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Business Horizons (2007) 50, 113–122




                                                                                                   www.elsevier.com/locate/bushor




International marketing research: A global project
management perspective
Robert B. Young a,⁎, Rajshekhar G. Javalgi b

a
 Business Division, Lorain County Community College, 1005 North Abbe Road, Elyria, OH 44035, USA
b
 Nance College of Business Administration, Cleveland State University, 2121 Euclid Avenue, Cleveland,
OH 44115-2214, USA




    KEYWORDS                            Abstract As organizations continue to pursue more global strategies, the need to
    International marketing;            be able to understand consumers in far away places is increasing. Marketing research
    Global marketing                    is the primary mechanism through which companies understand their current, as well
    strategies;                         as potential, customers. As companies contemplate the global marketplace, they
    Marketing research;                 must consider how domestic market research differs when conducted in interna-
    Competitive advantage               tional markets. In an effort to help internal client side marketing research managers
                                        design and implement improved international research studies, we briefly discuss
                                        the context for international market research and provide a framework for
                                        conducting international market research projects. Additionally, we present several
                                        factors that should be considered by marketers who engage in global market
                                        research studies. These factors represent the variety of challenges that must be
                                        addressed in order to conduct research across national borders. Particular attention
                                        is paid to the nuances related to primary data collection and questionnaire
                                        construction.
                                        © 2006 Kelley School of Business, Indiana University. All rights reserved.




1. Marketing research goes global                                    essence, the global economy is forcing organizations
                                                                     to adapt to a new international order (Czinkota &
Changes in the global environment are presenting                     Ronkainen, 2002; Rugman, 2001; Yaprak, 2002).
organizations with both new opportunities and                           The process of international marketing research
challenges. Rapid advances in technology, increas-                   shares many commonalities with its domestic
ing international trade and investment, growing                      counterpart, namely the familiar steps of problem
wealth and affluence across the globe, and a                         definition, methodology design, fieldwork, and
convergence of consumer tastes and preferences                       final report and recommendations. The major
are compelling businesses to expand their globaliza-                 differences between the two involve disparities
tion strategies and tactics (Javalgi & White, 2002). In              that spring from political, legal, economic, social,
                                                                     and cultural differences across countries, and the
    ⁎ Corresponding author.                                          problem of comparability of research results (Kumar,
      E-mail address: ryoung@lorainccc.edu (R.B. Young).             2000).
0007-6813/$ - see front matter © 2006 Kelley School of Business, Indiana University. All rights reserved.
doi:10.1016/j.bushor.2006.08.003
114                                                                               R.B. Young, R.G. Javalgi

   As organizations become more global in their           Within the broader context of the international
operations, how will these companies continue to       market research process, the focus of our paper
be able to carry on a meaningful dialog with their     addresses the nuances related to questionnaire
customers as they become ever more dispersed           construction and primary data collection issues.
around the globe? Which countries represent the        We believe these areas are especially critical (i.e.,
best opportunities for the organization's products     problematic) when designing research projects
and services? How will these firms design consumer-    that cut across national borders. Furthermore,
based strategies that are customized for distant       we think the vast majority of clients who utilize
international market segments? Market research is      in-house market research departments are more
the functional link between marketing management       often exposed to challenges related to question-
and an organization's ultimate customer-base.          naire construction and data collection. Conse-
Baker and Mouncey (2003) argue persuasively that       quently, it is our position that this discussion will
continual change and uncertainty in the global         provide increased benefits for in-house market
market is causing seismic shifts in the role of        research project managers. We do not discuss
marketing research. Clearly, as globalization          other research methodologies including qualitative
increases, firms will need to know how to better       techniques, observational methods, and experi-
utilize market research approaches that enable         mentation, nor do we address in detail the
them to stay close to these worldwide and diverse      broader issues of scale development, measure-
customer segments.                                     ment equivalence, sampling, and multivariate
   After briefly discussing the context for interna-   techniques. It is our hope that this narrow focus
tional market research, we provide a framework         on the specific issues related to questionnaire
for conducting international market research           construction and international data collection
projects. Our framework is designed to help            challenges will provide the reader with a more
organizations with in-house market research            useful set of tools and guidelines for conducting
departments that design and execute primary            effective global research projects.
data collection projects in support of strategic
marketing corporate initiatives. These corporate       2. The importance of international
marketing research initiatives include projects
                                                       marketing research
requiring the development of target market and
marketing mix strategies to support their products     Market research is the vital link between the
and services. Both corporate and tactical market-      organization and its customers. The objective of
ing decisions are further complicated by the           sound market research is to interpret consumer
numerous challenges involved with the cross-           behavior and translate the perspective of key
cultural context of global business. Our framework     customers into actionable marketing strategies.
is especially well suited to aid on-staff (i.e., in-   Without this open dialog with customers, compa-
house) research project managers working for           nies are unable to keep in touch with vital
product or service marketers who are looking for       consumer behavior trends and the many influences
comprehensive guidelines to help them design           that affect the customers of an organization. In
better global research projects in support of          today's consumer environment of over-choice and
their internal executive management clients.           over-communication, growth can only be realized
Although we realize that our proposed framework        by organizations that are very skilled at crafting
is also applicable to external market research         well-targeted strategies directed at specific
vendors, our objective is to provide internal          micro-niches of the larger macro market. Compa-
research department managers with a useful tool        nies that go to market without first uncovering
to design effective international research pro-        specific segment needs and perceptions risk facing
jects. By highlighting the various challenges          the monumental cost of marketing failure. With
involved in conducting international market            new consumer product launches typically costing
research, we hope to help in-house marketing           $25 million or more, the risk of not incorporating
research managers design and implement more            consumer behavior into marketing strategy is
impactful and effective international research         considerable.
studies. Finally, we also discuss several cross-          Since the mid-1990s, the international research
cultural factors that should be considered by          business has grown tremendously. In 1995, the top
marketers who engage in global market research         25 global market research organizations had aggre-
studies, as these represent challenges that must       gate revenues of only $5.7 billion, and 45% of their
be addressed in order to conduct effective             revenues came from outside the companies' home
research across national borders.                      countries. By 2004, revenues had grown 133%, to
International marketing research: A global project management perspective                               115

$13.3 billion, while out-of-home-country share          markets, brands, and other strategic marketing
grew to 67% (Marketing News, 2005). As illustrated      mix variables is both challenging and problematic.
by these figures, it is clear that spending on          Furthermore, the Internet may not necessarily be
international market research projects is on the        the optimum medium for conducting international
rise in the U.S. and other countries.                   market research projects, despite its rapid growth
    It has been estimated that it costs six times as    and acceptance by certain consumers.
much to attract a new customer as it does to keep
a current customer (Reichheld, 1996). This fact
demands that organizations increasingly must stay       3. Think globally, learn locally
in touch with their best customers. The most            As stated by Craig and Douglas (2005), effective and
actionable method employed by market-driven             timely market research is an essential tool for
organizations to keep pulse with their valued           developing strategy in a rapidly changing global
customers is the effective use of market research.      marketplace. The authors contend that interna-
Only by having an open dialog with their customers      tional market research is increasingly needed to
can companies learn about the subtle shifts in          address a wide variety of global marketing chal-
buying preferences that, without proper manage-         lenges including correctly positioning new products,
ment, ultimately lead to company and/or brand           avoiding product formulation errors, accurately
defection.                                              understanding cultural challenges, identifying
    As more organizations pursue global business        appropriate promotion messages, being cognizant
strategies, they will require and demand interna-       of geographical differences, and examining lan-
tional sources of market information. In order to       guage and translation problems.
compete effectively in the 21st century, these             In order to make effective marketing strategy
businesses will need specialized, targeted informa-     decisions, marketers who are increasingly drawn to
tion about buyers in dispersed international mar-       the global marketplace because of the opportunity
kets. Connell (2002) argues that, in the business-to-   it represents need a reliable and valid source of
business market, there is ample justification for       information. Craig and Douglas (2005) discuss three
conducting international market research in support     major information needs relative to international
of the design, execution, and interpretation of a       market research. These represent:
wide variety of global marketing strategies. As
illustrated by the examples offered in this article,     (1) Information needed for international market
research tactics routinely used in the United States         entry. This includes information concerning
are much more problematic when deployed in                   macro issues (e.g., the political, legal, and
developing foreign markets.                                  regulatory environment of each foreign coun-
    Companies that pursue multi-domestic and glo-            try) and micro issues (e.g., product or service
bal marketing strategies face a wide variety of              sales potential, market growth rate, and
strategic questions relating to foreign market entry.        competitive intensity).
According to Rydholm (1996), prior to pursuing           (2) Information needed for local market planning.
international marketing strategies, managers                 These issues primarily surround strategies and
should ask:                                                  tactics related to developing the appropriate
                                                             marketing mix.
• Have international sales been increasing as a          (3) Information related to global rationalization.
  percentage of overall revenue?                             This involves evaluating and integrating data
• Are international markets growing faster than              previously collected in order to monitor
  domestic markets?                                          changes in the international environment.
• Does the organization have the same competi-             To accomplish these critical information objec-
  tive position outside the U.S.?
• Are the fundamental needs of foreign customers        tives, marketers require an international market
                                                        research framework.
  known?
• What is the interaction of the four P's in foreign
  markets?                                              4. The international market research
• Can the Internet help with research design?           framework
   The answers to these and other questions can         Through the use of marketing research practices,
help organizations prioritize their need for inter-     international product and service providers can
national marketing research. While it makes sense       develop the most effective international marketing
for increasing numbers of companies to go global,       strategies that will lead to sustainable competitive
making the correct decisions regarding target           advantage. Fig. 1 illustrates the international
116                                                                                      R.B. Young, R.G. Javalgi




