Review Questions and Discussion Questions

Enhance your understanding further with the following review and discussion questions.

Review questions

1. Define market research.

Answer: Market research is the systematic gathering, storing, and analyzing of marketplace information for use in managerial decision making. Market research is designed to understand consumers’ needs and want, so companies can introduce or modify products to meet these needs and wants.

2. What are the steps in the market research process?

Answer: 

a. Step 1 Define the problem or situation

b. Step 2 Cost/benefit analysis

c. Step 3 Develop a research design

d. Step 4 Develop a sample

e. Step 5 Collect data

f. Step 6 Analyze and interpret data

g. Step 7 Formulate conclusions and write report

3. What types of information are revealed in a primary data collection program?

Answer: Primary data are gathered by the researcher or research team. They are collected in the form chosen by the researcher and can be collected in practically any region of the world. Primary data is collected to answer the specific research problem or situation. This can be anything (to a certain degree) that the researcher wishes to find out. Such as attitudes, purchase intentions, and behaviors.

4. What are some of the most commonly used sources of secondary data for international market research?

Answer: 

Secondary data are collected by an outside agency and are made available either free of charge or for a fee. This information can be relatively inexpensive to obtain, and many sources of are available. This is often generic information such as, income levels, population data, ethnicity data, etc.

One powerful source of secondary data is the U.S. Department of Commerce website (www.stat-usa.gov). Other important sources include The Department of Commerce International Trade Association (www.trade.gov), and Euromonitor (www.euromonitor.com). Also, http://www.census.gov/foreign-trade/ and www.cia.gov/library/publications/the-world-factbook/

World Trade Organization: https://www.wto.org/english/res_e/statis_e/statis_e.htm

European Union Trade Statistics: http://ec.europa.eu/trade/policy/countries-and-regions/statistics/index_en.htm

5. What is the difference between a macro-level and a micro-level analysis?

Answer: Micro-level analysis seeks to understand individual consumers whereas macro-level analysis examines things at the country level.

6. What is the difference between qualitative and quantitative international market research?

Answer: Qualitative research involves using a small number of people, having in depth responses, and not relying on numbers to understand things such as culture and behaviors. Quantitative methods involve questionnaires and experiments, using numbers to understand behaviors and analyzing and interpreting the results.

7. What are some of the popular quantitative research designs commonly used in the international market research?

Answer: 

a. Survey

b. Experiments

c. Test markets

8. What are some of the popular qualitative research designs commonly used in international market research?

Answer: 

a. Ethnographic research design

b. Observation

c. Focus groups

d. Personal interviews

e. Delphi technique

9. Describe a focus group along with the challenges that come with performing focus groups on an international scale.

Answer: 

Focus groups are semi-structured group discussions that generally take place in groups of size eight to twelve. A focus group moderator facilitates the discussion and does his or her best to ensure that each member of the focus group has an opportunity to contribute and state opinions. Focus groups can represent an effective method of obtaining information directly from consumers.

Focus group moderators in international settings need to consider language differences across cultures, non-verbal cues, and cultural customs. They need to understand what is appropriate in the culture in which they are conducting the focus group. Eye contact, touching other persons, and posture may all affect a focus group. Staring someone in the eyes may be viewed as aggressive in one culture but essential in another. Raising ones voice may be expected in an African or Latin American focus group but would be considered rude and boorish in Asia. Finally, when conducting focus groups in other countries, the marketing team includes native speakers to help analyze what has been said in order to ensure the correct meanings are extracted from the focus group data.

10. What are the main differences between back translation and parallel translation?

Answer: Back translations are done by single researchers in separate steps whereas parallel translations are done with multiple researchers in sequential steps.

11. What is the difference between a probability sample and a nonprobability sample?

Answer: 

A probability sample can generate a random sample which allows a researcher to make statistical inferences, this is not possible with a non-probability sample. In a probability sample every member of the sample population has an equal chance of being selected.

A nonprobability sample is one in which the probability of an element of the population being included in a sample is unknown, which means a random sample cannot be used. The goal remains to make the sample as representative of the larger population as possible. Various tactics may be used. Snowball techniques are nonprobability techniques in which one respondent refers the researcher to the next respondent, and so on. Generating a convenience sample is a nonprobability technique in which researchers sample the respondents that are the easiest to reach without regard for how people are selected

12. What is the difference between descriptive research and comparative research?

Answer: Descriptive research is looking at a single country and comparative research is comparing different countries.

13. What is the difference between contextual research and theoretical research?

Answer: Contextual research examines how consumers behave in certain contexts whereas theoretical research examines how theories apply to different cultures. 

14. Describe the four main types of international market research discussed in this chapter.

Answer: 

Product research – answers the question of what product design will be most appropriate. This includes consumers tastes, trends and government/legal restrictions to design the best product.

Pricing research – answers the question of how sensitive are consumers to price and what does price convey about the product to reach the best price.

Promotion research – answers the questions of what is the best advertising strategy and how consumers will react to the advertisements.

Distribution research – answers the question of what is the best way to distribute the product.

15. Explain the scientific method.

Answer: The scientific method is the use of observations, empirical evidence, and knowledge in order to make objective statements about certain phenomena.

16. How does the self-reference criterion relate to international market research?

Answer: The self-reference criterion can bias international market research. The self-reference criterion occurs when someone applies his or her own cultural values and background to the assessment of the behaviors of others. Self-reference can lead to stereotyping members of other cultures or to unfounded beliefs about them, such as when someone believes all persons from Latin America are hot-tempered and highly romantic.

