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The Main Factors Which Influence Marketing Research in Different Countries Are
The Main Factors Which Influence Marketing Research in Different Countries Are
The Main Factors Which Influence Marketing Research in Different Countries Are
Price. An American firm was willing to set a reasonable price for the
product they intended to sell to the Japanese. A detailed
presentation was made to the Japanese businessmen, but it was
followed by a deep silence. The Americans thought that the Japanese
were going to reject the price and offered a lower price. The
Japanese kept silent again. After that, the Americans lowered the
price again saying that it was the lowest they could sell at. After a
brief silence, the offer was accepted. Later the Japanese confessed
that the first offered price was quite acceptable, but they had a
tradition to think over the offer silently. An American company
suffered great losses in this case.
Besides the differences mentioned above, there may be differences in the way
that products or services are used, differences in the criteria for assessing
products or services across various markets, and differences in market research
facilities and capabilities.
There are three general categories of research based on the type of information
required.
There are three types of evidence to make inferences about causation: (1)
concomitant variation, (2) sequence of occurrence, and (3) absence of other
potential causal factors.
The sequence of occurrence can also provide evidence of causation. For one
event to cause another, it must always precede it. An event that occurs after
another event cannot be said to cause the first event. The importance of
sequence can be demonstrated in the last example of advertising causing sales. It
is supposed that further investigation showed that the advertising allocation to
the geographic regions had been based on the last period’s sales such that the
level of advertising was directly related to past sales. Suddenly, the nature of our
causal relationship is reversed. Now, because of the sequence of events, it can be
inferred that changes in sales levels cause changes in advertising levels.
A final type of evidence that is used to infer causality is the absence of other
potential causal factors. That is, if one could logically or through our research
design eliminate all possible causative factors except the one he/she is interested
in, he/she would have established that the variable he/she is concerned with was
the causative factor. Unfortunately, it is never possible to control completely or to
eliminate all possible causes for any particular event. Always there is a possibility
that some factor of which one is not aware has influenced the results. However, if
all reasonable alternatives are eliminated except one, one can have a high degree
of confidence in the remaining variable.
Steps of International Marketing Research Process
Problem definition is the most critical part of the research process. Research
problem definition involves specifying the information needed by management.
Unless the problem is properly defined, the information produced by the research
process is unlikely to have any value.
Information has value only to the extent that it improves decisions. The value of
information increases as;
Data are useful only after analysis. Data analysis involves converting a series of
recorded observations into descriptive statements and/or inferences about
relationships. The types of analyses, which can be conducted, depending on the
nature of the sampling process, measurement instrument, and the data collection
method.
Time refers to the time needed to complete the project. The financial
requirement is the monetary representation of personnel time, computer time,
and materials requirements. The time and finance requirements are not
independent.
Step 9. Preparation of Research Proposal
The research design process provides the researcher with a blueprint, or guide,
for conducting and controlling the research project. This blueprint is written in the
form of a research proposal. A written research proposal should precede any
research project. The research proposal helps ensure that the decision-maker and
the researcher are still in agreement on the basic management problem, the
information required, and the research approach.
Data availability, recency, accessibility, and accuracy vary widely from country to
country. Until recently, there were few commercial databases in Japan because of
the difficulty of using Japanese characters on computers. Now the problem is
resolved. The Japanese government prepares many potentially useful reports, but
even Japanese firms seldom use them because they are poorly organized and
indexed. Secondary data in many non-democracies often reflect political interests
more closely than reality. In general, the amount of secondary data available in a
country varies directly with its level of economic development.
Even when accurate data are accessible, it may not be possible to make
multinational comparisons. Data from several countries may not be comparable
because the data were collected at different times, use different units of
measurement, cover slightly different topics, or define the classes (such as age
groups) differently. This has become a major problem in the European
Community as firms begin to analyze the market as a whole rather than as a
collection of individual countries. To resolve part of the problem, ESOMAR has
proposed a standardized set of questions to gather demographic data in both
government and private surveys. Similar work is underway in Brazil, India, and the
Middle East.
The internal sources of data for international decisions can be classified into four
broad categories – accounting records, salesforce reports, miscellaneous records,
and internal experts. However, utilizing international internal data can be difficult.
