Master Market Research Challenges & Opportunities

The world of business and market research in emerging markets is filled with countless opportunities and challenges. Imagine a country on the cusp of transformation, evolving from a low-income, pre-industrial society to a modern industrial powerhouse with an improved standard of living. This is the essence of an emerging market—a nation poised to join the global economy.

As these economies experience robust growth, they present enticing investment prospects. However, it’s essential to remember these opportunities come with their fair share of risks. Delving into the world of emerging markets means navigating the complex waters of political instability, information scarcity, currency fluctuations, infrastructure challenges, crime, unrest, and investment volatility. The key to success lies in striking the perfect balance between seizing opportunities and mitigating risks.

Embarking on qualitative market research in emerging markets is an exciting journey, but it’s crucial to be prepared for the unique challenges that impact both the research process and the information gathered. Ensuring credible and reliable data is the cornerstone of successful market research in these dynamic environments.

Researchers and brand owners recognize the importance of understanding consumer behavior. However, in many emerging markets, translating consumer behavior into actionable insights can be a daunting task.

Venturing into market research in emerging markets comes with its own distinct set of challenges. These challenges can significantly impact the findings, potentially leading to outputs that lack strategic insight. Often, brand owners from developed markets lack knowledge or contextual understanding of the issues faced in emerging markets, placing unrealistic demands on researchers to deliver results that may be unattainable.

To navigate these complexities, it’s essential to be aware of the most common challenges, which range from basic infrastructure issues to cultural nuances. Understanding the impact these challenges have on the overall market and market research specifically is crucial, as is identifying potential solutions to overcome them. The table below highlights these challenges, their effects on the marketplace, and strategies to address them.

Challenge	Issue	Solution	Impact
Poor Infrastructure Lack of usable roads in semi-urban and rural areas Poor Wi-Fi-connectivity in most areas  Cost of mobile data for respondents Poor electricity supply and regular loadshedding	Affects access and travel time to get to facilities Sometimes there are no one-way mirror facilities available and thus close-circuit systems need to be installed Affects remote interviews – ability to log on and stay connected for the full session	Arrange central venues and transport for participants – collect and drop Buy data for respondents prior to sessions to ensure they have enough for the full duration Be patient and prepared for re-scheduling Be flexible when it comes to stimulus exhibits due to methodology restrictions (access issues)	Cost implication Longer set-up time needed Longer field time needed Benefit: Quality information/inputs that can be analyzed with confidenc
Potential Corruption & Fraud Potential participants and local vendors cheat or over-state and supply false information	Potential participants cheat and/or overstate on screening details during the recruiting process         Fly-by-night research agencies conduct unreliable research, resulting in reputational damage toward other agencies	Implement extra screening processes to limit/exclude the ‘cheaters’ Over-recruit by a larger number than usual Re-screen prior to sessions Moderator potentially do a final screening	Cost implication (hire reputable agencies) Extra time needs to be allocated for re-screenings Benefit: Better recruiting to find appropriate respondents
Diverse Cultures Diversity in respect of cultures and languages exist, even within one country, but often ethnicity control is not done the same way as in the U.S. (e.g., Caucasian, Asian-American, Hispanic, African American etc.) Misinterpretation of findings due to local cultural nuances	Diversity affects methodologies used and processes when screening (e.g. some cultures will only trust face-to-face and others need parental consent even as adults) Lack of clear language understanding due to language barriers when screening and moderating Poor understanding of cultural nuances, especially when conducting ethnographies (i.e., respondents lying down to feel comfortable or smoking in their homes)	Understand the target groups prior to proposing research methodologies and/or processes Use locals who speak the language and understand the cultural idiosyncrasies or multi-cultural moderators with cultural sensitivity Be flexible in terms of timing deliverables. Where pre-work is needed, do extra reminders Be sensitive to cultural idiosyncrasies as the best results come from respondents that do what is natural to them and not what is expected of them Use local moderators to conduct the research in the local language (don’t force English) and do a detailed debrief. Potentially get local researchers to write up topline	Timing on proposals and field operations – build in extra time Cost to keep it local and back-check cultural challenges/issues Benefit: Better understanding of cultural diversity helps respondents feel at ease and increases willingness to share information
Less Access to Education (Understanding) Locals in emerging markets are not exposed to market research and therefore lack understanding of what it entails and the importance of commitment to ‘show up’	Last-minute cancellations No-shows resulting in group cancellations	Over-recruit Over-communicate. (Ensure participants understand the process and impact of no-shows)	Cost implication Timing issues if groups need re-scheduling Benefit: Improved attendance due to better understanding of what the requirements are and the importance of attendance
Social and Political Instability This can create upheaval and a dangerous situation for all involved. In Latin America, one could also face unforeseen events such as strikes or large demonstrations	Rioting and unrest creates chaos, resulting in participants and vendors unable to reach their destinations	If there is a chance of rioting, and the inability to reach venues, have a pre-determined back-up plan – like online options	Cost implication to change arrangements or even cancel sessions Benefit: Appropriate methodology will deliver better quality results
Research Processes Various factors influence the validity and feasibility of research in emerging markets	Often limited professional resources Sample skews due to hard /difficult recruits Field irregularities that are difficult to control or manage	Design customized research methods to gain best insights	Cost to use resources who have experience in emerging market research Benefit: Better all-round insights and information that can be analyzed successfully
Socio-Economic Status in LatAm Socio-economic status is often diverse, and some markets have specific identifiers in place to measure these, whilst others don’t. These impact recruiting from specific segments Emerging markets in Latin America require specific socioeconomic control.	Recruiting challenges when it comes to finding specific socio-economic segments of the population Multiple variables must be crossed, and it is not enough to ask for education and annual income (which are always monthly, in addition)	Over-recruit AND understand the local market diversity and how it is measured Multiple questions must be asked, which results in longer screeners	Cost to use resources who have experience in emerging market research and have updated information and specific questionnaires for socioeconomic control, specifically the abbreviated versions Benefit: More appropriate recruitment targeting correctly identified respondents that results in quality information collection

How Can Sago Help With Market Research in Emerging Markets?

Sago has vetted partnerships in most emerging markets as well as in-house experts who work alongside brands and agencies to:

Assist with recommendations on best practices in these markets to preempt and mitigate potential challenges and help set expectations on the expected experience for brand clients.
Advise on details that could impact the processes, budgets, insights, and overall outcomes of the research study at hand.