Effective communication is the key

Editor’s note: Lyn Montgomery is managing director of Strategic Outlooks Pty. Ltd., Balmain, Australia.

Cultural and economic differences between countries have posed significant problems for the move to make market research an international product. Many articles have been written about how overlooking cultural and regional issues leads to poor research practices. The problem is not in accommodating different cultures, but in recognizing that the researcher’s own culture is already embodied in the research practices. Applying the Golden Rule, and considering how to approach our own culture from an unfamiliar viewpoint will improve the quality of international research.

Any market researcher who fails to appreciate the global nature of business must have a lot of trouble finding work. However, turning market research services into a global product has required a steep learning curve.

There are endless numbers of cultural and economic issues that can affect how well different methods of market research can be applied to countries less familiar with research per se. Such issues include language differences; business and interpersonal protocols; and availability of communication systems such as telephones, fax, e-mail, etc.

As market researchers approach an unfamiliar country they require an understanding of how to avoid alienating respondents or contaminating data by using unsuitable practices. Achieving this understanding requires background research — certainly a daunting task, given the overwhelming body of information that must be sifted through.

A better way of approaching this is to turn the problem around and, instead of trying to understand how international factors affect market research, study what assumptions market research makes about culture.

There is one obvious benefit to this approach that comes to mind: the principles of market research are easier for market researchers to understand than the principles of unfamiliar cultures. And this is doubly true of cultures such as Japan.

Cultural hurdles

It is generally recognized that the biggest challenge for English-speaking businesses in entering the Japanese market is the cultural hurdle. Culture in this sense is a broad spectrum of habits and peculiarities used in day-to-day communication.

The following demonstrates the processes and reasoning behind some market analysis studies we have done in Japan.

The key lesson is that problems don’t emerge from incompatible cultures, but from lack of understanding of the differences between cultures.

Where do we start?

The start of any market research study involves systematically collating all relevant information. This involves a wide variety of material from a number of sources.

You will need to know who the respondents will be, where they are, what they do, and why the information they supply is important.

This information can be obtained from sources such as company prospectuses, industry and customer databases, Web sites, or the media. In many instances the company commissioning the research provides this information.

It is fairly easy to find information about the use of language, business etiquette, technology coverage and business practices. The question is what information will affect the research project, and how.

Despite the differences between Japanese and Western culture, the principles underlying the differences are much the same as any culture. All cultures have formal and informal systems of courtesy, ways of introducing yourself, or how to respect authority etc. If there are differences then is there anything fundamental to the study that needs to be changed?

Probably not. When all these questions have been answered you will usually be left with two valuable groups of information: how to be courteous, and how to communicate.

By considering cultural differences in this manner the researcher has gained a quality foundation for the survey design, and has acquired key information for its implementation.

How is the study developed?

As we have already stated there are obvious development issues such as language differences and their correct translation that will affect the design. Also there are those even more important issues, such as the appropriate way to be polite or how to communicate, to be considered.

Another consideration is the communication medium. It is important to consider the coverage of telephones and computers before conducting phone or e-mail surveys.

Graph

The graph shows an approximate distribution of telephones through the Asia-Pacific region.

Clearly countries like the United States and Australia, with a greater access to telephones, have developed a degree of familiarity with such technologies. Consequently it is necessary to recognize that there is a cultural assumption within the telephone research process.

It follows that cold-calling will have different rates of acceptance. No business wants its valuable assets tied up in unprofitable activities. The rarer the availability of telephone lines the more resistant respondents will be to unsolicited calls.

Market research relies on clear communication for accurate transfer of information. Practices developed in Western countries assume specific parameters about how we communicate. By focusing on the principle of communication before the details, it becomes easier to develop flexible methodologies that will work in any cultural situation.

What is unique about questionnaire design?

Language differences are the most obvious problem in research design. Obviously the translation from English needs close attention.

Steven Lewis has pointed out in an earlier (November 1999) edition of Quirk’s that a common term such as “very satisfied” is frequently misunderstood when translated from English. His suggestion is to use more definitive terms such as “totally satisfied” that are less confusing.

However, the point of a Likert-style question is to plot attitudes on a numerical scale. As such we believe it is more important to focus on the number selection when prompting respondents. This overcomes trying to fix an interpretation on satisfaction, which will normally be a subjective experience.

Additionally, questions written in English may translate into much longer sentences in character-based languages. It is common courtesy, not to mention common sense, to keep a questionnaire as short as possible. All questionnaires should therefore be retested after translation to ensure that the continuity of the questions has also been translated. The researcher should bear in mind what it is he wants to know, rather than keeping the questions rigidly to a formula that works in Western culture. Focus on the outcome required, not just the input.

Again, the key is communication. If the questionnaire is precise and properly directed it shouldn’t be misinterpreted in any culture.

How do you conduct interviews?

