Measuring the impact of cultural variances

Editor’s note: Bryce G. Rutter is CEO, and Tammy Humm Donelson is director of marketing and public relations, at Metaphase Design Group, Inc., St. Louis. Copyright Canon Communications LLC. Used by permission.

Studies show that 80 percent of a product’s cost is determined in the first 20 percent of development. Make a few wrong turns in this early stage and soon your product development costs are skyrocketing. One of the keys to eliminating unnecessary costs in product design is conducting design research early in the development stage. When the product is entering the global market, the variances of each country must be considered. In today’s global economy cross-cultural research is fast becoming the technique of choice to determine product viability. At the very simplest level, cross-cultural research involves studying respondents from more than one culture. The dilemma is that “culture” is a very large variable, and interpreting cultural differences is vulnerable to subjectivity.

Medical products are particularly sensitive to cultural influence because the differences in medical practices throughout the world are considerable. Private practice vs. socialized medicine; holistic vs. clinical approach; environments from doctors’ offices to urban hospitals to rural clinics. These are just a few of the cultural differences in medical treatment. Cross-cultural research provides the steps to overcoming these potential marketing barriers.

Like all research, cross-cultural studies provide qualitative and quantitative data that can be translated into an analysis of user needs. Quality cross-cultural research assesses and analyzes differences in perception, context and use in selected countries or geographic locations. Just as successful product developers wouldn’t attempt a new product without comprehensive research, a global enterprise shouldn’t enter the world market without proper cross-cultural research. Information on how products are perceived in different geographic locations greatly increases the likelihood of global success.

Avoiding the pitfalls

Once armed with the right information, it is much easier to penetrate the global market. Unfortunately, in the rush to get to market, some manufacturers take the global plunge and then find out that the lack of cultural information creates a virtual minefield of potential marketing disasters. Here are some of the most common mistakes:

Boardroom design
Boardroom product design usually revolves around marketing, engineering or product aesthetics without involving consumers. The problem with creating the widget and then looking for a market is obvious. Research should test every assumption so that product viability is based on quantitative results. Design by the consumer vs. design by the corporate boardroom ensures greater product acceptance and longevity because the consumer input determines the product outcome.

The “me, too!” mentality
Another tendency of boardroom product design is the “me, too” product that mimics the competitors. This stifles creativity and is a death knell for company growth. Resigning a company to the “me, too” mentality automatically puts it in the role of industry follower, not industry leader. Products are relegated to a commodity market where real differences are hard to find and price becomes the deciding factor. Obviously this is not where manufacturers want to be because it means constantly reducing profit margins to stay competitive. A better option is to differentiate a product through usability and functionality. A comprehensive research matrix that includes cross-culture work, design research, and examinations of ergonomics, marketing, and perception and usability provides a basis for creative thinking that’s grounded in reliable data. Creating a product that captures the market requires out-of-the-box thinking that’s based on consumer input.

Feature creep
Features are not synonymous with functionality. In fact, unnecessary features can be detractors instead of benefits. Feature creep is the result of trying to make one product fit all. One client says they need a particular feature. Another client wants a different feature. Eventually all the features overwhelm the usability. Feature creep happens in every product category; however, medical products are particularly susceptible because they need to work in a host of different medical environments and cultures. Features necessary in one country may not be important in another. Instead of adding different features for each country, cross-cultural research discovers which features can be distilled down into one solution, which can be eliminated and which are required, country-specific variances. The goal is to get this information early in the product development process when all possibilities are open.

Over-simplifying
When consumer and product studies are conducted among respondents in different cultures they are often done on a superficial level that can only make simplistic cultural attributions explaining the differences. Catastrophic mistakes occur when design, manufacturing, or marketing decisions are made based on over-generalized conclusions about ethnic and national groups. It is not enough to report the differences. You must understand why these differences exist.

Culture is a complex and multifaceted phenomenon. Differences in economic, governmental, educational, occupational, ethnic, gender, social class, or family system should be analyzed for their effect on research results.

When should cross-cultural research be used?

To achieve maximum benefit the cross-cultural research team should be included in discussions as soon as there is the desire to pursue a new global product, and should continue to be included at every step of development. Using cross-cultural as well as ergonomic and design research at the front end of the process allows the research team to find value-added opportunities that add little or nothing to the cost but add significantly to the perceived value and profit margin.

Cross-cultural research can uncover the process of interaction between the medical practitioner and the patient. Levels of technological sophistication can vary and the perceived technology interaction must be geared to maximize the process of this interaction. The use of technology needs to enhance the user experience and cross-cultural research can provide the direction.