Figure 1 The international market research framework. Source: Adapted and modified from Douglas and Craig (2000) and
Kumar (2000).

market research process within the context of the           when applied to the international setting holds a
four familiar stages of the domestic research               potential for significant challenges, which we hope to
process: setting objectives, designing methodology,         highlight.
collecting data, and reporting findings.
   The four traditional stages of the market research
                                                            4.1. Setting research objectives
process are shown providing the larger context for          Like its domestic counterpart, the international
cross-cultural market research. Although these              market research process begins with a clear under-
stages are not unique to the international setting,         standing of the specific research objectives. Deter-
they provide the backdrop which highlights the              mining what information is required, and at what
potential challenges posed by international research        level, is the necessary first step. As in domestic
designs. For example, information requirements at           research, information may be required for decision
the corporate, regional, and local levels will likely       making at different levels in the organization, from
vary widely between different countries. Tactical           the corporate level relating to strategic issues,
decisions that may help the product or service in one       down to local operating units where concerns are
country may not fit within the broader strategic goals      often more tactical (Craig & Douglas, 2005).
of the organization. Similarly, examining previous          Projects at the management level cover broad
data and collecting secondary data may be much              issues such as brand awareness and tracking, while
more difficult in some countries, depending on the          those at the decision making level may involve more
state of the market research infrastructure present.        tactical issues like local pricing, packaging, and
Additionally, within the methodology step, the unit of      other marketing mix decisions. If the research
analysis has four different levels ranging from local to    problem is not clearly articulated, the research
global. Clearly, the unit of analysis varies between        collected will not adequately answer the specific
traditional studies and projects conducted across           problem. Unfocused research studies rarely, and
international boundaries. It is much easier to design a     only then by accident, relate to the management
questionnaire focused on a single local market, as          problem under consideration. Another flaw of
opposed to a study that represents a global unit of         studies conducted without critical thinking con-
analysis. Further, conducting fieldwork across coun-        cerning objectives is that the resulting research
try lines poses many challenges. Analyzing data,            design may well elicit unusable information. For
incorporating new knowledge, and modifying busi-            example, a project with the objective of obtaining
ness strategies are more difficult and time consuming       customer impressions on a corporate merger will
when the unit of analysis includes a larger worldwide       not elicit information on why customers are
context. Each step of the traditional research process      defecting to competitive brands.
International marketing research: A global project management perspective                                   117

   International marketers should also consider any       with a summary of the strategic recommendations.
previous data that the organization may have. New         The new knowledge should be incorporated into the
data should always be considered within the context       organization's database and business strategies
of existing information. Moreover, secondary data is      should be appropriately modified. This process
often used as a supplement to primary data, so its        repeats itself as needed through the information
usefulness should be considered early during the          feedback loop to address future information
research objectives stage. The international environ-     requirements.
ment, however, makes these activities more difficult         The method described is a very straightforward
to conduct. In given countries, previously collected      and common procedure in the United States,
data may not exist; further, secondary sources may        Western Europe, and other developed countries.
not be as prevalent in developing parts of the world as   The market research industry, which was conceived
compared to more Westernized markets.                     and matured in the U.S., today generates
                                                          $16.1 billion annually, with $6 billion coming from
4.2. Designing research methodology                       the United States, $7.6 billion from the European
The second major step in the international market         Union, and $2.5 billion from the Asia Pacific region
                                                          (Marketing News, 2005). With total market research
research process involves designing the methodol-
                                                          expenditures of $20.15 billion globally, it is easy to
ogy. Whether domestic or international in focus, this
                                                          see that the three major developed regions account
is the critical step of any research project. In order
                                                          for the vast majority of international market
to construct the most effective methodology,
                                                          research expenditures (Marketing News, 2005).
researchers must have a broad perspective of the
                                                             The presence of an adequate market research
many methodological options available. Variations
                                                          infrastructure offers a distinct advantage to devel-
range from primary to secondary research, qualita-
tive and quantitative, experiments, test markets,         oped countries and rapidly growing markets.
                                                          Characteristics comprising market research infra-
observations, and surveys, just to name a few. In the
                                                          structure consist of a variety of tools, data sources,
international context, the specific unit of analysis is
                                                          methodology options, and the like, all of which
critical and relates to the research design stage. For
                                                          help in executing market research projects. The
example, corporate decisions would require more of
                                                          availability of individual geographic market data
a global or regional approach; in contrast, tactical
                                                          and the widespread use of huge databases, how-
marketing mix decisions would require more of a
                                                          ever, are primarily Western phenomena. Moreover,
local unit of analysis.
    Designing the primary methodology is specifically     the widespread prevalence of secondary data in
                                                          North America and Europe is vastly superior to that
related to how the data will be collected from
                                                          which is available in many developing foreign
respondents and analyzed. In this paper, we employ
                                                          countries. The resource of more than 4000 full
a narrow definition of methodology as it relates to
                                                          service market research suppliers provides another
the specific data collection method that will be
                                                          North American advantage. When companies con-
utilized (e.g., in-person, telephone, mail, Internet
                                                          sider conducting market research outside North
survey). The sampling plan and measurement
                                                          America, the availability of many of these tools,
equivalence concepts are also much more compli-
cated in an international market research environ-        techniques, and secondary information sources
                                                          comprising the market research infrastructure
ment. This critical stage in the process requires
                                                          may be severely restricted.
adequate time and attention to address the many
details that are involved with international projects.
Instrument translation, primary research method           5. Challenges of conducting international
(e.g., in-person, telephone, mail, or Internet sur-       marketing research
vey), and data analysis technique issues pose many
                                                          Due to the complexities of conducting and managing
challenges for international market researchers due
to their varying levels of presence, acceptance, and      market research projects across national bound-
                                                          aries, many factors exist that, if not adequately
utilization across worldwide markets.
                                                          addressed, can negatively impact project manage-
4.3. Collecting data and reporting findings               ment and, consequently, project deliverables.
                                                          These factors can impact any and, for that matter,
Once the appropriate data collection methodology          all of the traditional market research steps dis-
is selected, fieldwork must be conducted. Essen-          cussed previously. For example, varying cultural
tially, this executes the research design developed       norms across different countries or continents may
during stage 2. The next step involves analyzing the      impact research objectives, as well as pose sig-
findings and providing a management report, along         nificant challenges in the data collection phase of
118                                                                                 R.B. Young, R.G. Javalgi

