Volkswagen Marketing Policy in Vietnam - Literature review Example

? The Effect of Economic Crisis to the Marketing Strategy of Volkswagen in Asian Market: The Case of Vietnam 3. Research methodology Research is commonly referred to as the search of knowledge. Apart from that, one can also consider research as a systematic and scientific way of exploring information on a particular area of study (Kumar, 2005). The present study is about evaluating the effect of economic crisis to the marketing strategy of Volkswagen in Asian market. In accordance with the area of study and the objective of the study, a suitable research method has been designed. Through this designed research process, it can be said that the objective of the study will be fulfilled. The research has been divided into six segments. The first section is the research philosophy based on which a particular approach among positivist or interpretivist will be chosen. The next segment will illustrate the research design, where both qualitative and quantitative approach will be evaluated and a suitable approach will be selected. In the third section, the research questions will be highlighted. The fourth section is of prime importance, as this section will put emphasis on the research method for this study. Moreover, it will also shed some light on the chosen method as well on the alternative method available for the study. The subsequent segment will examine the reliability and validity of the research. Finally, the last segment will emphasize on the ethical factors pertaining to the research that is to say it will highlight the ethical considerations adopted for this study. 3.1. Research Philosophy Research Philosophy is a belief about the way data must be gathered, used and analysed for a particular phenomenon. In general there are two major research philosophies namely positivist and interpretivist (City University of Hong Kong, 2011). Positivists are often referred to as scientific methods whereas interpretivists are often regarded as anti-positivist (Tobin and Joseph, 2006). Positivism is a type of research philosophy where it is believed that reality is stable and can be expressed from objective point of view (Mukherji and Albon, 2009). However, it does not interfere with the phenomenon that has been studied. According to this approach, observations must be repeatable while phenomenon must be isolated). In positivism approach the researcher believes that ‘reality’ can be captured with the help of research instruments such as questionnaires and experiments. The primary intention of a positivist research is to offer explanation that leads to predictability and control (Blaxter, Hughes and Tight, 2006). According to Guba and Lincoln (2005), positivism approach has been a predominant way of understanding the social world. In this approach, some of the instruments that are used for the purpose of collecting data questionnaire surveys, structured interviews. Hence, it involves collection of quantitative data. On the other hand, interpretivism approach is another example of research philosophy where the researcher believes that behaviour portrayed by human beings is what they perceive about the circumstance (Hinkel, 2005). In addition, interpretivists believe that the behaviour of people is highly influenced by the meaning and interpretation they give to the communal circumstances. Therefore researchers who belong to this category try to gain insights about these meaning and interpretations and attempt to underpin how people understand and see the world around them (Saunders, Lewis and Thornhill, 2009). According to interpretisvists, instead of collecting or gathering statistical information, it is better to discuss and get emotionally attached with the people. This will facilitate better understanding of the fact that how people observe the world and interprets the same. Some of the popular instruments for this context are in-depth interviews and unstructured interviews (Browne, 2006). Hence it involves collection of qualitative data and based on the findings from the study and also considering the research question, positivism approach will be chosen. This is primarily because of the fact that this study requires substantial amount of statistical data and therefore it would be best to study the quantitative data over qualitative. It is proposed that in order to collect raw data from the market, questionnaire survey will be used. However, alternative ways of collecting the data will be also considered. The next half will shed light on the research design. 