Define the procedures

By definition, all scientific study requires a precise research methodology consisting of systematic procedures for designing the study, gathering the data, and analyzing the findings. Like other market research, cross-cultural research still uses traditional market slicing by age and gender, but then it goes further to include data on cultural effects, socioeconomic conditions and distribution channels in order to address the concerns unique to each country.

  • Begin research planning with project managers by clearly identifying the overall research objective. Confirm the consistency of the objective in each of the national markets.
  • Define all aspects of the procedure operations to ensure the reliability in the data collection process. The same instructions should be followed during each interview, questionnaire and observation. Follow a standard questionnaire to collect data on consumer response.

Incorporate study control

The objective of all scientific study is to minimize the variables and exercise as much control as possible to obtain clean, reliable data. The analysis and interpretation of cross-cultural results require a thorough investigation of extraneous factors to minimize impact on results. Study control is difficult to obtain when crossing national borders. Sometimes control is equally difficult when sampling various ethnic groups within national borders. Social variables are often impossible to isolate and therefore difficult to control. With the numerous variables that exist among countries, cross-cultural studies require diligent control of all aspects within the sphere of influence. Control of the methodology and neutralizing the language differences are critical factors in obtaining reliable data.

Training of the researchers and field data collection should be standardized. Researchers should be trained on the project background, product being studied, research objectives, and specific procedures to be carried out during interviews and observation.

Our firm conducted studies of an in-office medical instrument in U.S., Japan, France, Germany, and England targeting users and purchasers. Procedural controls included:

  • Identical training for staff design researchers.
  • Standardized questionnaires and other research tools.
  • Specific format for interviews and observations.
  • Native-language speakers. Only individuals whose first language was the required language conducted translations in order to minimize inaccuracies or other confounding factors. (Research materials and questionnaires were also translated by native-language speakers to achieve an acceptable level of control.)
  • Each researcher personally interviewed respondents with assistance from a national language speaker and citizen when appropriate. Most often these assistants served as interpreters/translators, who were briefed on the project details. (As with most research, cost concerns often require a trade-off with research control. Therefore, one researcher collected data in France and Germany, another in the U.S. and England, and a third in Japan, the U.S., and England. Ideal control would involve utilizing the same interviewer in all countries, or having each researcher do a portion of interviews in all countries to eliminate the effects of individual bias.)
  • Translation quality review. The interpreter repeatedly reviewed original translations for accuracy. The researcher reviewed interview details with the interpreter for each country. This review with the assistants confirmed all details required for correct translation during interviews. (Ideal conditions would include money in the research budget for the translated version to be back-translated into the original language by a second individual so the second translation could be compared to the original. The objective is to locate translation discrepancies before data collection begins.)

Different cultures with the same problems

Don’t overlook similarities across cultures; and don’t assume there will be overwhelming differences. Differentiating a product for a certain group may create more problems than it solves. Adaptations of a current design mean more money spent on retooling, manufacturing and marketing. Research may uncover a universal solution that meets the needs of each culture.

The sales team of a patient-warming system wanted to accommodate a certain international client by adding requested features. The result? Profit margins that kept eroding. The product wasn’t universal enough to meet the needs of other users. The “research” had been limited to one user base and the manufacturer suffered the consequences. A redesign reduced the lure locks, inline filters and injection ports. The product was instantly more intuitive and profits margins grew healthy again.

In recent research for an in-office medical equipment manufacturer many similarities were revealed among respondents in all five countries studied. The most appealing product was consistent across countries and many product features had the same appeal or lack of appeal across countries. The findings met the research objectives of the client and solidified the direction for future product development.

The study also revealed major differences between national attitudes. Findings from the U.S. overwhelmingly showed a concern that the device is CLIA-waived and that the doctor’s office or laboratory would be reimbursed for the costs of each test performed with the device. In France, Germany, and the U.K., quality control and accessory prices drove concerns. The differences stemmed from the managed care in the U.S. versus socialized medicine in France, Germany and the U.K. Although different cultures preferred the same product, the research indicates the product needs be marketed differently depending on the medical system of the country.

Often, as in this case, the main objective for the medical device or equipment manufacturer is to come to a global decision on a new product design. Countries are sampled for cultural variances with the purpose of achieving a sample broad enough to generalize the manufacturer’s particular global market. This type of research is not intended to develop country-specific products.

What do the differences mean?