the project. Similarly, language barriers have a        market, where the customer group is large and
considerable impact on data collection and, ulti-       profitable, have the advantage over companies
mately, incorporating the new learning into the         operating in markets that lack such sophistication.
organization for maximum benefit.
                                                        5.1.1. Language
   Next, we discuss several important considera-
                                                        Now that market research is being conducted around
tions related to questionnaire construction and data
                                                        the globe, researchers must take language and
collection methods that internal research managers
                                                        cultural factors into account when designing ques-
must consider as they design and implement global
                                                        tionnaires. Language represents the most obvious
research studies for their organizations. Failing to
                                                        factor that makes international market research so
adequately understand and address these issues
                                                        challenging. While many middle and upper manage-
puts internal researchers at odds with their top
                                                        ment executives worldwide have some command of
management constituencies and risks conducting
                                                        the English language, that does not mean that
costly research projects that do not add value and
                                                        English must be employed in conducting all
improve the firm's competitive advantage.
                                                        research. To make matters even more complicated,
                                                        variations within the same language may exist. For
5.1. Cultural challenges                                example, English speakers in the U.K. and America
                                                        have long complained that they are separated by a
Conducting market research in an international
                                                        common language. Consider a scenario which
market requires a great deal of new learning.
                                                        occurred after London-based ICI purchased Cleve-
From a managerial perspective, this includes a
                                                        land, Ohio-based Glidden Paint Company in the late
more comprehensive understanding of native cul-
                                                        1980s. Upon inquiring about a business request that
ture. Cultural elements such as social institutions,
                                                        he had submitted to his new bosses in the U.K., John
gender roles, language, religion, aesthetics, educa-
                                                        S. Dumble, President of Glidden, was told that his
tion, and time orientation are closely intertwined
                                                        request had been “tabled.” Alarmed, Dumble said:
with national culture (Javalgi & White, 2002), and
                                                        “Look, this is something I need. It's important, or I
have a major impact on the acceptability and
                                                        wouldn't have asked for it. You really should
adoption of new products and services. The effect
                                                        reconsider.” It was at this point that Dumble learned
of culture is multifaceted in the sense that cultural
                                                        that, in England, “tabled” means put through for
values that are important to one group of people
                                                        approval, not consigned to oblivion, as in the
may mean little to another. Cultural differences
                                                        American vernacular (Susan Corbett, personal com-
deeply affect adoption of products and services and
                                                        munication, September 9th, 1999).
other forms of market behavior. Clearly, cultural
forces have taken on strategic importance that          5.1.2. Translation
cannot be ignored when marketing new and/or             The most common problem in questionnaire design
existing products and services. Social factors          involves translation into other languages. A ques-
embody a culture's fundamental organization,            tionnaire developed in one country may be difficult
including its groups and institutions, its system of    to translate because equivalent language concepts
social infrastructure, and the process by which         do not exist, or because of differences in idiom,
resources are distributed. Naturally, social struc-     vernacular, and phrasing (i.e., syntax). For exam-
ture affects market research decisions including the    ple, the concepts of uncles and aunts are not the
cost of conducting the research, reaching the target    same in the U.S. as in India; there, the words for
markets, collecting the data, etc.                      aunt and uncle are different for the maternal and
   The target market's knowledge of and familiarity     paternal sides of the family. And while Spanish is
with product service offerings also plays a critical    spoken in both Mexico and Venezuela, researchers
role in conducting research. Market research spe-       have found that the translation of the English term
cialists demand certain levels of educational and       “retail outlet” works in the former country, but not
technological skills. Although a country may have a     in the latter. Apparently, Venezuelans interpret the
huge population, only a small segment of that           translation to refer to an electrical outlet, an outlet
population may be equipped with the knowledge           of a river into an ocean, and the passageway into a
necessary to employ research tools either at work or    patio (Iyer, 1997; Rydholm, 1996).
at home. In a technologically sophisticated domes-         In order to ensure that information is conveyed as
tic market, businesses have more opportunities to       intended, international marketing researchers
modify existing products/services to include new        often have questionnaires back translated. Back
technological designs and features, and develop         translation (Zikmund, 2000) is the process of
entirely new products/services and technologies.        translating questionnaires from one language to
Research companies operating in a sophisticated         another and then translating them back again by a
International marketing research: A global project management perspective                                       119

second, independent translator. The back translator         viewed by a man; furthermore, the idea of
is often a person whose native tongue is the                discussing grooming behavior and personal care
language that will be used for the final question-          products with a stranger (i.e., moderator) would
naire. This can reveal inconsistencies between the          be highly offensive (Zikmund, 2000).
English version of the questionnaire and the
translation, for correction if necessary. For exam-         5.1.5. Time zones
ple, in one international advertising research              Time zones present difficulties in conducting any
project, the advertising slogan “out of sight, out          type of business in foreign markets, and market
of mind” was back translated as “invisible things are       research is no exception. During fieldwork, market
insane” (Nash & Zullo, 1988).                               researchers frequently find it necessary to commu-
                                                            nicate with the facilities that have been hired to
5.1.3. Syntax                                               conduct the actual interviews. Differing time zones in
As previously mentioned, syntax is closely related          other countries impact project communication and,
to language. In fact, syntax specifically refers to         ultimately, project timing. More days are required to
word phrasing and sentence construction. For                field a given research project to allow for commu-
example, simply translating English questionnaires          nications that may need to occur half-way around the
into German is very problematic. While the result-          world. Even the time of day matters in places like
ing product may look German, it's not really very           Japan, where business-to-business interviewing is
German. The same is true of the reverse process             very difficult to conduct during business hours.
(from German to English): it looks English, but isn't.      Because Japanese employees are so loyal to their
The syntax is what makes the difference.                    employers, they hesitate to devote time to anything
5.1.4. Cultural norms                                       other than their immediate work efforts while in the
Following language, the most significant variable in        office. As well, employers believe they owe absolute
successful foreign market research is cultural norms.       commitment to their employees while on the job.
These norms are very influential forces, and can
                                                            5.1.6. Foreign holidays
represent the difference between successful pro-
                                                            The United States has a list of approximately 12
duct introduction and failure. Unfortunately, cul-
                                                            standard holidays per year. Other countries have
tural norms are usually very subtle rather than
                                                            different lists, which can be much longer and
blatant and obvious, which makes them hard to
                                                            certainly differ from the American calendar. Holi-
discern and detect. Consider the case of a U.S.
                                                            days are yet another factor that can add to the
ketchup company that, after learning ketchup was
                                                            total time frame required to complete an inter-
not available in Japan, attempted to market their
                                                            national research project. According to Rydholm
product there. Rather than take the time to question
                                                            (1996), prior to starting research, clients should
why ketchup wasn't already available in the country
                                                            always check the holiday schedule of the country
and investigate the situation through international
                                                            in which they are working. Nearly every Monday is
market research, the large, well-known U.S. man-
                                                            a holiday somewhere in the world.
ufacturer hurriedly shipped a large quantity of its
popular, name-brand ketchup to Japan, fearing any
delay would permit its competition to spot the              5.2. Sampling issues/sampling frame
opportunity and capture the market. Had market
research been conducted by the U.S. company prior           Consider the process of conducting marketing
to product introduction, it would have revealed that        research in China. China has a total population of
soy sauce is the preferred condiment in Japan               1.2 billion, 350 million of which live in urban areas of
(Zikmund, 2000).                                            622 cities and scores of smaller towns. Of the cities,
   Ignoring important cultural norms has caused             only 32 have populations of at least one million, while
other problems for international marketers. For             42 have populations between 500,000 and one million,
example, Chase and Sanborn met resistance when it           and the remaining 548 have populations of less than
tried to introduce its instant coffee into the French       500,000 (Lee & Wong, 1996). Since almost no small
market. In the typical French home, the consump-            towns or rural areas are included in market research
tion of coffee plays a very significant role. Since the     projects, what constitutes a nationally representative
preparation of real coffee is a ritual in the life of the   sample of the Chinese market? Considering the
French consumer, they will generally reject instant         framework in Fig. 1, the unit of analysis in a complex
coffee because of its impromptu characteristics.            single county like China varies widely between
Additional stumbling blocks may be numerous and             national, regional, and/or local. Adding additional
varied. For instance, in many Middle–Eastern coun-          countries only makes the project more challenging for
tries, women would never consent to being inter-            internal market research managers to administer.
120                                                                                  R.B. Young, R.G. Javalgi

