All companies, whether small domestic concerns or large multinational conglomerates, engage in market research. For small family-run organizations, this research may be little more than a handful of friends supporting the idea of a local restaurant or specialty store. For large companies, market research can include formal and informal focus groups, statistical analysis of financial information, and even industrial espionage. In general, market research takes two forms, primary (direct from individuals within the market) and secondary (using resources such as reports prepared by third parties), and there are many consulting firms which specialize in particular industries or markets. However, there are particular challenges that face companies doing business in the international arena, and those challenges are the focus of this report.
Primary market research is often conducted through personal interviews whether with direct consumers or policy makers. It can be conducted individually or in groups, and through direct (face-to-face) contact, over the phone, or through the mail. Primary research can be effective for evaluating the product itself, advertising, or other marketing characteristics such as price (Pearce 72).
Primary research is not as easy to conduct in foreign markets, however, in part due to cultural differences and in part due to technological differences. Cultural differences are most likely to be the greatest between companies based in industrialized nations (such as those Western Europe or the United States) and consumers based in emerging markets. There may be a reluctance to share personal information about income or spending habits (often from a fear of increased taxation or a desire to appear humble), and in some cases, there is simply outright mistrust of strangers (Dahringer, Mnhlbacher & Leis 318).
Technology can also pose problems for those seeking to conduct prima
...