Chapter 1

The Nature and Scope of International Marketing Research

International Marketing Research - Is it a valid Concept?

Although critics may not believe so, IMR is a valid concept

because:

• It is a coordinated multi-country effort

• Market surveys lead to decisions that affect more

than one country

• Marketing strategies are conceived on a multi- national

basis, hence it is logical that market research should

follow suit.

What is different about International

Marketing Research?

The process of IMR is not totally different from domestic

marketing research. However, they differ in the following

ways:

• IMR involves national differences between counties arising

out of political, legal, economic, social and cultural

differences

• The problem of comparability of research results that arise

due to these differences

What is different about International Marketing Research? (contd.)

International researchers have to deal with a number of counties that may differ considerably in a number of important ways.Some of these differences are:

Culture differences: Culture refers to widely shared norms or

patterns of behavior within a large group of people. Cultural

differences shape attitudes that consumers have towards

products.

Racial differences: Differences in cultures mean difference in

physical features as well. Products must be modified to meet the

needs of different races.

What is different about International Marketing Research? (contd)

• Economic differences: Levels of wealth and taxation affect consumer behavior in different countries. Eg: Norwegians consume very little alcohol due to high taxation

• Religious differences: Certain religions have laid down specific behavioral patterns. Eg: Middle Eastern countries prohibit alcohol consumption

• Historical differences: Slowly evolved differences that have

profound effects on consumer behavior. Eg; Scotch whisky is

considered prestigious and trendy in Italy but old-fashioned in

Scotland

• Climatic difference: Differences in climate accounts for difference in cultures

What is different about International

Marketing Research? (contd)

• Differences in consumption patterns: There are vast differences in consumption patterns between regions.For Eg: The French prefer wine, the Germans like beer and the Spanish drink aperitivos.

• Differences in marketing conditions: For Eg: Japanese do not like being contacted over the telephone for interviews, while in Hong Kong interviews are conducted through the grill in front door.

• Differences in actual and potential target groups: Eg: It is easier to collect national samples in countries like England and Germany than in Spain.

What is different about International

Marketing Research? (contd)

International Marketing Researchers may also have to

deal with:

• Language differences

• Differences in market research facilities

• Differences in the criteria for assessing products or services

• Differences in product usage

Culture

• Values, attitudes, beliefs, artifacts and other meaningful

symbols represented in the pattern of life adopted to help

interpret, evaluate and communicate as members of a

society.

• Mistakes result when cultural differences not recognized

• Examples of blunders include Pepsodent, Branff

Airlines, U.S. food manufacturers doing business in

United Kingdom

Culture: (Contd)

Dimensions of Culture:

1. Power Distance

2. Individualism vs. Collectivism

3. Masculinity vs. Femininity

4. Uncertainty Avoidance

5. Long-term Orientation

Culture (Contd)

Power Distance

The extent to which less powerful members of a society accept and expect that power is distributed unequally.

Example: Japan has a high power distance index and the US has low power index.

Culture (Contd)

Individualism Vs. Collectivism

Defined as people looking after themselves and their immediate family only, versus peoplebelonging to in-groups that look after them in exchange for loyalty (Hofstede).

Example: Japanese are collectevistic where as the Americans are individualistic.

Culture (Contd)

Masculinity Vs. Femininity

The dominant values in a masculine society are achievement and success, the dominant values in a feminine society are caring for others and quality of life.

Example: Japan is masculine, while the Scandinavian countries are feminine.

Culture (Contd)

Uncertainty Avoidance

The extent to which people feel threatened by uncertainty and ambiguity and try to avoid these situations.

Example: High on uncertainty avoidance are Germany and Japan, low ones are Sweden and Denmark.

Culture (Contd)

Long-term Orientation

The extent to which a society exhibits a pragmatic future-oriented perspective than a conventional historic or short-term point of view.

Example: Most Asian countries, China in particular score high on this dimension. Many western countries have short-term orientation.

Culture (Contd)

Culture Classification Model:

Assumptions regarding the use of time, the approach to talk at hand, and the role of relationships in making business decisions vary throughout the world.Countries have been classified into:

•North Western/ Central European

• North American

• Mediterranean European

• Latin American

• Traditional ( developing countries, centrally planned and

former centrally planned countries)

• Middle Eastern

Alternative Types of Marketing Research

• Descriptive Research

Researcher examines in-depth the attitudes and behavior of

consumers in another country or culture.

• Comparative Research

Involves comparing attitudes and behaviors in two or more

countries or cultural contexts, with a view to identifying

similarities and differences between them.

Alternative Types (cont)

Theoretical Research

The researcher has a predetermined theory or

model and it is possible to examine cross-

cultural generalizability of those theories or

models.

Importance of Comparability

Account for differences in:

a) resources and expertise

b) working habits and corporate culture

c) organizational aspects

Distinguish between

a) comparability at data collection stage

b) comparability at interpretation stage

Classification of International

Marketing Research:

a) Single-country research

b) Multi-country research

c) Independent Multi-country research

d) Sequential Multi-country research

e) Simultaneous Multi-country research

Challenge to Research

• Too much emphasis on statistical techniques

• Data becoming unduly important

• Not enough data interpretation

• Too much reliance on computers and scanner data

• Lack of understanding among users

• Researchers see themselves as data collectors rather than data interpreters

Marketing Researcher of the 21st Century

Requirements include:

• Speed

• Use of Internet

• Globalization

• Ability to add value to numbers and data

Ethics in Research

Researchers should consider

• Respondents’ rights -

Should be allowed to participate voluntarily and there should be

no coercion.

• Sponsors’ rights -

Researcher is morally bound to conduct research in the manner that has

been agreed upon with the sponsor.