Fitting International Segmentation for Emerging Markets: Conceptual Development and Empirical Illustration

Abstract

The increasing attractiveness of emerging markets (EMs), alongside the progression of internationalization, raises the question whether setting up a unified marketing strategy for EMs and high-income countries is appropriate. In this study, the authors use institutionally induced heterogeneity, which refers to distinct consumer patterns evoked by contextual differences, to elaborate on the requirements of an international segmentation that includes EMs, such as microlevel analyses and the inclusion of institutional effects. The authors numerically illustrate the established requirements by applying a multilevel finite mixture modeling of global consumer multichannel (search and purchase) behavior. Doing so provides an initial large-scale analysis that compares consumers from EMs and high-income countries. The findings broadly support the suggested requirements, contributing to the international segmentation and EM literature. Practitioners can apply the insights of this investigation to establish an international marketing strategy. The key recommendation proposes that a case-by-case analysis of EMs is necessary and that solely considering EMs derives incorrect conclusions about international segmentation.