   A logical means of reaching the largest sample        by paying respondents for their opinions, an inherent
possible, including individuals who don't live in        bias is introduced. This is more complicated in the
major population centers, involves interview by          international setting, where in some cultures incen-
telephone or computer. Unfortunately, technologi-        tives are required to procure participant coopera-
cal capabilities are not equal across countries or       tion. For example, drinking and socializing are
regions. For example, in Germany, telephone pene-        expected as part of the research experience in
tration did not reach the 80% level until the mid-       Brazil. In other cultures, however, incentives of any
1980s, long after that milestone had been reached in     kind are regarded as insulting to the respondents.
the United States. Today, less than 10% of all
households in India have telephones, and telephone       5.3. Measurement issues
penetration in Brazil is less than 50% in large cities   In international market research, it is critical to
(Malhotra, 2004). Considering the low computer           establish the equivalence of scales and measures
usage in these nations, the sample representation        used to obtain data from different countries (Han,
problem is even more dramatically exacerbated            Lee, & Ro, 1994). One of the significant issues that
when using Internet-based samples. Unless and until      must be dealt with early in the international market
these nations increase their overall computer and        research process is the equivalence of data (Kumar,
Internet capacity, using the Internet to conduct         2000). This involves three considerations. First, it
international market research is not going to result     has to be ascertained whether the constructs being
in sound customer-based business strategies.             studied are equivalent. In other words, are the same
5.2.1. Native interviewers                               phenomena being studied in both countries? Second,
To facilitate the already complicated communica-         the equivalence of the measures of the concepts
tion process, using native interviewers for interna-     under study has to be determined. This means that
tional research projects allows multi-national           the phenomena are being measured consistently in
clients to exert a form of quality control. More-        each country. Finally, the equivalence of the sample
over, it is a matter of courtesy that the local          being studied in each country or culture must be
respondents should be able to speak with inter-          considered. The issue here is that the samples used
viewers in their own language. Many nationalities,       in each country are equivalent to each other (Kumar,
such as the French, are often offended by non-           2000). These considerations involve substantial
native researchers. While advisable overall,             measurement issues that are increasingly critical in
recruiting native interviewers can be problematic        an international environment. The concepts of
in countries and regions where the literacy rate is      reliability, defined as consistency over time, and
low, like rural China and India.                         validity, which is concerned with what the instru-
                                                         ment is actually measuring, are important to any
5.2.2. Questionnaire length                              market research effort, especially those that cross
As consumers worldwide become increasingly sensi-        national boundaries.
tive to being interviewed, participation refusal rates
keep trending upward. Of China's major cities,           5.4. Market research infrastructure
refusal rates are estimated at 32% in Guangzhou,         Media availability, Internet penetration, quality
22% in Beijing, and 10% in Shanghai. A key driver of     control, and the overall market research infrastruc-
refusal rates is questionnaire length. After approxi-    ture significantly impact the success of international
mately 20 minutes, most respondents become               research projects. Where little or no media exists,
fatigued with the process and terminate the inter-       these options are no longer open to international
view. This factor is exacerbated in international        researchers. Widespread print and broadcast media
studies, as different languages can shorten or           options and extensive databases are generally a
lengthen the amount of time it takes to get through      Western advantage. Further, Internet penetration
a questionnaire. For example, translated into Italian,   remains skewed to males under age 40 with above
a 20 minute American questionnaire will last only        average education and household income (Dodd,
approximately 18 minutes. Translated into French,        1998). Until its usage rate increases to a point that
the same questionnaire will take 22 minutes. The         approximates a broader cross section of customers,
difference in duration is attributable to the subtle     the Internet cannot be considered a viable primary
nuances of both languages (Lee & Wong, 1996).            market research instrument. This is especially true
                                                         in the international setting.
5.2.3. Incentives
The use of incentives in market research has been        5.4.1. Currency fluctuations
debated for as long as research has been executed.       Doing business around the world always involves the
The common criticism of the practice contends that       risk of changes in a particular country's currency.
International marketing research: A global project management perspective                                     121

Market research firms are also impacted by these           research studies. This expertise can be effectively
fluctuations because of the numerous field services        translated into a competitive advantage. As compa-
that are usually hired to complete a research assign-      nies continue to seek competitive advantages across
ment. To finish a given project, several countries might   national boundaries, being cognizant of the variety
be involved. For example, each spring and fall, IBM        of cross-cultural marketing research challenges as
conducts a brand tracking study in 14 languages in 27      discussed in this paper provides an essential ingre-
countries. At any time, one or more of these countries     dient to the firm's ultimate success. Clearly, inter-
will experience unstable currency conditions, affect-      national marketing research provides information
ing the lead research supplier (Iyer, 1997).               about foreign consumers and critical information
                                                           regarding the global marketplace.
5.5. Data collection challenges                               The purpose of our paper has been twofold. First,
The process of managing vendors in the international,      we provided a framework for international market
rather than in the domestic, context is much more          research; second, we discussed several critical
difficult, time consuming, and expensive. While            challenges to illustrate the issues involved when
taken for granted that mall intercept methodology,         companies conduct international marketing research
scanner data, and reliable postal delivery are all         projects in support of their brand initiatives. The
available in the U.S., this assumption is not true for     framework was provided within the context of the
many other parts of the world. Unreliable mail service     traditional four steps of the research process. Within
in developing countries makes conducting interna-          this broader context, we highlighted the subtle
tional mail surveys problematic (Malhotra, 2004).          differences between domestic and global marketing
Access issues in terms of locating the appropriate         research design. While the steps of the market
person and gaining their cooperation to participate in     research process are familiar to many managers,
a market research study are also heightened in the         overlaying the international perspective creates a
international context (Craig & Douglas, 2005). Addi-       variety of important and unique data collection
tionally, respondent and vendor confidentiality and        challenges, as we have indicated. To help internal
trust are important considerations in the global           research managers design and implement more
context (Kumar, 2000). For example, a research             impactful and effective global research studies, we
study examining the functioning of a sovereign nation      reviewed several factors that must be considered
or inter-company conflicts must have an assurance of       prior to conducting research across foreign markets.
confidentiality. These issues are more challenging in      Client side market research managers designing
the global environment, where other barriers like          projects to support upper management initiatives
language and culture play a larger role.                   will encounter significant difficulty unless these data
                                                           collection issues are addressed. As relevant and
5.6. Legal issues                                          timely information about customers increasingly
                                                           becomes the foundation of competitive advantage,
Legal and privacy restrictions pose unique chal-
                                                           managers will need to critically review their interna-
lenges in the international research arena. European
                                                           tional research programs.
countries with strict privacy regulations can poten-
                                                              In order to take full advantage of international
tially shut down marketing activities that profile or
                                                           growth opportunities over the long term, companies
collect personal information. Gaining access to
                                                           looking to the global marketplace need research
specific respondents can also be problematic in
                                                           that identifies customer behaviors and potential
certain countries. Furthermore, the Chinese are
                                                           positioning strategies. To assure that their projects
monitoring questionnaire construction and even the
                                                           are contributing to the overall competitive advan-
approval of the final data. This is in direct conflict
                                                           tage of the firm, research managers must be aware
with the American approach of non-disclosure of
                                                           of the nuances involved in data collection across
proprietary client results (Meijer, 1999).
                                                           cultures. As we suggested, research managers must
                                                           think globally and act locally by developing research
6. Guidelines for managers                                 projects that rationalize global expansion, identify
                                                           international market entry options, and provide a
Companies that already are, as well as those that          basis for implementing a foreign marketing mix
plan to become, global marketers must look closely         strategy. The positive result of this mindset will be
at the world marketplace to identify global oppor-         improved information about global customer seg-
tunities (Jeannet & Hennessey, 2001). Consequently,        ments, leading to improved performance and
in order for organizations to evaluate their numer-        increased competitive advantage for the firm.
ous international opportunities, they must develop            Due to the complexities involved when conduct-
an expertise in conducting global marketing                ing market research across national borders, in
122                                                                                          R.B. Young, R.G. Javalgi

