
anticipate the influence of the local culture upon the problem. A second difficulty in
foreign research stems from the failure to establish sufficiently broad problem limits,
which include all the relevant variables. This problem arises mainly because of the
researcher's failure to appreciate the kinds of information that the decision-maker
lacks. In domestic marketing research, much of these kinds of information are taken
as “given” and thus is not included in the typical market research project. However,
foreign marketing research is much broader in scope; that is, it must include more
information than is ordinarily included in domestic research, and thus in defining the
problem, the inexperienced researcher may fail to define the problem as broadly as
it should be.
Once a research problem is clear and its objectives have been defined, the second
step is to plan the research process. This should be done irrespective of whether
the company will undertake the work with its own resources or outside agencies.
The tasks to be undertaken should be specified and alternative methodologies
should be evaluated. In this process an appropriate methodology should be
selected. For example, which type of research, quantitative or qualitative, should be
done. What are the theories/ models we can use to find answers to research
questions, are also to be identified here. While selecting these methodologies, the
comparability of research findings and their usefulness must be kept in mind.
The third step concerns the problems of gathering the relevant data from either
secondary and/or primary sources. The breadth of many foreign marketing research
studies and the marketer's lack of familiarity with a country's basic socioeconomic
and cultural data result in considerable demand for information. In Western
countries this information is generally available from secondary sources. In foreign
markets the gathering of such data can pose problems Unfortunately, such data is
not as available in foreign markets the market researcher may be confronted with
the problem of: (1) the availability of detailed data on specific areas. Much of the
secondary data a Western marketer is accustomed to having about Western
markets is just not available for many countries. While broad data covering an entire
country may be available, data for sub-regions within the country is surprisingly
unavailable. (2) The reliability of the secondary data which is available. This data
may, in some cases, be too optimistic, either on purpose or as a result of not being
collected properly. They may tend to understate conditions because of improper
collection procedures. (3) Comparability and currency of the data which is available.
Data may be many years out of date, they may have been collected on an
infrequent and unpredictable schedule, there may be no historical series with which
to compare the current information, and the data which is collected may be in
categories which are much too broad to be of specific value.
The problems of gathering primary data are also important. The major problem
facing the foreign market researcher in gathering primary data is one of getting the
unwilling respondent to provide current and truthful information. Cultural variations
also hamper the foreign researcher in locating knowledgeable sources of
information as well as influencing the general willingness to respond. In some
cultures, to discuss personal or family matters is taboo. Private matters are just not
discussed with strangers. There is also the problem of taxes when a researcher
must ask questions that may cause the respondent to feel that there is some
possibility of divulging income. The respondent may be reluctant for fear that the
researcher is collecting tax information. Tax evasion is an accepted practice if it can
be successfully accomplished. In fact, it can even be a point of pride for the more
adept tax evaders. In many countries, this philosophy is not considered immoral or
unethical as it would be in the United States. As a consequence, the art of income
tax evasion may interfere with the researcher's ability to gather information that may
be remotely related to taxes. Another problem is the inability of the respondent to
articulate the desired response. It is difficult for a person to clearly articulate his
feelings or to provide reasonable information about purchase intentions, likes or
dislikes, when he has little understanding of the product or has never used the
product.
Another major problem in the collection of primary data is concerned with sampling
procedures. An important problem stems from the lack of adequate detail on
universal characteristics and lists from which to draw meaningful samples. Current
and reliable lists are frequently not available. Telephone directories, census tract
 and block data and detailed social and economic characteristics of the universe are
not available, if they exist at all. Thus, sampling becomes much more complex and
frequently less reliable than if these kinds of lists were available. Besides the
inadequacy of details on universal characteristics, the effectiveness of the various
methods of communication (mail, telephone, and personal interview) in surveys is
also limited. In many countries, for example, telephone ownership is extremely low,
making telephone interviews virtually worthless. Adequate mailing lists and poor
postal service also pose problems for the market researcher who wants to use the
mail to conduct research. And last, inadequate lists and inadequate details of the
population may make personal interviewing virtually impossible or very difficult.
A final problem with sample surveying is the language. The difference in idioms and
the difficulty of exact translations create problems in obtaining the desired
information and the interpretation of the respondent's answers. Coupled with this
language difficulty is illiteracy. In many countries with low literacy rates, written
questionnaires are completely useless. The problem of dialects in different
languages can make a national questionnaire survey impractical. In addition, some
respondents with a minimum of education may have difficulty in comprehending the
meaning of questions asked. Although answers may be given, they may not be the
answers to the questions the researcher has in mind, but rather answers to the
respondent's misinterpretation.
Once the data have been collected, the next and perhaps most critical step in the
research process is the analysis and interpretation of the research information in
light of the stated marketing problem. Final analysis must take into consideration the
limitations mentioned above, and in spite of the limitations, produce meaningful
guides for management. The meaning of words, the consumer's attitude toward a
product, the interviewer's attitude or the interview situation can all distort research
findings. Just as culture and tradition can influence the willingness to give
information, it can also influence the type of information given. In foreign market
research, accepting information at face value can be a dangerous practice.
Newspaper circulation figures, readership of the census studies, retail figures, and
sales volume can all be distorted through local business practices.
Finally, the presentation of findings and results in a summarized and easy to
understand manner is crucial to the success of research. We have to put the
research problem, the data collection and findings into a logical, consistent and
persuasive report, considering the purpose of the report and to whom it is
addressed. We have to convince the reader that we have done our job in a
systematic and logical manner and that our findings are reliable. This is particularly
important in international marketing research, as the results and findings are to be
understood and executed by international marketers and managers.
Culturally biased and offensive conclusions need to be avoided especially in respect
to local sensitivities. The report to managers must be concise and convincing, and
should include a short (maximum two pages) executive summary explaining the
major issues, some interpretations on data, collected results and managerial
implications.

