“Even in the US, market researchers cannot compete with fighter pilots or film stars”
English translation of an interview published in German market research blog marktforschung.de on December 19, 2023
Stefan Hartmann, a native of Germany, emigrated to the US 25 years ago and has been working in the market research industry ever since, formerly for Ipsos and TNS, but also for German institutes. In an interview with marktforschung.de, he talks about why some German research approaches work better in the US than others, why the price for market research is higher in the US, and how he introduces himself at parties.
You moved to the US 25 years ago and do market research there, including for German institutes. Where do you see the biggest differences between market research in the USA and Germany?
SH: Not all methods that German companies bring to the US work well in this market. This is especially true on the qualitative side, where in-depth psychological approaches are preferred in Germany, since many German researchers have an academic background in the field.
But if you try asking an American car buyer what emotions the new front grill design of such-and-such model triggers in them, you will often get surprise and puzzled reactions, followed by answers that German researchers consider superficial.
This is due to cultural reasons. The emotional relationship with a car that is driven regularly and often replaced after two to three years is not as close. And there are certain topics that Americans do not like to talk about with strangers. Not just politics and religion, but your deeper emotions also fall in that category. In-depth psychological approaches can work in the US, but the methods and expectations need to be tempered.
A big issue in Germany is the quality of research, especially samples. How do you perceive the issue in the USA?
SH: There haven’t been scandals involving falsified data as we have seen in Germany. Until a few years ago, the industry here was dominated by larger companies (for example Ipsos and GfK) and data quality was part of their core brand and expected by customers. As a result, subcontractors have always been contractually obliged to comply with their clients’ quality standards.
I have signed such documents a few times over the years and due of the legal risk, subcontractors generally would not risk manipulating data.
However, the quality of participants in online studies has been a hot topic for years. Most established sample providers address this openly and explain what steps they take to minimize participant fraud. A lot of this is done through algorithms that check the entirety of a participant's answers for plausibility. Checking professional networks also helps - if someone claims to earn $250,000 a year, but lists their job as flight attendant, you should ask yourself what's going on there. Good panels also allow suspicious interviews to be replaced free of charge. I can send them a list with the relevant IDs, and the interviews will be replaced without any questions.
According to the ESOMAR Price Index, market research studies are significantly more expensive in the US than in Germany. Can you explain that?
SH: I see two factors at play. In the US, pricing for a study is negotiated between the supplier and the users of the data (usually employees in marketing or product planning). These clients have annual research budgets and can, within certain limits, decide who they want to work with.
Purchasing departments play a more peripheral role in market research projects in the US, mostly to solve legal issues and finalize contracts. If price becomes an issue, the supplier has more flexibility to negotiate than seen in Germany - the methodology is changed or the client takes on certain steps to get to the right price.
Secondly, while wages are subject to lower taxes than in Germany, other items like health insurance and retirement, are much more expensive. With all this is factored in, researchers in the US have to charge higher rates than in Germany. But with a little creativity, most of the gap can be closed. You just have to get a little creative in recruiting, how and where you conduct research, etc. If the budget is remotely reasonable, there should be a way to meet it.
You work for German institutes and take on the project part in America. Which requirements from Germany, for example regarding questionnaires, are sometimes difficult to transfer?
SH: You can implement anything as long as the integrity of the data is not at risk. Occasionally, questionnaire length becomes an issue, but that is universal, not specific to German studies. With web-based tools, long and complicated studies are easy to implement, so some clients are tempted to ask everything they can think of, even if the basic problem is not complicated. That is a “market research spell,” none of us is immune to.
English translations can sometimes get tricky, since the German researchers speak fluent everyday English and have travelled to the US. Some German phrases are hard to adapt and can create confusion among US participants. Plus, language is constantly evolving. One famous example: a cell phone is a “handy” in German, a word that sounds alluringly anglophone. If anyone with a linguistic background reading this article can explain how that term came to be, I am all ears; it still fascinates me to this day. My advice: check with a native speaker of American English, whether that be a colleague from your US branch, a professional translator, or someone from the American agency you work with.
In Germany, the image of the market research industry definitely needs to be improved. What are the reactions in the USA when you come out as a market researcher at a party?
SH: Unfortunately, we cannot compete with fighter pilots or film stars at parties here either. Being part of a small industry in a very large economy, I often have to explain what I do. In the US, lots of questionable activities happen under the guise of market research since the profession - like most others - is not protected. So the person I just met tells me about annoying callers claiming to conduct research when the real reason for the call is to raise political or charitable donations - very annoying. In that situation, I explain that this has nothing to do with legitimate market research, but I am not always successful - probably depends on how late in the evening it is.
There are more and more American football fans in Germany. Are there things from Germany that have gained popularity in the States?
SH: The traditional symbols of German culture are going strong - Christmas culture, classical music, Germany as a travel destination. Many Americans equate German culture with Bavaria, symbolized by large beer steins, lederhosen, polka music. And German cars, of course, although that's a bit of a mixed bag. Americans love their German vehicles but are less impressed with long-term reliability and repair costs.
About
Stefan Hartmann, born in the Rhineland region of Germany, has almost 25 years of market research experience in the US. He holds a master's degree in history, political science and journalism from the Free University of Berlin. Facing life as a taxi driver, he fled to the US and ended up working as a senior research manager and director at Ipsos and TNS. Since he took the leap into independent consulting in 2011, he has conducted research in a variety of industries, from cell phones and computers to home heating systems. He prefers to avoid guns, cigarettes, and gambling, though.
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