International marketing research

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Business Horizons (2007) 50, 113–122

International marketing research: A global projectmanagement perspective

Robert B. Young a,⁎, Rajshekhar G. Javalgi b

a Business Division, Lorain County Community College, 1005 North Abbe Road, Elyria, OH 44035, USAb Nance College of Business Administration, Cleveland State University, 2121 Euclid Avenue, Cleveland,OH 44115-2214, USA

⁎ Corresponding author.E-mail address: [email protected]

0007-6813/$ - see front matter © 200doi:10.1016/j.bushor.2006.08.003

Abstract As organizations continue to pursue more global strategies, the need tobe able to understand consumers in far away places is increasing. Marketing researchis the primary mechanism through which companies understand their current, as wellas potential, customers. As companies contemplate the global marketplace, theymust consider how domestic market research differs when conducted in interna-tional markets. In an effort to help internal client side marketing research managersdesign and implement improved international research studies, we briefly discussthe context for international market research and provide a framework forconducting international market research projects. Additionally, we present severalfactors that should be considered by marketers who engage in global marketresearch studies. These factors represent the variety of challenges that must beaddressed in order to conduct research across national borders. Particular attentionis paid to the nuances related to primary data collection and questionnaireconstruction.© 2006 Kelley School of Business, Indiana University. All rights reserved.

KEYWORDSInternational marketing;Global marketingstrategies;Marketing research;Competitive advantage

essence, the global economy is forcing organizations
1. Marketing research goes global
Changes in the global environment are presentingorganizations with both new opportunities andchallenges. Rapid advances in technology, increas-ing international trade and investment, growingwealth and affluence across the globe, and aconvergence of consumer tastes and preferencesare compelling businesses to expand their globaliza-tion strategies and tactics (Javalgi &White, 2002). In

du (R.B. Young).

6 Kelley School of Business, In

to adapt to a new international order (Czinkota &Ronkainen, 2002; Rugman, 2001; Yaprak, 2002).

The process of international marketing researchshares many commonalities with its domesticcounterpart, namely the familiar steps of problemdefinition, methodology design, fieldwork, andfinal report and recommendations. The majordifferences between the two involve disparitiesthat spring from political, legal, economic, social,and cultural differences across countries, and theproblem of comparability of research results (Kumar,2000).

diana University. All rights reserved.

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http://dx.doi.org/10.1016/j.bushor.2006.08.003

114 R.B. Young, R.G. Javalgi

As organizations become more global in theiroperations, how will these companies continue tobe able to carry on a meaningful dialog with theircustomers as they become ever more dispersedaround the globe? Which countries represent thebest opportunities for the organization's productsand services? How will these firms design consumer-based strategies that are customized for distantinternational market segments? Market research isthe functional link between marketing managementand an organization's ultimate customer-base.Baker and Mouncey (2003) argue persuasively thatcontinual change and uncertainty in the globalmarket is causing seismic shifts in the role ofmarketing research. Clearly, as globalizationincreases, firms will need to know how to betterutilize market research approaches that enablethem to stay close to these worldwide and diversecustomer segments.

After briefly discussing the context for interna-tional market research, we provide a frameworkfor conducting international market researchprojects. Our framework is designed to helporganizations with in-house market researchdepartments that design and execute primarydata collection projects in support of strategicmarketing corporate initiatives. These corporatemarketing research initiatives include projectsrequiring the development of target market andmarketing mix strategies to support their productsand services. Both corporate and tactical market-ing decisions are further complicated by thenumerous challenges involved with the cross-cultural context of global business. Our frameworkis especially well suited to aid on-staff (i.e., in-house) research project managers working forproduct or service marketers who are looking forcomprehensive guidelines to help them designbetter global research projects in support oftheir internal executive management clients.Although we realize that our proposed frameworkis also applicable to external market researchvendors, our objective is to provide internalresearch department managers with a useful toolto design effective international research pro-jects. By highlighting the various challengesinvolved in conducting international marketresearch, we hope to help in-house marketingresearch managers design and implement moreimpactful and effective international researchstudies. Finally, we also discuss several cross-cultural factors that should be considered bymarketers who engage in global market researchstudies, as these represent challenges that mustbe addressed in order to conduct effectiveresearch across national borders.

