Deck 7: Research in International Markets

Question 1

________ is(are) a critical factor in designing and interpreting research in international marketing.

A) Financial investment
B) Cultural bias
C) Literacy levels
D) Market education levels
E) Regulatory structures

Answer 1

B

Question 2

Discuss how an international marketer might determine the appropriate balance between primary and secondary research in an international market.

Answer 2

When considering a balance between primary and secondary research in an international market, the first step is to examine secondary data sources available about an international market to see what has already been gathered for other purposes and what information is already available. This can be accomplished by looking at internal sources (such as sales data) or external sources (such as libraries, databases or consultancy reports). If the specific market research question cannot be answered with secondary data, then the international marketer must consider collecting data from the foreign market specifically related to the purpose of the study. The appropriate balance between the two types of research depends on the cost (time and money) of conducting primary research versus the benefits of obtaining information specific to the research question being asked.

Question 3

A business firm will experience additional difficulties when it takes its product overseas. What are some of the factors that can make market research in a foreign country more complex than research in the domestic market?

Answer 3

Research in a foreign market can be more complex than research in the domestic market primarily due to high levels of uncertainty about the new business environment. Language, cultural, infrastructure and business practice differences make doing international research more difficult. Entering a foreign market requires companies to not only collect information in a cost-effective manner, but also to be able to predict responses to unfamiliar stimuli and then use the results to develop an effective international marketing strategy.

Question 4

Information for how to approach the market includes:

A) monitoring the success of competitors.
B) collating information on the business environment.
C) determining sales potential.
D) measuring market growth.
E) testing all elements of the marketing mix.

Question 5

When preparing a research plan for an overseas market, a firm will need to go through a number of essential stages, including:

A) problem definition, research design, secondary research, primary research and reporting of results. b) problem definition, secondary research, primary research, data analysis and reporting of results.
C) problem definition, primary/secondary research, data collection, hypothesis development and reporting of results.
D) problem definition, research design, data collection, data analysis and reporting of results.
E) problem definition, hypothesis development, research design, data analysis and reporting of results.

Question 6

When going overseas, a marketing firm is exposed to a different environment in which many of the assumptions that guided the decision making in the home market will not be applicable.

Question 7

Major differences between international market research and domestic market research include:

A) the different parameters involved.
B) the new environments in which research will be undertaken.
C) the broader definition of competition.
D) all of the above.
E) options A and B only.

Question 8

Specific areas of concern when undertaking international marketing research online include:

A) more difficult to assess the objectivity or biases of the presenter of the information.
B) greater scope for misinterpretation and miscommunication.
C) the predominant use of English on the internet.
D) all of the above.
E) options A and B only.

Question 9

Which of the following is NOT a type of information needed for international marketing research?

A) information for initial market entry
B) information for how to hire staff in the foreign market
C) information for how to modify the marketing mix for the foreign market
D) information for rationalising activities across international markets
E) information for how to modify promotional communications to the foreign market

Question 10

At the ________ stage of the international research process, the possible course of action to obtain the information needs to be established.

A) research design
B) problem identification
C) data collection
D) reporting
E) data analysis

Question 11

One international market research decision for which information is required is how to determine the suitability of promotional activities such as copy design, media selection and sales compensation in an overseas market.

Question 12

Discuss the ways that market research in an overseas market might differ between firms that market consumer goods and those that market industrial goods. Use examples to illustrate your answer.

Question 13

Which of the following three elements are critical for conducting research across different countries or across different cultural groups?

A) construct equivalence, measurement equivalence and metric equivalence
B) concept equivalence, context equivalence and measurement equivalence
C) context equivalence, values equivalence and measurement equivalence
D) construct equivalence, context equivalence and scale equivalence
E) context equivalence, values equivalence and concept equivalence

Question 14

International market research is usually cheaper to conduct due to lower average labour costs in international markets.

Question 15

Information is the key element in developing successful international marketing strategies, and the information needed can range from general data for assessing market opportunities to specific information for making decisions about the mix.

Question 16

If market research is being used to decide which overseas market to enter, then the research should take into consideration the relative level of stability of the market.

Question 17

On the internet, consumers are faced with a truncated set of cues and absence of sensory cues, which leads to a greater reliance on objective cues such as price and product information.

Question 18

Internet users are a representative sample of the population at large.