The key here is not to go in cold.

From our experience, telephone surveys are very difficult to conduct in Japan. However over the last three years there has been greater acceptance of this methodology by Japanese businesses. One of the problems faced by researchers is the advanced market penetration of telemarketing. For this reason prospective respondents often ask immediately “What are you selling?”

To overcome this the introduction script needs to be precise in explaining the purpose of the call, and you need to target the respondent carefully.

What is our experience?

To highlight the foregoing, we will recount our experience with two studies in Japan. One was conducted on our behalf some three years ago by a large Japanese market research company. The second was conducted in 2000 using native Japanese speakers resident in Australia.

Study 1
The purpose of the study was to ascertain market potential for a specialized software package. The commissioning company wanted to enter the Japanese market, and wished to understand market attitudes to such products; measure market penetration of similar products; and assess potential for its particular product.

As the commissioning company was operating within a tight time frame, a mail survey was not possible, although at that time that would have been preferable. At the time we had limited experience in the Japanese market, and, understanding the cultural differences, we used a Japanese company for the fieldwork. They advised us of the difficulties of the telephone survey, but finally agreed to conduct one, given our time constraints.

We designed the survey structure and questionnaire, and they undertook the telephone survey. They translated the questionnaire, and we deferred to their expertise in changing the wording and construction to suit the local culture.

A major problem we encountered was in sample selection. We sought businesses in various tiers by operating revenue, and it took several weeks of explanation and discussion before we received a sample breakdown. During the process of interviewing we then discovered that the various categories within the sample had been misinterpreted by the field company. This led to three times as many interviews as required within one category, with virtually no interviews in another.

Every problem encountered took many e-mails and telephone calls to clarify and resolve. In some instances the difficulties were never resolved.

Another issue was listing of the companies contacted. In our business-to-business surveys we routinely provide our customer with a list of the companies contacted. We believe this is extremely important in reassuring the customer that we have contacted companies whose input is valid to the research.

The Japanese company at first declined to supply such a list, stating that it was their property, they had conducted the survey, and we had no rights to it. Finally they reluctantly agreed to provide it in Japanese, and we had it translated. This caused considerable delay in delivery of the final report to our customer. Had we understood earlier the cultural bias inherent in this situation it could have been resolved more easily.

A problem that tainted the whole survey was that our selected subcontractor did not have the required level of specialist knowledge of IT products and services. This was mainly due to the rarity at that time of conducting attitudinal research on behalf of information technology vendors. This caused additional complications in communicating our requirements.

Because of the higher cost of living and higher wages in Japan, the cost of the fieldwork was around three times what it would have been in Australia, and seriously eroded our margin.

None of this implies any lack of professionalism on the part of the Japanese company. It is an example of the difficulty in communicating on a very technical subject between two cultures.

Study 2
Another market study we conducted in December 2000 looked at ascertaining the potential for a particular type of technology amongst large Japanese companies. Recalling previous disappointing experiences we elected to conduct the fieldwork ourselves. Once again because of our client’s tight time frame a mail survey was not feasible. This was not such a problem because Japanese attitudes to telephone surveys had changed somewhat in the intervening time.

We employed two mature, native-speaking Japanese with excellent English skills. Both had been living in Australia for many years.

Our client had provided us with a list of “customers.” This turned out to be a list of people in the accounts payable department, and not the correct contacts for our survey.

Our methodology was to call the contact listed, and endeavor to find the correct person. This was quite time-consuming in terms of explaining the role of the person we wanted to talk to. Once this individual had been identified we sent an introductory fax explaining the purpose and content of the survey. This was then followed up with a telephone call to:

  • establish willingness to participate in the survey;
  • determine the most appropriate method for completing the survey;
  • set up a time to conduct the interview.

We then conducted the interviews either by faxing the survey instrument to the respondent, or by telephone, depending on what had been agreed. In this situation we benefited from respondent input on the best way of conducting the study.

After the survey we sent a brief summary of the report results to the respondents. This was offered instead of some sort of monetary or voucher incentive. An important consideration in surveying in Japan is that some form of reward is expected for participation. This aligns with the overall cultural expectation of courtesy and respect for value provided by another.

Many advantages arose from conducting this survey ourselves. Using Japanese speakers resident in Australia meant they had a good understanding of both cultures. Any problems arising during the survey could be dealt with immediately instead of by protracted and confusing conversations between Japan and us.

Finally it was considerably less expensive for our client, and returned a better margin for us.

Focusing on clear and courteous communication, rather than spending resources allaying fears about “cultural differences” achieved these results.

Recognize and appreciate

International market research does not require intensive and time-consuming studies of obscure cultural quirks. The core practice in market research is the efficient communication of information.

If you recognize and appreciate the unique characteristics of Western culture and understand that other cultures will have their own unique characteristics you can respect the differences and work with them.