Global Information Systems and Market Research

Chapter 6
Global Information Systems
and Market Research
Thiago Barbosa
Jorge Padilla
Global Market Research
• Market Research: Project specific, systematic gathering
of data in the search scanning mode
• Global Market research: carried out on a global scale.
The challenge is to recognize and respond to the important
national differences that influence the way information can
be obtained. It includes:
- Cultural, linguistic, economic, political, religious,
historical and market differences
• Same interest (Global and domestic)
• However, some factors are required for Global Market
research for succeed
Environmental factors that differ
from International to Domestic
Researches must be prepared for new parameters of
“Cultural Megashock” may occur
Burgeoning network of interacting factors
Competitive pressure
Subject Agenda Categories For a Global Marketing
Information System
Market Potential
Demand estimates, consumer behavior,
review of products, channels,
communication media
Competitor Information
Corporate, business, and functional
strategies. Resources and intentions.
Foreign Exchange
Balance of payments, interest rates,
attractiveness of country currency,
expectations of analysts
Prescriptive Information
Laws, regulations, rulings concerning
taxes, earnings, dividends in both host
and home countries
Resource Information
Availability of human, financial,
physical, and information resources
General Conditions
Overall review of sociocultural,
political, technological enviroments
Global Market research
Expenditures on global market research totaled $16.6
billion in 2002
Two ways to conduct market research:
1. Design and implement a study with in-house staff
2. Use an outside firm specializing in Marketing
For global market research, both are advised
Headquarter’s Control of
Marketing Research
• Where to locate control of the organization’s research
• Multinational: Polycentric. Research delegated to the
operating subsidiary.
• Global: Geocentric. Research delegated to subsidiary, but
retains overall responsibility and control of it.
• Key difference between single country market research and
global market research
• Means that results can be used to make valid comparisons
between countries covered in the research
• Emic analysis: study a culture from within, using its own
system of meanings and values
• Etic analysis: a more detailed perspective that is often used
in comparative or multicountry studies
World wide research program
Research Objective
Country Cluster A
Country Cluster B
Identify Market
Country Cluster C
Appraise Competitive
Evaluate Product
Study Market
Response to Price
Appraise Distribution
Step 1: Identify Information Requirement
• A problem or opportunity is presented
– A well defined problem is a problem half
• Product introduction to foreign country
• Two key questions:
– What information do I need?
– Why do I need this information?
Step 2: Problem Definition
• Self-Reference Criterion (SRC)
– This happens when a person’s values and
beliefs intrude on the assessment of a foreign
culture or country
• Disneyland Paris
– Awareness of SRC
• Increase willingness to conduct research
• Minimize home-country bias in research efforts
• Enhance receptiveness to accepting research
Step 3: Choose Unit of Analysis
• Identify which parts of the world the
company should do research and learn how
to do business
– A city such as Shanghai
– A country such as India
– A region such as Europe
Step 4: Examine Data Availability
“The key to creating a cost-effective way of surveying foreign markets is
to climb on the shoulders of those who have gone before”
• Secondary Sources
- Useful to look for growth patterns, consumption
patterns, production patterns, which are helpful in
assessing market opportunities
• Census Data, Trade facts, World Factbook, etc
• Publications such as Financial Times, The Economist, etc
- Syndicated Studies
• Studies published by private research companies.
Step 5: Assess Value of Research
• Collecting information costs money and time
• Determine the value of research information for
the company
– Perform a cost-benefit analysis
• If benefits greater than costs the research should be performed
• Global Researcher must know how to keep
expenditures in line with market’s profit potential
Step 6: Research Design
• Primary Data is gathered through original research
related to the particular problem identified
– Use multiple indicators and techniques rather than a
single measure
– Individual companies should develop customized
specific indicators for industry, product market, or
business model
– Conduct comparative assessment in multiple markets
– Observation should be more important than other
Step 6: Research Design
• Issues with Research Methodologies
– Survey:
Telephone directories not available
Unwillingness to answer certain questions
Back translation, Parallel Translation
SRC bias
– Personal Interview:
• Telephones not available
• Unwillingness to answer certain questions
– Observation
• Reactivity
• SRC bias
Step 6: Research Design
• Existing Markets
– Customer needs are already being served by other
– Company should assess overall competitiveness in
terms of product appeal, price, distribution, and
• Potential Markets
– Latent Markets: these are undiscovered segments of one
market. Demand would materialize if an appropriate
product were made available
– Incipient Markets: these are markets that will emerge if
a particular economic, demographic, political, or
sociocultural trend continues
Step 6: Research Design
• Scale Development
– Market research requires assigning some type of
measure, ranking, or interval response.
• Scalar equivalence: scale measurement has to be consistent
with the country doing research in
• Two respondents in different countries with the same value for
a given variable must receive equivalent scores on the same
survey item
Step 7: Analyzing Data
• Data must is analyzed to become useful
information for decision makers
– Data is prepared, stored, tabulated, etc
• Interdependence Techniques
– They analyze interaction between variables
– Factor Analysis: Subjects are asked to rate product
– Cluster Analysis: Analyze within-group similarities and
between-group differences
– Multidimensional Scaling (MDS): It’s used for creation
of conceptual maps by comparing pair of products
Step 7: Analyzing Data
• Dependence Techniques
– Assess the interdependence of two or more dependent
variables with one or more independent variable
– Cojoint Analysis: It’s used to gain insights into the
features or utilities most attractive to consumers
• Market Estimation by Analogy
– It could be possible to estimate market size or potential
demand of one country by analogy with other countries
• Polaroid Market
Step 8: Presenting Findings
• The report should be clearly stated and
provide basis for managerial action
• The conclusions must relate clearly to the
problem or opportunity identified at the
beginning of research
Any Questions?