Marketing Research Challenges In Indonesia: Overcoming Primary Investigative Data Sources, Secondary Sources, Research Cost, Political, And Legal Environment

Marketing research challenges

Write about the Marketing Research Challenges in Indonesia.

Indonesia is one of the fast and promising developing countries in Asia. After the country experiencing the financial crisis in 1997, it has demonstrated a significant pace of the economic development; to become one of the world best leading countries (Rosser 2013). The growth of the economy is due to the realistic macro-economic and internal, and external factors. The country has 240 million citizens with an economy of $514 billion, which is one of the biggest in the south Asia (Rosser 2013). Both geopolitical and economic of the Indonesia is incredible. There was less exposing of the country to the sudden destocking that caused collapsing of the business back in 2008 (Chinn and Fairlie 2010). The primary export of the Indonesia is coals, gas and oil. The country has an exceptional organization and corporate level of operating business activities.

The large population of Indonesia makes the domestic consumption to be high, which contributes to high market potential in local and international business. According to the research, the Indonesia economy is growing at 6% annually. The Indonesia GDP was $960 back in 2009 and $4000 billion currently (Rosser 2013). This papers will seeks to investigate marketing research challenges concerning the Indonesia market and come up with how to overcome the risk associated with problems.

Primary data requires observations and recording directly from the respondents by observing them directly. The main data collections are very complicated and lengthy, and costly. Also,   it comprises the constructions of the experiment, sampling process, survey techniques and questionnaire development (Sekaran and Bougie 2016). Primary research entails collecting and analyzing the new information by conducting a focus group and telephone interviews, and market study. Characterization of the primary data includes the high level of use because it solves the exact problems.  One of the disadvantages of the primary is data is that; its cost of collecting in the foreign developing countries is high because of the inadequate marketing research infrastructure. Qualitative are structures such as survey and experiments (Bryman and Bell 2015). The qualitative study takes a form of observation or the focus groups. In contrast is that the responses are interfered by the culture of the country.  The cross-cultural in the international marketing research needs proper examination of the attitudes and behaviors

There is a significant difference between the national and international marketing research because of the big difference in the country’s economics, law, politics and culture (Papadopoulos and Martín Martín 2011). The accessibility and accuracy of the information will depend if the marketing research was successful or not. One of the biggest problems in collecting the data from Indonesia is that companies and persons will refuse to give feedback to the questions the research does ask. The Indonesia businesses are conservative in giving the information about the information relating to their companies (Papadopoulos and Martín Martín 2011). Additionally, it becomes tough to reach to other firms either directly for the market research surveys. Moreover, the informational collected in the Indonesia market might be a wrong, hence false conclusion on the studies. Finally, the business might think that the information marketing researcher gathering might affect their operation in one way or another. One way to solve this is that researcher can ask questions directly to the suppliers or consumers as they come to the companies. Marketers should use the information from the Indonesia government experts, industry associations or the academic organizations (Okazaki and Taylor 2013). The primary researchers can depend on the experts from the Indonesia because of the important characters in the academic, government and industrial institutions.

Primary data sources

It involves processing the data from the previous researchers such as press articles or reports. Secondary data comprises the general data supplied to the enterprises by various data services like consumer buying behaviors, retail inventory or market share (Sekaran and Bougie 2016). As earlier mentioned, the difficulties arising from the law, politics and culture, may give the international research a tough time. The unavailability and unreliability of the secondary data may bring problems to the international companies using secondary information. However, the secondary sources are possible in the Indonesia share (Sekaran and Bougie 2016). Some of the information from inexperienced researchers might rely on consumers’ expectations and need. Therefore, the secondary data lacks trust in Indonesia due to the method of the collections and analyzing from the persons. Key challenges of conducting research are due to the divided markets and extreme environment in the parts of the Indonesia (Kitinoja et al. 2011). In the process of the collecting data, researchers might experience some certain mistakes in the course of collecting and analyzing, contributed to the lack of experience. The probability of the error increasing when it reaches the international researchers is high and therefore,  chances of trusting the data collections in Indonesia is very minimal.