addition to paying close attention to the data            more often utilized by their senior management
collection and questionnaire design problems we           clients.
have outlined, research managers may also want to
keep the following in mind:
                                                          References
• Consider utilizing foreign stakeholders to help
      with potential cultural, legal, and/or govern-      Baker, S., & Mouncey, P., 2003. The market researcher's manifesto.
      ment restrictions on market research studies.           International Journal of Market Research 45 (4), 415–433.
                                                          Connell, S., 2002. Travel broadens the mind — The case for
      There is no substitute for trusted, on-the-ground       international research. International Journal of Market
      contact sources to provide context on a wide            Research 44 (1), 97–106.
      variety of country-specific factors that could      Craig, C.S., & Douglas, S.P., 2005. International marketing
      have a negative effect on international research        research (3rd Ed.). Wiley, New York.
      studies.                                            Czinkota, R.C., & Ronkainen, I.A., 2002. International marketing.
•     Consider using a single research vendor familiar        Fort Worth, TX: Harcourt College Publishers.
                                                          Dodd, J., 1998. Market research on the Internet — Threat or
      with the international marketplace. Multi-coun-         opportunity? Marketing and Research Today 26 (1), 60–66.
      try projects are inherently difficult to manage,    Douglas, S.P., & Craig, C.S., 2000. International marketing
      so look to a single consistent and experienced          research (2nd Ed.). New York: Wiley.
      vendor for guidance.                                Han, C.M., Lee, B.-W., & Ro, K.-K., 1994. The choice of a survey
•     Allow more time to plan and execute an                  mode in country image studies. Journal of Business Research
                                                              29 (2), 151–162.
      international study. Projects crossing country      Iyer, R., 1997. A look at the Indian market research industry.
      boundaries require extended design, implemen-           Quirk's Marketing Research Review 11 (10), 22–26.
      tation, and follow-up efforts.                      Javalgi, R., & White, D.S., 2002. Strategic challenges for the
•     Conduct research studies in markets similar to          marketing of services internationally. International Marketing
      the home country prior to conducting research           Review 19 (6), 563–581.
                                                          Jeannet, J.-P., & Hennessey, H.D., 2001. Global marketing
      in new and unfamiliar parts of the developing
                                                              strategies (5th Ed.). Boston: Houghton Mifflin Company.
      world. Newcomers to the international market        Kumar, V., 2000. International marketing research. Upper Saddle
      research arena should take small steps in               River, NJ: Prentice Hall.
      familiar markets to provide a solid foundation      Lee, B., & Wong, A. (1996). An introduction to marketing
      prior to expanding into new, unfamiliar markets.        research in China. Quirk's Marketing Research Review, 10
•     Supplement custom market research insights              (10), 18–19, 37–38.
                                                          Malhotra, N.K., 2004. Marketing research, an applied orientation
      with as much secondary information about                (4th Ed.). Upper Saddle River, NJ: Prentice Hall.
      foreign markets as available. Because the data      Marketing News, 2005. 2004 marketing fact book. Chicago:
      collection issues in global market research are         American Marketing Association.
      so challenging, utilize any and all relevant        Meijer, W., 1999. Marketing research in Asia: It's the economy,
      secondary information sources to improve                stupid. Quirk's Marketing Research Review 13 (10), 26–31.
                                                          Nash, B., & Zullo, A., 1988. The misfortune 500. New York: Simon
      insights gained from custom studies conducted           and Schuster.
      in foreign markets.                                 Reichheld, F.F., 1996. The loyalty effect. Boston: Harvard
                                                              Business School Press.
   Internal market research managers who are              Rugman, A.M., 2001. The myth of global strategy. International
aware of the unique context of international                  Marketing Review 18 (6), 583–588.
market research will be better suited to design           Rydholm, J. (1996). Leaping the barriers of time and distance.
and implement projects that contribute to their               Quirk's Marketing Research Review, 10(10), 10–11, 42–45.
                                                          Yaprak, A., 2002. Globalization: Strategies to build a great global
firm's competitive advantage in the marketplace.
                                                              firm in the new economy. Thunderbird International Business
Additionally, paying close attention to the chal-             Review 44 (2), 297–302.
lenges we have discussed will result in market            Zikmund, W., 2000. Exploring marketing research (6th Ed.).
research studies that are both more impactful and             Dryden Press: Orlando, FL.

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International marketing research