17. Define both validity and reliability and explain how the terms apply to surveys and experiments.

Answer: 

Validity is the degree to which a concept is accurately measured. So, is it correct.

Reliability is the internal consistency of a measure and its ability to be replicated over time. And is replicable.

In survey research, reliability refers to the degree to which the items used to measure a concept are internally consistent with each other and the extent to which the findings are repeatable over time. To demonstrate reliability, a researcher will use more than one measure when assessing marketing concepts. In survey research, validity refers to the extent to which responses to a measure reflect the actual differences in the concept found across respondents, or the overall level of accuracy of the measure itself. It is possible that a measure could be internally consistent, or repeatable, but not valid. A scale in a bathroom, for example, could consistently reveal someone’s weight to be 210 pounds. If so, it could be said that the scale is reliable. If, however the person's true weight is 190 pounds, the scale did not record a valid finding.

There are two important types of validity for experiments. Internal validity results when cause-and-effect relationships have been correctly identified by the research. External validity means that the statement of cause and effect would apply to other situations or settings. The experiments also need to produce reliable results.

18. What are the major political and legal restraints on performing international market research?

Answer: 

a. The laws of each country

b. Whether individuals are allowed to speak to interviewers

c. What the governments’ deem appropriate

d. Privacy laws

e. It will depend on each country

 

Discussion questions

1. Describe the basic market research process. What types of issues should a researcher consider during each phase with regard to international market research? Which phase is most important?

Answer: 

  • Step 1 Define the problem or situation – A vital part of the market research process is defining the problem or situation that the organization faces. Correctly defining the market research problem or situation will be critical to the success of any market research project. An inadequately or hastily-defined problem or situation can lead to flawed data and conclusions. In defining a marketing problem, a problem can be assessed by asking if the problem as stated represents the actual issue or merely a symptom of the problem.
  • Step 2 Cost/benefit analysis – In general, international decisions require a degree of research. Some research projects may be performed at a relatively low cost. Other international research techniques involve significant monetary investments. Making the decision to proceed with research requires the marketing team to compare the importance of obtaining the required information and the time frame within which the information will be collected against the value of the benefits of acquiring the information and the overall difficulty in obtaining the data.
  • Step 3 Develop a research design – In this step the researcher need to decide whether to use primary or secondary data. Then whether they want micro or macro level data and how they want to collect this data – qualitatively or quantitatively. Finally, which collection technique they want to use.
  • Step 4 Develop a sample – Figure out the population you want to understand and develop a sample that will inform you of this population.
  • Step 5 Collect data – This involves actually reaching your sample and collecting the data – this can often be very complicated.
  • Step 6 Analyze and interpret data – In this step you analyze your data and try to understand what it is telling you.
  • Step 7 Formulate conclusions and write report – The final step in the international market research process is formulating conclusions and writing the research report. Decision-makers reach conclusions regarding whether the firm should expand marketing efforts internationally, and if so, choose the best method for doing so. The research report should be written in a direct and informative way that assists the international marketing in making decisions. In general, the conclusions presented in international market research reports should be both complete and concise.
  • The first stage problem definition is the most important. If you have the wrong problem identified, you can do every other step perfectly, but your results will be meaningless.

2. Discuss the advantages and disadvantages of secondary and primary research. Which type of research is probably best for micro-level analysis? For a macro-level analysis?

Answer: 

  • Secondary research contains data that has already been collected and is often free or very affordable. However, this information was not collected with your specific problem in mind; thus, it may not be able to provide answers to your identified problems.
  • Primary data is designed to answer your specific research question. It is very helpful and informative. However, it is often extremely expensive.
  • Primary data is best for micro-level analysis.
  • Secondary data is best for macro-level analysis. 

3. Discuss the various types of quantitative research designs. What types of research would be appropriate in developed countries? In lesser-developed countries?

Answer: 

  • Surveys are popular research tools used to answer questions in a quantitative manner using large populations. They are often able to generate generalizable results. This would be appropriate in developed countries. This may be problematic in lesser developed countries because of high illiteracy rates and it may be hard to distribute the surveys.
  • Experiments are research techniques that allow researchers to discover cause-and-effect relationships by manipulating certain variables and controlling others. They can be simulated purchase situations, portfolio analyses, or other experimental procedures. They are appropriate in both developed and lesser developed countries even though they are often hard to administer and control.
  • Test markets are a type of experiment that is constructed within realistic marketplace conditions. A researcher hopes to see what will happen in a small area and generalize to the entire country. These are appropriate for developed countries and many areas are more likely to be similar. These are appropriate for lesser developed countries if small areas are likely to be similar to the rest of the country.

4. How is a desired sample size affected by response characteristics of a particular population?

Answer: Some cultures vary on the range of answers they are willing to answer on surveys. This variance can reduce or increase the needed sample size. This will also narrow or widen the confidence interval produced.

5. If you had to select between experiments, surveys, personal interviews, or Internet research, which type(s) would be best for research performed in lesser-developed countries?

Answer: Personal interviews could be the best for lesser developed countries. Internet research could be the most difficult due to the lack of internet access in developing countries. Surveys may be difficult to distribution and hard to respond to due to high rates of illiteracy in developing countries. Experiments are another option that could work well for developing countries, even though they are often hard to conduct and are expensive.