Yourbusiness is changing.

l •
competition is changing.

..

“Marketing without data is like

driving with your eyes closed” –
Dan Zarella
Learning Objectives

LO1 Understand the definition, process, breadth and

scope of an international marketing research
LO2 Recognise the importance of problem/opportunity
definition in the international marketing research
LO3 Identify different sources of information for the
international marketing research
LO4 Distinguish between quantitative and qualitative
research methods
LO5 Understand the problems associated with
multicultural sampling
LO6 Recognise the implications of the international
marketing research
 Problem/opportunity definition

..

Would these Vietnamese menus work in the European Market?

 Problem/opportunity definition

Would these new product tastes and packaging designs be

successful or failures in other countries rather than Japan?
Marketing Research Definition

“Marketing research is traditionally

defined as the systematic gathering,
recording, and analysing of data to
provide information useful to marketing
decision making“ (Cateora et al., 2011:
220)
International Marketing Research
- IMR
Researchers maintain that entry into a fast
developing, new-to-the-firm foreign
market is one of the most daunting and
ambiguous strategic decisions an
executive can face.
International Marketing Research
- IMR

New New
parameters environments

IMR

Number of Broader definition

factors involved of competition
Complications in IMR

Problems
with
Communication
research
Barriers
tools
Breadth and Scope of IMR

01
General information about the country,
area, and/or market
02
Information necessary to forecast future
marketing requirements
03
Specific market information used to
develop the marketing plan
Research of Industry, Market
Characteristics and Trends
Merger & Acquisition
(M&A) analyses
Diversification
analyses
Market-Share
analyses
Export (market)
research
International Buyer Behaviour
Research
Brand preferences
Brands awareness
studies
Purchase behaviour
studies
Consumer
segmentation studies
International Marketing Research
relating to Product & Distribution
International Product
Research (e.g., concept
development & testing;
packing design testing)
International
Distribution Research
(e.g., channel
performance &
coverage research)
International Marketing Research
relating to Promotion & Pricing
International
Promotion Research
(e.g., advertising
effectiveness research;
international media
research)
International Pricing
Research (e.g., price
sensitive research;
studies of inflation
rates and pricing)
 International Marketing Process

1 Define the research problem &

objectives

2 information
Determine the sources of

3 Consider the costs & benefits of

the research effort

4 Gather the relevant data from

secondary and primary sources

5 Analyse, interpret, and

summarise the results

6 Communicate the results to

decision makers
Source: Cateora et al. (2011: 222)
Problem/opportunity definition
Problem/opportunity definition

Critical first step in (international)

01
marketing research

Can be a Problem or Opportunity

02

If not defined correctly, research will be

03
wasted

Preliminary research may be needed to

04
help define the problem
 Failed to measure “the
08 01 The “Cola War”
emotional attachment began with the Pepsi
& loyalty” to the Challenge in 1975
original Coke

“New Coke” 07
was 02 Symptom:
discontinued Decline in
after 3 months sales revenue
Coca-
Cola’s
“New Coke” 06
Mistake
03 Problem
was Definition:
introduced Change in the
customers’
taste
Results: Consumers 05
preferred a sweeter
product, similar to
04 Coca-Cola conducted a
Blind Taste Tests across
Pepsi Cola the U.S. in the early 1980s
Source: http://www.coca-colacompany.com/stories/coke-lore-new-coke
 Common mistakes in
defining problem

Symptom:
Decline in
sales revenue

Problem
Definition:
Change in the
customers’
taste?

Source: Hair et al. (2000: 60)

 Common mistakes in
defining problem
The problem may be only a
1 symptom of a deeper problem

In the “New Coke” case:

Symptom: Decline in sales revenue
Problem Definition based on Symptom: Change in
the customers’ taste
True Problem: Change in the drink’s packaging (old-
fashioned package influences taste perception)

Source: Simeone & Marotta (2010: 4208)

 Common mistakes in
defining problem
The problem may be too narrow or
2 too broad

In the “New Coke” case:

Too narrow problem: Change in the the customers’
taste
Too broad problem: Problems associated with the
current product
Appropriate Problem: Problems associated with the
current marketing mix

Source: Cateora et al. (2011: 223)

 Common mistakes in
defining problem
Misunderstandings between
3 “Management Decision Problems”
& “Marketing Research Problems”
Management Decision Marketing Research Problems
Problems
Ask what the decision maker Ask what information is needed
needs to do and how it should be obtained
Action oriented Information oriented

Focus on symptoms Focus on the problem definition

Source: Hair et al. (2000: 28)

Establishing Research Objectives
By answering this question: “What
information is needed to solve the
problem definition effectively and
efficiently?”
Symptom Loss of sales
Problem Definition Inappropriate advertising
campaign
Research Goal To determine the effectiveness of
the current advertising campaign
Research Objectives To determine whether
consumers can recall the
advertisement
To identify whether the
advertisement will be
interpreted accurately
To evaluate the influence of
the advertisement on
attitudes towards the product.
Determine the sources of information
– Secondary Data
“Secondary data refers to data gathered
for some other purpose than the
immediate study” (Hair et al., 2008: 50).
Problems with Secondary Data

Availability Comparability

Reliability Validity
Checking the Accuracy of
Secondary Data

1 1 Who collected the data? Would there be

any reason for purposely misrepresenting
the facts?

