A New Approach to Country Segmentation Utilizing Multinational Diffusion Patterns

The Journal of Marketing, Vol. 57, No. 4, pp. 60-71 (1993)

13 Pages Posted: 4 Jun 2016

See all articles by Kristiaan Helsen

Kristiaan Helsen

Hong Kong University of Science & Technology (HKUST) - Department of Marketing

Kamel Jedidi

Columbia Business School - Marketing

Wayne S. DeSarbo

Pennsylvania State University

Date Written: October 1993

Abstract

Country segmentation has been proposed to assist in marketing strategy decisions for international marketing managers. Such schemes typically consist of grouping or clustering a set of specified countries on the basis of a wide array of macroeconomic variables. The authors focus on the merits of such country classification schemes in gaining an understanding about multinational diffusion patterns. More specifically, they analyze the extent to which countries belonging to the same (different) grouping reveal similar (dissimilar) diffusion patterns. To that end, they compare the results of traditional segmentation approaches with diffusion-based country segments derived for three different consumer durable goods. For the latter, they rely on a recently developed latent-structure methodology, here modified to accommodate the Bass diffusion model, which simultaneously determines the segments and segment-level estimates of the diffusion parameters. They find that the market segments derived from these two approaches differ dramatically and that macro-level variables do not fully explain differences in diffusion patterns across countries. In addition, country segments formed on the basis of diffusion patterns often differ by product. Finally, they discuss some managerial implications and directions for future research.

Suggested Citation

Helsen, Kristiaan and Jedidi, Kamel and DeSarbo, Wayne S., A New Approach to Country Segmentation Utilizing Multinational Diffusion Patterns (October 1993). The Journal of Marketing, Vol. 57, No. 4, pp. 60-71 (1993). Available at SSRN: https://ssrn.com/abstract=2789073

Kristiaan Helsen

Hong Kong University of Science & Technology (HKUST) - Department of Marketing ( email )

Department of Marketing
Clear Water Bay, Kowloon
Hong Kong

Kamel Jedidi

Columbia Business School - Marketing ( email )

New York, NY 10027
United States

Wayne S. DeSarbo (Contact Author)

Pennsylvania State University ( email )

University Park
State College, PA 16802
United States

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