For his annual contribution to our international research issue, our former West Coast ad rep/roving reporter Lane Weiss traveled to Spain to speak with Oscar Artiñano Pocheville, associate partner of Madrid-based Arpo Research Consultants.
Lane Weiss: Tell us a bit about your company’s background. For example, how long have you been in business?
Oscar Artiñano Pocheville: We’re a small boutique marketing research company doing qualitative and quantitative research. Arpo has been in the business for over 40 years.
What research methods are most commonly used in Spain? For example, face-to-face research? Focus groups? Telephone interviewing?
Last year the research sector in Spain had a turnover of EUR 400 million, which means a growth of 4.6 percent over the previous year. Ad hoc research accounts for 51 percent, panels 31 percent and the remaining is for omnibus and other kinds of research.
From that, quantitative is the largest part of the market with 82 percent of the turnover, while qualitative takes 15 percent and desk research and other types are 3 percent.
Spain ranks fifth in Europe when referring to volume of the research business, after the U.K., France, Germany and Italy. Our position in the world is ninth.
For qualitative methods, focus groups and depth interviews are most common. Ethnographic interviews have entered the market strongly during the last few years. Multinationals have been occasionally using workshops, in which 15 or so respondents are gathered into a large space, when there is a need to have creative developments. These larger groups can be subdivided into mini groups if need be.
Face-to-face and telephone interviewing are the key quant methods. Face-to-face makes up about 32 percent of the market, telephone 28 percent. Telephone penetration is very good in Spain, which has been a determinant for the growth of this method. Mail research is hardly used as the response rate is very low.
Is Internet research becoming more popular and more viable in Spain?
Online research accounts for about 8 percent of the quantitative research that is conducted in Spain. At the moment Internet penetration is around 65 percent in Spain, which makes Internet research viable, but not as much as the northern European countries where penetration goes up to 90 percent.
We are talking about different cultures. In northern countries they live inside their houses and we here tend to be outside all the time, so in the end Spaniards still use the Internet much less than in other less-warm countries. Internet research is not so much developed on the qualitative side. It’s difficult to use the Internet for qualitative research. Groups are complicated, as not everybody is used to chats, so it all turns out to be quite slow. Subtleties such as tone of voice and body language are key factors which are completely lost online.
Besides, clients are still a bit reluctant to invest in Internet methods like online groups as they like to be present and see the respondents’ faces and reactions. Other barriers are the lack of credibility, i.e., who is behind the keyboard?
We also have to bear in mind that there is a large sector of the population that is computer illiterate and we can’t access them via the Internet.
Internet research can be useful when we need to interview targets who are difficult to recruit. The information obtained will never be as in a face-to-face interview, but at least we can gather data on these targets.
After the boom of the Internet in the late 1990s the research industry wasn’t ready to use Internet methodologies because of the lack of a provider industry: research software companies, quality panels, expertise, etc. Now some companies have appeared in the Spanish market to support marketing research companies and make Internet research more viable in the quantitative side.
What are some of the ways you see the Internet affecting market research in Spain and around the world?
Internet research will grow in the future along with Internet penetration and the incorporation of new users, but we see it being difficult to undertake qualitative research via the Internet. It will be used mainly in quantitative research.
It can be a useful tool that complements other research methods, such as helping logistically when we need to send tasks or stimuli materials to participants or improving the quality of telephone interviews. Blogs are making it easier and faster for respondents to do pre-group homework. Of course, the Internet has affected marketing research; it’s a logistic help that makes research more fun and creative.
What are some of the problems facing marketing research in Spain and around the globe?
Timing is quite a big issue. Turnarounds on projects are sometimes becoming impossible to cover. It is important that clients understand that projects have timelines that can’t be reduced. Moderators need time to assimilate the consumers’ information and analyze it. This is as important as the other parts of the research process and we must respect the time it takes.
Political opinion polls are affecting the image of research among the general public. We don’t do this kind of research, but we understand that its objective is to ascertain voting intentions and not to act as a crystal ball. We think it’s unfair that the reputations of the companies that work on this area are at stake.