2 For what purposes were the data

collected? 2

3 3 How were the data collected?

4 Are the data internally consistent and

logical in light of known data sources or 4
market factors?
Sources of Secondary Data

GENERAL STATISTICS OF VIETNAM

WWW.GSO.GOV.VN

THE ORGANISATION FOR ECONOMIC

COOPERATION & DEVELOPMENT
WWW.OECD.ORG

THE WORLD BANK

WWW.WORLDBANK.ORG

THE HOFSTEDE CENTER

WWW.HOFSTEDE-INSIGHTS.COM
Determine the sources of information
– Primary Data
“Primary data is information collected
specifically for a current research
problem or opportunity” (Hair et al.,
2008: 26).
 Consider the Costs & Benefits of IMR

Doing IMR requires

resources in terms of both
time and money
V(dr) – V(d) > C(r)
Where:
• V(dr) is the value of the decision
with the benefit of research;
• V(d) is the value of the decision
without the benefit of research;
• C(r) is the cost of research.

Source: Czinkota & Ronkainen (2013: 239)

Gathering Primary Data:
Qualitative Research
Qualitative research is used in international
marketing research to formulate and define a
problem more clearly and to determine relevant
questions to be examined in subsequent
research.
It is also used to stimulate ad message ideas
and where interest centers on gaining an
understanding of a market rather than
quantifying relevant aspects.
(Cateora et al., 2011: 227)
Gathering Primary Data:
Qualitative Research

In-depth Observations
Interviews

Projective Focus groups

techniques
 Qualitative Research –
Projective techniques

Word Association - Projective technique

Source: Viana et al. (2014: 18)
Problems with
Qualitative Research
Focus group interviews are difficult to conduct in
Confucian societies
Personal referrals are needed to contact
consumers
People are often hesitant to criticise new
product ideas when companies seek candid
opinions.
Gathering Primary Data:
Quantitative Research
A large number of respondents are asked to reply
either verbally or in writing to structured
questions using a specific response format (such
as yes/no) or to select a response from a set of
choices (e.g., Likert scale from “Strongly
Disagree” to “Strongly Agree”).
Quantitative research provides the marketer
with responses that can be presented with
precise estimations.
Gathering Primary Data:
Quantitative Research
Problems with
Quantitative Research
Response bias (e.g., tendency to choose the
middle)
Courtesy bias (e.g., tendency to avoid
offending others by understating any
dissatisfaction)
Social desirability bias (e.g., tendency to over
or under-report)
Sensitive questions (e.g., income, age, gender)
Problems with Quantitative Research
– Response Bias
Problems with Quantitative Research
– Social Desirability Bias
Problems with Quantitative Research
– Sensitive Questions
Problems with Gathering
Primary Data
Ability to communicate
opinions
• Context
• Meaning
• Cultural habits

Willingness to respond
Problems with Gathering
Primary Data
Sampling in field
surveys
• Reliability of lists
• Sample size & sampling
procedure
Language and
comprehension
• Back Translation
• Parallel Translation
Research on the Internet:
A Growing Opportunity
There are at least seven different uses for the
Internet in international research:
• Online surveys and buyer panels
• Online focus groups
• Web visitor tracking
• Advertising measurement
• Customer identification systems
• E-mail marketing lists
• Embedded research
Research on the Internet:
Online Focus Group
Research on the Internet:
Web Visitor Tracking and Reporting
Problems in Analysing & Interpreting
Research Information
Both secondary and primary data are subject
to many limitations
Accepting information at face value in foreign
markets is imprudent.
The meanings of words, the consumer’s
attitude toward a product, the interviewer’s
attitude, or the interview situation can distort
research findings.
References
Cateora, P. R., Gilly, M. C., & Graham, J. L. (2011).
International marketing. New York: McGraw-Hill
Higher Education.
Czinkota, M. R., & Ronkainen, I. A.
(2013). International marketing. Cengage Learning.
Hair, J. F., Celsi, M. W., Ortinau, D. J., & Bush, R. P.
(2008). Essentials of marketing research. McGraw-
Hill/Higher Education.
Viana, M. M., dos Santos Silva, V. L., & Trindade, M.
A. (2014). Consumers' perception of beef burgers
with different healthy attributes. LWT-Food Science
and Technology, 59(2), 1227-1232.