International Market Research Ch06_kotabe3e

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Chapter 6INTERNATIONAL

MARKETING RESEARCH

Prepared by Robin Roberts

Griffith University


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L earning objectives

After studying this chapter you should beable to:

Understand how to formulate a high-quality research problem definitionWork with secondary international

marketing research

Identify the need for primary internationalmarketing research

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L earning objectives

Perform a market size assessmentUse new market information technologies

Understand the issues involved inmanaging international marketingresearch


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O verview

There is a six step approach tointernational marketingFollows a similar pattern to domesticmarket research but the international context gives rise to six

problems specific to international marketing

research

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International marketing researchprocess

1. D efine the research problem(s)2 . D evelop a research design

3 . D etermine information needs4 . Collect the data - secondary and primary5 . Analyse the data and interpret results

6 . Report and present the findings of the study

How different a process is this to domestic

market research?


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M ajor challenges

1. Complexity of research design

2 . Lack and inaccuracy of secondary data

3 . Time and cost requirements to collect

primary data

I nternational marketing researchprocess

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Coordination of multi-country researchefforts and data collection efforts

D ifficulty in establishing comparabilityacross multi-country studies

D ifferent practical considerations

International marketing researchprocess


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T he international marketingresearch process

F igure 6.1

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R esearchproblem formulation

Start with a precise definition of theresearch problem

The foundation of a good market researchstudy

D ifficulties arise due to lack of familiarity

of the foreign environment


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S econdarymarketing research

D efinitionD ata that have already been collected forsome other purposeA range of sources includes: the internet government sources

e . g. Austrade www . austrade . gov. au

corporatedirectories both online and offline

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N ielsen s Chinaomnibus survey

F igure 6.2


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Problems with secondary data sources

accuracy of data

age of data reliability of data over time

comparability of data

lumping data

S econdarymarketing research

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P rimarymarketing research

Q uantitative data data that represents an attitude or opinion

by assigning a number that can bestatistically analysed

Q ualitative data

data that describes attitudes, opinions andmotivations in the words of each respondent


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Collecting primary data

Can be collected in 3 ways:Focus groupsSurvey methods

marketing research

questionnaire design

construct equivalence measure equivalence

sampling 14/31


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P rimarymarketing research

Focus Groups exploratory loosely structured free flowing discussion

among a group of target customers facilitatedby a moderator

helps with new product developmenttesting new product concepts

precursor to quantitative research


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I nternational issuesfor focus groups

Cultural sensitivityNature of group dynamics individual versus collective

Japanese and Chinese more collective while NZand Australia more individualistic

How would this affect the outcome of a focusgroup?

Non-verbal cues even more importantthan in domestic market research


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P rimary market research

Survey methods for cross-culturalmarketing research questionnaire design

most popular form of gathering data inquantitative market researchcross cultural research does present problemscomparability of survey results across borderscould be an issue


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Survey methods for cross-culturalmarketing research construct equivalence

the degree to which marketing constructs havethe same meaning and significance acrossculturese . g. bicycles mean different things in different

countries and this needs to be reflected in theconstruction of the research device

recreation in Australia transportation in China

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Survey methods for cross-culturalmarketing research measure equivalence

calibration equivalence US is imperial (pounds, inches) Thailand is metric (metres, litres)

translation equivalence translation from one language to another

embarrassing mistakes can occur


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Survey methods for cross-culturalmarketing research measure Equivalence (cont d)

parallel Translation a process in which a document is translated

independently by a number of translators and thetranslations compared to reconcile differences

scalar (metric) equivalence the degree to which scores from subjects of differentcountries have the same meaning and interpretation

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Survey methods for cross-culturalmarketing research sampling

who should be surveyed?how many people should be surveyed?how should prospective respondents be chosen?not all countries are homogenous

What is Chinese ? China has more than a dozen ethnic minorities


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Survey methods for cross-cultural marketingresearch contact method

Table 6.1 Comparison of collection methods in five European countries

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Survey methods for cross-culturalmarketing research collecting the information

there are a number of biases courtesy bias

desire to be overly polite social desirability bias

Subjects attempt to reflect a certain social statusin their response


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Survey Methods for cross-culturalmarketing research collecting the information (cont d)

redundancy repetition of survey questions in

different ways to allow for robustnessand cross-checking

ethnographic research researchers embed themselves in the community they

are studying

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M arket size assessment

D etermining the potential of a market is one of the key drivers of international market researchThere are several methods: analogy method the trade audit the chain ratio method cross-sectional regression analysis

All are useful when there is very little dataavailable or the quality of data is questionable


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Analogy method comparison of a similar product in a similar

environment/country

The trade audit estimate based on local production and

imports/exports


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The chain ratio method estimating market size based on fine-tuning broad

estimates

Cross-sectional regression analysis relating the issue you are interested in to a set of

predictor variables



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N ew marketinformation technologies

Point-of-sale store scanner data the Swiss supermarket chain Metro can

monitor shopper trends in their Hanoi store

Consumer panel data collecting data from a range of consumers

on a continuous basiswhat to do when Japanese supermarket chainsare not very cooperative?

ask consumers to collect it in their homes2 8 /31


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M anaging internationalmarketing research

There are a number of issues theinternational marketer needs to consider: selecting a research agency

global or home grown?

coordination of multi-country researchwho is responsible?

head office or each of the regional offices ethical research considerations

accidentally misrepresenting the nature of the study

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S ummary

You should now have an understanding of:How to formulate a high-quality researchproblem definitionWorking with secondary internationalmarketing researchIdentifying the need for primaryinternational marketing research

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S ummary

How to perform a market size assessment

New market information technologies

The issues involved in managinginternational marketing research

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Documents

International Market Research Ch06_kotabe3e