BEYOND BRIC:

Conducting Market Research in

Emerging Markets

MRA Educational Conference

Portland, OR May 2008

Dr. Jacqueline Brown, Client Services Dir.Andrea Eaker, Sr. Research Consultant

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30 year-old custom market

research and analytics firm

Focused on bringing insight and

innovation to enhancing the

customer experience for global

corporations

Merged with Asia-based Hansa

Research in 2007 300 employees combined

75% of market research projects

are international in scope

Focused on our Clients….

To provide industry-leading research and thought leadership that delivers:

Reliable customer and market data

Insight

Actionability

…..To create differentiated customer experiences and achieve business results

Hansa|GCR – Background

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Europe:

The Americas:

Asia and

Middle

East:

Africa:

ColumbiaDominican Rep.El SalvadorGrand Cayman GuatemalaHaiti Honduras Jamaica

Mexico Netherlands AntillesNicaragua PanamaPeruPuerto RicoUnited StatesVenezuela

ArgentinaBahamas BarbadosBermudaBoliviaBrazilCanada Chile

Indonesia JapanJordanNepalNew ZealandMalaysia PakistanPhilippines

AfghanistanAustraliaBangladeshBruneiCambodiaChinaHong KongIndia

Saudi Arabia SingaporeSouth KoreaSri LankaTaiwanThailandUAEVietnam

CameroonKenyaMorocco

NigeriaSenegalSouth Africa

UgandaZambia

Austria Belgium Czech Rep. Denmark Finland France Germany

HungaryIrelandItalyLuxembourg Netherlands Norway Poland

Russia Slovakia Spain SwedenSwitzerland UK

• Hansa|GCR has conducted global research for the past 30 years.

• Experience in 76 countries, including the world’s emerging markets

• Global network of best-in-world data collection partners

Hansa|GCR International Presence

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Why BRIC and Beyond?

• Emerging markets are important suppliers of manufactured goods, services, and natural resources. – Composition of “emerging markets” is

evolving (BEM)– Represent market growth opportunities

for B2C and B2B products and services• Recent technology advances, heightened

concern about global resources, and saturated home markets have led many companies to explore market opportunities within less developed countries (LDCs).

• Market research tailored to the customs and culture of these markets provides the necessary insight for success in these new markets.

2005 Global Economy

2005 Global Population

2030 Global Economy

Source: The Emerging Markets Century (2007) by Antoine van Agtmael

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Hansa|GCR – Case Studies

Focus today: • Two studies recently conducted for

the Cisco Learning Institute (a nonprofit focusing on improving teaching and learning through technology) – 12 countries in Africa and

Asia/Middle East

• Objective of research:– Assess impact of the Cisco

Networking Academy on four audiences:

• Former students

• Course instructors

• Employers of former students

• Community leaders

Afghanistan

Bangladesh

Cambodia

Jordan

Morocco

Nepal

Cameroon

Kenya

Nigeria

Senegal

Uganda

Zambia

Africa

Asia/ Middle East

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Design Considerations

• Methodology– Flexibility is key

• Multiple methods often required within or across countries• Must tailor design to culture/customs of each country

– Consider client need for comparability across countries – Consider client need for statistically robust results vs.

time and cost parameters– Client preferences for reporting (level, format)

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Design Considerations

• Data collection options and issues– Internet has low penetration

• Access may be only at Internet cafes (cost; frequency of use)

– Phone penetration may also be low• Phone sample difficult to obtain• Cellular vs. land lines• Poor quality connection• Interviewer/respondent compatibility (language/accent)

– Literacy rate may be low, impacting reading/writing capabilities

– Face to face often customary• Shows respect, not necessarily cost-prohibitive• Requires longer data collection and raises data entry issues • May raise ethnic compatibility concerns

– Focus groups

• Group composition must conform to local norms (male/female, age, ethnicity)

• Moderator must be sensitive to local culture and be an acceptable ‘fit’

