International Marketing Research - MEC

xivPrefaceWhen constructs and theory are found to hold in more than one country, confidence in the basictheory is enhanced. Understanding is also gained when a theory does not hold in another context.This establishes the limits of its applicability or suggests that the theory needs to be modified toincorporate the new context. In order to cover progress in this area a chapter has been added thatdeals with conceptual and methodological issues in designing and executing research.Current advances in communications technology and particularly the bewildering speed of Internetgrowth is rapidly revolutionizing the way in which information is collected, processed, and disseminated. This has vast potential for enhancing the scope of international marketing research. Since thisrevolution is only in its infancy, it is difficult to discern exactly how it will change data collection,sampling, questionnaire administration, analysis, etc. While the Internet improves the speed andscope of data collection, attention still must be paid to the critical issues underlying the researchdesign and its execution.PurposeThe purpose of this book is twofold. First, the book aims to assist academic researchers in conducting multi-country research. The book is designed to help researchers create sound researchdesigns that will allow for valid and meaningful inferences to be made. Attention is paid to howcomparability and equivalence of results in different countries can be established. Consideration isgiven to the conceptual framework that guides research as well as the methodological foundations.Consequently, the third edition pays greater attention to issues such as decentering of the researchdesign, scale development, measurement equivalence and reliability, and multi-country data analysis.As a result, it is hoped that it will effectively serve academic researchers interested in the theoreticalissues relating to international and cross-cultural research in marketing.Second, it aims to provide some direction in conducting commercial research for internationalmarketing decisions. International marketing research is here defined as research conducted to aidin making decisions in more than one country. These may include decisions concerning whichcountries or markets offer the most attractive opportunities for entry or expansion, as well aswhether to standardize strategies across countries as opposed to adapting these to local marketdifferences. Comparability in findings is thus required, since these decisions imply the integration orcoordination of strategies across countries. Such research can be conducted simultaneously in allcountries being investigated.

PrefaceMany of these decisions, especially those concerned with foreign market entry, are intrafunctionalin character. Thus, they have not only marketing but also financial or production aspects. Decisionsto invest or establish a plant in a foreign country, for example, necessitate evaluation of foreignmarket risks, and the costs of producing from a foreign location. Some of the types of informationrequired for such evaluations are covered here, but primarily insofar as these interact with marketing decisions. Emphasis is thus placed on the collection of information to aid in developing globalmarketing strategy and in integrating strategies across countries and product markets.AudienceThis book is intended to have four main uses. First, it can serve as a text for specialized courses ininternational marketing research. It provides comprehensive coverage of the various issues involvedin international marketing research of both a qualitative and quantitative character. Furthermore, itis applicable to problems encountered in the emerging market countries of the Far East and Africa,as well as industrialized countries such as the European nations or Japan. Second, it is suitable whensupplemented with research articles, as a resource for a seminar on international marketing research.Third, it can be used as a supplementary text in marketing research or international marketingmanagement courses to round out material and topics relating to international marketing research.Fourth, it may prove useful to practitioners of international marketing research, particularly inrelation to issues of instrument design and scale development. It should be particularly valuable tothose who are just beginning to conduct research in multiple countries for their clients.Regardless of the use, the discussion in the text assumes familiarity with the basic principles ofmarketing research as, for example, non-survey data collection techniques, sampling, questionnairedesign and administration, and data analysis. The focus is thus on issues involved in applying thoseprinciples in an international research context. For the reader who is not familiar with marketingresearch principles, references are made in relevant sections throughout the book to standard sourcesand texts.StructureThe same underlying principles that guided the previous two editions are present in the thirdedition, namely that the basic principles of marketing research are the same whether research isxv

