This research article summarizes issues and perspectives in international market segmentation. It discusses conceptual issues like level of aggregation and choice of segmentation criteria. Methodological issues covered include measure equivalence, sampling equivalence, and segmentation methods. The article reviews previous empirical studies and their results, such as geographically segmented markets and cross-national segments. It proposes a theoretical framework with conceptual and methodological issues as independent variables affecting better international market segmentation as the dependent variable. Suggestions are made to address key challenges through two-stage segmentation and model-based approaches.
11. Multi-Domestic strategy
where each country represents a separate segment
Global or Pan-Domestic strategy
strategy integrated across borders
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12. Results of previous researches
Geographically segments
Substantial membership
High verses low engagement
Segments solutions
Strong national orientation
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13. Results of previous researches
Cross-national segments
Pan-european segment
Specific segment
Continental segmentation
Dependent industries are in different segments
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19. Conceptual issues
Level of aggregation
• Individuals
• Regions
• Countries
Choice of segmentation
• Indentifiability
• Accessibility
• Responsiveness
Construct equivalence
• Functional
• Conceptual
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20. Methodological issues
Measure equivalence
• Calibration equivalence
• Score equivalence
Sampling equivalence
• Choice of respondent
• Sample frame
Segmentation method
• Heuristic
• Model based
Sample size
• Equal across countries
• Proportional to population sizes
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21. Better international market segmentation
Two stage segmentation
• Country clustering
• Cross-national consumer segmentation
Model based segmentation
• Theory and prior knowledge
• Managerial consideration
Correction for response styles
Sample reweighting
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