The Choice of Variables for Segmentation of the International Market

Author: Nachum L  

Publisher: Emerald Group Publishing Ltd

ISSN: 0265-1335

Source: International Marketing Review, Vol.11, Iss.3, 1994-03, pp. : 54-67

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Abstract

Little is known about the explanatory value of variables commonly used for international segmentation. Therefore there are only vague criteria for guiding the choice of variables for segmentation. Meets this need, using statistical significance in explaining variation in import demand among countries as the criterion. The results show that, in most cases, a small set of variables suffice for explaining variation of import demand; and that measures of trade patterns and monetary situation have strong explanatory value for variation in patterns of import demand for industrial goods. Some of the variables most commonly used as bases for segmentation of these products (e.g. GNP, GNP distribution, size) lack explanatory power. For consumer products the most important explanatory variables are income per capita and level of education.