What do you consider to be the most significant difference between conducting market research in Asia and in other parts of the world?
W.L.: Online research is not well-developed in all Asian countries so, as a result, the use of online methodologies presents challeges in Asia as compared to other continents. What are considered time- and-cost-efficient methodologies elsewhere can be quite the opposite in Asia. One reason is because internet access is not widespread in all Asian countries. And, where it is available, it is almost exclusively skewed toward entertainment purposes, unlike in the West, where usage is far more diverse.
Of the three main data collection methods, PAPI, CATI, and CAPI, which are available? Which is the most widely used? Is CAWI used? Are any other innovative data collection methods used (e.g., mobile, eye-cam, etc.)?
W.L.: PAPI, CATI, and CAPI are all available in China. For quantitative study, CATI and CLT (central location test) are the two most commonly used methodologies. The CATI system is fast and reliable, and more accurate (less missing data) because it prevents routing errors, especially in complex questionnaires. While CATI is a very strong method for improving timeliness, CLT is a more useful and effective methodology in specific target interviews. It is a face-to-face approach which facilitates comprehension through the use of show cards, pictures, etc. On the other hand, CAWI is still in the growth stage in China, especially in low-tier cities because of the relatively low internet penetration and the reasons stated above.
Door-to-door methodology has seen its heyday. The majority of the population, particularly in large cities such a Shanghai and Beijing, resides in developed apartment blocks, complete with security systems. Therefore, access to middle class and above respondents through door-to-door methodology is greatly lessened. Any sample would be weighted toward lower income and elderly respondents if this form of data collection were used.
Despite the extremely high penetration of mobile users, their use as a data collection method is still relatively untapped.
How do you handle language barriers?
W.L.: In China, there is only one official language, Mandarin Chinese. However, in certain parts of China, such as Shanghai and Guangzhou, local dialects prevail. To achieve accurate consumer insight, we always recommend using local moderators/interviewers for studies in cities.
Do you conduct national representative studies? What is the most common sample size?
W.L.: Yes, we do. Our firm has substantial national representative study experience including projects for both global and local clients. However, China is vast which makes creating a national sampling frame very difficult. Typically, when conducting national studies, we recommend selecting representative cities in each region/sub-region, with consideration given to the differing city tiers.
The sample size depends on the research type and analysis depth of the project. But, generally speaking, nationwide studies always involve a high level, strategic research type, so the sample size is relatively large. As a general rule, a minimum of n=1,000 is required, and if one needs to look at each city, the minimum would then be n=200 per city.
Availability of respondents: are you experiencing any change in the willingness to participate in MR? Are the consumers in China overloaded with questionnaires?
W.L.: Yes, it has changed over the past 10 years or so, as people become less available. But relatively speaking, people in China respond more positively to incentives compared with other more developed markets.
Could you characterize the typical Chinese-consumer?
W.L.: In our view, such characteristics vary widely, contingent upon such factors as variable geographies, different tier cities, differing life stages, etc. Describing a typical Chinese consumer risks oversimplification. As part of a huge, developing country, China’s marketplace has become increasingly sophisticated, therefore, manufacturers must continually adapt in order to satisfy their target consumers. Chinese consumers are heavily bombarded by logos, advertisements, and in-store activities. As a result, the consumption behavior for Chinese consumers is more complex than ever before. It requires ongoing effort to maintain an in-depth understanding of the needs and wants of Chinese consumers.
What are the main industries that are using MR services in China?
W.L.: Fast moving consumer goods (FMCG), automotive, and telecommunications predominate.
Are the MR buyers price-sensitive or quality sensitive? Do small and medium-sized companies buy market research?
W.L.: With competition growing stronger, market research buyers in China are mainly price sensitive, although no one willingly wants to compromise on quality. However, large-scale and high-quality research suppliers are finding it increasingly hard to compete. As buyers opt more and more for cheaper suppliers with low-cost solutions, they are forced to compromise on quality in favor of price.
HR issues: the availability of market research experts– is MR taught at universities?
W.L.: In China, there are no specific university programs for MR in universities. Relevant areas of study include marketing management, statistics, and psychology.
What are the main challenges to conducting market research in China?
W.L.: Sampling in low-tier cities and rural areas is often the biggest challenge. China is a huge country and development throughout is uneven at best. Efficient sampling is relatively easy to accomplish in large cities but very difficult in low-tier cities and rural areas. Many large enterprises would like to conduct MR in these areas but face many hurdles, such as inconvenient transportation, backward communication facilities, and language barriers, to name a few.
Has anything changed as a result of the global financial crisis?
W.L.: During the ongoing global financial crisis period, many global clients have pared down research budgets. Conversely, we are seeing increasing expenditure by Chinese enterprises due to the government stimulus measures.
Country: China
Capital: Beijing
Population: 1.338 billion
Official language: Mandarin
Currency: yuan
GDP (nominal, per capita, 2008) 6000$
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