Marketers can avoid the problems by practicing the following; researchers should do their research using their own experienced and skilled staff, and also getting the primary information is crucial (Okazaki and Taylor 2013).  It is important to understand the Indonesia culture.  Christian in Indonesia comprises 9%, 3% are Hindu, 2% Buddhist and most of the Indonesia Muslim are Sunni (Panagopoulos et al. 2011).  Indonesia contains around 300 ethnic groups with cultural practices over the centuries. Arabic, European, Chinese and Indian influences the culture (Jafari, Othman and Nor 2012). Conducting a market research in an international surrounding entails concentrating on the learning and obtaining new things. In the marketing perspectives, it includes having a vast knowledge of the native’s culture. National culture includes languages social role, educations, social institutions and religion (Abduh and Azmi Omar 2012). Target market knowledge is essential for the conducting and analyzing the market research. Skills such as technology and education are also vital when operating research internationally. Therefore, native will be very reliable and can collect the right data and information. Similarly, the natives are well conversant with Indonesia culture and preferences. In Indonesia government, all the industries collect their secondary data and therefore, the likelihood of getting correct and reliable information is high (Suryahadi, Hadiwidjaja and Sumarto 2012). So, the secondary data can give valuable information even though it is not always right.

Secondary sources

There is a likelihood of the research ignoring the aspect of the finance when doing research planning. The errors can arise due to the limited activity contributed by the financial constraints. Sometimes researchers are forced to terminate the research process due to the lack of the finances. The process of the collecting and analyzing the primary and secondary data in international research is costly compared to the national marketing research (Zikmund et al. 2013). Also, the cost the company incurs in the process of the research affects the company profit. Corruption, higher travel cost, high inflations, currency fluctuations in the Indonesia market can lead to a huge cost (Terpstra, Foley and Sarathy 2012). Therefore, in case of the Indonesia currency fluctuating, it affects the travel and staff cost, and more so, the research cost will increase. The research should avert the influence of the currency fluctuation and research well on the Indonesia currency fluctuation.

The political and legal environment of the country affects the marketing research activities of the international firms. The businesses should be aware of the sanctions which distort free international market research and business operations. The firms should know the laws of the state and control their business activity. For instance, the Indonesia limits importation of the United States relating to entertainment to protect their cultural activities (Sekaran and Bougie 2016). In addition, there are regulations such as grants that encourage the international business to invest in the countries of operation. The international marketers should observe global political and legal system so that they can plan marketing approach correctly.  

Corruptions, moral obligations, human rights, employment practices contribute to ethical problems in the Indonesia. Misunderstanding will arise due to the vast changes in the management approach in the Indonesia (He and Wei 2011).  . Even though recent studies show low violation of human rights in Indonesia, it is of an essence to seek the auditor when researching. The formalization of the Indonesia environmental is still on course, and thus it poses challenges in the international marketer to follows the policies. Despite the changes in the structure of the government, it has been unable to curb the issues of the corruption in Indonesia (Sekaran and Bougie 2016). Therefore, the factors of the corruption have made international marketers to be reluctant towards Indonesia, in spite of country being a business hub.

There has been tremendous growth in mobile industries across Asia-pacific area with an increase of 60% annually (He and Wei 2011).  Hence, the Indonesia citizen is having access to the phone, but previous, they would not have proper access to the telecommunication services. Due to the drastic growth of trucks, cars and motorcycles in Indonesia, it makes the infrastructure in the area very inadequate (Rosser 2013). Therefore, for the proper market research for international business, the government should improve and increase the telecommunication services and infrastructure.

Research Cost

The main aim of the Marketing research is to improve the marketing decisions; by setting the decision-making plan. Accurate and efficient data information enables excellent decision making (He and Wei 2011). Organization and individuals should handle the needs of the consumers that comprise the market and the situations they meet themselves in.  Reliable data are relevant in the competitive markets where the decision implementation requires major monetary resources (Czinkota and Ronkainen 2013). The advantage of the market research is to avert the risk and to know the demand of the markets and to reduce the chances of developing wrong good and services.

Indonesia is a pretty place for the international trade but has a lot of threats. Hence, the international organization should take a proactive approach while considering the market research and investment opportunities.  Vibrant tourism, reinforced banking sectors, diversity of natural possessions, political strength and high competition contributed to the low labor costs is strengths that assist in the decision making for the internal marketers. In contrast, the following weaknesses should be taken into account when articulating actual risk management; lack of transparency and high level of corruption in Indonesia, lack of infrastructure,  low investment rate, high level of poverty and unemployment due to the inter-ethnic pressures, and limited banking sector.

Conclusion

Apparently, the issues of the various challenges from the international marketing research are developing. Due to the globalizations, emerging markets are taking a significant role in international marketing research and trade. In Indonesia, there are three significant challenges in the marketing research; inadequate primary and secondary data, and higher marketing research cost. A company operating global may experience numerous difficulties in the process of marketing research in Indonesia. First, one of the intricate designs is the multicultural environment. Secondly, the cost of the collecting and analyzing primary and secondary data in the foreign countries is one of the hitches. The essay offers an outstanding overview of the viability and risk involved in the conducting research and investing in the Indonesia. Several challenges such as uncertain legal structure, lack of infrastructure and corruption pose numerous difficulties for the international marketers.

References

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