Page 100 - DMGT547_INTERNATIONAL_MARKETING

Unit 5: International Market Research

category; it is prompted by the shortening of the product life cycle and the intensity of Notes
international competition, as well as by the rapid technological change that increases the need
to segment markets more frequently.

5.4.2 Buyer Behaviour Research

Examining brand preferences and brand attitudes falls into the category of buyer behaviour
research. In most Asian countries, uncertainty is strongly avoided, resulting in high brand
consciousness, brand loyalty, greater insistence on quality, and consumers’ active reliance on
reference groups and opinion leaders. Whereas consumers worldwide are concerned about
monetary, functional, physical, psychological, and social risks, Asians tend to be more sensitive
to social risk than Westerners.
Brand awareness research and purchase behaviour studies are frequently conducted by companies
to assess their position in the market. Other useful studies that belong to this category are
consumer segmentation studies, which are conducted to identify profiles of heavy product
consumers, as well as occasions for consumption.

5.4.3 Product Research

Concept development and testing studies are usually performed in developed countries by the
firms’ research and development departments. When going international, firms usually already
have a successful product to bring to the marketplace; nevertheless, it is still important that they
evaluate the product/service they offer and related marketing mix in light of the different target
markets, regional and local.

Brand name generation and testing is used not only in the consumer goods industry, where its
importance is obvious, but also in companies that have traditionally marketed their products
regionally, such as agricultural goods companies. Product testing identifies the extent to which
the product conforms to local tastes.

Example: PepsiCo Foods International decided to undertake extension product testing
in China before introducing its Cheetos snack food brand.

Notes As for product packaging design studies, firms need to take into consideration
consumers’ reaction to the package, the extent to which the package adequately
communicates information to the consumer, and the distribution implications of the
packaging decisions.

5.4.4 Distribution Research

The distribution function is particularly important in international marketing, where special
attention should be given to import/export regulations and practices, and where companies are
well advised to engage in comprehensive analyses.
Another important type of study is that of channel performance and coverage which may reveal
either that channels need to be further developed at significant expense to the company, or that,
in certain markets, particular channels dominate much of the activity in a particular area.
Finally, plant/warehouse location studies are important, as are evaluation of the transport
infrastructure (roads, shipping, and warehousing infrastructure).

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