Within the broader context of the internationalmarket research process, the focus of our paperaddresses the nuances related to questionnaireconstruction and primary data collection issues.We believe these areas are especially critical (i.e.,problematic) when designing research projectsthat cut across national borders. Furthermore,we think the vast majority of clients who utilizein-house market research departments are moreoften exposed to challenges related to question-naire construction and data collection. Conse-quently, it is our position that this discussion willprovide increased benefits for in-house marketresearch project managers. We do not discussother research methodologies including qualitativetechniques, observational methods, and experi-mentation, nor do we address in detail thebroader issues of scale development, measure-ment equivalence, sampling, and multivariatetechniques. It is our hope that this narrow focuson the specific issues related to questionnaireconstruction and international data collectionchallenges will provide the reader with a moreuseful set of tools and guidelines for conductingeffective global research projects.

2. The importance of internationalmarketing research

Market research is the vital link between theorganization and its customers. The objective ofsound market research is to interpret consumerbehavior and translate the perspective of keycustomers into actionable marketing strategies.Without this open dialog with customers, compa-nies are unable to keep in touch with vitalconsumer behavior trends and the many influencesthat affect the customers of an organization. Intoday's consumer environment of over-choice andover-communication, growth can only be realizedby organizations that are very skilled at craftingwell-targeted strategies directed at specificmicro-niches of the larger macro market. Compa-nies that go to market without first uncoveringspecific segment needs and perceptions risk facingthe monumental cost of marketing failure. Withnew consumer product launches typically costing$25 million or more, the risk of not incorporatingconsumer behavior into marketing strategy isconsiderable.

Since the mid-1990s, the international researchbusiness has grown tremendously. In 1995, the top25 global market research organizations had aggre-gate revenues of only $5.7 billion, and 45% of theirrevenues came from outside the companies' homecountries. By 2004, revenues had grown 133%, to

115International marketing research: A global project management perspective

$13.3 billion, while out-of-home-country sharegrew to 67% (Marketing News, 2005). As illustratedby these figures, it is clear that spending oninternational market research projects is on therise in the U.S. and other countries.

It has been estimated that it costs six times asmuch to attract a new customer as it does to keepa current customer (Reichheld, 1996). This factdemands that organizations increasingly must stayin touch with their best customers. The mostactionable method employed by market-drivenorganizations to keep pulse with their valuedcustomers is the effective use of market research.Only by having an open dialog with their customerscan companies learn about the subtle shifts inbuying preferences that, without proper manage-ment, ultimately lead to company and/or branddefection.

As more organizations pursue global businessstrategies, they will require and demand interna-tional sources of market information. In order tocompete effectively in the 21st century, thesebusinesses will need specialized, targeted informa-tion about buyers in dispersed international mar-kets. Connell (2002) argues that, in the business-to-business market, there is ample justification forconducting international market research in supportof the design, execution, and interpretation of awide variety of global marketing strategies. Asillustrated by the examples offered in this article,research tactics routinely used in the United Statesare much more problematic when deployed indeveloping foreign markets.

Companies that pursue multi-domestic and glo-bal marketing strategies face a wide variety ofstrategic questions relating to foreign market entry.According to Rydholm (1996), prior to pursuinginternational marketing strategies, managersshould ask:

• Have international sales been increasing as apercentage of overall revenue?

• Are international markets growing faster thandomestic markets?

• Does the organization have the same competi-tive position outside the U.S.?

• Are the fundamental needs of foreign customersknown?

• What is the interaction of the four P's in foreignmarkets?

• Can the Internet help with research design?

The answers to these and other questions canhelp organizations prioritize their need for inter-national marketing research. While it makes sensefor increasing numbers of companies to go global,making the correct decisions regarding target

markets, brands, and other strategic marketingmix variables is both challenging and problematic.Furthermore, the Internet may not necessarily bethe optimum medium for conducting internationalmarket research projects, despite its rapid growthand acceptance by certain consumers.