Different accounting systems, decentralized (often on a country basis)
management and information systems, sales forces organized by country or
region, and so forth, all increase the difficulty of acquiring and using internal data
in a timely manner. To deal with these problems global firms implement
international information systems and require some standardization across
countries in terms of internal recordkeeping and reporting.
a) Databases
The World Bank lends funds, provides advice, and serves as a catalyst to stimulate
investments in developing nations. To carry out its missions, it collects substantial
amounts of useful data which can be purchased inexpensively.
The main advantage of primary data lies in the fact that it is collected for solving
the exact problem and that is why it is characterized by high usefulness and
novelty. The disadvantage is that the costs of collecting primary data are much
higher in foreign developing markets as there is a lack of an appropriate
marketing research infrastructure.
The international primary data is collected with the help of qualitative and
quantitative research approaches. Qualitative research is particularly used as a
first step in studying international marketing phenomena (focus groups,
observation). However, the main constraint is that responses can be affected by
culture as individuals may act differently if they know they are being observed.
2. Mall intercept surveys may be used in the United States, Canada, and
European countries. As far as the developing countries are concerned they
are not common.
5. Electronic surveys become more popular in the United States and Europe
and they are used for products that require technological literacy such as
computers and computer software. E-mail surveys begin to replace mail
and telephone surveys. The limiting factors for electronic surveys are as
follow: there are still many countries with low internet access, the internet
versions available in various countries may not be compatible and there
may be a big number of non-responses because of technical issues. At the
same time, the speed of getting responses and the low costs of surveys
makes this method suitable for international marketing research.
Conclusion
Sources of Data
The sources of data can be classified into two types: statistical and non-statistical.
Statistical sources refer to data that is gathered for some official purposes,
incorporate censuses, and officially administered surveys. Non-statistical sources
refer to the collection of data for other administrative purposes or for the private
sector.
What are the different sources of data?
1. Internal sources
When data is collected from reports and records of the organisation itself,
they are known as the internal sources.
For example, a company publishes its annual report’ on profit and loss,
total sales, loans, wages, etc.
2. External sources
When data is collected from sources outside the organisation, they are
known as the external sources. For example, if a tour and travel company
obtains information on Karnataka tourism from Karnataka Transport
Corporation, it would be known as an external source of data.
Types of Data
A) Primary data
B) Secondary data
4. Telephonic interview
5. Mailed questionnaire
Investigator ● One who conducts investigation, i.e., statistical enquiry and seeks
information is known as an investigator.
Enumerator ● An enumerator is a person who helps investigators in the collection of
data.
Informant ● An informant is the respondent who supplies the information to the
investigators or enumerators.
Q.1 Explain direct personal investigation method of collecting primary data. Discuss its
merits and demerits.
Answer:
(A) Direct personal ● Under this method, the investigator obtains the first-hand
investigation information from the respondents themselves.
(1) Reliable and ● The data collected is first-hand and original in nature. So, it is
Accurate more reliable and accurate.
(2) Flexibility ● In this method, the questions can be modified according to
the level of the respondent or other situations.
(3) Additional ● Some additional information may also be collected along
information with the required information.
(1) Not suitable for a ● It is not suitable when the area of coverage is considerably
wide area wide.
(3) Expensive ● This method is expensive, particularly when the field of
investigation is large.
(4) Personal bias ● The data collected in this method is subjected to personal
bias.
Q.1 Explain indirect oral investigation method of collecting primary data. Give its merit
and demerits.
Answer:
(A) Indirect oral Under this method, instead of directly approaching the informants,
investigation the investigators interview several other persons who are directly
or indirectly in touch with the informants.
(1) Wide coverage ● A wide area can be brought under investigation through this
method.
(2) Economical ● It is economical in terms of time, money, and manpower.
(1) Indirect ● Since the information is not collected directly from the party,
information there is a possibility that it will not be fully true.
(2) Lack of accuracy ● As compared to direct personal investigation, the degree of
accuracy of the data is likely to be lower.
(3) Lack of ● Information collected from different persons for the same
uniformity party may not be homogeneous and comparable.
Meaning of Liberalisation
Meaning of Globalisation
Meaning of Privatisation
Answer:
(A) Information through Under this method, local agents or correspondents are
correspondents appointed and trained to collect the information from the
respondents.
(1) Wide coverage ● This method is useful where the field of investigation is
very wide and the information is to be collected from
different parts of the country.