3.2. Research Design The study is aimed to find the effect of economic crisis to the marketing strategy of Volkswagen in Asian market. The objective of the study is therefore to test the hypothesis and make conclusion. The hypotheses which have been assumed for this study are economic downturn highly impacts the marketing strategy of Volkswagen largely and the economic slump has minimal impact on the marketing strategy of the chosen company. Therefore to satisfy the objective of the study, the research study needs to be designed properly. A research design is simply regarded as the plan, layout or the strategy which will be employed for the purpose of investigating the research questions. Moreover, earlier studies have emphasized on the fact that the quality of a research design is directly proportional to the quality of the research paper conducted and gathered. Even research design is sometimes considered as the foundation of the whole study process (Kumar, 2010). In the context to study, research will be designed in such a manner that helps us to collect the data and information accurately and feasibly. The research design will nevertheless have two functions. The first function is about the recognition and development of the process to be employed and the second function is to concentrate on the quality of the procedure by inspecting its validity. For every work related to investigation and identification, proper research structure needs to be formulated prior to the data collection stage. According to some of the eminent scholars, the function of a research design is to make sure that substantiation obtained from the research allows us to address the primary question as explicitly as possible (Maxwell, 2008). The steps of designing the research that have been followed during the course of the study are as follows: Determining the work involved in the project Estimating the total cost that will be incurred for the entire course of the study Developing time schedule Finally, verifying the results The research design in general is divided into four basis forms namely experiment, case study, longitudinal design and cross sectional design (Griffin and Moorhead, 2009). Figure 1 - Types of Research Design (Source: Esf-agentschap, n.d.) Among the available forms of research design, the one that has been chosen for this study is cross-sectional design approach. Moreover according to the diagram this research approach is found to be the most appropriate one for this study. Moreover the process used in cross-sectional design approach will help to satisfy the research objectives. The research design is often connected with quantitative and qualitative research methods. The description of both in accordance with study is provided below. Qualitative Research A qualitative research primarily emphasizes on the research quality, rather than focusing on numerical data. In a qualitative research, the researchers mainly gather information regarding how a person construes their live experiences and what they remark about their experiences (Merriam, 2009). Moreover, with the help of qualitative study, researchers will be able to carry out in-depth analysis of the human behaviour. Some of the common data collection instrument that falls into this category is in-depth interview, observation, and unstructured interview among others. Quantitative Research Quantitative research is a type of research study that involves statistical, mathematical and computational techniques. In addition, this technique also requires large amount of numerical data. In other words, quantitative methodology is a research process by which feedbacks or opinions of the respondents about the area of study are recorded and analysed. Some of the data collection instruments which fall into this category are questionnaire and structured interview (Alby, 2006). For this particular study questionnaire survey will be used as the data collection instrument and consequently quantitative research methodology will be adapted to accomplish the study. The following structure will be considered for the study. Figure 2 – Quantitative Research Framework (Source: Bryman and Bell, 2011) 3.3. Research Questions For every project research question is considered as the base of the study. An individual needs to design the research study on the basis of the research question. Therefore research question needs to be clear and concise. Moreover the research question gives proper direction to the study. Now considering the literature review and objective of the study, the research question is formulated below: - - What is the impact of economic downturn in the automotive industry of Vietnam? The reason behind developing this question is that, it helps us to understand how actually the overall automobile industry in Vietnam is getting affected by the economic crisis. Moreover this question will also underpin the areas in business which gets affected by market slowdown. This question has been formulated with the help of section 1.2 and 1.3 of the literature review. - What is the impact of changing consumer behaviour on the automotive industry in Vietnam? This question will help us to uncover how the strategies of automotive industry in Vietnam changes with the changing consumer demand. Apart from that, this question will also help us to understand the influencing factors that lead to change in the consumers needs in Vietnam. This question has been formulated with the help of section 1.5 of the literature review. - What is the optimum marketing strategy for Volkswagen in Vietnam? This question will help us to satisfy the research objective. In addition, this question will also help us to gain insights about the automotive needs of the consumers in Vietnam. This question has been formulated with the help of section 1.7 and 1.8 of the literature review. 