International

Marketing Research
Third edition
C. SAMUEL CRAIG and
S U S A N P. DOUGLAS

Leonard N. Stern School of

Business, New York University
 Challenges Facing International Marketing Research 457

Conforming to Conscience: Ethics in International

Marketing Research
So far the discussion has focused on ways to ensure that the research carried out in international
markets is of the highest possible quality. Having data that are comparable, equivalent reliable and
valid allows conclusions to be drawn that form the basis for sound business decisions or build on
existing theory. An overarching issue concerning the conduct of research, whether by academics or
commercial firms, is that the research process adheres to the highest possible ethical standards.
When research is conducted in multiple countries, there may be more than one set of ethical stand-
ards. Further, what is considered ethical in one country may be considered highly unethical
in another country. This section will not attempt to resolve the inherent differences in different
religious, moral and ethical traditions. It will look at the virtue of conducting research according to
high ethical standards so as to ensure the integrity of the research results.

Much has been written on the subject of ethics in marketing (Schlegelmilch, 1998; Smith and
Quelch, 1993), as unethical or illegal behavior is often manifested in the market place. Most typic-
ally, the unethical behavior involves some aspect of the marketing mix, deceptive advertising, price
fixing and so on. Unethical behavior can result in negative publicity in the media, loss of consumer
confidence, and in some cases legal action. Ethics are also extremely important when it comes to
conducting marketing research (see Kimmel, 2001; Kimmel and Smith, 2001). Just as unethical
market-place behavior can undermine trust and confidence in the firm and its products, unethical
marketing research practices can undermine trust and confidence in the research and the research
process. If research is not conducted on the highest ethical plane, then those who are asked to
participate will decline to do so, those who supply research will find that their results are called into
question or ignored, and those who need sound research on which to base decisions will not trust
the results, or increasingly not commission research in the first place.

Ethics in marketing research can be viewed in terms of those who are involved in the research
process. The specific issues relate to the four main parties to the research process: (1) the respond-
ent; (2) the interviewer; (3) the research supplier; and (4) the client. Each party has a specific role in
the research process and a different stake in the outcome. Respondents play a relatively passive role
in the process and have limited interest or knowledge in the outcome of the research. Ultimately,
they may benefit in the aggregate through, for example, products that better meet their needs or
enhanced services. However, their participation is voluntary and critical to effective research. The
458 International Marketing Research

Main Main research

client supplier

Subsidiary Local or affiliated

clients research suppliers

Interviewers

Respondents

Figure 14.2 Multicountry research. Solid lines represent direct transfer of information.
Dotted lines represent influence on the process. Arrows represent the direction of the
flow while two lines indicate exchange of information at different points in time. The
flows of information are influenced by expectations, knowledge, standards and cultural
backgrounds

interviewer and research supplier gain economically from the conduct of research and are concerned
about repeat business from the clients that hire them. This depends on producing research that can
be relied on and is valued by the client. In assessing value most clients consider the quality of the
research, but there are some that may also be swayed by the outcome; that is, whether it supports a
planned course of action. The client needs to know that the research that is conducted will be valid,
reliable and provide a sound basis for important business decisions. The client is also concerned that
the research is worth the expenditure that has been made.

While these issues are far from straightforward when conducting research in one country, they take
on an added complexity when the research is conducted in multiple countries (Figure 14.2). In
multicountry research, there may be multiple clients, multiple research suppliers, certainly multiple
types of interviewers, and respondents who differ on a variety of dimensions. Each of these parties
will have different expectations, cultural background, standards and so on. Further, each of these
components will interact with other components. For example, a research supplier from one country
may have more difficulty in understanding the research requirements of a client from another country.

The types of research being conducted can range from large, multicountry studies to those involving
a few contiguous countries. Typically, one entity within the firm will commission the research to
 Challenges Facing International Marketing Research 459

help solve a particular problem facing it. If the issue is developing a global brand, corporate head-
quarters will be the client and very actively coordinate the research. However, there may be heavy
involvement from the country managers where the research is actually being conducted. This particip-
ation will help ensure ‘buy-in’ at the local level. Other marketing research projects may be organized
regionally and conducted on a more decentralized basis. When the research project is more decentral-
ized, it is more difficult to ensure that the same ethical standards are applied throughout.

ESOMAR has established a set of guidelines for the conduct of research to help ensure that it is
conducted on the highest ethical plane. The first code was published in 1948 and has been revised
periodically. The most recent version was prepared in 1994 and is available on the Internet at
www.esomar.org. In 2001 an amendment to the code was added to cover the data protection
principles established by the EU Data Protection Directive. In addition to the code of conduct,
ESOMAR has established guidelines for different types of research. These are available at its web
site and cover areas such as the distinction between marketing research and direct marketing,
pharmaceutical marketing research, and conducting marketing research on the Internet.

To enforce the code of conduct, in 2000 ESOMAR established disciplinary procedures. These
consist of a Professional Standards Committee (PSC) and a Disciplinary Committee (DC). Both
committees are charged with examining alleged infringements of the ESOMAR Code of Marketing
and Social Research Practice at the international level. The PSC can issue a warning, a reprimand,
or refer the matter to the DC, which can impose more stringent penalties, including suspension,
expulsion or notification of appropriate authorities. Details of the procedures can be found at the
ESOMAR web site.

The ESOMAR code covers the rights of respondents, and by implication the role of the interviewer,
the professional responsibilities of researchers, and the mutual rights of researchers and clients.
It also specifies that research studies must comply with national and international legislation
applicable in the various countries. The next three sections are based on the ESOMAR code.