3. Think globally, learn locally

As stated by Craig and Douglas (2005), effective andtimely market research is an essential tool fordeveloping strategy in a rapidly changing globalmarketplace. The authors contend that interna-tional market research is increasingly needed toaddress a wide variety of global marketing chal-lenges including correctly positioning new products,avoiding product formulation errors, accuratelyunderstanding cultural challenges, identifyingappropriate promotion messages, being cognizantof geographical differences, and examining lan-guage and translation problems.

In order to make effective marketing strategydecisions, marketers who are increasingly drawn tothe global marketplace because of the opportunityit represents need a reliable and valid source ofinformation. Craig and Douglas (2005) discuss threemajor information needs relative to internationalmarket research. These represent:

(1) Information needed for international marketentry. This includes information concerningmacro issues (e.g., the political, legal, andregulatory environment of each foreign coun-try) and micro issues (e.g., product or servicesales potential, market growth rate, andcompetitive intensity).

(2) Information needed for local market planning.These issues primarily surround strategies andtactics related to developing the appropriatemarketing mix.

(3) Information related to global rationalization.This involves evaluating and integrating datapreviously collected in order to monitorchanges in the international environment.

To accomplish these critical information objec-tives, marketers require an international marketresearch framework.

4. The international market researchframework

Through the use of marketing research practices,international product and service providers candevelop the most effective international marketingstrategies that will lead to sustainable competitiveadvantage. Fig. 1 illustrates the international

Figure 1 The international market research framework. Source: Adapted and modified from Douglas and Craig (2000) andKumar (2000).


market research process within the context of thefour familiar stages of the domestic researchprocess: setting objectives, designing methodology,collecting data, and reporting findings.

The four traditional stages of the market researchprocess are shown providing the larger context forcross-cultural market research. Although thesestages are not unique to the international setting,they provide the backdrop which highlights thepotential challenges posed by international researchdesigns. For example, information requirements atthe corporate, regional, and local levels will likelyvary widely between different countries. Tacticaldecisions that may help the product or service in onecountry may not fit within the broader strategic goalsof the organization. Similarly, examining previousdata and collecting secondary data may be muchmore difficult in some countries, depending on thestate of the market research infrastructure present.Additionally, within themethodology step, the unit ofanalysis has four different levels ranging from local toglobal. Clearly, the unit of analysis varies betweentraditional studies and projects conducted acrossinternational boundaries. It is much easier to design aquestionnaire focused on a single local market, asopposed to a study that represents a global unit ofanalysis. Further, conducting fieldwork across coun-try lines poses many challenges. Analyzing data,incorporating new knowledge, and modifying busi-ness strategies aremore difficult and time consumingwhen the unit of analysis includes a larger worldwidecontext. Each step of the traditional research process

when applied to the international setting holds apotential for significant challenges, whichwe hope tohighlight.

4.1. Setting research objectives

Like its domestic counterpart, the internationalmarket research process begins with a clear under-standing of the specific research objectives. Deter-mining what information is required, and at whatlevel, is the necessary first step. As in domesticresearch, information may be required for decisionmaking at different levels in the organization, fromthe corporate level relating to strategic issues,down to local operating units where concerns areoften more tactical (Craig & Douglas, 2005).Projects at the management level cover broadissues such as brand awareness and tracking, whilethose at the decision making level may involve moretactical issues like local pricing, packaging, andother marketing mix decisions. If the researchproblem is not clearly articulated, the researchcollected will not adequately answer the specificproblem. Unfocused research studies rarely, andonly then by accident, relate to the managementproblem under consideration. Another flaw ofstudies conducted without critical thinking con-cerning objectives is that the resulting researchdesign may well elicit unusable information. Forexample, a project with the objective of obtainingcustomer impressions on a corporate merger willnot elicit information on why customers aredefecting to competitive brands.


International marketers should also consider anyprevious data that the organization may have. Newdata should always be considered within the contextof existing information. Moreover, secondary data isoften used as a supplement to primary data, so itsusefulness should be considered early during theresearch objectives stage. The international environ-ment, however, makes these activities more difficultto conduct. In given countries, previously collecteddata may not exist; further, secondary sources maynot be as prevalent in developing parts of theworld ascompared to more Westernized markets.