3.4. Research Methods There are several methods available for the researchers to carry out a study like this. Among all the available methods of study, the one which has been chosen for this report is questionnaire survey. In addition, an alternative form of data collection instrument has been also considered. The alternative instrument is focus group interview. However, the primary choice is questionnaire survey. The biggest advantage of using questionnaire survey is that it consumes less time and needs less effort. Additionally, if offers a standardized response which highly assists in analysing the data. 3.4.1. Chosen Research Method The chosen research method by which data will be collected for accomplishing the study is questionnaire survey. Questionnaire is generally highlighted as an instrument used in research studies for the purpose of gathering information from the participants of the research. In general a questionnaire consists of a series of questions that are presented to the participants. The primary intention is to get their views on the questionable areas presented to the participants. There are two types of questionnaire, namely, open ended and closed ended. Since the area of study is broad, open ended questions will be used. This will allow the research personnel getting in depth views of the respondents. The aim of the study is to determine the impact of economic downturn to the marketing strategy of Volkswagen Asia. Therefore, questions will be designed in such a way that it tries to extract relevant data related to the topic. The sample or the participants for this study will be the five marketing managers of Volkswagen in the Asian market. Therefore the sample size will be 5. In order to approach the respondents, the HR department of Volkswagen will be approached. The HR’s will be made aware of the study and through them the managers will be approached. Once researchers get in touch with the managers, they will be asked to participate in the research. Moreover, the managers will be offered flexible timing for answering the questions and hence their personal Email addresses will be requested. All the managers will be approached and among them five will be chosen. As the Email addresses are received, questionnaires will be directly sent to their mailboxes. The questionnaire will consist of 17 questions. Keeping in mind about the prior engagements of the managers short questionnaire have been designed. The questionnaires will be forwarded to the mail boxes of those managers, and that will allow them to complete the same according to their convenience. 3.4.2. Alternative Method The alternative method that has been chosen for the study is focus group interview. In this type of research an interview takes place between two people namely interviewer and interviewee. The interviewer asks questions to the respondents for the purpose of obtaining some kind of information. Interview can be segmented as informal interview, closed ended interview and open ended interview. For this study if the questionnaire survey do not turns out successful open ended interview will be used to gather data from the chosen sample. The advantage of an open ended interview is that it helps us to get an in depth view from the respondents of the study. However, the process is time consuming and can be regarded as one of its disadvantages. 3.5. Reliability and Validity In order to carry out a successful research study, it is imperative to have good quality data. This will facilitate researchers to get better insights about the situation. On the other hand poor and non-reliable data may impact the quality of research. For this study, reliability and validity are the two elements by which quality of the collected data will be assessed. According to Miller (2012) the two most fundamental and significant characteristics of any kind of measurement process are validity and reliability. The principles of reliability and validity in accordance with the area of study are portrayed below: Reliability: Reliability can be defined as the level to which the different measurement techniques such as test, observation, questionnaire etc., give the same output or result after repetitive trials (Miller, 2012). It can be also referred to as the consistency or stability of the outcomes over a certain period of time. The reliability however is related to the data obtained and not the person from whom data has been collected. In this context of the study, i.e. to underpin the impact of economic downturn on the marketing strategy of Volkswagen in Asian market, the output of the data will be examined several times. The primary rationale behind examining the data several times is to ensure that the collected data is fully reliable. In general reliability can have three general aspects which are stability, equivalence and internal consistency. Similarly for this study, all the three aspects will be covered and examined. Moreover, reliable data also help to complete the study appropriately. Validity: The validity of a research report can be described as the method by which, it is examined whether the report actually studied what it intended to do or not. In addition to, it also enlightens the level to which the study has been able to accomplish its objective (Mehrens and Lehman, 1987). Validity has three different forms namely content validity evidence, criterion-related validity and construct validity. The research question for this particular was study was divided into 3 sub questions. Therefore, through validity test the study will identify the extent to which the research questions have been addressed. 