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IDENTITY, DEMOGRAPHICS, AND CONSUMER BEHAVIORS:
INTERNATIONAL MARKET SEGMENTATION ACROSS PRODUCT CATEGORIES
Four decades ago, Wind and Douglas (1972) declared the application of market segmentation to
be as relevant internationally as in domestic markets. With globalization, the subject is ever more
important, yet the literature remains underdeveloped. Bolton and Myers (2003) categorized global
segmentation research as ―still in the early stages of development, both theoretically and
methodologically‖ (p. 123). For various reasons, including the relative ease of acquisition of secondary
data, extant research on international market segmentation (IMS) is primarily based on published sources
(e.g., UN publications, Hofstede‘s [1991] indices). Very few IMS studies draw upon responses from
actual individual consumers. What is more, the empirical research on IMS overwhelmingly focuses on
two or more Triad nations, thereby excluding representation from 85% of the world‘s consumers.
Ironically, it is within emerging markets that future growth opportunities are greatest and primary market
information is scarcest.
The corollary is that marketing theories—largely developed in Anglo-American contexts—have
been applied worldwide (de Mooij, 2004) with the assumption that the antecedents of particular consumer
behaviors are universally valid, or that international consumer behavior differences are inexorably fading
with the globalization of markets (Levitt, 1983). Whereas statements on the convergence of behavioral
patterns worldwide are rife in academic and mainstream publications, there is a dearth of primary
empirical research to support these claims (Papadopoulos et al., 2011; de Mooij, 2004). Against this
background, a firm seeking to internationalize must first decide which population(s) to segment, along
any number of pertinent IMS variables. A truly educated decision would hypothetically entail primary
research on the more than 200 existing nation states—if operating under the belief that the nation-state is
the appropriate unit of analysis for IMS.
Because marketing success often depends upon harmonizing product attributes with customer
attitudes and values, psychographic segmentation is a compelling basis for categorizing consumers
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internationally, complementing approaches primarily based on demographics. Moreover, de Mooij (2004)
argues that as countries converge along socioeconomic indicators, cultural variables assume greater
importance in accounting for cross-country behavioral variation. International marketers also need to
consider how globalization is shaping these culture variables and subsequent consumer behaviors
(Cleveland and Laroche, 2007; Askegaard et al., 2005; Arnett, 2002). Drawing on samples of consumers
living in eight countries on four continents, we investigate two questions pertinent to IMS. First, is a
strong affiliation with the home ethnic culture generally incompatible with a globally-oriented (i.e.,
cosmopolitan) disposition, and furthermore, to what extent is the relationship between ethnic identity
(EID) and cosmopolitanism (COS) stable across cultures and countries? Second, what roles do EID and
COS play in consumer behavior, alongside commonly-employed demographic segmentation variables,
and how do these relationships vary across countries and consumption contexts (represented here by nine
distinct product-categories)? The answers will contribute to IMS and internationalization theory, by
advancing our understanding of the nature and role of the two key constructs, EID and COS; and will
assist international marketers to pinpoint the appropriate criteria for profiling segments across countries
and recognize when and where marketing strategies should be customized at the country level,
standardized across national markets, or blend elements of standardization and localization.
1. THEORETICAL BACKGROUND AND CONCEPTUAL MODEL
1.1. International Market Segmentation
Successful marketing ultimately depends on profitably satisfying consumer needs and wants.
Recognizing that the drivers of consumer behavior are considerably diverse within, between, and across
cultures and contexts, the purpose of segmentation is to identify and ultimately serve individual
consumers who have similar needs and behaviors (Wedel and Kamakura, 1999). International managers
have conventionally approached segmentation at the country level. Under this approach, known as
vertical segmentation, each country is essentially treated as a separate market, thus requiring the
development of separate marketing mixes in order to appeal and satisfy particular within-country
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segments. The interactions between peoples and markets have greatly intensified with globalization,
leading an increasing number of marketing scholars to advocate that international marketers should
instead practice global or horizontal market segmentation – i.e., identify and serve similar groups of
consumers with a common marketing strategy irrespective of country boundaries (Merz et al., 2008;
Bolton and Myers, 2003). The primary benefits of adopting a standardized strategy include economies of
scale and other efficiencies, once a consistent brand identity has been established worldwide. On the other
hand, local brands are more inherently flexible and can be advantageously positioned as uniquely
satisfying the needs of local consumers (Schuiling and Kapferer, 2004). The IMS continuum ranges from
fully global to entirely local. Reflecting the regional linkages established in the past 3 decades (e.g., EU,
NAFTA, Mercosur), many international brands generate most of their revenues from markets proximate
to their home base (Cayla and Eckhardt, 2007). Researchers should thus be on the lookout for market
segments that are regional in scope. To date, however, the body of empirical evidence corroborating the
existence of global and/or regional market segments remains slender (Askegaard et al., 2005; Cayla and
Eckhardt, 2007; de Mooij, 2004).