6. Why is the formulation of the research problem difficult in foreign market research?
 The formulation of the research problem is difficult in foreign market research
because of the cultural variation from country to country and because of the vast
amount of information which should be known but often is not available to the
decision maker. The situation is oftentimes acute in foreign market research since
unfamiliarity with the foreign environment tends to cloud problem definition. In most
cases, this is the result of the researcher failing to anticipate the influence of the
local culture upon the problem. Other difficulties in foreign research stem from
failure to establish sufficiently broad problem limits to include all the relevant
variables. Such limits must include a far greater range of factors than necessary for
domestic research in order to offset a totally unfamiliar background on the part of
the researcher. Much of the information that a domestic market researcher has
acquired through a lifetime of living in a country is not available to the foreign market
researcher. Therefore, this tends to cloud or to limit his ability in defining a problem
since he or she is not in a position to bring to bear all of the possible variations upon
the problem formulation. As a consequence, there is a tendency not to define the
problem clearly or to define the problem much too narrowly.

7. Discuss the problems of gathering secondary data in foreign markets.

The problems of gathering secondary data are:
The availability of detailed data on specific market areas. There often is a lack of
detailed data on such items as numbers of wholesalers, retailers, manufacturers,
and facilitating services. Surprisingly enough data on population and income is often
unavailable as well.
Reliability of the secondary data which is available. When there is an abundance of
data, it must be screened carefully. The data can be overstated, understated, or
riddled with holes.
Comparability and currency of available data. In many countries, especially the
lesser developed, data can be many years out of date as well as having been
collected on an infrequent and unpredictable schedule. Furthermore, there is often
very little historical data available with which to compare the current information.
Data from a secondary source from any country, including the United States, should
always be checked very carefully. As a practical matter, the following questions
should be asked in order to judge the reliability of data sources: Who collected the
data? Would there be any purpose in misrepresenting the facts? For what purpose
was the data collected? How was it collected? Is the data generally consistent and
logical in light of known data sources or market factors?

8. What are some of the problems created by language and the ability to comprehend in
collecting primary data? How can a foreign market researcher overcome these
difficulties?
The problems created by language are many. The obvious, of course, is the ability
of the individual to understand or the ability of the researcher to translate accurately
a question into the language of the respondent. Dictionary translation is seldom
adequate. The key is the ability to translate the question into the proper idiom of the
respondent. A questionnaire is difficult to construct even in one's own tongue. When
one has to translate the questionnaire from his own tongue into an unfamiliar
 tongue, the difficulties can be great. The most important one, of course, is being
certain that the question being asked is the same when translated. The researcher
can overcome these problems by the use on nationals. A warning, however, is that
one must be certain that the national does understand the language of the
researcher and can translate it correctly.

9. Discuss how “decentring” is used to get an accurate translation of a questionnaire.

A hybrid of back translation, is called “decentring.” A successive iteration process of
translation and retranslation of a questionnaire, each time by a different translator.
The two English versions are compared and where there are differences, the
original English version is modified and the process is repeated. If there are
differences between the two English versions, the original English version of the
second iteration is modified and the process of translation and back translation is
repeated. The process continues to be repeated until an English version can be
translated into French, and back translated by a different translator, into the same
English version. In this process, wording of the original instrument undergoes a
change and the version that is finally used and “its translation have equally
comprehensive and equivalent terminologies in both languages.”