xviPrefaceconducted in an international or a domestic context. However, the international marketingresearcher is likely to encounter greater difficulties than his or her domestic counterpart. Thesedifficulties stem from operating across national boundaries and in a diverse range of socio-culturalenvironments. Examples of issues that may arise include how to obtain response from illiterate orsemi-literate populations, how to develop a sampling frame in the absence of reliable census data orsampling lists, or simply how to find or train competent interviewers. Frequently, creativity andresourcefulness are required in coping with unexpected problems. In addition, an ability to manage,deal with, and organize researchers of different cultural backgrounds and value systems is essentialto successful international marketing research.To address these issues, the third edition has fifteen chapters. The first chapter provides an introduction to the topic. It acquaints the reader with the complexity of the global environment and sets upthe key issues that the international researcher must deal with. Chapter 2 addresses the issuesassociated with the design of international marketing research with particular emphasis on thoserelated to the organization of international marketing research, the choice of supplier, the determination of information requirements, the selection of information sources, the appropriate unit ofanalysis and the development of a research plan and its administration. The chapter also covers theresearch infrastructure and the major players around the globe. This chapter has been updated toreflect changes in the research infrastructure including the most recent data from ESOMAR.Chapters 3 and 4 are concerned with secondary data sources. These are often more importantin international marketing research, due to the high costs of primary data collection. Chapter 3identifies the various sources of international data, and outlines the main types of data that areavailable. Chapter 4 looks at the uses of these data, as, for example, in making initial market entrydecisions and establishing rough estimates of demand potential. Both these chapters have beenupdated extensively to reflect the consolidation of the services that provide the information and inparticular their availability through the Internet.While academic and commercial marketing researchers have different motivations, both require astrong conceptual foundation. Two chapters are devoted to this topic. In Chapter 5 the conceptualfoundations for international marketing research are examined based on the unit of analysis.Building on the previous chapter, Chapter 6 examines the critical role that construct equivalenceand construct measurement play in obtaining reliable and valid results. The emic-etic dilemma isdiscussed, namely the inherent conflict between adapting constructs and measures to specific sociocultural contexts versus assuming that the constructs are universal and can be employed in all

Prefacecountries. Issues dealing with data equivalence are examined as well as cultural bias that maycontaminate the research design and eventual interpretation of data.Chapter 7 discusses various non-survey data collection techniques. These include observational andquasi-observational data, protocols, projective techniques, and depth interviews. Use of these techniques in the preliminary stages of research is advocated in order to identify relevant concepts to beexamined in subsequent stages of research. Their administration using computerized techniques isalso discussed as well as the combination of qualitative and quantitative approaches.Chapters 8 and 9 cover instrument design, sampling and data collection in survey research. InChapter 8, issues in instrument design, such as questionnaire formulation, instrument translation,appropriate scales, and response format are discussed, as well as potential sources of bias arisingfrom the respondent, or the interviewer-respondent interaction. Chapter 8 examines problems insampling, such as identifying an efficient sampling procedure. The advantage and disadvantages ofvarious data collection procedures, such as mail, telephone, Internet or personal interviewing, ininternational marketing research are also discussed. The material in Chapters 8 and 9 has beenupdated to reflect recent changes, as for example the use of the Internet to administer surveys.Chapter 10 discusses the development and use of scales to measure constructs in a multi-cultural ormulti-country context. Issues relating to scale reliability and validity are addressed, including procedures for testing scales developed in one country or culture to see whether they are applicable inanother country. In addition, approaches to developing hybrid scales with pan-cultural componentsas well as components to measure constructs unique to a particular country or culture are covered.The chapter has been updated and expanded to reflect recent developments.Chapters 11 and 12 cover analysis of multi-country data. In Chapter 11 analytical techniques thatare suited to determining whether there are significant differences in the level of a variable betweencountries are discussed. In Chapter 12, analytical techniques that are appropriate for examiningdifferences in the structure and relationship of variables between countries are covered. Thesedifferent techniques are illustrated with recent examples from the literature. One of the clear trendsis the increased sophistication in the types of quantitative analysis that are being used to analyzecross-cultural data.Chapter 13 examines the steps involved in the development of a global information system. Thiscovers the design of a global system, and its various components, as well as how information isxvii

xviiiPrefacecollected and fed into the system on a regular basis. Issues relating to data access and its usein management decision-making are also examined. This chapter has been updated with moreemphasis placed on the role of the Internet in facilitating the dissemination of information.Chapter 14 brings together many of the themes addressed throughout the book. It also tries toprovide some insights into the challenges that researchers face as markets become increasinglyintegrated and diverse at the same time. The impact of technological advances and new analyticaltechniques is covered. Ethical issues are examined as well as some of the special challenges associated with conducting research in emerging market economies. This chapter is updated, but continues to follow the same structure.Chapter 15 sets the stage for the future of international marketing research. For progress to be madein the international arena, three inter-related issues need to be addressed. First, greater attentionneeds to be paid to comparability and equivalence of the basic constructs being examined betweencountries. Second, more thought needs to be given to the research design that guides internationalmarketing research. Finally, better cross-cultural measures and analytical techniques need to bedeveloped and applied to multi-country data. These themes, first articulated in the second edition,are expanded upon.AcknowledgementsAs in the case of the first and second editions, we would like to thank all those who through theirwriting and their comments inspired the revision of this book. We are particularly grateful to ourmany colleagues on different continents from different research traditions and interests who encouraged us to undertake this rather daunting task. We believe that had it not been for their interest,encouragement and prodding, we probably would not have embarked on what has proven for us tobe a highly rewarding undertaking. In particular, our discussions with colleagues at EMAC, AIBand other international meetings have been both stimulating and thought provoking – leading usdown new paths, inspiring us to investigate new lines of inquiry, and above all to question some ofour assumptions about how to conduct cross-national research. We hope they will forgive us if wehave not always followed their advice or responded adequately to their concerns.A special note of thanks go to the executives in marketing research firms and consulting firms whogenerously gave their time and shared their knowledge and experience on the conduct of international marketing research. In particular we would like to thank:

