1. MARKET RESEARCH

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

3. 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.

4. Secondary Data Availability of Data Currency of Data
Accuracy of Data/Reliability over Time
Lumping of Data
Equivalence of Data

5. 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.

6. Primary Data Conceptual/Functional Equivalence Measure Equivalence
Sampling Equivalence
Interviewer Equivalence

7. 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”?

8. 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.

9. 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

10. Interviewer Equivalence
Interviewer training
Interviewer background
Interviewer error

11. Method of Contact
Telephone
Mail
Personal

12. 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

13. 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)

14. 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.

15. 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)

16. Market Size Assessment
Chain Ratio Method
China India
Total Population (m)
Urban Population Rate 30.3% 26.8%
Urban Population (m)
…...

17. Caution Whenever feasible, use several methods.
Don’t be mislead by numbers--know the rationale behind the numbers.
Don’t be mislead by fancy methods.
Question your assumptions.
Find the range of possibilities.