International

Market Research
Learning Objectives
 How can market researchers effectively employ the scientific
method to improve the quality of a marketing program?

 What are the steps of the marketing research process?

 What roles do primary data, secondary data, validity, and

reliability play in the process of designing an international
marketing research program?

 What techniques can be used when developing samples and

collecting data for international marketing research?

 What factors complicate the analysis and interpretation of data

in international marketing research?
 Market research is the
systematic gathering, storing,
and analyzing of marketplace
information for use in strategic
decision making.
• The market research process links the

Market organization with various constituent

groups.

Research
The Scientific Method

• How researchers use observations,

empirical evidence, and knowledge to
objectively study various phenomena
 Components of the Scientific
Method
 Objectivity
 Researchers try to remain objective when developing research
designs and questions and when collecting data, and when arriving at
conclusions based on the outcomes.
 One factor that affects objectivity, the self-reference criterion,
occurs when someone applies his or her own cultural values and
background to the assessment of the behaviors of others.
Types of International
Market Research
The International
Market Research Process
 Defining the problem or situation
that an organization faces
constitutes the first step in the
market research process.
Step 1.
Define the Researchers take cultural
differences into account early in
Problem or the process.

Situation Marketers can define and assess a

problem by asking if the problem as
stated represents the actual issue
or merely a symptom of the
problem.
 The costs and benefits of engaging in
international market research are
assessed early in the process.

Decision-making for research required

Step 2. compare the following :

Complete a • the importance of obtaining the required

information
Cost/Benefit • Time frame within which the information will be
collected,
Analysis • Value of the benefits of acquiring the
information
• Overall difficulty in obtaining the data.

The availability and type of data needed

to address the problem can drive up
costs.
Learning Objective

When designing an international marketing research program,

what roles do primary data, secondary data, validity, and
reliability play in the process?
Primary Data

 Gathered by the researcher

or research team.
 They are collected in the
form chosen by the
researcher
 Can be gathered in
practically any region of
the world.
Secondary Data

Secondary data are collected by an

outside agency and are made
available free of charge or for a
fee.
 Marketers may struggle to
find details regarding the
collection of data for
government statistics.
 When examining
international markets, it
can be difficult to compare
data and information from
one country to another.
Secondary Sources of
International Market Research
 Reliability : degree to which the items used to
measure a concept are internally consistent with each
other & the extent to which the findings are
repeatable over time.

Reliability
and
Validity Validity : extent to which responses to a measure
reflect the actual differences in the concept found
across respondents, or the overall level of accuracy of
the measure itself.
Internal validity results when External validity means that
cause-and-effect relationships the statement of cause and
have been correctly identified effect would apply to other
by the research. situations or settings.
Political & Legal Risk
 Political risk, or the potential for political forces and governmental
activities to hamper and harm business activities within a country, is a key
component of this analysis.

 Legal risks are those associated with the laws present in a country, and the
enforcement of those laws.
 The extent to which patents, copyrights, and intellectual property rights
exist
 Many countries do not offer these protections.
 Others have such laws but fail to enforce them.
Step 3. Develop a Research Design
 The focus is on obtaining information
without relying on numerical
expressions or measurements.
• A small number of respondents are typically
used.

Qualitative This approach is researcher

dependent.
Research • The researcher subjectively analyzes the
information that has been collected.

Cultural norms can preclude the use

of many qualitative research designs.
• In some cultures, consumers are hesitant to
express their opinions in front of others.
 Ethnographic Research
Design
• The researcher studies
respondents in their native
environment by living or
Qualitative interacting with them.

Research Observational Studies

Methods • The researcher watches

consumers as they exhibit a
marketing behavior, such as
shopping and making purchases.
• Cultural norms may make
observational studies difficult.
 Focus Groups
• Semi-structured or unstructured group discussions
that generally take place in groups of eight to
twelve.

Qualitative Personal Interviews

Research • One-on-one discussions between a researcher and a

respondent

Methods Cultural nuances make the above far more

difficult to do internationally.
(Cont.) Delphi Technique
• Involves a market researcher who assembles a panel
or group of experts on the topic of interest.
• The experts answer a series of questions, typically
questions forecasting or predicting future behavior.
Quantitative Research Methods
-Surveys
 Surveys are sets of questions asked in various settings.
 large numbers of consumers with relative ease.

 Administering surveys can be more challenging in

international settings, partially due to illiteracy and
difficulty in distributing surveys.

 Conceptual equivalence problems create additional

difficulties. These occur when a concept in one country
has a different meaning in another.
BARN
GIFT
För gifta
BRA
KISS
  Back translation
 The second translated document is
then compared to the original
Quantitative version to check for accuracy and
meaning.

Research
Methods  Parallel translation
 If different translations result, the
-Translation research team discusses the
results and selects one final
translation.
 Experiments are research techniques that
allow researchers to discover cause-and-
effect relationships by manipulating
certain variables and controlling others.
• Researchers seek to identify the effect of
independent variables on a dependent variable.
Quantitative
Research Advertisements and marketing materials
are tested using portfolio techniques.
Methods -
Experiments • Consumers are exposed to a series of commercials,
then researchers test to see if the ad achieved its
desired effect.