Are there privacy laws in Spain that make it difficult to conduct legitimate marketing research? Does telemarketing have a damaging effect on legitimate research, as it does in the U.S.?
We’re under the ESOMAR code of conduct. AEDEMO [the Spanish market research association] works the same code of conduct. There are no other privacy laws, for the moment.
Regarding telemarketing, it undoubtedly affects the image of our sector. Respondents do have a precaution towards our interviewers. However, it is solved from the very beginning when we explain that the purpose of our contact is not to sell or promote anything.
How has consolidation affected the market research industry - in Spain, Europe, the U.S. and around the world? Is consolidation helpful or harmful?
Market research companies have grown considerably during the last years, which has made the market offerings richer and more sophisticated. Competition is always a key factor to improve the quality of the offerings.
Do you feel that your company’s clients have reasonable expectations about what they can learn by conducting marketing research? Do they make effective use of the information they obtain from research?
The relationship between our agency and clients is good. We both value open communication. We offer very individualized service, and there is trust on both sides. All of these things result in an enriching relationship.
Clients perceive research as a tool that is going to help them understand consumer perceptions, reactions and feelings. And this is a key input to help them make the appropriate strategic decisions.
What things can marketing research companies do to help their clients use marketing research data more effectively?
Providing them with clearly-written, effective reports that help them make strategically-sound decisions.
What trends do you see in the use of marketing research in Spain? Are certain kinds of companies or industries doing more research or less research, or doing research for the first time?
Research has reached a maturity level with a growth prospect of 5.5 percent this year, slightly over the European prospect of 5 percent. Previous years saw double-digit market growth, but now we can say that market research in Spain has reached its maturity level, with growth levels more along the European levels of growth. We can say that marketing research is now part of the Spanish business culture.
Growth can still be expected from medium and small companies, which are incorporating research to their marketing departments.
Does marketing research seem to be respected by businesses in Spain? Is conducting research seen as a worthwhile expenditure?
Absolutely, it is a key marketing expenditure. It is one more element that helps the whole marketing process. Spain is already quite a mature market that understands the need for research in order to help to make strategic decisions.
What things can research companies do to help improve the reputation of marketing research among Spanish businesspeople or businesspeople in general?
Get more participation from clients in conferences, workshops, roundtables, etc. Acquire quality certificates from industry bodies.
Are the research departments in the client companies in Spain growing or shrinking?
Almost all multinational companies have research departments. Smaller companies, that previously didn’t have a research department, are creating one as they realize the need to understand their clients is key in their business development.
Besides, marketing research has become an important subject in careers like business administration or publicity and new graduates understand marketing research as a valuable tool.
Do companies in Spain view research providers as consultants in information management or merely as data-gatherers?
Although it’s eventually the client who makes the decisions, we feel very involved with the issues we’re researching and always make recommendations. We’re not simply data gatherers; we analyze data in order to provide recommendations. In fact, this is a key part of the reports we produce. We definitely position ourselves as consultants and think that clients perceive us as such.
How has globalization of the world economy affected marketing research?
Globalization is unifying the marketing of products and services around the world, which results in global research projects. Multinationals require global research applicable to brands marketed worldwide. Spain does play an important role in global research so we tend to be included in a major number of global studies.
Are most of your clients based in Spain or do you have some U.S.-based clients as well?
We have clients all around the world. We collaborate in worldwide research projects where we undertake the Spanish leg of the research. Most of the global research is centralized in London and the U.S. and, as a result, our clients come from those countries.
Do you think more client companies will rely on a global marketing approach or will they tailor their marketing efforts - and also their marketing research efforts - to each country?
The major trend is for global research. The majority of multinationals market global products or services which require research results applicable to many countries. Of course, cultural differences must be taken into account in the design of research and that can certainly be undertaken in each country. So, we would say research demands a global approach tailored to each country’s cultural subtleties.