(2) Economical ● This method is quite economical and time-saving.
(3) Suitable for special ● This method is suitable for some special purpose
purposes investigations.
(4) Continuity ● It is very useful for collecting information on a regular
basis.
(2) Lack of reliability ● Data obtained using this method may not be very reliable
because of the possibility of personal bias and prejudice of
the enumerator.
(3) Less accuracy ● This method cannot be used where a high degree of
accuracy is required.
(4) Costly ● A lot of time and money is spent to collect the
information through correspondence.
Telephonic interviews
Q.1 Explain the telephonic interviews method of collecting primary data. Give its merit
and demerits.
Answer:
(A) Telephonic Under this method, data is collected through interviews over the
interviews telephone.
(1) Wide ● This method is useful where the field of investigation is very wide
coverage and the information is to be collected from different parts of the
country.
(3) Reliability ● The collected data is reliable as it is obtained directly from the
party.
(1) Limited use ● The disadvantage of this method is limited accessibility to
people. This method is not possible for people who do not own a
telephone or mobile.
(2) Visual ● Telephone interviews also obstruct visual reactions of the
feedback is not respondents, which become helpful in obtaining information on
possible sensitive issues.
Q.1 Discuss the mailed questionnaire method of collecting primary data. What are its
merits and demerits?
Answer:
(A) Mailed ● Under this method, a questionnaire containing a number of
questionnaire method questions related to the investigation is prepared.
(1) Wide coverage ● This method is useful where the field of investigation is
very wide and the information is to be collected from different
parts of the country.
(2) Economical ● This method is quite economical as it requires less money
and labour.
(3) Originality ● The data is very much original because informants are
directly involved in the collection of data.
(4) Free from bias ● Every question is interpreted by the respondent in his own
way. Hence, it is free from the personal bias of the investigator.
(5) Maintains secrecy ● This method is suitable for sensitive questions and
maintains the anonymity of respondents.
(1) Limited scope ● This method is applicable only where the respondents are
educated.
(2) Less response ● Most informants do not return the questionnaire.
(3) Chance of ● Informants may not understand the correct sense of some
misinterpretation questions, and may not answer them. Sometimes, informants
may provide vague and ambiguous answers.
Or
Answer:
(1) Simple and short Questions should be short, simple, and straightforward.
questions
(2) Limited questions The number of questions should be limited and they should be in
in a proper order a logical order.
(3) Clear instructions To assist the informants, clear instructions should be given.
(7) Secrecy assurance Respondents should be given assurance that their response will
not be shared with anyone.
(8) Cover letter To convey the purpose of how it will help the parties involved, a
precise cover letter should be enclosed.
Q.1 Explain the questionnaires filled by enumerators method of collecting primary data
along with its merits and demerits.
Answer:
(1) Accurate and Since the investigator has direct contact with the respondents, it
reliable is possible to get accurate and reliable information.
(2) Better responses The presence of the enumerator may induce the respondents to
give information.
(3) Useful in case of Unlike the mailed questionnaire method, this method can be
illiterate used even if the respondents are illiterate.
respondents
(2) Time consuming This method is very time consuming as the enumerator has to
visit the informants personally.
(3) Inefficiency and Inefficiency or inability on the part of the enumerators due to the
personal bias lack of proper training, coupled with personal bias, may adversely
affect the results of the enquiry.
Students can explore this important concept by clicking on this link provided
below:
Meaning of Statistical Enquiry, Meaning of Collection of Data and Sources of
Data
Q.1 What is secondary data? Discuss the various sources of secondary data.
Answer:
(A) Meaning of ● Secondary data refers to the data that has already been
secondary data collected by some other person or agency and is used by us.
categories:
1. Published sources
2. Unpublished sources
(1) Published Published sources mean data available in printed form. It includes
sources the following:
Answer:
Following are the main precautions to be taken while using secondary data:
(1) Reliable agency ● We must ensure that the agency that has published the
data should be reliable.
(2) Suitability for the ● The investigator must ensure that the data is suitable for
purpose of enquiry the purpose of the present enquiry.
(3) Adequacy and ● It is necessary to use adequate data to avoid biases and
accuracy to avoid impact prejudices leading to incorrect conclusions.
of bias
(4) Method of collecting ● The investigator should also ascertain as to what
data used method was used in collecting the data.