  • 1. Business Horizons (2007) 50, 113–122 www.elsevier.com/locate/bushor International marketing research: A global project management perspective Robert B. Young a,⁎, Rajshekhar G. Javalgi b a Business Division, Lorain County Community College, 1005 North Abbe Road, Elyria, OH 44035, USA b Nance College of Business Administration, Cleveland State University, 2121 Euclid Avenue, Cleveland, OH 44115-2214, USA KEYWORDS Abstract As organizations continue to pursue more global strategies, the need to International marketing; be able to understand consumers in far away places is increasing. Marketing research Global marketing is the primary mechanism through which companies understand their current, as well strategies; as potential, customers. As companies contemplate the global marketplace, they Marketing research; must consider how domestic market research differs when conducted in interna- Competitive advantage tional markets. In an effort to help internal client side marketing research managers design and implement improved international research studies, we briefly discuss the context for international market research and provide a framework for conducting international market research projects. Additionally, we present several factors that should be considered by marketers who engage in global market research studies. These factors represent the variety of challenges that must be addressed in order to conduct research across national borders. Particular attention is paid to the nuances related to primary data collection and questionnaire construction. © 2006 Kelley School of Business, Indiana University. All rights reserved. 1. Marketing research goes global essence, the global economy is forcing organizations to adapt to a new international order (Czinkota & Changes in the global environment are presenting Ronkainen, 2002; Rugman, 2001; Yaprak, 2002). organizations with both new opportunities and The process of international marketing research challenges. Rapid advances in technology, increas- shares many commonalities with its domestic ing international trade and investment, growing counterpart, namely the familiar steps of problem wealth and affluence across the globe, and a definition, methodology design, fieldwork, and convergence of consumer tastes and preferences final report and recommendations. The major are compelling businesses to expand their globaliza- differences between the two involve disparities tion strategies and tactics (Javalgi & White, 2002). In that spring from political, legal, economic, social, and cultural differences across countries, and the ⁎ Corresponding author. problem of comparability of research results (Kumar, E-mail address: ryoung@lorainccc.edu (R.B. Young). 2000). 0007-6813/$ - see front matter © 2006 Kelley School of Business, Indiana University. All rights reserved. doi:10.1016/j.bushor.2006.08.003
  • 2. 114 R.B. Young, R.G. Javalgi As organizations become more global in their Within the broader context of the international operations, how will these companies continue to market research process, the focus of our paper be able to carry on a meaningful dialog with their addresses the nuances related to questionnaire customers as they become ever more dispersed construction and primary data collection issues. around the globe? Which countries represent the We believe these areas are especially critical (i.e., best opportunities for the organization's products problematic) when designing research projects and services? How will these firms design consumer- that cut across national borders. Furthermore, based strategies that are customized for distant we think the vast majority of clients who utilize international market segments? Market research is in-house market research departments are more the functional link between marketing management often exposed to challenges related to question- and an organization's ultimate customer-base. naire construction and data collection. Conse- Baker and Mouncey (2003) argue persuasively that quently, it is our position that this discussion will continual change and uncertainty in the global provide increased benefits for in-house market market is causing seismic shifts in the role of research project managers. We do not discuss marketing research. Clearly, as globalization other research methodologies including qualitative increases, firms will need to know how to better techniques, observational methods, and experi- utilize market research approaches that enable mentation, nor do we address in detail the them to stay close to these worldwide and diverse broader issues of scale development, measure- customer segments. ment equivalence, sampling, and multivariate After briefly discussing the context for interna- techniques. It is our hope that this narrow focus tional market research, we provide a framework on the specific issues related to questionnaire for conducting international market research construction and international data collection projects. Our framework is designed to help challenges will provide the reader with a more organizations with in-house market research useful set of tools and guidelines for conducting departments that design and execute primary effective global research projects. data collection projects in support of strategic marketing corporate initiatives. These corporate 2. The importance of international marketing research initiatives include projects marketing research requiring the development of target market and marketing mix strategies to support their products Market research is the vital link between the and services. Both corporate and tactical market- organization and its customers. The objective of ing decisions are further complicated by the sound market research is to interpret consumer numerous challenges involved with the cross- behavior and translate the perspective of key cultural context of global business. Our framework customers into actionable marketing strategies. is especially well suited to aid on-staff (i.e., in- Without this open dialog with customers, compa- house) research project managers working for nies are unable to keep in touch with vital product or service marketers who are looking for consumer behavior trends and the many influences comprehensive guidelines to help them design that affect the customers of an organization. In better global research projects in support of today's consumer environment of over-choice and their internal executive management clients. over-communication, growth can only be realized Although we realize that our proposed framework by organizations that are very skilled at crafting is also applicable to external market research well-targeted strategies directed at specific vendors, our objective is to provide internal micro-niches of the larger macro market. Compa- research department managers with a useful tool nies that go to market without first uncovering to design effective international research pro- specific segment needs and perceptions risk facing jects. By highlighting the various challenges the monumental cost of marketing failure. With involved in conducting international market new consumer product launches typically costing research, we hope to help in-house marketing $25 million or more, the risk of not incorporating research managers design and implement more consumer behavior into marketing strategy is impactful and effective international research considerable. studies. Finally, we also discuss several cross- Since the mid-1990s, the international research cultural factors that should be considered by business has grown tremendously. In 1995, the top marketers who engage in global market research 25 global market research organizations had aggre- studies, as these represent challenges that must gate revenues of only $5.7 billion, and 45% of their be addressed in order to conduct effective revenues came from outside the companies' home research across national borders. countries. By 2004, revenues had grown 133%, to
  • 3. International marketing research: A global project management perspective 115 $13.3 billion, while out-of-home-country share markets, brands, and other strategic marketing grew to 67% (Marketing News, 2005). As illustrated mix variables is both challenging and problematic. by these figures, it is clear that spending on Furthermore, the Internet may not necessarily be international market research projects is on the the optimum medium for conducting international rise in the U.S. and other countries. market research projects, despite its rapid growth It has been estimated that it costs six times as and acceptance by certain consumers. much to attract a new customer as it does to keep a current customer (Reichheld, 1996). This fact demands that organizations increasingly must stay 3. Think globally, learn locally in touch with their best customers. The most As stated by Craig and Douglas (2005), effective and actionable method employed by market-driven timely market research is an essential tool for organizations to keep pulse with their valued developing strategy in a rapidly changing global customers is the effective use of market research. marketplace. The authors contend that interna- Only by having an open dialog with their customers tional market research is increasingly needed to can companies learn about the subtle shifts in address a wide variety of global marketing chal- buying preferences that, without proper manage- lenges including correctly positioning new products, ment, ultimately lead to company and/or brand avoiding product formulation errors, accurately defection. understanding cultural challenges, identifying As more organizations pursue global business appropriate promotion messages, being cognizant strategies, they will require and demand interna- of geographical differences, and examining lan- tional sources of market information. In order to guage and translation problems. compete effectively in the 21st century, these In order to make effective marketing strategy businesses will need specialized, targeted informa- decisions, marketers who are increasingly drawn to tion about buyers in dispersed international mar- the global marketplace because of the opportunity kets. Connell (2002) argues that, in the business-to- it represents need a reliable and valid source of business market, there is ample justification for information. Craig and Douglas (2005) discuss three conducting international market research in support major information needs relative to international of the design, execution, and interpretation of a market research. These represent: wide variety of global marketing strategies. As illustrated by the examples offered in this article, (1) Information needed for international market research tactics routinely used in the United States entry. This includes information concerning are much more problematic when deployed in macro issues (e.g., the political, legal, and developing foreign markets. regulatory environment of each foreign coun- Companies that pursue multi-domestic and glo- try) and micro issues (e.g., product or service bal marketing strategies face a wide variety of sales potential, market growth rate, and strategic questions relating to foreign market entry. competitive intensity). According to Rydholm (1996), prior to pursuing (2) Information needed for local market planning. international marketing strategies, managers These issues primarily surround strategies and should ask: tactics related to developing the appropriate marketing mix. • Have international sales been increasing as a (3) Information related to global rationalization. percentage of overall revenue? This involves evaluating and integrating data • Are international markets growing faster than previously collected in order to monitor domestic markets? changes in the international environment. • Does the organization have the same competi- To accomplish these critical information objec- tive position outside the U.S.? • Are the fundamental needs of foreign customers tives, marketers require an international market research framework. known? • What is the interaction of the four P's in foreign markets? 4. The international market research • Can the Internet help with research design? framework The answers to these and other questions can Through the use of marketing research practices, help organizations prioritize their need for inter- international product and service providers can national marketing research. While it makes sense develop the most effective international marketing for increasing numbers of companies to go global, strategies that will lead to sustainable competitive making the correct decisions regarding target advantage. Fig. 1 illustrates the international