4.2. Designing research methodology

The second major step in the international marketresearch process involves designing the methodol-ogy. Whether domestic or international in focus, thisis the critical step of any research project. In orderto construct the most effective methodology,researchers must have a broad perspective of themany methodological options available. Variationsrange from primary to secondary research, qualita-tive and quantitative, experiments, test markets,observations, and surveys, just to name a few. In theinternational context, the specific unit of analysis iscritical and relates to the research design stage. Forexample, corporate decisions would require more ofa global or regional approach; in contrast, tacticalmarketing mix decisions would require more of alocal unit of analysis.

Designing the primary methodology is specificallyrelated to how the data will be collected fromrespondents and analyzed. In this paper, we employa narrow definition of methodology as it relates tothe specific data collection method that will beutilized (e.g., in-person, telephone, mail, Internetsurvey). The sampling plan and measurementequivalence concepts are also much more compli-cated in an international market research environ-ment. This critical stage in the process requiresadequate time and attention to address the manydetails that are involvedwith international projects.Instrument translation, primary research method(e.g., in-person, telephone, mail, or Internet sur-vey), and data analysis technique issues pose manychallenges for international market researchers dueto their varying levels of presence, acceptance, andutilization across worldwide markets.

4.3. Collecting data and reporting findings

Once the appropriate data collection methodologyis selected, fieldwork must be conducted. Essen-tially, this executes the research design developedduring stage 2. The next step involves analyzing thefindings and providing a management report, along

with a summary of the strategic recommendations.The new knowledge should be incorporated into theorganization's database and business strategiesshould be appropriately modified. This processrepeats itself as needed through the informationfeedback loop to address future informationrequirements.

The method described is a very straightforwardand common procedure in the United States,Western Europe, and other developed countries.The market research industry, which was conceivedand matured in the U.S., today generates$16.1 billion annually, with $6 billion coming fromthe United States, $7.6 billion from the EuropeanUnion, and $2.5 billion from the Asia Pacific region(Marketing News, 2005). With total market researchexpenditures of $20.15 billion globally, it is easy tosee that the three major developed regions accountfor the vast majority of international marketresearch expenditures (Marketing News, 2005).

The presence of an adequate market researchinfrastructure offers a distinct advantage to devel-oped countries and rapidly growing markets.Characteristics comprising market research infra-structure consist of a variety of tools, data sources,methodology options, and the like, all of whichhelp in executing market research projects. Theavailability of individual geographic market dataand the widespread use of huge databases, how-ever, are primarily Western phenomena. Moreover,the widespread prevalence of secondary data inNorth America and Europe is vastly superior to thatwhich is available in many developing foreigncountries. The resource of more than 4000 fullservice market research suppliers provides anotherNorth American advantage. When companies con-sider conducting market research outside NorthAmerica, the availability of many of these tools,techniques, and secondary information sourcescomprising the market research infrastructuremay be severely restricted.

5. Challenges of conducting internationalmarketing research

Due to the complexities of conducting and managingmarket research projects across national bound-aries, many factors exist that, if not adequatelyaddressed, can negatively impact project manage-ment and, consequently, project deliverables.These factors can impact any and, for that matter,all of the traditional market research steps dis-cussed previously. For example, varying culturalnorms across different countries or continents mayimpact research objectives, as well as pose sig-nificant challenges in the data collection phase of


the project. Similarly, language barriers have aconsiderable impact on data collection and, ulti-mately, incorporating the new learning into theorganization for maximum benefit.

Next, we discuss several important considera-tions related to questionnaire construction and datacollection methods that internal research managersmust consider as they design and implement globalresearch studies for their organizations. Failing toadequately understand and address these issuesputs internal researchers at odds with their topmanagement constituencies and risks conductingcostly research projects that do not add value andimprove the firm's competitive advantage.