A test market is a special type of

experiment that is constructed within
realistic marketplace conditions.
 Exciting growth area for marketing
research

Several problems have been associated

Online with Internet market research programs:

Research:
• Lack of Internet capabilities and high illiteracy
rates in some countries
• Survey must be constructed to meet the cultural
A Hybrid norms of the target audience.
• Careful translation will be necessary.

Approach The Internet offers several online

sources of secondary data:
• Can be combined with primary online research
to gain a better understanding of a target
market.
 Sampling - process wherein members of a
population are selected for inclusion in a
research study because they will be
representative of the larger group.

Sampling techniques - a small subgroup to draw

Step 4. inferences about the entire population based
on the results.

Develop a
Statistical inference means that the research
Sample results obtained from a sample apply to the
larger population,

a common objective in international marketing

research projects.
 Researchers generally choose
between probability and
nonprobability sampling
methods.

Probability • A probability sample is one in which

each element in the population has a
known, nonzero probability of being
Sampling selected for a study.

A random sample is a type of

probability sample in which each
element has an equal chance of
being selected for study.
 A nonprobability sample is one in which
the probability of an element of the
population being included in a sample is
unknown, which means a random sample
cannot be used.

Non- • The goal remains to make the sample as

representative of the larger population as possible.

probability
Sample Various tactics may be used:

• Snowball techniques - one respondent refers the

researcher to the next respondent, and so on.
• Convenience sample - researchers sample the
respondents who are the easiest to reach.
 lack of availability of accurate
demographic information.
Sampling • Collection methods can be severely limited or
Issues in deliberately altered by the ruling government.
Obtaining a true probability or
International random sample in most international
settings will be difficult, because
Research methods used to reach people create
biases.
• Some do not own telephones, others do not have
access to the Internet, and others still are
illiterate and cannot read mail.
 Descriptive research method allows the researcher
to examine attitudes and behaviors that are
relevant to one specific country.

Comparative research takes place when the

researchers examine differences between cultures
Methods or countries.

Contextual research may be performed when the

-Internationa research attempts to study cross-national groups
and how consumers behave in a selected context.
l Research • The focus with contextual research is on how consumers think or
act within a specific context.

Theoretical research examines the extent to which

a theory garners support across cultures and
national boundaries.
• The type of research chosen will be based on a specific academic
research question.
 The ability to collect data depends on local customs and
technological infrastructure.
• The proliferation of telephone and Internet has changed the landscape of
data collection in many countries, but usage rates still vary widely.
The recent growth of mobile phone usage in some

Step 5.
countries may lead to new marketing research
opportunities.

Collecting
Internet access also varies worldwide.
• In Latin American countries, only 30% of consumers have access.
• In African countries, only 13% of residents enjoy Internet access.

Data Another difficulty occurs when attempting to use maps to

find addresses.
• Some Western cities, such as London, are famous for being difficult to
navigate, even with a map.
• In less-developed countries, the maps themselves may be outdated and
incorrect.
• Google map resolving this issue gradually
 Linguistic problems, often complicate international
market research.

Step 6. • Any research questions related to time and punctuality in other

countries require careful consideration by the marketing team.

Analyze Metric equivalence issues arise when respondents from

different countries systematically score interview or
survey questions differently.
and Cultural differences in response styles can greatly

Interpret affect research results.

the use of multiple methods, including both

Data qualitative and quantitative techniques, becomes
critical when performing international market
research.
• Monitoring cultural differences to the various research approaches
generates results of a better quality.
 The final step is formulating conclusions and
writing the research report.

Step 7. The research report should be written in a

direct and informative way that assists the
Formulating international marketing in making decisions.

Conclusions
• The conclusions presented in international market
research reports should be both complete and concise.

and Writing In an international context, this step poses

the same communication issues that have
been part of the entire process.
Reports • Often, one of the difficulties is in re-creating an
environment that many of the readers of the report will
never have visited.
• Those readers may be initially reluctant to accept the
findings.
 Researchers who are ethical protect the rights and
privacy of research participants.

• Keep confidential information from being leaked to outside

parties.
Ethics and Researchers must engage in experimentation focus on
protecting the safety and well-being of research
International subjects and ensure that no one is harmed in any way
by the research project.

Market Ethical researchers also make certain that research

activities are not misrepresented in any harmful way.

Research
One unethical tactic is to engage in “sugging” or
selling under the guise of research.

• A researcher who suggs begins asking a respondent questions and

then attempt to sell the person a product.
 Should an organization conduct all
international research activities from a
centralized location, or should the efforts
Control of be decentralized?

the • A centralized structure brings the management of

these tasks “in house” to a corporate headquarters
International location.
• A decentralized structure allows research tasks to be
managed in offices in, or near, the foreign region
under investigation.

Market • The main advantage of the decentralized method is

that the researcher will be closer to the subjects

Research being studied and may be more sensitive to

market-specific issues.

Process Another alternative for the international

market researcher is to hire an external
research firm to conduct research.
Major Market Research Firms