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Chapter 1
The Nature and Scope of
International Marketing Research
International Marketing Research - Is it a valid
Concept?
Although critics may not believe so, IMR is a valid concept
because:
• It is a coordinated multi-country effort
• Market surveys lead to decisions that affect more
than one country
• Marketing strategies are conceived on a multi- national
basis, hence it is logical that market research should
follow suit.
What is different about International
Marketing Research?
The process of IMR is not totally different from domestic
marketing research. However, they differ in the following
ways:
• IMR involves national differences between counties arising
out of political, legal, economic, social and cultural
differences
• The problem of comparability of research results that arise
due to these differences
What is different about International
Marketing Research? (contd.)
International researchers have to deal with a number of
counties that may differ considerably in a number of
important ways.Some of these differences are:

Culture differences: Culture refers to widely shared norms or
patterns of behavior within a large group of people. Cultural
differences shape attitudes that consumers have towards
products.

Racial differences: Differences in cultures mean difference in
physical features as well. Products must be modified to meet the
needs of different races.
What is different about International Marketing
Research? (contd)
• Economic differences: Levels of wealth and taxation affect
consumer behavior in different countries. Eg: Norwegians consume
very little alcohol due to high taxation
• Religious differences: Certain religions have laid down specific
behavioral patterns. Eg: Middle Eastern countries prohibit alcohol
consumption
• Historical differences: Slowly evolved differences that have
profound effects on consumer behavior. Eg; Scotch whisky is
considered prestigious and trendy in Italy but old-fashioned in
Scotland
• Climatic difference: Differences in climate accounts for difference
in cultures
What is different about International
Marketing Research? (contd)
•
Differences in consumption patterns: There are vast
differences in consumption patterns between regions.For Eg:
The French prefer wine, the Germans like beer and the Spanish
drink aperitivos.
•
Differences in marketing conditions: For Eg: Japanese do not
like being contacted over the telephone for interviews, while in
Hong Kong interviews are conducted through the grill in front
door.
•
Differences in actual and potential target groups: Eg: It is
easier to collect national samples in countries like England and
Germany than in Spain.
What is different about International
Marketing Research? (contd)
International Marketing Researchers may also have to
deal with:
•
Language differences
•
Differences in market research facilities
•
Differences in the criteria for assessing products or services
•
Differences in product usage
Culture
• Values, attitudes, beliefs, artifacts and other meaningful
symbols represented in the pattern of life adopted to help
interpret, evaluate and communicate as members of a
society.
• Mistakes result when cultural differences not recognized
• Examples of blunders include Pepsodent, Branff
Airlines, U.S. food manufacturers doing business in
United Kingdom
Culture: (Contd)
Dimensions of Culture:
1. Power Distance
2. Individualism vs. Collectivism
3. Masculinity vs. Femininity
4. Uncertainty Avoidance
5. Long-term Orientation
Culture (Contd)
Power Distance
The extent to which less powerful members
of a society accept and expect that power is
distributed unequally.
Example: Japan has a high power distance
index and the US has low power index.
Culture (Contd)
Individualism Vs. Collectivism
Defined as people looking after themselves and
their immediate family only, versus people
belonging to in-groups that look after them
in exchange for loyalty (Hofstede).
Example: Japanese are collectevistic where as
the Americans are individualistic.
Culture (Contd)
Masculinity Vs. Femininity
The dominant values in a masculine society
are achievement and success, the dominant
values in a feminine society are caring for
others and quality of life.
Example: Japan is masculine, while the
Scandinavian countries are feminine.
Culture (Contd)
Uncertainty Avoidance
The extent to which people feel
threatened by uncertainty and ambiguity
and try to avoid these situations.
Example: High on uncertainty avoidance
are Germany and Japan, low ones are
Sweden and Denmark.
Culture (Contd)
Long-term Orientation
The extent to which a society exhibits a
pragmatic future-oriented perspective than
a conventional historic or short-term point
of view.
Example: Most Asian countries, China in
particular score high on this dimension.
Many western countries have short-term
orientation.
Culture (Contd)
Culture Classification Model:
Assumptions regarding the use of time, the approach to talk at
hand, and the role of relationships in making business decisions
vary throughout the world.Countries have been classified into:
•North Western/ Central European
• North American
• Mediterranean European
• Latin American
• Traditional ( developing countries, centrally planned and
former centrally planned countries)
• Middle Eastern
Alternative Types of Marketing Research
•
Descriptive Research
Researcher examines in-depth the attitudes and behavior of
consumers in another country or culture.
•
Comparative Research
Involves comparing attitudes and behaviors in two or more
countries or cultural contexts, with a view to identifying
similarities and differences between them.
Alternative Types (cont)
Theoretical Research
The researcher has a predetermined theory or
model and it is possible to examine crosscultural generalizability of those theories or
models.
Importance of Comparability
Account for differences in:
a) resources and expertise
b) working habits and corporate culture
c) organizational aspects
Distinguish between
a) comparability at data collection stage
b) comparability at interpretation stage
Classification of International
Marketing Research:
a) Single-country research
b) Multi-country research
c) Independent Multi-country research
d) Sequential Multi-country research
e) Simultaneous Multi-country research
Challenge to Research
•
Too much emphasis on statistical techniques
•
Data becoming unduly important
•
Not enough data interpretation
•
Too much reliance on computers and
scanner data
•
Lack of understanding among users
•
Researchers see themselves as data
collectors rather than data interpreters
Marketing Researcher of the 21st Century
Requirements include:
•
Speed
•
Use of Internet
•
Globalization
• Ability to add value to numbers and data
Ethics in Research
Researchers should consider
•
Respondents’ rights Should be allowed to participate
voluntarily and there should be no
coercion.
•
Sponsors’ rights -
Researcher is morally bound to conduct
research in the manner that has been
agreed upon with the sponsor.