Chapter 1 The Nature and Scope of International Marketing Research.
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Transcript of Chapter 1 The Nature and Scope of International Marketing Research.
![Page 1: Chapter 1 The Nature and Scope of International Marketing Research.](https://reader033.fdocuments.net/reader033/viewer/2022061603/56649e295503460f94b17212/html5/thumbnails/1.jpg)
Chapter 1
The Nature and Scope of International Marketing Research
![Page 2: Chapter 1 The Nature and Scope of International Marketing Research.](https://reader033.fdocuments.net/reader033/viewer/2022061603/56649e295503460f94b17212/html5/thumbnails/2.jpg)
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.
![Page 3: Chapter 1 The Nature and Scope of International Marketing Research.](https://reader033.fdocuments.net/reader033/viewer/2022061603/56649e295503460f94b17212/html5/thumbnails/3.jpg)
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
![Page 4: Chapter 1 The Nature and Scope of International Marketing Research.](https://reader033.fdocuments.net/reader033/viewer/2022061603/56649e295503460f94b17212/html5/thumbnails/4.jpg)
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.
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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
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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.
![Page 7: Chapter 1 The Nature and Scope of International Marketing Research.](https://reader033.fdocuments.net/reader033/viewer/2022061603/56649e295503460f94b17212/html5/thumbnails/7.jpg)
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
![Page 8: Chapter 1 The Nature and Scope of International Marketing Research.](https://reader033.fdocuments.net/reader033/viewer/2022061603/56649e295503460f94b17212/html5/thumbnails/8.jpg)
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
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Culture: (Contd)
Dimensions of Culture:
1. Power Distance
2. Individualism vs. Collectivism
3. Masculinity vs. Femininity
4. Uncertainty Avoidance
5. Long-term Orientation
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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.
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Culture (Contd)
Individualism Vs. Collectivism
Defined as people looking after themselves and their immediate family only, versus peoplebelonging to in-groups that look after them in exchange for loyalty (Hofstede).
Example: Japanese are collectevistic where as the Americans are individualistic.
![Page 12: Chapter 1 The Nature and Scope of International Marketing Research.](https://reader033.fdocuments.net/reader033/viewer/2022061603/56649e295503460f94b17212/html5/thumbnails/12.jpg)
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.
![Page 13: Chapter 1 The Nature and Scope of International Marketing Research.](https://reader033.fdocuments.net/reader033/viewer/2022061603/56649e295503460f94b17212/html5/thumbnails/13.jpg)
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.
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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.
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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
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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.
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Alternative Types (cont)
Theoretical Research
The researcher has a predetermined theory or
model and it is possible to examine cross-
cultural generalizability of those theories or
models.
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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
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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
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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
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Marketing Researcher of the 21st Century
Requirements include:
• Speed
• Use of Internet
• Globalization
• Ability to add value to numbers and data
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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.