5.1. Cultural challenges

Conducting market research in an internationalmarket requires a great deal of new learning.From a managerial perspective, this includes amore comprehensive understanding of native cul-ture. Cultural elements such as social institutions,gender roles, language, religion, aesthetics, educa-tion, and time orientation are closely intertwinedwith national culture (Javalgi & White, 2002), andhave a major impact on the acceptability andadoption of new products and services. The effectof culture is multifaceted in the sense that culturalvalues that are important to one group of peoplemay mean little to another. Cultural differencesdeeply affect adoption of products and services andother forms of market behavior. Clearly, culturalforces have taken on strategic importance thatcannot be ignored when marketing new and/orexisting products and services. Social factorsembody a culture's fundamental organization,including its groups and institutions, its system ofsocial infrastructure, and the process by whichresources are distributed. Naturally, social struc-ture affects market research decisions including thecost of conducting the research, reaching the targetmarkets, collecting the data, etc.

The target market's knowledge of and familiaritywith product service offerings also plays a criticalrole in conducting research. Market research spe-cialists demand certain levels of educational andtechnological skills. Although a country may have ahuge population, only a small segment of thatpopulation may be equipped with the knowledgenecessary to employ research tools either at work orat home. In a technologically sophisticated domes-tic market, businesses have more opportunities tomodify existing products/services to include newtechnological designs and features, and developentirely new products/services and technologies.Research companies operating in a sophisticated

market, where the customer group is large andprofitable, have the advantage over companiesoperating in markets that lack such sophistication.

5.1.1. LanguageNow thatmarket research is being conducted aroundthe globe, researchers must take language andcultural factors into account when designing ques-tionnaires. Language represents the most obviousfactor that makes international market research sochallenging. While many middle and upper manage-ment executives worldwide have some command ofthe English language, that does not mean thatEnglish must be employed in conducting allresearch. To make matters even more complicated,variations within the same language may exist. Forexample, English speakers in the U.K. and Americahave long complained that they are separated by acommon language. Consider a scenario whichoccurred after London-based ICI purchased Cleve-land, Ohio-based Glidden Paint Company in the late1980s. Upon inquiring about a business request thathe had submitted to his new bosses in the U.K., JohnS. Dumble, President of Glidden, was told that hisrequest had been “tabled.” Alarmed, Dumble said:“Look, this is something I need. It's important, or Iwouldn't have asked for it. You really shouldreconsider.” It was at this point that Dumble learnedthat, in England, “tabled” means put through forapproval, not consigned to oblivion, as in theAmerican vernacular (Susan Corbett, personal com-munication, September 9th, 1999).

5.1.2. TranslationThe most common problem in questionnaire designinvolves translation into other languages. A ques-tionnaire developed in one country may be difficultto translate because equivalent language conceptsdo not exist, or because of differences in idiom,vernacular, and phrasing (i.e., syntax). For exam-ple, the concepts of uncles and aunts are not thesame in the U.S. as in India; there, the words foraunt and uncle are different for the maternal andpaternal sides of the family. And while Spanish isspoken in both Mexico and Venezuela, researchershave found that the translation of the English term“retail outlet” works in the former country, but notin the latter. Apparently, Venezuelans interpret thetranslation to refer to an electrical outlet, an outletof a river into an ocean, and the passageway into apatio (Iyer, 1997; Rydholm, 1996).

In order to ensure that information is conveyed asintended, international marketing researchersoften have questionnaires back translated. Backtranslation (Zikmund, 2000) is the process oftranslating questionnaires from one language toanother and then translating them back again by a


second, independent translator. The back translatoris often a person whose native tongue is thelanguage that will be used for the final question-naire. This can reveal inconsistencies between theEnglish version of the questionnaire and thetranslation, for correction if necessary. For exam-ple, in one international advertising researchproject, the advertising slogan “out of sight, outof mind”was back translated as “invisible things areinsane” (Nash & Zullo, 1988).

5.1.3. SyntaxAs previously mentioned, syntax is closely relatedto language. In fact, syntax specifically refers toword phrasing and sentence construction. Forexample, simply translating English questionnairesinto German is very problematic. While the result-ing product may look German, it's not really veryGerman. The same is true of the reverse process(from German to English): it looks English, but isn't.The syntax is what makes the difference.

