International Marketing Research

International

Marketing Research

Third edition

C. SAMUEL CRAIG and

S U S A N P. D O U G L A S

Leonard N. Stern School of

Business, New York University

Allie

International

Marketing Research

Third edition

Allie

International

Marketing Research

Third edition

C. SAMUEL CRAIG and

S U S A N P. D O U G L A S

Leonard N. Stern School of

Business, New York University

Copyright © 2005 John Wiley & Sons Ltd, The Atrium, Southern Gate, Chichester,

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Library of Congress Cataloging-in-Publication Data

Craig, C. Samuel.

International marketing research / C. Samuel Craig and Susan P.

Douglas.— 3rd ed.

p. cm.

Includes index.

ISBN 0-470-01095-9

1. Export marketing—Research. I. Douglas, Susan P. II. Title.

HF1416.C73 2005

658.8′4—dc21

2005001265

British Library Cataloguing in Publication Data

A catalogue record for this book is available from the British Library

ISBN 0-470-01095-9 (PB)

Typeset in 10/15pt Sabon by Graphicraft Ltd, Quarry Bay, Hong Kong.

Printed and bound in Great Britain by Biddles, Kings Lynn.

This book is printed on acid-free paper responsibly manufactured from sustainable forestry

in which at least two trees are planted for each one used for paper production.

To Liz, Mary Catherine, and Caroline

(C.S.C.)

To Nicholas and Stephanie

(S.P.D.)

Allie

CONTENTS

About the Authors xi

Preface xiii

1 Marketing Research in a Global Environment 1

Introduction 1

Complexity of International Marketing 4

Importance of Research for International Marketing Decisions 10

Issues in International Marketing Research 14

Scope of the Book 19

2 Designing International Marketing Research 23

Introduction 23

The International Marketing Research Plan 25

The International Marketing Research Process 29

Structuring the Unit of Analysis 36

Selecting Information Sources 37

Research Plan 40

Issues in Administering International Marketing Research 44

Summary 59

3 Secondary Data Sources 63

Introduction 63

Locating the Appropriate Information 64

Information Sources 71

Information Requirements 87

Summary 103

4 Uses of Secondary Data 109

Introduction 109

Market Entry 110

Demand Estimation 123

Assessing Market Interconnectedness 141

Summary 148

5 Structuring Primary Data Collection 153

Introduction 153

Defining the Unit of Analysis 154

Selecting Units of Analysis 161

Structuring the Research Design 163

Cultural Bias in Research Design, Communication and Interpretation 170

Summary 174

6 Establishing the Comparability of Multicountry Data 179

Introduction 179

Establishing Comparability: The Emic/Etic Dilemma 180

Establishing Data Equivalence 188

Determining Construct Validity 194

Establishing Construct Reliability 195

Summary 200

7 Nonsurvey Data Collection Techniques 205

Introduction 205

Different Qualitative Techniques 206

Observational and Quasi-observational Data 210

Projective Techniques 217

In-depth Interviews 224

Summary 233

8 Survey Instrument Design 239

Introduction 239

Questionnaire Design and Question Formulation 240

Type of Question 248

Use of Nonverbal Stimuli 250

Instrument Translation 254

viii Contents

Potential Sources of Bias Associated with the Research Instrument 259

Summary 271

9 Sampling and Data Collection 277

Introduction 277

Sampling 279

Achieving Comparability in Sampling 291

Data Collection Procedures 295

Field Staff Organization and Training 303

Summary 306

10 Multicountry Scales 311

Introduction 311

General Issues in Scale Development 312

Using Multi-item Scales in Cross-cultural Research 322

Developing Cross-cultural Scales 335

Summary 340

11 Analysis of Multicountry Data 347

Introduction 347

Multicountry Data Analysis 348

Assessing the Differences in the Level of Variables between Countries 352

Summary 374

12 Assessing Differences in the Structure of Variables 381

Introduction 381

Correlation Analysis 382

Means–End Hierarchies 385

Cluster Analysis 389

Multidimensional Scaling 394

Factor Analysis 397

Confirmatory Factor Analysis 400

Covariance Structure Models 406

Contents ix

Advances in Data Analysis 409

Summary 411

13 The International Marketing Information System 419

Introduction 419

Information Components of the International Marketing System 422

Data Collection and Processing for the International Marketing

Information System 429

Applying the Information System 434

Summary 440

14 Challenges Facing International Marketing Research 443

Introduction 443

Coping with Change: Marketing Infrastructure and Technology 445

Contending with Complexity: Conducting Research in Emerging

Markets 450

Confronting Competition: Marketing Research Services in a Global

Environment 454

Conforming to Conscience: Ethics in International Marketing

Research 457

Summary 462

15 Future Directions in International Marketing Research 465

Introduction 465

Comparability and Equivalence Revisited 466

Developing the Research Design 469

Improving Analysis of Cross-cultural Data 473

The Growth of Internet Research 475

Conclusion 476

Subject Index 479

Author Index 495

Acknowledgements 503

x Contents

ABOUT THE AUTHORS

C. SAMUEL CRAIG is the Catherine and Peter Kellner Professor, Professor of Marketing and

International Business and Director of the Entertainment, Media and Technology Program at New