The actual data is then further divided mainly into two types known as:
1. Primary data
2. Secondary data
1.Primary data:
The data which is Raw, original, and extracted directly from the official sources is
known as primary data. This type of data is collected directly by performing
techniques such as questionnaires, interviews, and surveys. The data collected
must be according to the demand and requirements of the target audience on
which analysis is performed otherwise it would be a burden in the data
processing.
1. Interview method:
The data collected during this process is through interviewing the target audience
by a person called interviewer and the person who answers the interview is
known as the interviewee. Some basic business or product related questions are
asked and noted down in the form of notes, audio, or video and this data is stored
for processing. These can be both structured and unstructured like personal
interviews or formal interviews through telephone, face to face, email, etc.
2. Survey method:
The survey method is the process of research where a list of relevant questions
are asked and answers are noted down in the form of text, audio, or video. The
survey method can be obtained in both online and offline mode like through
website forms and email. Then that survey answers are stored for analyzing data.
Examples are online surveys or surveys through social media polls.
3. Observation method:
4. Experimental method:
The experimental method is the process of collecting data through performing
experiments, research, and investigation. The most frequently used experiment
methods are CRD, RBD, LSD, FD.
2. Secondary data:
Secondary data is the data which has already been collected and reused again for
some valid purpose. This type of data is previously recorded from primary data
and it has two types of sources named internal source and external source.
Internal source:
These types of data can easily be found within the organization such as market
record, a sales record, transactions, customer data, accounting resources, etc. The
cost and time consumption is less in obtaining internal sources.
External source:
The data which can’t be found at internal organizations and can be gained
through external third party resources is external source data. The cost and time
consumption is more because this contains a huge amount of data. Examples of
external sources are Government publications, news publications, Registrar
General of India, planning commission, international labor bureau, syndicate
services, and other non-governmental publications.
Other sources:
Web traffic: Due to fast and cheap internet facilities many formats of data
which is uploaded by users on different platforms can be predicted and
collected with their permission for data analysis. The search engines also
provide their data through keywords and queries searched mostly.
5. Analyze the responses
1.
Surveys are used as a method of gathering data in many different fields. They are
a good choice when you want to find out about the characteristics, preferences,
opinions, or beliefs of a group of people.
Surveys can be used in both cross-sectional studies, where you collect data just
once, and in longitudinal studies, where you survey the same sample several
times over an extended period.
Before you start conducting survey research, you should already have a
clear research question that defines what you want to find out. Based on this
question, you need to determine exactly who you will target to participate in the
survey.
Populations
The target population is the specific group of people that you want to find out
about. This group can be very broad or relatively narrow. For example:
US college students
Your survey should aim to produce results that can be generalized to the whole
population. That means you need to carefully define exactly who you want to
draw conclusions about.
Samples
It’s rarely possible to survey the entire population of your research – it would be
very difficult to get a response from every person in Brazil or every college
student in the US. Instead, you will usually survey a sample from the population.
The sample size depends on how big the population is. You can use an online
sample calculator to work out how many responses you need.
Which type you choose depends on the sample size and location, as well as the
focus of the research.
Questionnaires
Online
In-person
You have some control over who is included in the sample (e.g. residents of
a specific region).
The response rate is often low, and at risk for biases like self-selection bias.
Interviews
Oral interviews are a useful method for smaller sample sizes. They allow you to
gather more in-depth information on people’s opinions and preferences. You can
conduct interviews by phone or in person.
You have personal contact with respondents, so you know exactly who will
be included in the sample in advance.
You can clarify questions and ask for follow-up information when
necessary.
The lack of anonymity may cause respondents to answer less honestly, and
there is more risk of researcher bias.
Next, you need to decide which questions you will ask and how you will ask them.
It’s important to consider:
Closed-ended questions are best for quantitative research. They provide you with
numerical data that can be statistically analyzed to find patterns, trends,
and correlations.
Open-ended questions are best for qualitative research. This type of question has
no predetermined answers to choose from. Instead, the respondent answers in
their own words.
Open questions are most common in interviews, but you can also use them in
questionnaires. They are often useful as follow-up questions to ask for more
detailed explanations of responses to the closed questions.
