Transcript MARKET RESEARCH

MARKET RESEARCH
Research Steps
•
•
•
•
•
•
Define the research problem.
Develop a research design.
Determine information needs.
Collect data.
Analyze data and interpret results.
Report and present findings.
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.
Secondary Data
•
•
•
•
•
Availability of Data
Currency of Data
Accuracy of Data/Reliability over Time
Lumping of Data
Equivalence of Data
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.
Primary Data
• Conceptual/Functional
Equivalence
• Measure Equivalence
• Sampling Equivalence
• Interviewer Equivalence
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”?
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.
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
Interviewer Equivalence
• Interviewer training
• Interviewer background
• Interviewer error
Method of Contact
• Telephone
• Mail
• Personal
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
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)
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.
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)
Market Size Assessment
Chain Ratio Method
Total Population (m)
Urban Population Rate
Urban Population (m)
…...
China
1207.4
30.3%
365.8
India
921.5
26.8%
247.0
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.