MARKET RESEARCH

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MARKET RESEARCH

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Research Steps

• Define the research problem.
• Develop a research design.
• Determine information needs.
• Collect data.
• Analyze data and interpret results.
• Report and present findings.

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Challenges in Global Research

• Complexity of research design.
• Problems with secondary data.
• Time and cost to collect primary data.
• Coordination of multi-country research.
• Comparability of multi-country research.

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Secondary Data

• Availability of Data
• Currency of Data
• Accuracy of Data/Reliability over Time
• Lumping of Data
• Equivalence of Data

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Equivalence

• Level of Disability is 0.2 in Peru and 20.9
  in Australia because Australia considers minor
  visual and hearing impaired people to be disabled.

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Primary Data

• Conceptual/Functional Equivalence
• Measure Equivalence
• Sampling Equivalence
• Interviewer Equivalence

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Conceptual/Functional Equivalence

• Is bicycle a transportation mode or a
  recreational product?
• Does outlet refer to a retail establishment or
  an electric port?
• Is ownership of a refrigerator a symbol of status
  or just a necessity?
• What is privacy or innovativeness or
  customer service?

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Measure Equivalence

• Are measures developed in one country valid in
  other countries?
• Is something lost in translation? (Back
  Translation)
• Are response scales inferred similarly?
• Even simple things as marital status, income,
  education and occupation may not be easily
  comparable.

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Sampling Equivalence

• Are samples similar?
• Are sampling frames similar?
• Do subjects respond similarly?
• Socially desirable answers
• Socially sensitive topics
• Pleasing the interviewer
• Apathy toward interviewer/process

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Interviewer Equivalence

• Interviewer training
• Interviewer background
• Interviewer error

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Method of Contact

• Telephone
• Mail
• Personal

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Market Size Assessment

• Analogy Based on Demand for a Surrogate Product
  in a Similar Country
• VCR Demand (Country A)
• VCR Demand (B)
• TV Demand (A) ------------------------
• TV Demand (B)
• Important
• Find a comparable country and
• a good surrogate measure

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Market Size Assessment

• Analogy Based on Demand for a Surrogate Product
  in the Same Country over Time
• VCR Demand (Time T)
• VCR Demand (T-N)
• TV Demand (T) ------------------------
• TV Demand (T-N)

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Results could be misleading if

• Consumption patterns are not comparable.
• Other factors (trade barriers) cause sales to
  differ from potential sales.
• Technological advances allow adoption of a
  product at an earlier stage of development.

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Market Size Assessment

• Analogy based on Level of Economic Development
• Consumption Rate in Country A
• Consumption (GDP/Capita in Country A)
• Rate --------------------------------- in
  Country B (GDP/Capita in Country B)

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Market Size Assessment

• Chain Ratio Method
• China India
• Total Population (m) 1207.4 921.5
• Urban Population Rate 30.3 26.8
• Urban Population (m) 365.8 247.0
• ...

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Caution

• Whenever feasible, use several methods.
• Dont be mislead by numbers--know the rationale
  behind the numbers.
• Dont be mislead by fancy methods.
• Question your assumptions.
• Find the range of possibilities.