Respondents and Interviewers

The rights of the respondent are the most fundamental to the marketing research process. Without
respondents, there would be no research. Further, the primary means of obtaining information from
respondents is through interviewers; although this is changing somewhat as data can be collected
through the mail or directly over the Internet without the intervention of an interviewer. However,
460 International Marketing Research

the general ethical concerns are relevant, whether or not an interviewer interacts directly with the
respondent.

To begin with, respondents’ participation in the research project must be entirely voluntary and it is
unethical to mislead them in an attempt to gain their cooperation. Respondents must also be
assured that their responses will be held in strict confidence and that their right to privacy is
ensured. A related aspect is respondent anonymity. If data are to be passed on, subject to respondent
approval, then steps must be taken to ensure that the identity of the respondent is not revealed.
Respondents must not be harmed in any way by the research process and they must be informed if
observation techniques or recordings are to be made of their responses. Mechanisms must be put
in place to allow respondents to verify the identity of the researcher and that the researcher is
connected with a legitimate research organization. Special care must be exercised when children or
young people are interviewed. In most cases this will involve obtaining parental consent. There is a
separate set of guidelines for interviewing children and young people, available at the ESOMAR
web site.

Researchers
The researcher has certain obligations to the client and more broadly to the research profession.
Researchers have to conduct themselves so as not to discredit the marketing research profession
or do something that would lead to the loss of public confidence in the research profession.
Researchers have to be truthful in making claims about their skills and experiences so as not
to mislead clients. This can be problematic in multicountry research as it may be more difficult to
interpret or verify claims made by research organizations. Researchers must always endeavor to
design and conduct research in the most cost-effective manner. Given the different cost structures in
different countries discussed in Chapter 2, this may be more difficult than it appears. Fieldwork may
be conducted in a certain country because of the need to understand that particular market. How-
ever, the tabulation and analysis can be conducted in another location, which may be more costly.
The issue is whether this is being done for the convenience of the researcher or because it provides
the best approach for the client.

Security of the data is a key issue. If the right of respondents to privacy is to be preserved, then the
researchers must take steps to ensure the security of all data that they have collected. Also, researchers
have an obligation to see that any research findings that are disseminated are adequately supported
 Challenges Facing International Marketing Research 461

by the data. The interesting dilemma is where results obtained in one country, for example country
A, may be disseminated in country B, as being indicative of responses in country B. However, this
may be less of an issue for the researcher and more one of how the client uses the research.

There are a number of issues that relate to the conduct of the researcher, independent of any direct
interaction with the client. For example, the ESOMAR code specifies that ‘Researchers must not
unjustifiably criticize or disparage other researchers’. In addition, research firms need to establish a
clear delineation between their research activities and any nonresearch activities undertaken. This
can be a problem if a research firm has a large database and also engages in direct marketing and
promotional activities. As long as the research information about individuals is not used in the
nonresearch activities, there is no ethical breach.

Clients and Researchers

The client enters into a specific contractual agreement for a particular research project. The contract
spells out all the terms and conditions covering the specific research engagement. All provisions of
the contract should be consistent with ethical guidelines established by ESOMAR, the American
Marketing Association or another professional body. The researcher must inform the client if the
collection of the data is to be done in combination with the data collection for another client. The
researcher must inform the client if any part of the research process is to be subcontracted to others.
Both of these provisions fulfill the need for full disclosure so that the client is fully aware of how the
research is being conducted.

In addition, documents that the client provides to the researcher remain the property of the client
and should not be disclosed to others. Typically information provided to the client, such as research
proposals and cost information, remains the property of the researcher and should not be disclosed
to others. The research organization should maintain records of the research for a period of time
after the research is conducted. This is likely to present more of a problem when the research project
is highly decentralized and spans a number of countries. Further, the researcher should not disclose
the identity of the client for whom the research is being conducted.

The above guidelines and obligations of the various parties establish the minimum standards for
the conduct of ethical research. Specific countries may have more stringent laws that prohibit certain
practices, for example pertaining to the privacy of individuals. Problems of misunderstanding,
462 International Marketing Research

particularly between the client and the researcher, are most likely to arise outside the Western
European countries, Japan and the US. The research infrastructures are less sophisticated and the
amount of research being conducted is far less in less-developed countries. Consequently, things that
are taken for granted in the major markets may require special arrangements.

Summary
Change is occurring in virtually all aspects of business and personal life. Businesses are both being
buffeted by change and acting as change agents to bring about change in markets throughout the
world. Consumers face a much more complex consumption environment and have more choices
than ever before. These changes are being played out at different rates in different parts of the
world. Against this backdrop, marketing research firms are being challenged to conduct research
that is of the highest possible quality, as quickly as possible, in multiple diverse settings. The issues
that marketing researchers face are multifaceted and relate to where and how research will be
conducted, who the respondents will be, and the tools and techniques that will be used.

To prosper and grow, marketing researchers must find creative ways to harness the new technolo-
gies to facilitate the conduct of research and enhance its value to clients. At the same time, research
organizations must begin to develop the capability to conduct marketing research simultaneously
in the developed and the developing world. Increasingly, multinational marketers are designing and
selling international brands and need research to guide their decision making across a diverse and
disparate world. To accomplish this, marketing research organizations need to acquire the capabil-
ity to meet their clients’ needs through strategic partnerships and acquisitions. Finally, marketing
researchers must strive to ensure that the research they conduct adheres to the highest ethical
standards, so that it is trusted and relied on by their clients.

References
Barnard, P. (1997) Global Developments and Future Directions in Marketing Research. Globalization
and the Millennium: Opportunities and Imperatives. Marketing Science Institute, 16–17 June, Brussels.

Craig, C.S. and Douglas, S.P. (1996) Responding to the Challenges of Global Markets: Change,
Complexity, Competition and Conscience. Columbia Journal of World Business, 31, 6–18.