PrefaceRichard Auton, Auton & Co.; Peter Cooper, Cram International; Sandrine Mounier, Greenlight;Michel Olszewski, Research International; John Pawle, Cram International; Joseph Plummer, McCannErickson; David Pring, IPSOS; Christine Restall, Research Business International; Paul Strang, HiEurope; Martine Thiesse, Research International Qualitatif.We also want to thank the many people at John Wiley & Sons who helped make this book a reality.Sarah Booth worked closely with us through to its completion and Rachel Goodyear helped keep uson track.Work on the third edition has been an ongoing process over the last two years, often interwovenand sometimes halted by our other research activities. It has been a stimulating and rewardingundertaking for both of us. We hope that academics, students, and practitioners will find the thirdedition to be helpful in formulating and executing international marketing research. The progresssince the first edition of this book appeared in 1983 has been phenomenal. We firmly believethat even more dramatic changes will occur in the first decade of the 21st century. While the worldis getting smaller, it is also becoming more complex and dependent on technology. The role ofsound international marketing research to guide decision-making and extend knowledge and understanding is increasingly critical. We hope that this book will contribute in some small way to helpimprove research that spans multiple countries and cultures.C. Samuel CraigSusan P. DouglasNew York Cityxix

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Marketing Research In A Global EnvironmentChapter 1MARKETING RESEARCH INA GLOBAL ENVIRONMENTIntroductionThe explosive growth of world trade has unleashed a torrent of demand for information aboutmarkets throughout the world. Companies expanding into new and unfamiliar markets need information about market demand and market conditions. Managers seeking to expand and diversifyoperations need information to develop effective strategies in these markets. Information needs nowextend from the mature industrialized markets of Europe, the US and Japan, the unstable butgrowing markets of Latin America, the politically uncertain markets of the Middle East and Russia,and the rapidly changing markets of South East Asia to the emerging African markets.At the same time, increasing cultural diversity makes it important to collect information with regardto changing lifestyle and consumption patterns in different parts of the world. Increased travel,waves of migration and global communications are resulting in the blurring of cultural boundaries.Traditional notions of culture as defined by geographical territory are changing as cultural interpretation occurs, resulting in a deterritorialization of culture. Links are being established betweengeographically dispersed cultures, resulting in the introduction of new ideas, products and lifestylesfrom one culture to another. In some instances, this generates a process of cultural fusion, resultingin the emergence of new hybrid cultures and global patterning of culture. Research is needed toinvestigate the impact of these changing cultural dynamics on consumption and purchasing patternsworldwide.Advances in communications and information systems technology are further accelerating the paceof change, linking markets through flows of information, images and ideas across national boundaries. This makes it increasingly critical for management to keep abreast of changes and to collecttimely and pertinent information to adapt strategy and market tactics in expanding local markets.As markets become more integrated worldwide, there is a growing need to conduct research spanningcountry boundaries, to identify regional or global segments, examine opportunities for integrating1

2International Marketing Researchand better coordinating strategies in world markets, launching new global brands and developingeffective global branding strategies.Effective and timely research is an essential tool for crafting strategy in a rapidly changing globalmarketplace. Research can aid in uncovering potential opportunities in international markets, incorrectly positioning new products and formulating products for international markets, as well asin identifying appropriate advertising appeals and diagnosing potential issues in relation to otheraspects of the marketing mix.Correctly Positioning New ProductsResearch can help in correctly positioning new products. In China, PepsiCo was initially unsuccessful in introducing its Frito-Lay brand of potato chips into the market. Sales were particularly low insummer months. Research revealed tha

Marketing Research, Journal of International Business Studies, Columbia Journal of World Busi-ness, International Journal of Research in Marketing, Journal of International Marketing. and other publications. Allie. PREFACE. In the relatively short time since the second edition of .