Question 19

Which of the following Australian government agencies provides customised data relevant to Australian involvement in individual international markets?

A) Department of Foreign Affairs and Trade
B) the trade promotion body Austrade
C) Australian Bureau of Statistics
D) Australian Department of Defence
E) none of the above

Question 20

When firms open in international markets, the competition is likely to be from

A) firms that receive government protection.
B) substitute products.
C) local firms
D) all of the above
E) options A and B only

Question 21

When a firm hires an independent agency to collect research to address a specific problem rather than using its own resources, it is said to be undertaking secondary research.

Question 22

Differences in perspective influence both definitional equivalence and temporal equivalence.

Question 23

Measurement equivalence relates to the methods used by the researcher to collect and categorise information. The specific measurement equivalence method that uses general cultural variables that can be applied across multiple cultures is:

A) the etic approach.
B) lexical equivalence.
C) the experiential approach.
D) scale equivalence.
E) the emic approach.

Question 24

Secondary data is data which is already in existence and is collected externally.

Question 25

The final management report for an international primary research project should:

A) simplify statistical computations to enable sufficient understanding of the report by the recipients.
B) identify the data sources used during the research.
C) identify alternative courses of action resulting from the research.
D) all of the above.
E) options A and B only.

Question 26

Because cultural bias can introduce a level of selective perception, the interpretation of data gathered for an international market usually involves a high degree of cultural sensitivity. Any cultural bias can best be minimised by using:

A) at least one data interpreter in the researched country who is either from that country or is well acquainted with the business customs of that country.
B) a panel of data interpreters who have an open-minded approach to research.
C) data interpreters with diverse backgrounds, so that they have no specific bias towards the country or culture.
D) professional statisticians to interpret data with no focus on cultural issues.
E) the research designer to interpret the data from the research.

Question 27

Different languages are written in different ways and can convey meaning through sentences or ideographs. Equivalence problems that can arise due to these differences are referred to as ________ equivalence.

A) grammatical
B) character
C) experiential
D) lexical
E) idiomatic

Question 28

Data collection equivalence is concerned with whether or not the researcher and the subjects of the research view the particular concept in the same way.

Question 29

The techniques that may be employed to overcome any problems with translation equivalence include:

A) computer-based translation systems.
B) Delphi studies.
C) back translation.
D) parallel blind translation.
E) options C and D only.

Question 30

Interviews, focus groups, observation and Delphi studies are all examples of a(n) ________ research technique.

A) descriptive
B) causal
C) exploratory
D) qualitative
E) quantitative

Question 31

Specific issues related to primary research in an overseas market can include:

A) language and comprehension.
B) respondent bias.
C) willingness to respond.
D) interaction bias.
E) all of the above.

Question 32

Construct equivalence is concerned with whether the researcher and the subjects of the research view a particular concept in the same way. The specific perspectives of construct equivalence are:

A) functional, definitional, social and market structure.
B) functional, translational, social and temporal.
C) functional, conceptual, transformational and translational.
D) functional, conceptual, definitional and temporal.
E) functional, conceptual, translational and definitional.

Question 33

The most commonly used instrument for the gathering of primary data in an international market is the:

A) focus group.
B) controlled experiment.
C) questionnaire.
D) face-to-face interview.
E) telephone interview.

Question 34

The gathering of primary data using a questionnaire is classified as:

A) a qualitative research technique.
B) a quantitative research technique.
C) a causal research technique.
D) a technique for determining political risk.
E) none of the above.

Question 35

When designing the research, three specific issues are critical to the overall success of the study: construct equivalence, measurement equivalence and data collection equivalence.

Question 36

Lexical equivalence and idiomatic evidence are basically the same concept and are interesting but not essential to the international marketing process.

Question 37

The use of secondary data for research purposes will often present the user with a number of valid concerns. These concerns can include:

A) reliability of the data.
B) age of the data.
C) cost of the data.
D) all of the above.
E) options A and B only.

Question 38

Culture has a significant influence on conducting primary research, as different cultures have different beliefs as to the appropriateness of giving specific information.

Question 39

Quantitative data gathering techniques involve gathering ________ from a large, ________ group of respondents.

A) data, consultative
B) data, representative
C) information, consultative
D) statistics, consultative
E) information, representative

Question 40

Which of the following is a characteristic of qualitative research methods?