3.6. Research Ethics The ethical issues pertaining to a research study has received substantial amount of attention over the last few decades (University of Washington School of Medicine, 2010). Ethics play a crucial role towards carrying out the research in an appropriate way. Moreover it is also a necessary factor towards maintaining a proper harmony throughout the research process (University of Washington School of Medicine, 2010). Research ethics are simply about the set of principles regarding how research organizations and researchers must carry out themselves while dealing with the participants of the research, colleagues and other researchers. It is extremely important to conduct the research in accordance with the ethical standards due to number of reasons. For example, to respect and restrict any harm to the participants, to show respect to the person who will use this study and also to ensure the study does not harm any specific group ethical principles should be considered (Orb, Eisenhauer and Wynaden, 2000). There are several issues pertaining to ethics that need to be considered while designing a research that involves human being. However in this context of the study the ethical standpoints adopted are detailed below: For this particular study the research questions are developed in such a manner that they do not cause harm to any of the groups. The research questions have been made simple, so that while trying to uncover it, the data can be gathered without violating the ethical norms. The second thing is that the questionnaire has been designed with the primary intention of gathering data from the participants without forcing them. This is why the questionnaire consists of a third option that allows participants not to answer the question if they feel so. Nevertheless, the questionnaire has been tried to develop in such a way such that there is no infringement of ethical behaviours. 3.7 Summary The study is about evaluating the effect of economic crisis to the marketing strategy of Volkswagen in Asian market. Now to accomplish the objectives of the study positivism approach has been chosen. In addition, the research design chosen for this study is cross-sectional design approach. The primary reason for choosing this approach is that the research process of cross-sectional design approach highly suits the present requirements. Now based on the research questions and research design questionnaire has been selected as the data collection instrument. The ethical dimension of a research is also considered while designing the methodology. Finally, some techniques will be also employed to test the validity and authenticity of the data. References Alby, F., 2006. Methods of collecting data: Interviews and questionnaires in practice. [pdf] Available at: [Accessed 12 December 2012]. Blaxter, L., Hughes, C. and Tight, M., 2006. How to Research. 3rd ed. New York: McGraw-Hill International. Browne, K., 2006. Introducing Sociology for AS Level. 2nd ed. Cambridge: Polity. Bryman, A. and Bell, E., 2011. Business Research Methods. 3rd ed. New York: Oxford University Press. City University of Hong Kong, 2011. Chapter Three: Research Methodology. [pdf] Available at: [Accessed 20 December 2012]. Esf-agentschap, No Date. What is Research Design? [pdf] Available at: [Accessed 12 December 2012]. Griffin, R. W. and Moorhead, G., 2009. Organizational Behaviour: Managing People and Organizations. 9th ed. Connecticut: Cengage Learning. Guba, E. G. and Lincoln, Y. S., 2005. Paradigmatic Controversies, Contradictions and Emerging Confluences. The Sage Handbook of Qualitative Research, 8, pp.191 – 215. Hinkel, E., 2005. Handbook Of Research In Second Language Teaching And Learning. London: Routledge. Kumar, R., 2010. Research Methodology: A Step by Step Guide for Beginners. 3rd ed. London: SAGE Publications. Kumar, R., 2005. Research Methodology: A Step by Step Guide for Beginners. London: SAGE Publications. Maxwell, J. A. 2008. Designing a Qualitative Study. [pdf] Available at: < http://www.corwin.com/upm-data/23772_Ch7.pdf> [Accessed 20 December 2012]. Mehrens, W. A. and Lehmann, I. J., 1987. Using Standardized Tests in Education. New York: Longman. Merriam, S. B., 2009. Qualitative Research: A guide to design and implementation. New Jersey: John Wiley & Sons. Miller, M. J., 2012. Reliability and Validity. [pdf] Available at: < http://michaeljmillerphd.com/res500_lecturenotes/Reliability_and_Validity.pdf> [Accessed 12 December 2012]. Mukherji, P., and Albon, D., 2009. Research Methods in Early Childhood: An Introductory Guide. London: SAGE Publication. Orb, A., Eisenhauer, L. and Wynaden, D., 2000. Ethics in Qualitative Research. Journal of Nursing Scholarship, 33 (1), pp. 93-96. Saunders, M., Lewis, P. and Thornhill, A., 2009. Research Methods for Business Student. 