5.1.4. Cultural normsFollowing language, the most significant variable insuccessful foreignmarket research is cultural norms.These norms are very influential forces, and canrepresent the difference between successful pro-duct introduction and failure. Unfortunately, cul-tural norms are usually very subtle rather thanblatant and obvious, which makes them hard todiscern and detect. Consider the case of a U.S.ketchup company that, after learning ketchup wasnot available in Japan, attempted to market theirproduct there. Rather than take the time to questionwhy ketchup wasn't already available in the countryand investigate the situation through internationalmarket research, the large, well-known U.S. man-ufacturer hurriedly shipped a large quantity of itspopular, name-brand ketchup to Japan, fearing anydelay would permit its competition to spot theopportunity and capture the market. Had marketresearch been conducted by the U.S. company priorto product introduction, it would have revealed thatsoy sauce is the preferred condiment in Japan(Zikmund, 2000).

Ignoring important cultural norms has causedother problems for international marketers. Forexample, Chase and Sanborn met resistance when ittried to introduce its instant coffee into the Frenchmarket. In the typical French home, the consump-tion of coffee plays a very significant role. Since thepreparation of real coffee is a ritual in the life of theFrench consumer, they will generally reject instantcoffee because of its impromptu characteristics.Additional stumbling blocks may be numerous andvaried. For instance, in many Middle–Eastern coun-tries, women would never consent to being inter-

viewed by a man; furthermore, the idea ofdiscussing grooming behavior and personal careproducts with a stranger (i.e., moderator) wouldbe highly offensive (Zikmund, 2000).

5.1.5. Time zonesTime zones present difficulties in conducting anytype of business in foreign markets, and marketresearch is no exception. During fieldwork, marketresearchers frequently find it necessary to commu-nicate with the facilities that have been hired toconduct the actual interviews. Differing time zones inother countries impact project communication and,ultimately, project timing. More days are required tofield a given research project to allow for commu-nications that may need to occur half-way around theworld. Even the time of day matters in places likeJapan, where business-to-business interviewing isvery difficult to conduct during business hours.Because Japanese employees are so loyal to theiremployers, they hesitate to devote time to anythingother than their immediate work efforts while in theoffice. As well, employers believe they owe absolutecommitment to their employees while on the job.

5.1.6. Foreign holidaysThe United States has a list of approximately 12standard holidays per year. Other countries havedifferent lists, which can be much longer andcertainly differ from the American calendar. Holi-days are yet another factor that can add to thetotal time frame required to complete an inter-national research project. According to Rydholm(1996), prior to starting research, clients shouldalways check the holiday schedule of the countryin which they are working. Nearly every Monday isa holiday somewhere in the world.

5.2. Sampling issues/sampling frame

Consider the process of conducting marketingresearch in China. China has a total population of1.2 billion, 350 million of which live in urban areas of622 cities and scores of smaller towns. Of the cities,only 32 have populations of at least one million, while42 havepopulations between500,000 andonemillion,and the remaining 548 have populations of less than500,000 (Lee & Wong, 1996). Since almost no smalltowns or rural areas are included in market researchprojects, what constitutes a nationally representativesample of the Chinese market? Considering theframework in Fig. 1, the unit of analysis in a complexsingle county like China varies widely betweennational, regional, and/or local. Adding additionalcountries onlymakes the projectmore challenging forinternal market research managers to administer.


A logical means of reaching the largest samplepossible, including individuals who don't live inmajor population centers, involves interview bytelephone or computer. Unfortunately, technologi-cal capabilities are not equal across countries orregions. For example, in Germany, telephone pene-tration did not reach the 80% level until the mid-1980s, long after thatmilestone had been reached inthe United States. Today, less than 10% of allhouseholds in India have telephones, and telephonepenetration in Brazil is less than 50% in large cities(Malhotra, 2004). Considering the low computerusage in these nations, the sample representationproblem is even more dramatically exacerbatedwhen using Internet-based samples. Unless and untilthese nations increase their overall computer andInternet capacity, using the Internet to conductinternational market research is not going to resultin sound customer-based business strategies.

5.2.1. Native interviewersTo facilitate the already complicated communica-tion process, using native interviewers for interna-tional research projects allows multi-nationalclients to exert a form of quality control. More-over, it is a matter of courtesy that the localrespondents should be able to speak with inter-viewers in their own language. Many nationalities,such as the French, are often offended by non-native researchers. While advisable overall,recruiting native interviewers can be problematicin countries and regions where the literacy rate islow, like rural China and India.