York University’s Stern School of Business. He received his PhD from the Ohio State University.

Prior to joining New York University, Professor Craig taught at Cornell University. He has taught

marketing for executive programs in the United States as well as France, the UK, Thailand, Singa￾pore, Greece and the former Yugoslavia.

Professor Craig has co-authored Consumer Behavior: An Information Processing Perspective (Prentice

Hall) and Global Marketing Strategy (McGraw-Hill). His research has appeared in the Journal of

Marketing Research, Journal of Marketing, Journal of Consumer Research, Journal of International

Business Studies, Columbia Journal of World Business, International Journal of Research in Mar￾keting, Journal of International Marketing and other publications. Over the past 25 years, he and

Professor Douglas have collaborated on a wide variety of international marketing projects including

this book, numerous scholarly articles, and contributions to handbooks and encyclopedias.

SUSAN P. DOUGLAS is the Paganelli-Bull Professor of Marketing and International Business at

New York University’s Stern School of Business. She received her PhD from the University of

Pennsylvania. Prior to joining New York University, Professor Douglas taught at Centre-HEC,

Jouy-en-Josas, France, and was a faculty member of the European Institute for Advanced Studies

in Management in Brussels. She has also taught international marketing in executive programs in

France, Belgium, Italy, Greece, Taiwan, Singapore, India, South Africa and the former Yugoslavia.

A past president of the European Marketing Academy, and former vice-president of the Academy of

International Business, Professor Douglas was elected as a fellow of the Academy of International

Business in 1991 and was Dean of the Fellows from 1999–2002. She was made a fellow of the

European Marketing Academy in 2002 and chaired the Fellows from 2002–2005.

Professor Douglas co-authored Global Marketing Strategy (McGraw-Hill) with Professor Craig.

Her research has appeared in the Journal of Marketing, Journal of Consumer Research, Journal of

Marketing Research, Journal of International Business Studies, Columbia Journal of World Busi￾ness, International Journal of Research in Marketing, Journal of International Marketing and other

publications.

Allie

PREFACE

In the relatively short time since the second edition of International Marketing Research appeared,

there have been rapid and dramatic changes in the field. As firms increasingly expand operations in

countries outside their home market, they require marketing research to guide decision making.

Industry consolidation of research firms has accelerated as they strive to better serve global clients.

The Internet has burst on to the scene as an alternative way to gather information and conduct

surveys rapidly. Increasingly research is being conducted in developing countries as firms expand

operations into markets such as India and China. The third edition of the book is completely

updated to reflect changes in both the structure and practice of international marketing research.

Generally speaking, the volume of commercial research on international markets has expanded

more rapidly than academic research. This is particularly true within the EU and nearby countries,

where market integration means that researchers continually face the challenges of conducting

research spanning multiple cultures and countries. At the same time, as firms continue to expand

operations in Asia and Latin America, the need for information to plan or adapt strategy to these

markets is growing. Progress in academic research, on the other hand, has been hampered largely by

the complexity and higher costs associated with the conduct of international research. In the short

term this disparity between commercial and academic international marketing research seems likely

to continue. As the internationalization of business continues unabated, collection of accurate and

timely data, to guide decision making and to keep pace with the accelerating rate of change in

markets around the globe, is even more critical. Commercial research suppliers must respond to this

and be able to provide the types of information that businesses require to make accurate and timely

decisions.

For academic researchers, with limited funding to support research and sparse resources to assist

with research projects, the addition of another research context greatly increases the time required

to complete the research and the complexity of the research process. This is a cost that many

academic researchers do not want or cannot afford to incur. Fortunately, this is gradually changing

as the potential of multi-country studies for making seminal contributions to knowledge and deep￾ening understanding of behavior is recognized. Academic researchers are increasingly extending the

boundaries of research inquiry by exploring and questioning the applicability and suitability of

indigenous research paradigms, notably those developed in the US, to other countries and cultures.