5th ed. New Jersey: Pearson Education Inc. Tobin, P. and Joseph, K., 2006. The Use of Stories and Storytelling as Knowledge Sharing Practices: A Case Study in the South African Mining Industry. [pdf] Available at: [Accessed 12 December 2012]. University of Washington School of Medicine, 2010. Research Ethics. [online] Available at: [Accessed 12 December 2012]. Appendix I – Questionnaire I am a Post Graduate Management student and I need your help in completing the research. My research topic is The Effect of Economic Crisis to the Marketing Strategy of Volkswagen in Asian Market: The Case of Vietnam. Questionnaire Demographics Question Name of the Respondent Age Sex Male Female Association with Volkswagen  Less than 1 year  1 – 5 years  More than 5 years Contact: - Questionnaire for the Question (What are the effects of economic crisis of marketing strategies of Volkswagen in Vietnam?) 1. What are major marketing elements on which Volkswagen focuses on? Product and Pricing Promotion, distribution and branding  Equal value to all   Branding 2. What used to be the total marketing budget of the company?  Less than $50,000  Between $50,000 - $100,000  More than $100,000 3. What is the present marketing budget of the company? What is the reason behind this fluctuation?  Less than $25,000  Between $100,000 - $500,000  More than $500,000 4. Do you think that economic crisis has an impact on the marketing strategy?  Yes  No 5. What areas did the economic crisis actually affected the marketing strategy of the company and How? 6. What was the impact on sales due to economic crisis? Questionnaire for the Question (What is the impact of changing consumer behaviour on the automotive industry in Vietnam?) 1. How consumer behaviour significant for a company? What adjdjflsddfldlasasdlasld 2. Do you think consumer behaviour is of similar importance in the automobile industry as in others?  Yes  No  Can’t say 3. What is the impact of changing consumer needs on the company’s marketing as well as business strategy? 4. What are the areas of business, where the company needs implement frequent changes due to changing consumer needs?  Technology and Innovation New Product Development  Value Chain 5. What measures are taken by the company to deal with the changing needs of the consumers? Questionnaire for the Question (what is the optimum marketing strategy for Volkswagen in Vietnam?) 1. How can the economic condition be responsible for the formulation of marketing strategy?  Large Extent Moderately  No impact 2. Based upon the economic condition and consumer preferences, what promotional media is the most appropriate one for Volkswagen in Vietnam?  Television and Radio (Broadcasting Media) Newspaper, and Magazines (Print Media)  Social Networking websites 3. What pricing Strategy is suitable according to you for attracting the customers?  Penetration pricing Skimming Pricing  Premium Pricing 4. How important is the distribution channel? Do you think having multiple distribution channels increase the sales? 5. Do you think launching new products will improve company’s market position? 6. What changes you want to implement in your current marketing strategy? THANK YOU VERY MUCH FOR YOUR TIME AND PATIENCE! Participant Information Sheet Title of the study: The Effect of Economic Crisis to the Marketing Strategy of Volkswagen in Asian Market: The Case of Vietnam. Introduction I am Mr. Name of the Student (Researcher) student of name of the University is presently undertaking a research on the effect of economic crisis to the marketing strategy of Volkswagen in Asian market: the case of Vietnam. Purpose of the Study The purpose of the study is to underpin how the marketing strategy of Volkswagen in the Asian market is getting impacted by the economic downturn. Participation The participation of the candidates is solely dependent upon their willingness. They are requested to take part in the investigation only when they feel that the investigation will not impact their personal and professional life. In addition, participants have the right to withdraw themselves from the investigation at any point of time. Task of the Participants The participants are required to present their views on the questions send to them. There are some attached questions and the participants are requested to present their views on the space provided. Risk This is just an academic project and the data will not be disclosed to any corporate clients. Moreover, the personal E-mail id of the participants will not be disclosed. Hence, there is no risk associated with this assignment. Contact Details of the Researcher Name of the Researcher Address: Contact Details: XXXXXXX Email ID: XXXX@XXX.XX Consent Form Title of the study: The Effect of Economic Crisis to the Marketing Strategy of Volkswagen in Asian Market: The Case of Vietnam. I confirm that I have read all the information and understood them fully. The researcher has answered all the queries to my fullest satisfaction. I understand that I can withdraw myself from the study at any time. I consent to being a participant in the project. Considering all the above information, I agree to take part in this investigation. Name of the Participant Date Signature of the Participant Read More