EC:

Abstract

This paper assesses the degree of homogeneity within the European Community. Based on the economic theory of regional integraion and the literature on international market segmentation, relevant variables are identified for the grouping of countries. These variables are economic, georgraphic, cultural, political, and marketing management variables (product, pricing, promotion, and distribution). The assessment is carried out at objective and subjective levels. Objectively, available data on the 12 EC countries and some other European nonEC countries as well as nonEuropean countries are subjected to factor analysis, cluster analysis, and multidimensional scaling (MDS) analayiss to arrive at a grouping and relative positioning of the countries. Subjectively, similarity data with respect to the marketing management variables and nonmarketing variables are obtained from experts. The similarity data are also subjected to clustering and multidimenstional scaling to arrive at the corresponding groupings and relative positioning of the countries. Implications of the results in terms of developing marketing strategies are discussed.