5.2.2. Questionnaire lengthAs consumers worldwide become increasingly sensi-tive to being interviewed, participation refusal rateskeep trending upward. Of China's major cities,refusal rates are estimated at 32% in Guangzhou,22% in Beijing, and 10% in Shanghai. A key driver ofrefusal rates is questionnaire length. After approxi-mately 20 minutes, most respondents becomefatigued with the process and terminate the inter-view. This factor is exacerbated in internationalstudies, as different languages can shorten orlengthen the amount of time it takes to get througha questionnaire. For example, translated into Italian,a 20 minute American questionnaire will last onlyapproximately 18 minutes. Translated into French,the same questionnaire will take 22 minutes. Thedifference in duration is attributable to the subtlenuances of both languages (Lee & Wong, 1996).

5.2.3. IncentivesThe use of incentives in market research has beendebated for as long as research has been executed.The common criticism of the practice contends that

by paying respondents for their opinions, an inherentbias is introduced. This is more complicated in theinternational setting, where in some cultures incen-tives are required to procure participant coopera-tion. For example, drinking and socializing areexpected as part of the research experience inBrazil. In other cultures, however, incentives of anykind are regarded as insulting to the respondents.

5.3. Measurement issues

In international market research, it is critical toestablish the equivalence of scales and measuresused to obtain data from different countries (Han,Lee, & Ro, 1994). One of the significant issues thatmust be dealt with early in the international marketresearch process is the equivalence of data (Kumar,2000). This involves three considerations. First, ithas to be ascertained whether the constructs beingstudied are equivalent. In other words, are the samephenomena being studied in both countries? Second,the equivalence of the measures of the conceptsunder study has to be determined. This means thatthe phenomena are being measured consistently ineach country. Finally, the equivalence of the samplebeing studied in each country or culture must beconsidered. The issue here is that the samples usedin each country are equivalent to each other (Kumar,2000). These considerations involve substantialmeasurement issues that are increasingly critical inan international environment. The concepts ofreliability, defined as consistency over time, andvalidity, which is concerned with what the instru-ment is actually measuring, are important to anymarket research effort, especially those that crossnational boundaries.

5.4. Market research infrastructure

Media availability, Internet penetration, qualitycontrol, and the overall market research infrastruc-ture significantly impact the success of internationalresearch projects. Where little or no media exists,these options are no longer open to internationalresearchers. Widespread print and broadcast mediaoptions and extensive databases are generally aWestern advantage. Further, Internet penetrationremains skewed to males under age 40 with aboveaverage education and household income (Dodd,1998). Until its usage rate increases to a point thatapproximates a broader cross section of customers,the Internet cannot be considered a viable primarymarket research instrument. This is especially truein the international setting.

5.4.1. Currency fluctuationsDoing business around the world always involves therisk of changes in a particular country's currency.


Market research firms are also impacted by thesefluctuations because of the numerous field servicesthat are usually hired to complete a research assign-ment. To finish a givenproject, several countriesmightbe involved. For example, each spring and fall, IBMconducts a brand tracking study in 14 languages in 27countries. At any time, one or more of these countrieswill experience unstable currency conditions, affect-ing the lead research supplier (Iyer, 1997).

5.5. Data collection challenges

The process ofmanaging vendors in the international,rather than in the domestic, context is much moredifficult, time consuming, and expensive. Whiletaken for granted that mall intercept methodology,scanner data, and reliable postal delivery are allavailable in the U.S., this assumption is not true formanyother parts of theworld. Unreliablemail servicein developing countries makes conducting interna-tional mail surveys problematic (Malhotra, 2004).Access issues in terms of locating the appropriateperson and gaining their cooperation to participate ina market research study are also heightened in theinternational context (Craig & Douglas, 2005). Addi-tionally, respondent and vendor confidentiality andtrust are important considerations in the globalcontext (Kumar, 2000). For example, a researchstudy examining the functioning of a sovereign nationor inter-company conflicts must have an assurance ofconfidentiality. These issues are more challenging inthe global environment, where other barriers likelanguage and culture play a larger role.