A) exploratory
B) easily replicated
C) subjective
D) options A and B only
E) options A and C only

Question 41

Explain the ways that primary research in an economically developed nation might differ from research in a developing nation. Identify two specific countries, and use particular products to illustrate your answer.

Question 42

When selecting a market research firm to collect primary data in an overseas market, marketers should base their choice on three criteria, which are:

A) international research experience, technical capability and product specialisation.
B) geographical area, product specialisation and international research experience.
C) geographical area, industry specialisation and multinational agency.
D) financial size of agency, research skill set and geographical area.
E) cultural diversity, geographical area and access to partner organisations.

Question 43

Which of the following issues was NOT a reason for gaps in management at Billabong?

A) No research had been conducted about who the customers were or what they wanted.
B) There was no research on the industry itself.
C) People within the organisation did not want to change.
D) There was a lack of coordination within elements of the organisation.
E) There was a lack of information on competitors.

Question 44

The internet can be a significant tool for international market research. Its use extends both the depth and the breadth of the research process because, in addition to company websites, consumers can also access product category sites, retailer sites and consumer-dominated sites.

Question 45

Test markets are commonly used in domestic markets but tend to be used less in the international sphere. The reasons for this include:

A) there is not a enough time for the research.
B) their product stands on its reputation.
C) the government is assisting in exports.
D) with the test in the home market, there is no need to expand this.
E) test markets are costly.

Question 46

Why is equivalence important in international market research? What steps can international marketers take to maximise construct, measurement and data collection equivalence?

Question 47

Managing international research requires two key elements: selecting a market research agency and coordinating the market research.

Question 48

Export marketing assistance is one of the government assistance programs designed to increase export opportunities.

Question 49

________ market research involves monitoring chat rooms, personal websites and blogs.

A) Unethical
B) Invasive
C) Observational
D) Omnibus
E) Third party

Question 50

New international market research techniques include the use of:

A) visitor tracking.
B) online surveys.
C) bulletin boards and chat groups.
D) all of the above.
E) options A and B only.

Question 51

The main reason why primary research is NOT used in developing countries is:

A) low level of education.
B) high cost of process.
C) there is already reliable information available.
D) all of the above.
E) options A and B only.

Question 52

Would you recommend that a firm employ a test market before entering an international market? Why or why not? Support your answer by highlighting either the benefits or problems associated with test marketing in the international environment.

Question 53

A test market should be ________ of the larger market.

A) a microcosm
B) reflective
C) divergent
D) all of the above
E) options A and B only

Question 54

Outline the key new international marketing research methods. What are the advantages and disadvantages of employing these methods ahead of more traditional research approaches?

Question 55

The interpretation of research results from overseas markets will require a degree of scepticism because the data may have been collected under varying circumstances that could cause errors in both the collection and analysis processes.

Question 56

Research in marketing is mainly the province of headquarters rather than organisation personnel based in the host country.

Question 57

When collecting international research data, a transnational firm must decide on whether it will undertake research at the firm's headquarters or in its subsidiary office in the host country. This decision is often influenced by the fact that:

A) data commissioned by the headquarters office is rarely shared with the host country office.
B) data collected or commissioned by the host country office is rarely shared with the headquarters staff.
C) research at headquarters is normally used for short-term planning and strategy formulation, whereas at the host country office it is necessary for tactics to achieve goals and day-to-day activities.
D) headquarters staff usually prefer a standardised sampling and data collection approach, whereas the host country office is more likely to favour a customised research approach that takes account of the local environment.
E) options C and D only.

Question 58

The use of a product test market in an overseas market is not advisable, particularly if a decision to enter that market would require the firm to undertake new capital investment in its production facilities.

Question 59

Which of the following will contribute to the extra complexity that firms have to deal with in international research?

A) the logistics in the overseas market
B) the cultural and social structure in the foreign country
C) the stability of the host government
D) all of the above
E) options A and B only

Question 60

Explain how a firm might use international market research to determine the country-of-origin effect on its marketing success. Use a specific product and country to illustrate your answer.

Question 61

The development of online market research has dramatically reduced the cost of obtaining market information. However, it has also introduced some specific areas of concerns for market researchers. Discuss these concerns and how they can impact international market research.

Question 62

There are three options when selecting a market research agency for international marketing. Outline the options and when each is most appropriate.