BEYOND BRIC: Conducting Market Research in Emerging Markets

1. Dr. Jacqueline Brown, Client Services Dir. Andrea Eaker, Sr. Research Consultant BEYOND BRIC: Conducting Market Research in Emerging Markets MRA Educational Conference Portland, OR May 2008

2. Hansa|GCR – Background • 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

3. Hansa|GCR International Presence Hungary Ireland Italy Luxembourg Netherlands Norway Poland Austria Belgium Czech Rep. Denmark Finland France Germany Russia Slovakia Spain Sweden Switzerland 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 Europe: Argentina Bahamas Barbados Bermuda Bolivia Brazil Canada Chile Columbia Dominican Rep. El Salvador Grand Cayman Guatemala Haiti Honduras Jamaica Mexico Netherlands Antilles Nicaragua Panama Peru Puerto Rico United States Venezuela The Americas: Afghanistan Australia Bangladesh Brunei Cambodia China Hong Kong India Saudi Arabia Singapore South Korea Sri Lanka TaiwanThailand UAE Vietnam Indonesia Japan Jordan Nepal New Zealand Malaysia Pakistan Philippines Asia and Middle East: Cameroon Kenya Morocco Nigeria Senegal South Africa Uganda Zambia Africa:

4. Why BRIC and Beyond? 2005 Global Population • 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 2030 Global Economy Source: The Emerging Markets Century (2007)by Antoine van Agtmael

5. Hansa|GCR – Case Studies Cameroon Kenya Nigeria Senegal Uganda Zambia Afghanistan Bangladesh Cambodia Jordan Morocco Nepal 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 Africa Asia/ Middle East

6. 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)

7. 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’

8. 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

9. 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.

10. 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

11. 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

12. 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

13. 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

14. 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

15. Questions and Discussion