While demographic variables have long had a prominent role in international segmentation, a
consumer-oriented strategy that is carefully coordinated with target customer attitudes and values has a
greater prospect of success. Two psychographic factors that are especially relevant for market
segmentation in the global era include consumers‘ affiliation to national/ethnic culture and their globally-
oriented dispositions.
1.2. Ethnic Identity (EID)
Subtly yet systematically shaping the thoughts and behaviors of group constituents, identity is the
psychological focal point of cultural effects (Markus and Kitayama, 1991), and a large body of research
testifies to its far-reaching role in consumer behavior (e.g., see Cleveland and Chang, 2009; de Mooij,
2004; Oswald, 1999). EID represents the incorporation of ethnicity into the individual‘s self-concept, and
is therefore distinguishable from ethnic origin and other objective yet imprecise categories like race,
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birthplace, and religion. The latter are typically defined by the researcher, and generally measured
dichotomously or at the nominal level. Within nation-states, however, there have always been varying
degrees of cultural diversity. Even within ethnically-homogenous states like Japan, people vary
substantially in the extent to which they identify with a particular group, and in how much they practice
social norms. EID is therefore subjective, capturing the perceptions of group members along several
dimensions. Its multifaceted nature is well supported in the literature, as are behavioral differences
between ethnic groups. Notwithstanding global integration and the parallel loosening of cultural bounds,
identity remains a fundamental matter for marketers (Bouchet, 1995). Reacting to globalization, some
consumers may elect to entrench localized values and behaviors; others may supplant local norms with
foreign/global alternatives, while still others may supplement a traditional cultural orientation with one
that is ecumenical or world-minded (Cleveland and Laroche, 2007).
1.3. Cosmopolitanism (COS)
The increase of exchanges between countries, cultures, and individuals worldwide has distorted
the traditional distinction between home and away, and some theorists (e.g., Tadmor and Tetlock, 2006;
Arnett, 2002) believe that an increasing number of individuals now combine their national or localized
EID with one that is the linked to an emerging global culture. Just like the emergence of nation-states in
earlier centuries gave rise to national cultures and identities, it is conceivable that the current integration
is engendering a global culture and corresponding transnational identity (Craig and Douglas, 2006) linked
to ―…a conscious openness to the world and to cultural differences‖ (Skrbis et al., 2004, p. 117). These
world-minded consumers have been labeled cosmopolitans. These are individuals holding a specific set of
attitudes, beliefs and skills, namely an openness toward and ability to engage in divergent cultural
encounters, coupled with more international and less provincial self-perceptions (Yeĝenoĝlu, 2005).
Belonging to an elite class, and extensive first-hand contact (via travelling) with other cultures, are no
longer preconditions for cosmopolitanism (COS, conceived as a dispositional basis for international
market segmentation). Global media today enable a broader scope of individuals to develop COS values
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without leaving their native countries (Craig and Douglas, 2006). More broadly, acculturation can be
experienced by persons and groups in their home environments as well as by migrants (Gillespie et al.,
2010).
Portraying COS as globalization occurring within national societies, Beck (2002) states that
cosmopolitans subordinate national values to COS values. Acculturative models depict cultural adaptation
as a process where the acquisition of alternative culture traits need not be accompanied necessarily by a
diminution of traditional cultural traits (Gillespie et al., 2010; Tadmor and Tetlock, 2006; Berry, 1997;
Mendoza, 1989). Accordingly, we argue that a strong EID does not necessarily preclude a strong global
identity, and vice versa. Indeed the advent of so-called third cultures (e.g., global consumer culture) will
not supersede, but rather compliment and coexist alongside, ethnic cultures.
1.4. Behavioral Outcomes across Product-Categories
The different roles taken on by individuals evoke varying degrees of EID (Oswald, 1999;
Mendoza, 1989) as do different situations (Askegaard et al., 2005; Stayman and Deshpandé, 1989). For
example, EID is much more likely to be operant during religious or secular holidays. We posit that since
the salience (and consequent effects) of EID on behavior is contextually-bound, the roles played by EID
and COS are not only variable across individuals but also contingent upon the consumption context. Here,
these contexts are represented by 9 distinct product categories (local/global foods and fashions, personal
care, appliances, consumer electronics, communication devices [i.e., associated behaviors] and luxuries).
One challenge facing international marketers is to comprehend which of EID, COS, or both, will
drive behavior for which product categories. We predict that the role of local culture will be generally
greatest for those categories that, due to their culture-bound properties, are more resilient to outside
influences – such as local foodstuffs and apparel. Food habits are the product of historical, geographic and
cultural factors, and are often strongly tied to local traditions, and clothes are permeated with symbolic
attributes and are also subject to culturally-expressive interpretation (de Mooij, 2004; Peñaloza, 1994). On
the other hand, foreign/global foods and fashions permit individuals to express different identities,