If the objective of the preceding in-office equipment study had been to understand specific national markets, the broad research parameters would have made a perfect setting for the frequent mistakes made by global marketing decision-makers. When the objective is country-specific, the national differences need to be investigated for a deeper understanding of cultural and national influences by including data on cultural effects, socioeconomic conditions and distribution channels. These studies must also address the similarities in findings across cultures and consider these in global marketing decisions. Too often, cross-cultural researchers are so intent on finding differences that the many similarities are overlooked. It’s a common mistake to overlook the global similarities and focus solely on national differences.

Health care product success is particularly dependent on understanding of protocol, procedural differences, and purchasing habits. For example, imagine the different mindsets at work in socialized medicine, HMOs and PPOs. There can be different perceptions of what is a disposable and capitalized expense. Some countries can capitalize an expensive piece of medical equipment but not afford disposables or vice versa. The solution to the sale lies in the bundling. The disposable product can be bundled with the equipment and made part of the capitalized expense. In another purchasing paradigm the equipment can be “earned” through the purchase of specified quantity of disposable items. In the U.S. and other capitalist countries the competition of the open market elevates the importance of profitability. Conversely, profitability is not an issue for socialist and communist countries.

Find the reason for the differences

When you understand the reasons behind the national differences, you have the information necessary to properly position your product in the market. For example, a study found that users and purchasers in the U.S. were less concerned about the price of a medical device than were respondents in England. Instead of mistakenly generalizing about more frivolous purchasing habits of U.S. consumers, one would have to further investigate the health care and insurance industries in the U.S. and England to understand the financial concerns. The researchers would not only need to understand how the industries vary by country but how purchasing procedures vary by private and public sector.

Cultural rules and social norms must be understood to get an accurate analysis of results. Users and purchasers in Japan may report finding a product more appealing than consumers in Germany, for example. But before jumping to conclusions and rolling out a large marketing campaign in Japan and a small campaign in Germany, further analysis is necessary. An understanding of Japanese culture and the importance of harmony in all social interactions would need to be considered when comparing Japanese responses to those in other cultures where respondents are less inclined to emphasize this same social standard.

Respondents in all countries except the U.S. may consistently respond very negatively to the largest model of a medical instrument. Instead of only looking at such surface findings and jumping to country-specific conclusions such as “U.S. users like large instruments and users in Japan, France, Germany, and England like small instruments,” analyze why this country difference exists. Medical offices of Germany, France, Japan and England are smaller on average than typical U.S. offices. Space limitations might be less of a concern in U.S. medical offices; but that does not necessarily mean that U.S. respondents prefer larger instruments. Again, discern the meaning behind the culture variable.

Counting the costs

The cost of cross-cultural research depends on the number of subjects and venues included as well as the degree of complexity and rigor required. The depth and breadth of the ergonomic performance research, competitive analysis and market analysis determines the costs. In assessing the value of cross-cultural research it is important to remember that the earlier research is integrated into the process the more cost-effective it is.

One way to hold down the cost of cross-cultural research is to use your internal resources to the fullest extent. First, assess the resources within your own organization. Do they have the time and capabilities to undertake some or part of the research process? In-house researchers, marketing, engineering and design team members can help to articulate goals and design strategies. Can they develop and implement a comprehensive cross-cultural research program? If you decide you need help, contact professional organizations such as Industrial Designers Society of America (703-759-0100), Design Management Institute (617-338-6380), and Human Factors and Ergonomics Society (310-394-1811). They can direct you to organizations that specialize in cross-cultural research.

The cross-cultural researcher: a new breed

Cross-cultural research is a new breed of research and the cross-cultural researcher is a new hybrid creature that incorporates a variety of education and experience. The cross-cultural researcher has a unique skill set that includes anthropology, psychology, design research, ergonomics and industrial design. Cross-training in several disciplines facilitates smooth passage along the road from research to finished product. The qualified cross-cultural researcher serves as the bridge between the pragmatic and the emotional. While the demand for cross-cultural research continues to grow, the limited availability of qualified researchers means some companies are developing their existing staff by providing the necessary cross-training.

Cross-cultural research takes shape

Simply stated, cross-cultural research identifies the similarities and differences of different cultures. This understanding allows companies to capitalize on commonality and respond to differences appropriately. A well-designed product should answer most consumer needs. However, the needs of different cultures, populations, and countries may not be able to be homogenized into one product. A country-specific variation of a product may be required. The question is: When do you want to find out? Before you’re into the design phase or after you have prototypes? Obviously, the earlier the better. The more thoroughly a product is researched in the early stages, the fewer mistakes occur in the more expensive development phase. The user-centric approach of cross-cultural research eliminates ill-fated proposals early in the game. The streamlined development process ensures that better products get to market faster and more economically.