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Chapter 18
Europe
Regional Characteristics - 1
• More stress on quantitative data
• Significant differences between data
availability in Eastern Europe and that in
Western Europe
Regional Characteristics - 2
• Political turmoil make database maintenance
a problem
• Financial information not reliable
European Statistical Sources
• European Official Statistics: A Guide to
Databases
• European Official Statistics: Sources of
Information
• Eurostat - your partner for European Statistics: a Guide to
the Statistical Office of the European Communities
Europe - One Economy ?
• Not possible to standardize
• National identities are separate and distinct
• Formation of the European Union
Culture
• 14 languages, 9 separate VAT tariffs, 12
currencies, and 12 national cultures
• Unique culture and history that cannot be
ignored
• Need to show sensitivity to each culture
Seasonality and Holidays
The Language Issue
• No “lingua franca” - English and French
commonly used
• German spoken by more than 100 million
people
• Do not cut corners on translation of
questionnaires
Mailing lists
• Type of mailing lists affects translation decision.
• Domestic list environment is different within each European
country. (A country’s data protection laws significantly affect
how personal data can be compiled and segmented)
• Average price for a consumer list works out to US$ 95-140/m
and that for a business-to-business is approximately US$ 140250 per 1000
Computerized Information and Sources
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There are a number of market research resources available
through electronic media:
• National Trade Data bank (NTDB) : A compilation of over
100,000 trade-related documents, including U.S. Government
export and import trade statistics, the complete CIA World
Factbook, etc.
• Country Marketing Plan (CMP): They are annual planning
documents prepared by commercial officers at U.S.
Embassies and Consulates in Europe.
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The cost of conducting research in various European countries
varies because of difference in overhead costs.
France
Country Characteristics
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Population: 58,609,285 (July 1997 est)
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Land Area: 545,630 sq. km
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Languages: French
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Literacy Rate: 99%
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Religion: Roman Catholic (90%), Protestants (2%), Muslim
(1%), unaffiliated (6%)
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GDP: Purchasing power parity: $1.22 trillion (1996 est.)
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GDP per capita: Purchasing power parity: $20,900 (1996)
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GDP real growth rate: 1.3% (1996 est.)
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Inflation rate: Consumer Price Index: 1.7 % (1996 est.)
Doing Business In France
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The French believe in status and often do not mingle between
groups (there is little motivation for a person to move up the
social ladder since there is a belief that on is born into a class)
Most French are interested in discussions where there are no
points of agreement and as the arguments grow more heated,
tend to enjoy them better.
It is better to direct conversations away from personal topics
The strength of unions in the public sector helps ensure jobs
despite of lax performance levels.
French management is centralized in structure
Time consciousness is important at meetings
The French tend to take pride in purchasing products made
locally ( second is European products and third US ones)
Market Research in France
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France has a very established and updated infrastructure system
that supports its direct marketing ventures.
Currently it has the second largest direct mail market in Europe
( next to Germany)
Telemarketing is considered a booming area that foreign firm
can opt for.
Although the telephone system is quite advanced, it is better to
have face to face interviews rather than over the telephone.
Mall intercepts is the best way of conducting personal interviews
in France.
The French are idealistic in their vision of current lifestyles and
often skew their responses to reflect a better state than an actual
state.
Germany
Country Characteristics
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Population: 82,071,765 (July 1997 est)
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Land Area: 349,520 sq. km
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Languages: German
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Literacy Rate: 99%
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Religion: Protestants (38%), Roman Catholic (34%), Muslim
(1.7%), unaffiliated or other (26.3%)
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GDP: Purchasing power parity: $1.7 trillion (1996 est.)
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GDP per capita: Purchasing power parity: $20,400 (1996)
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GDP real growth rate: 1.4% (1996 est.)
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Inflation rate: Consumer Price Index: 1.5 % (1996 est.)
General Characteristics
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German are considered to be precision-oriented.
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Work behavior is normally meticulous and goal oriented
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Germans are not spontaneous in their dealings with people,
tending toward being private in their approach.
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Often business dealings do not stretch beyond the office working
hours.
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Company dealings are based upon the etiquette demanded of a
position held.
Business Characteristics
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Germans are generally well-versed in their fields and are
knowledgeable.
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It is important that the dealings are made specific either in
writing or verbally.
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Forms of address tend to be formal; first names should be
avoided.
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Although English is prevalent in most business spheres,
Germans tend to resent the use of a foreign language to
communicate.
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Greeting is almost always a hand shake.
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There is significant emphasis placed on seniority of one
employee over another.
Conducting Marketing Research in Germany
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The availability of good secondary research information
enables a through analysis of the consumer perspectives.
Germans are intensely private and tend to keep their
opinions to themselves.
There is a reasonable amount of resistance to responding to
surveys at malls or in answering queries over the telephone.
Generally, German women are aware of all media forms and
reaching them is perhaps easy through the magazines and
other print media.
The one misnomer that marketers have in targeting
consumers in Germany is in assuming that most of them live
in urban areas.
Homogenization of marketing strategy is not a good idea for
this country.
Great Britain
Country Characteristics
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Population: 57,591,677 (July 1997 est)
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Land Area: 241,590 sq. km
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Languages: English, Welsh, Scottish form of Gaelic
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Literacy Rate: 99%
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Religion: Anglican (27 million), Roman Catholic (9 million),
Muslim (1 million), Presbyterian (800,000) Methodist( 760,000),
Sikh (400,000), Hindu (350,000), Jewish (300,000) - 1991 est
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GDP: Purchasing power parity: $1.19 trillion (1996 est.)
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GDP per capita: Purchasing power parity: $20,400 (1996)
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GDP real growth rate: 2.4% (1996 est.)
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Inflation rate: Consumer Price Index: 2.6 % (1996 est.)
Conducting Business in the United Kingdom
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A good handshake establishes confidence in the other party.
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Punctuality is valued.
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Although most contracts drafted address long-term aspects, most
British tend to look at the short-term benefits that the company
can achieve.
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Although English is spoken in England and the U.S., one should
remember the differences in connotation and usage of several
words in the two countries
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Non-verbal communication affects the interpretation of attitudes.
Conducting Marketing Research in UK
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There are several detailed sources of secondary data available for
conducting preliminary research in Great Britain. Sources
include both governmental and non-governmental sources:
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Despite its homogenous appearance, the UK is a highly diverse
country.
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In term of responsiveness to purchase or participate in
international market research activities, the United Kingdom,
lags behind several other European countries.
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Telephone interviews is not a very popular survey method.
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Mailing lists have grown in recent years.
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One advantage of conducting research in the UK is that the
distribution system is similar to the US and approachability to
the consumer is equally effective.
Direct marketing in United Kingdom
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The UK has a more than three times the average response rate as
compared to the US toward direct marketing efforts.
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The society’s concept of individuality is considered as a
motivating element for consumer preference for direct mail.