5.6. Legal issues

Legal and privacy restrictions pose unique chal-lenges in the international research arena. Europeancountries with strict privacy regulations can poten-tially shut down marketing activities that profile orcollect personal information. Gaining access tospecific respondents can also be problematic incertain countries. Furthermore, the Chinese aremonitoring questionnaire construction and even theapproval of the final data. This is in direct conflictwith the American approach of non-disclosure ofproprietary client results (Meijer, 1999).

6. Guidelines for managers

Companies that already are, as well as those thatplan to become, global marketers must look closelyat the world marketplace to identify global oppor-tunities (Jeannet &Hennessey, 2001). Consequently,in order for organizations to evaluate their numer-ous international opportunities, they must developan expertise in conducting global marketing

research studies. This expertise can be effectivelytranslated into a competitive advantage. As compa-nies continue to seek competitive advantages acrossnational boundaries, being cognizant of the varietyof cross-cultural marketing research challenges asdiscussed in this paper provides an essential ingre-dient to the firm's ultimate success. Clearly, inter-national marketing research provides informationabout foreign consumers and critical informationregarding the global marketplace.

The purpose of our paper has been twofold. First,we provided a framework for international marketresearch; second, we discussed several criticalchallenges to illustrate the issues involved whencompanies conduct international marketing researchprojects in support of their brand initiatives. Theframework was provided within the context of thetraditional four steps of the research process. Withinthis broader context, we highlighted the subtledifferences between domestic and global marketingresearch design. While the steps of the marketresearch process are familiar to many managers,overlaying the international perspective creates avariety of important and unique data collectionchallenges, as we have indicated. To help internalresearch managers design and implement moreimpactful and effective global research studies, wereviewed several factors that must be consideredprior to conducting research across foreign markets.Client side market research managers designingprojects to support upper management initiativeswill encounter significant difficulty unless these datacollection issues are addressed. As relevant andtimely information about customers increasinglybecomes the foundation of competitive advantage,managers will need to critically review their interna-tional research programs.

In order to take full advantage of internationalgrowth opportunities over the long term, companieslooking to the global marketplace need researchthat identifies customer behaviors and potentialpositioning strategies. To assure that their projectsare contributing to the overall competitive advan-tage of the firm, research managers must be awareof the nuances involved in data collection acrosscultures. As we suggested, research managers mustthink globally and act locally by developing researchprojects that rationalize global expansion, identifyinternational market entry options, and provide abasis for implementing a foreign marketing mixstrategy. The positive result of this mindset will beimproved information about global customer seg-ments, leading to improved performance andincreased competitive advantage for the firm.

Due to the complexities involved when conduct-ing market research across national borders, in


addition to paying close attention to the datacollection and questionnaire design problems wehave outlined, research managers may also want tokeep the following in mind:

• Consider utilizing foreign stakeholders to helpwith potential cultural, legal, and/or govern-ment restrictions on market research studies.There is no substitute for trusted, on-the-groundcontact sources to provide context on a widevariety of country-specific factors that couldhave a negative effect on international researchstudies.

• Consider using a single research vendor familiarwith the international marketplace. Multi-coun-try projects are inherently difficult to manage,so look to a single consistent and experiencedvendor for guidance.

• Allow more time to plan and execute aninternational study. Projects crossing countryboundaries require extended design, implemen-tation, and follow-up efforts.

• Conduct research studies in markets similar tothe home country prior to conducting researchin new and unfamiliar parts of the developingworld. Newcomers to the international marketresearch arena should take small steps infamiliar markets to provide a solid foundationprior to expanding into new, unfamiliar markets.

• Supplement custom market research insightswith as much secondary information aboutforeign markets as available. Because the datacollection issues in global market research areso challenging, utilize any and all relevantsecondary information sources to improveinsights gained from custom studies conductedin foreign markets.

Internal market research managers who areaware of the unique context of internationalmarket research will be better suited to designand implement projects that contribute to theirfirm's competitive advantage in the marketplace.Additionally, paying close attention to the chal-lenges we have discussed will result in marketresearch studies that are both more impactful and

more often utilized by their senior managementclients.

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Education

International marketing research