  • 4. 116 R.B. Young, R.G. Javalgi Figure 1 The international market research framework. Source: Adapted and modified from Douglas and Craig (2000) and Kumar (2000). market research process within the context of the when applied to the international setting holds a four familiar stages of the domestic research potential for significant challenges, which we hope to process: setting objectives, designing methodology, highlight. collecting data, and reporting findings. The four traditional stages of the market research 4.1. Setting research objectives process are shown providing the larger context for Like its domestic counterpart, the international cross-cultural market research. Although these market research process begins with a clear under- stages are not unique to the international setting, standing of the specific research objectives. Deter- they provide the backdrop which highlights the mining what information is required, and at what potential challenges posed by international research level, is the necessary first step. As in domestic designs. For example, information requirements at research, information may be required for decision the corporate, regional, and local levels will likely making at different levels in the organization, from vary widely between different countries. Tactical the corporate level relating to strategic issues, decisions that may help the product or service in one down to local operating units where concerns are country may not fit within the broader strategic goals often more tactical (Craig & Douglas, 2005). of the organization. Similarly, examining previous Projects at the management level cover broad data and collecting secondary data may be much issues such as brand awareness and tracking, while more difficult in some countries, depending on the those at the decision making level may involve more state of the market research infrastructure present. tactical issues like local pricing, packaging, and Additionally, within the methodology step, the unit of other marketing mix decisions. If the research analysis has four different levels ranging from local to problem is not clearly articulated, the research global. Clearly, the unit of analysis varies between collected will not adequately answer the specific traditional studies and projects conducted across problem. Unfocused research studies rarely, and international boundaries. It is much easier to design a only then by accident, relate to the management questionnaire focused on a single local market, as problem under consideration. Another flaw of opposed to a study that represents a global unit of studies conducted without critical thinking con- analysis. Further, conducting fieldwork across coun- cerning objectives is that the resulting research try lines poses many challenges. Analyzing data, design may well elicit unusable information. For incorporating new knowledge, and modifying busi- example, a project with the objective of obtaining ness strategies are more difficult and time consuming customer impressions on a corporate merger will when the unit of analysis includes a larger worldwide not elicit information on why customers are context. Each step of the traditional research process defecting to competitive brands.
  • 5. International marketing research: A global project management perspective 117 International marketers should also consider any with a summary of the strategic recommendations. previous data that the organization may have. New The new knowledge should be incorporated into the data should always be considered within the context organization's database and business strategies of existing information. Moreover, secondary data is should be appropriately modified. This process often used as a supplement to primary data, so its repeats itself as needed through the information usefulness should be considered early during the feedback loop to address future information research objectives stage. The international environ- requirements. ment, however, makes these activities more difficult The method described is a very straightforward to conduct. In given countries, previously collected and common procedure in the United States, data may not exist; further, secondary sources may Western Europe, and other developed countries. not be as prevalent in developing parts of the world as The market research industry, which was conceived compared to more Westernized markets. and matured in the U.S., today generates $16.1 billion annually, with $6 billion coming from 4.2. Designing research methodology the United States, $7.6 billion from the European The second major step in the international market Union, and $2.5 billion from the Asia Pacific region (Marketing News, 2005). With total market research research process involves designing the methodol- expenditures of $20.15 billion globally, it is easy to ogy. Whether domestic or international in focus, this see that the three major developed regions account is the critical step of any research project. In order for the vast majority of international market to construct the most effective methodology, research expenditures (Marketing News, 2005). researchers must have a broad perspective of the The presence of an adequate market research many methodological options available. Variations infrastructure offers a distinct advantage to devel- range from primary to secondary research, qualita- tive and quantitative, experiments, test markets, oped countries and rapidly growing markets. Characteristics comprising market research infra- observations, and surveys, just to name a few. In the structure consist of a variety of tools, data sources, international context, the specific unit of analysis is methodology options, and the like, all of which critical and relates to the research design stage. For help in executing market research projects. The example, corporate decisions would require more of availability of individual geographic market data a global or regional approach; in contrast, tactical and the widespread use of huge databases, how- marketing mix decisions would require more of a ever, are primarily Western phenomena. Moreover, local unit of analysis. Designing the primary methodology is specifically the widespread prevalence of secondary data in North America and Europe is vastly superior to that related to how the data will be collected from which is available in many developing foreign respondents and analyzed. In this paper, we employ countries. The resource of more than 4000 full a narrow definition of methodology as it relates to service market research suppliers provides another the specific data collection method that will be North American advantage. When companies con- utilized (e.g., in-person, telephone, mail, Internet sider conducting market research outside North survey). The sampling plan and measurement America, the availability of many of these tools, equivalence concepts are also much more compli- cated in an international market research environ- techniques, and secondary information sources comprising the market research infrastructure ment. This critical stage in the process requires may be severely restricted. adequate time and attention to address the many details that are involved with international projects. Instrument translation, primary research method 5. Challenges of conducting international (e.g., in-person, telephone, mail, or Internet sur- marketing research vey), and data analysis technique issues pose many Due to the complexities of conducting and managing challenges for international market researchers due to their varying levels of presence, acceptance, and market research projects across national bound- aries, many factors exist that, if not adequately utilization across worldwide markets. addressed, can negatively impact project manage- 4.3. Collecting data and reporting findings ment and, consequently, project deliverables. These factors can impact any and, for that matter, Once the appropriate data collection methodology all of the traditional market research steps dis- is selected, fieldwork must be conducted. Essen- cussed previously. For example, varying cultural tially, this executes the research design developed norms across different countries or continents may during stage 2. The next step involves analyzing the impact research objectives, as well as pose sig- findings and providing a management report, along nificant challenges in the data collection phase of
  • 6. 118 R.B. Young, R.G. Javalgi the project. Similarly, language barriers have a market, where the customer group is large and considerable impact on data collection and, ulti- profitable, have the advantage over companies mately, incorporating the new learning into the operating in markets that lack such sophistication. organization for maximum benefit. 5.1.1. Language Next, we discuss several important considera- Now that market research is being conducted around tions related to questionnaire construction and data the globe, researchers must take language and collection methods that internal research managers cultural factors into account when designing ques- must consider as they design and implement global tionnaires. Language represents the most obvious research studies for their organizations. Failing to factor that makes international market research so adequately understand and address these issues challenging. While many middle and upper manage- puts internal researchers at odds with their top ment executives worldwide have some command of management constituencies and risks conducting the English language, that does not mean that costly research projects that do not add value and English must be employed in conducting all improve the firm's competitive advantage. research. To make matters even more complicated, variations within the same language may exist. For 5.1. Cultural challenges example, English speakers in the U.K. and America have long complained that they are separated by a Conducting market research in an international common language. Consider a scenario which market requires a great deal of new learning. occurred after London-based ICI purchased Cleve- From a managerial perspective, this includes a land, Ohio-based Glidden Paint Company in the late more comprehensive understanding of native cul- 1980s. Upon inquiring about a business request that ture. Cultural elements such as social institutions, he had submitted to his new bosses in the U.K., John gender roles, language, religion, aesthetics, educa- S. Dumble, President of Glidden, was told that his tion, and time orientation are closely intertwined request had been “tabled.” Alarmed, Dumble said: with national culture (Javalgi & White, 2002), and “Look, this is something I need. It's important, or I have a major impact on the acceptability and wouldn't have asked for it. You really should adoption of new products and services. The effect reconsider.” It was at this point that Dumble learned of culture is multifaceted in the sense that cultural that, in England, “tabled” means put through for values that are important to one group of people approval, not consigned to oblivion, as in the may mean little to another. Cultural differences American vernacular (Susan Corbett, personal com- deeply affect adoption of products and services and munication, September 9th, 1999). other forms of market behavior. Clearly, cultural forces have taken on strategic importance that 5.1.2. Translation cannot be ignored when marketing new and/or The most common problem in questionnaire design existing products and services. Social factors involves translation into other languages. A ques- embody a culture's fundamental organization, tionnaire developed in one country may be difficult including its groups and institutions, its system of to translate because equivalent language concepts social infrastructure, and the process by which do not exist, or because of differences in idiom, resources are distributed. Naturally, social struc- vernacular, and phrasing (i.e., syntax). For exam- ture affects market research decisions including the ple, the concepts of uncles and aunts are not the cost of conducting the research, reaching the target same in the U.S. as in India; there, the words for markets, collecting the data, etc. aunt and uncle are different for the maternal and The target market's knowledge of and familiarity paternal sides of the family. And while Spanish is with product service offerings also plays a critical spoken in both Mexico and Venezuela, researchers role in conducting research. Market research spe- have found that the translation of the English term cialists demand certain levels of educational and “retail outlet” works in the former country, but not technological skills. Although a country may have a in the latter. Apparently, Venezuelans interpret the huge population, only a small segment of that translation to refer to an electrical outlet, an outlet population may be equipped with the knowledge of a river into an ocean, and the passageway into a necessary to employ research tools either at work or patio (Iyer, 1997; Rydholm, 1996). at home. In a technologically sophisticated domes- In order to ensure that information is conveyed as tic market, businesses have more opportunities to intended, international marketing researchers modify existing products/services to include new often have questionnaires back translated. Back technological designs and features, and develop translation (Zikmund, 2000) is the process of entirely new products/services and technologies. translating questionnaires from one language to Research companies operating in a sophisticated another and then translating them back again by a