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Design Considerations

• Questionnaire Design– Cultural differences to consider:

• Familiarity with and use of scales (potential differences in response pattern)

• Differences in appropriate unit of analysis

• Wording of questions to fit local practices while ensuring comparability (jargon, brands, units)

• Preference for formality of language/interview

• Need for translation/use of English

– Ask in-country partners about appropriate languages

– English as a second language for both interviewer and participant adds challenges

– Language impacts response rate (desire to participate, ability to participate, and quality of responses)

– Reverse translation check to ensure consistency of meaning

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Data Collection Considerations

• Schedule more time for data collection– Sample sources less available

• Viable commercial sources (e.g. Yellow Pages; Dun and Bradstreet, consumer/business panels) are rare

• Where sources exist, often strong bias (urban, large businesses, etc.)

• Lack of physical addresses may hinder sampling and access to respondents

• Use of non-probability samples is the norm (judgmental, quota)

– All aspects of data collection take longer • Takes longer to recruit participants• Respondents take more time to complete a survey

(custom, literacy level, translating)• Data entry tasks and additional data processing are

often needed

– Gatekeepers limit/facilitate access to respondents• Understand local customs for contact, payment, etc.

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Data Collection Considerations

• Logistic Considerations– Importance of matching interviewer with

respondent characteristics• Gender • Ethnic subgroups • Language/accent

– Use of in-country partners (social insiders) vs. global or regional partners • Outside partners may be successful, but there

may be unintended bias or lack of expertise in certain markets.– Fluency in language does not mean

cultural fluency

– Geographic proximity and (even in-country partners) not always the best option.

– Quality/control of data collection – Ease of communication with partner– Comparability of results across regions

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Data Collection Considerations

• Logistic Considerations– Incentives

• Culturally appropriate amount/type• Challenge of managing and/or distributing incentives• Increased incentives may not be the best way to

encourage participation.

– Potential Costs/Limitations for Participants• Cell phone expenses• Connection quality/multiple callbacks• Cost of accessing the internet• Availability of electricity

– Legal Respondent Privacy Laws

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Data Quality and Analysis

• Data Quality Issues– Missing data/poor quality open-ended responses – Sampling irregularities– Different units of analysis (e.g. monetary unit, household)– Incompatibility of datamaps from multiple vendors

• Preferable to address or at least be aware of issues early in the data collection process rather than after data collection is completed

• Analysis– Correctly interpreting results across countries requires

understanding of cultural norms and buyer behavior• Propensity to use full range of scale metrics

– May need to standardize scores (z-values) for comparison• Differences in responses by method of data collection• Socioeconomic differences must be considered in comparisons

– Typically want to examine differences within and across countries• Use standard descriptive and advanced analysis techniques • Avoid obscuring country-level differences in macro-level analysis• Data may need to be weighted to provide true market assessment

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Reporting Results

• Preferred format – Word vs. PowerPoint should be determined in

design phase

– English or translated into multiple languages• Avoid use of jargon and local idioms to prevent

misunderstanding

• Tailor report to intended audience– C-level executives, Market

researchers/Product managers, Other stakeholders

• Level of Detail

• Statistical analysis vs. more qualitative insights

• Within-country or across country presentation of results

• Weighted or unweighted results

• Encourage questions, provide clarification

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Research Success for BRIC and Beyond

Keys to Research Success• Clear understanding by all parties of research objectives and

expected deliverables• Open and ongoing communication with client and with fielding

partners – no surprises!• Understanding of and sensitivity to cultural differences • Flexibility in design to accommodate differences across countries• Careful questionnaire development and translation to ensure

meaning is consistent across all countries• Monitoring of data collection to quickly identify and resolve problems• Analysis that accounts for differences in metrics across countries

(i.e., income, education, scale usage) and weights data as necessary• Reporting that avoids jargon and idioms and provides appropriate

level of detail and statistical rigor for intended audience

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Questions and Discussion