Traditionally, market research has been conducted in the home market of organizations, or in those markets that are similar to the home markets. This is due to the overwhelming emphasis on domestic sales, historically, and the difficulties inherent in moving into the international arena. As advances in transportation and telecommunications have made it possible for larger numbers of firms to compete globally, the need for increased market research in these far-flung markets has become acute. Companies need to know the market potential prior to committing resources to new markets, and market research is one of the key ways that they can gain this business intelligence. When the markets are similar to the home market in technology, language and culture, market research is fairly easily accomplished. When there are significant differences however, as when a company in a developed nation seeks to conduct business in a country that might be classified as developing or emerging, the challenges to the market research process become more formidable. This research considers key factors that influence the effectiveness of the market research as well as the research process itself, and considers ways in which companies can overcome these obstacles.
THE ROLE OF QUALITATIVE AND QUANTITATIVE DATA
Both qualitative and quantitative data are used in market research regardless of whether the research is conducted in developed or in developing economies. Typically, qualitative research is conducted to form hypotheses that are later tested through quantitative research, or qualitative research may be conducted to understand buying habits and trends (Birn 2004). In some emerging markets where survey techniques are new to the populace, quantitative or qualitative research may be used exclusively.
Quantitative analysis often relies on large samples of more than 200, and face-to-face interviews may be conducted with visual aids. This can be...