  • 7. International marketing research: A global project management perspective 119 second, independent translator. The back translator viewed by a man; furthermore, the idea of is often a person whose native tongue is the discussing grooming behavior and personal care language that will be used for the final question- products with a stranger (i.e., moderator) would naire. This can reveal inconsistencies between the be highly offensive (Zikmund, 2000). English version of the questionnaire and the translation, for correction if necessary. For exam- 5.1.5. Time zones ple, in one international advertising research Time zones present difficulties in conducting any project, the advertising slogan “out of sight, out type of business in foreign markets, and market of mind” was back translated as “invisible things are research is no exception. During fieldwork, market insane” (Nash & Zullo, 1988). researchers frequently find it necessary to commu- nicate with the facilities that have been hired to 5.1.3. Syntax conduct the actual interviews. Differing time zones in As previously mentioned, syntax is closely related other countries impact project communication and, to language. In fact, syntax specifically refers to ultimately, project timing. More days are required to word phrasing and sentence construction. For field a given research project to allow for commu- example, simply translating English questionnaires nications that may need to occur half-way around the into German is very problematic. While the result- world. Even the time of day matters in places like ing product may look German, it's not really very Japan, where business-to-business interviewing is German. The same is true of the reverse process very difficult to conduct during business hours. (from German to English): it looks English, but isn't. Because Japanese employees are so loyal to their The syntax is what makes the difference. employers, they hesitate to devote time to anything 5.1.4. Cultural norms other than their immediate work efforts while in the Following language, the most significant variable in office. As well, employers believe they owe absolute successful foreign market research is cultural norms. commitment to their employees while on the job. These norms are very influential forces, and can 5.1.6. Foreign holidays represent the difference between successful pro- The United States has a list of approximately 12 duct introduction and failure. Unfortunately, cul- standard holidays per year. Other countries have tural norms are usually very subtle rather than different lists, which can be much longer and blatant and obvious, which makes them hard to certainly differ from the American calendar. Holi- discern and detect. Consider the case of a U.S. days are yet another factor that can add to the ketchup company that, after learning ketchup was total time frame required to complete an inter- not available in Japan, attempted to market their national research project. According to Rydholm product there. Rather than take the time to question (1996), prior to starting research, clients should why ketchup wasn't already available in the country always check the holiday schedule of the country and investigate the situation through international in which they are working. Nearly every Monday is market research, the large, well-known U.S. man- a holiday somewhere in the world. ufacturer hurriedly shipped a large quantity of its popular, name-brand ketchup to Japan, fearing any delay would permit its competition to spot the 5.2. Sampling issues/sampling frame opportunity and capture the market. Had market research been conducted by the U.S. company prior Consider the process of conducting marketing to product introduction, it would have revealed that research in China. China has a total population of soy sauce is the preferred condiment in Japan 1.2 billion, 350 million of which live in urban areas of (Zikmund, 2000). 622 cities and scores of smaller towns. Of the cities, Ignoring important cultural norms has caused only 32 have populations of at least one million, while other problems for international marketers. For 42 have populations between 500,000 and one million, example, Chase and Sanborn met resistance when it and the remaining 548 have populations of less than tried to introduce its instant coffee into the French 500,000 (Lee & Wong, 1996). Since almost no small market. In the typical French home, the consump- towns or rural areas are included in market research tion of coffee plays a very significant role. Since the projects, what constitutes a nationally representative preparation of real coffee is a ritual in the life of the sample of the Chinese market? Considering the French consumer, they will generally reject instant framework in Fig. 1, the unit of analysis in a complex coffee because of its impromptu characteristics. single county like China varies widely between Additional stumbling blocks may be numerous and national, regional, and/or local. Adding additional varied. For instance, in many Middle–Eastern coun- countries only makes the project more challenging for tries, women would never consent to being inter- internal market research managers to administer.
  • 8. 120 R.B. Young, R.G. Javalgi A logical means of reaching the largest sample by paying respondents for their opinions, an inherent possible, including individuals who don't live in bias is introduced. This is more complicated in the major population centers, involves interview by international setting, where in some cultures incen- telephone or computer. Unfortunately, technologi- tives are required to procure participant coopera- cal capabilities are not equal across countries or tion. For example, drinking and socializing are regions. For example, in Germany, telephone pene- expected as part of the research experience in tration did not reach the 80% level until the mid- Brazil. In other cultures, however, incentives of any 1980s, long after that milestone had been reached in kind are regarded as insulting to the respondents. the United States. Today, less than 10% of all households in India have telephones, and telephone 5.3. Measurement issues penetration in Brazil is less than 50% in large cities In international market research, it is critical to (Malhotra, 2004). Considering the low computer establish the equivalence of scales and measures usage in these nations, the sample representation used to obtain data from different countries (Han, problem is even more dramatically exacerbated Lee, & Ro, 1994). One of the significant issues that when using Internet-based samples. Unless and until must be dealt with early in the international market these nations increase their overall computer and research process is the equivalence of data (Kumar, Internet capacity, using the Internet to conduct 2000). This involves three considerations. First, it international market research is not going to result has to be ascertained whether the constructs being in sound customer-based business strategies. studied are equivalent. In other words, are the same 5.2.1. Native interviewers phenomena being studied in both countries? Second, To facilitate the already complicated communica- the equivalence of the measures of the concepts tion process, using native interviewers for interna- under study has to be determined. This means that tional research projects allows multi-national the phenomena are being measured consistently in clients to exert a form of quality control. More- each country. Finally, the equivalence of the sample over, it is a matter of courtesy that the local being studied in each country or culture must be respondents should be able to speak with inter- considered. The issue here is that the samples used viewers in their own language. Many nationalities, in each country are equivalent to each other (Kumar, such as the French, are often offended by non- 2000). These considerations involve substantial native researchers. While advisable overall, measurement issues that are increasingly critical in recruiting native interviewers can be problematic an international environment. The concepts of in countries and regions where the literacy rate is reliability, defined as consistency over time, and low, like rural China and India. validity, which is concerned with what the instru- ment is actually measuring, are important to any 5.2.2. Questionnaire length market research effort, especially those that cross As consumers worldwide become increasingly sensi- national boundaries. tive to being interviewed, participation refusal rates keep trending upward. Of China's major cities, 5.4. Market research infrastructure refusal rates are estimated at 32% in Guangzhou, Media availability, Internet penetration, quality 22% in Beijing, and 10% in Shanghai. A key driver of control, and the overall market research infrastruc- refusal rates is questionnaire length. After approxi- ture significantly impact the success of international mately 20 minutes, most respondents become research projects. Where little or no media exists, fatigued with the process and terminate the inter- these options are no longer open to international view. This factor is exacerbated in international researchers. Widespread print and broadcast media studies, as different languages can shorten or options and extensive databases are generally a lengthen the amount of time it takes to get through Western advantage. Further, Internet penetration a questionnaire. For example, translated into Italian, remains skewed to males under age 40 with above a 20 minute American questionnaire will last only average education and household income (Dodd, approximately 18 minutes. Translated into French, 1998). Until its usage rate increases to a point that the same questionnaire will take 22 minutes. The approximates a broader cross section of customers, difference in duration is attributable to the subtle the Internet cannot be considered a viable primary nuances of both languages (Lee & Wong, 1996). market research instrument. This is especially true in the international setting. 5.2.3. Incentives The use of incentives in market research has been 5.4.1. Currency fluctuations debated for as long as research has been executed. Doing business around the world always involves the The common criticism of the practice contends that risk of changes in a particular country's currency.
  • 9. International marketing research: A global project management perspective 121 Market research firms are also impacted by these research studies. This expertise can be effectively fluctuations because of the numerous field services translated into a competitive advantage. As compa- that are usually hired to complete a research assign- nies continue to seek competitive advantages across ment. To finish a given project, several countries might national boundaries, being cognizant of the variety be involved. For example, each spring and fall, IBM of cross-cultural marketing research challenges as conducts a brand tracking study in 14 languages in 27 discussed in this paper provides an essential ingre- countries. At any time, one or more of these countries dient to the firm's ultimate success. Clearly, inter- will experience unstable currency conditions, affect- national marketing research provides information ing the lead research supplier (Iyer, 1997). about foreign consumers and critical information regarding the global marketplace. 5.5. Data collection challenges The purpose of our paper has been twofold. First, The process of managing vendors in the international, we provided a framework for international market rather than in the domestic, context is much more research; second, we discussed several critical difficult, time consuming, and expensive. While challenges to illustrate the issues involved when taken for granted that mall intercept methodology, companies conduct international marketing research scanner data, and reliable postal delivery are all projects in support of their brand initiatives. The available in the U.S., this assumption is not true for framework was provided within the context of the many other parts of the world. Unreliable mail service traditional four steps of the research process. Within in developing countries makes conducting interna- this broader context, we highlighted the subtle tional mail surveys problematic (Malhotra, 2004). differences between domestic and global marketing Access issues in terms of locating the appropriate research design. While the steps of the market person and gaining their cooperation to participate in research process are familiar to many managers, a market research study are also heightened in the overlaying the international perspective creates a international context (Craig & Douglas, 2005). Addi- variety of important and unique data collection tionally, respondent and vendor confidentiality and challenges, as we have indicated. To help internal trust are important considerations in the global research managers design and implement more context (Kumar, 2000). For example, a research impactful and effective global research studies, we study examining the functioning of a sovereign nation reviewed several factors that must be considered or inter-company conflicts must have an assurance of prior to conducting research across foreign markets. confidentiality. These issues are more challenging in Client side market research managers designing the global environment, where other barriers like projects to support upper management initiatives language and culture play a larger role. will encounter significant difficulty unless these data collection issues are addressed. As relevant and 5.6. Legal issues timely information about customers increasingly becomes the foundation of competitive advantage, Legal and privacy restrictions pose unique chal- managers will need to critically review their interna- lenges in the international research arena. European tional research programs. countries with strict privacy regulations can poten- In order to take full advantage of international tially shut down marketing activities that profile or growth opportunities over the long term, companies collect personal information. Gaining access to looking to the global marketplace need research specific respondents can also be problematic in that identifies customer behaviors and potential certain countries. Furthermore, the Chinese are positioning strategies. To assure that their projects monitoring questionnaire construction and even the are contributing to the overall competitive advan- approval of the final data. This is in direct conflict tage of the firm, research managers must be aware with the American approach of non-disclosure of of the nuances involved in data collection across proprietary client results (Meijer, 1999). cultures. As we suggested, research managers must think globally and act locally by developing research 6. Guidelines for managers projects that rationalize global expansion, identify international market entry options, and provide a Companies that already are, as well as those that basis for implementing a foreign marketing mix plan to become, global marketers must look closely strategy. The positive result of this mindset will be at the world marketplace to identify global oppor- improved information about global customer seg- tunities (Jeannet & Hennessey, 2001). Consequently, ments, leading to improved performance and in order for organizations to evaluate their numer- increased competitive advantage for the firm. ous international opportunities, they must develop Due to the complexities involved when conduct- an expertise in conducting global marketing ing market research across national borders, in
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