10. Discuss when qualitative research may be more effective than quantitative e
research.
Qualitative research is more effective than quantitative research when: 1) the
researcher seeks open-ended, in-depth and unstructured responses that reflect the
person's thoughts and feelings on a subject. Qualitative research interprets what the
“. . . people in the sample are like, their outlooks, their feelings, the dynamic
interplay of their feelings and ideas, their attitudes and opinions, and their resulting
actions”; 2) the researcher wants to formulate and define a problem more clearly
and to determine relevant questions to be examined in subsequent research. It can
also be used where interest is centered on gaining an understanding of a market
rather than on quantifying relevant aspects; 3) the researcher seeks an
understanding of the impact of sociocultural factors on behaviour patterns and
wants to develop research hypothesis that can be tested in subsequent studies
designed to quantify the concepts and relevant relationships uncovered in
qualitative data collection. Research conducted by Procter & Gamble in Egypt is an
example of how qualitative research leads to specific points that can be measured
by using survey or quantitative research; and 4) the respondent has no immediate
experience with the product or concept under study and a small sample of carefully
selected consumers is sufficient. For example, it is often difficult for respondents to
know whether a product, flavour, concept or some other new idea is appealing if
they have no experience with the issue being studied. To simplify asking in a direct
way may result in no response or worse, a response that does not reflect how
respondents would react if they had more experience.

11. Sampling offers some major problems in market research. Discuss.

There are several difficulties encountered in the process of taking samples and
conducting field surveys. The greatest problem stems from the lack of adequate
 detail on universal characteristics and lists from which to draw meaningful samples.
If current and reliable lists are not available, sampling becomes much more complex
and generally less reliable. In many countries, telephone directories, cross-index
street directories, census tract and block data, and detailed social and economic
characteristics of the universe are not available on a current basis, if at all. The
researcher then has to estimate characteristics and population parameters,
sometimes with little basic data on which to build an accurate estimate. To add to
the confusion, in some cities in South America, Mexico, and Asia, street maps are
unavailable; and in some large metropolitan areas of the Near East and Asia,
streets are not identified and houses are not numbered.
A lack of detailed social and economic information also can hamper the
effectiveness of sampling techniques. Without an age breakdown of the universe,
for example, the researcher can never be certain he or she has a representative
sample on an age criterion since there is no basis or comparison with the age
breakdown in the sample. Although a lack of detailed information does not prevent
the use of sampling in obtaining reliable market information, it does make it more
difficult. In place of the probability techniques, many researchers who have found
themselves faced with such situations have had to rely upon conveniences, samples
in marketplaces and other public gathering places.
Besides the inadequacy of details on universal characteristics, the effectiveness of
the various methods of communications (mail, telephone, and personal interview) in
surveys is also limited. In many countries, for example, telephone ownership is
extremely low, making telephone surveys virtually worthless unless the survey is
intended to cover only the wealthy.
In addition to potentially poor service within countries, there is also the major
problem of the time required for delivery and returns when a mail survey is to be
conducted from another country. Surface delivery can require three weeks or longer
between some points on the globe, and although airmail reduces this time
drastically, it also increases costs considerably.
Although adequate lists and adequate detail on the population may be critically short
in some countries, this is not universally true. In those countries where every adult is
required to register with various government agencies, there are extremely
adequate lists of people, along with ample socio-economic detail. In many European
countries, as well as in Japan, voter lists, police registration lists, and tax records
are available to researchers. In those areas where there is a paucity of adequate
lists, other research tools must be relied upon. Mainly the various convenience
sample methods are used.

12. Select a country. From secondary sources compile the following information for at
least a 10-year period prior to the present.
Principal imports
Principal exports
Gross national product
Chief of state
Major cities and population
 Principal agricultural crop

Library Project.

13. “The foreign market researcher must possess three essential capabilities in order to
generate meaningful marketing information.” Discuss.
The foreign market researcher must possess three essential capabilities in order to
generate meaningful marketing information. First, he must possess a high degree of
cultural understanding of the market on which he is doing research. In order to
analyse, and in some cases, to compensate for research findings, he must
understand the customs, viewpoint, semantics, current attitudes, and business
customs of a society or a subsegment of a society. Second, the researcher must
possess a creative talent in adapting research findings. Unfortunately, the
researcher in foreign markets often finds himself “flying by the seat of his pants,”
and he or she is sometimes called upon to produce results under the most difficult of
circumstances. Third, the researcher should be skeptical in handling both primary
and secondary data. He might find it necessary to have a newspaper press run
checks over a period of time to get accurate circulation figures, or he or she might
find it necessary to deflate or inflate reported consumer income in some areas by 25
to 50 percent on the basis of observable socioeconomic characteristics. Frequently,
he is the only individual in a business firm capable of making an accurate judgement
on the reliability and validity of primary and secondary data sources.
These essential capabilities suggest that the foreign market researcher should be
either a foreign national or should be advised by someone who can accurately
appraise the data collected in light of the local environment, thereby helping to
validate secondary as well as primary data.