To ensure the validity and reliability of your results, you need to carefully consider
each question in the survey. All questions should be narrowly focused with
enough context for the respondent to answer accurately. Avoid questions that are
not directly relevant to the survey’s purpose.
When constructing closed-ended questions, ensure that the options cover all
possibilities. If you include a list of options that isn’t exhaustive, you can add an
“other” field.
Survey questions are at risk for biases like social desirability bias, the Hawthorne
effect, or demand characteristics. It’s critical to use language that respondents
will easily understand, and avoid words with vague or ambiguous meanings. Make
sure your questions are phrased neutrally, with no indication that you’d prefer a
particular answer or emotion.
The questions should be arranged in a logical order. Start with easy, non-sensitive,
closed-ended questions that will encourage the respondent to continue.
If the survey covers several different topics or themes, group together related
questions. You can divide a questionnaire into sections to help respondents
understand what is being asked in each part.
Before you start, create a clear plan for where, when, how, and with whom you
will conduct the survey. Determine in advance how many responses you require
and how you will gain access to the sample.
When you are satisfied that you have created a strong research design suitable
for answering your research questions, you can conduct the survey through your
method of choice – by mail, online, or in person.
There are many methods of analyzing the results of your survey. First you have to
process the data, usually with the help of a computer program to sort all the
responses. You should also clean the data by removing incomplete or incorrectly
completed responses.
If you asked open-ended questions, you will have to code the responses by
assigning labels to each response and organizing them into categories or themes.
You can also use more qualitative methods, such as thematic analysis, which is
especially suitable for analyzing interviews.
Statistical analysis is usually conducted using programs like SPSS or Stata. The
same set of survey data can be subject to many analyses.
Finally, when you have collected and analyzed all the necessary data, you will
write it up as part of your thesis, dissertation, or research paper.
Then introduce the analysis by describing how you prepared the data and the
statistical methods you used to analyze it. In the results section, you summarize
the key results from your analysis.
Survey research methods can be derived based on two critical factors: Survey
research tool and time involved to conduct research.
There are three main survey research methods, divided based on the medium of
conducting survey research:
Online/ Email: Online survey research is one of the most popular survey
research methods today. The cost involved in online survey research is
extremely minimal, and the responses gathered are highly accurate.
Further, based on the time taken, survey research can be classified into two
methods:
Send out surveys via decided mediums: Distribute the surveys to the target
audience and patiently wait for the feedback and comments- this is the
most crucial step of the survey research. The survey needs to be scheduled,
keeping in mind the nature of the target audience and its regions. Surveys
can be conducted via email, embedded in a website, shared via social
media, etc. to gain maximum responses.
The most crucial and integral reason for conducting market research using
surveys is that you can collect answers regarding specific, essential questions. You
can ask these questions in multiple formats as per the target audience and the
intent of the survey. Before designing a study, every organization must figure out
the objective of carrying this out so that the study can be structured, planned,
and executed to perfection.
What type of decisions you plan to take based on the points mentioned
above.
There are three critical reasons why an organization must conduct survey
research.
Present a medium for discussion: A survey can be the perfect platform for
respondents to provide criticism or applause for an organization. Important
topics like product quality or quality of customer service etc. can be put on
the table for discussion. A way you can do it is by including open-ended
questions where the respondents can write their thoughts. This will make it
easy for you to correlate your survey to what you intend to do with your
product or service.
Nominal Scale: A nominal scale associates numbers with variables for mere
naming or labeling, and the numbers usually have no other relevance. It is
the most basic of the four levels of measurement.
Ordinal Scale: The ordinal scale has an innate order within the variables
along with labels. It establishes the rank between the variables of a scale
but not the difference value between the variables.
Interval Scale: The interval scale is a step ahead in comparison to the other
two scales. Along with establishing a rank and name of variables, the scale
also makes known the difference between the two variables. The only
drawback is that there is no fixed start point of the scale, i.e., the actual
zero value is absent.
Ratio Scale: The ratio scale is the most advanced measurement scale, which
has variables that are labeled in order and have a calculated difference
between variables. In addition to what interval scale orders, this scale has a
fixed starting point, i.e., the actual zero value is present.
In case survey research is used for all the right purposes and is implemented
properly, marketers can benefit by gaining useful, trustworthy data that they can
use to better the ROI of the organization.