A cross-national and cross-cultural approach to global market segmentation: An application using consumers' perceived service quality

James Agarwal, Naresh K. Malhotra, Ruth Bolton

Research output: Contribution to journalArticle

68 Citations (Scopus)

Abstract

The spread of global culture is being facilitated by the proliferation of transnational corporations, the rise of global capitalism, widespread aspiration for material possessions, and the homogenization of global consumption. The extent of convergence of cultural values across nations has been debated by international marketing researchers. However, from a practical standpoint, transnational firms require a cross-national, cross-cultural approach to market segmentation that can be used to guide the development of global marketing strategies. In this study, the authors investigate the application of cross-national versus cross-cultural approaches to market segmentation through a rigorous empirical investigation in the context of banking services. Although services constitute the fastest growing sector of the world economy, few studies have examined global market segmentation strategies for them. The authors develop theory-based crossnational hypotheses and test them by estimating a structural model of consumers' perceived service quality using survey data from two countries: the United States and India. They test cross-cultural hypotheses by estimating the same model on culture-based clusters. They demonstrate that there are distinctive differences between cross-national and crosscultural models of perceived service quality and highlight the growing relevance of cross-cultural research approaches. More generally, the cross-national, cross-cultural approach to market segmentation can guide the development of global marketing strategies for services and improve business performance.

Original languageEnglish (US)
Pages (from-to)18-40
Number of pages23
JournalJournal of International Marketing
Volume18
Issue number3
DOIs
StatePublished - 2010
Externally publishedYes

Fingerprint

Perceived service quality
Market segmentation
Cross-national
Global market
Marketing strategy
Global marketing
International marketing
Aspiration
Empirical investigation
India
Homogenization
Cross-cultural research
Business performance
Survey data
Global capitalism
World economy
Cultural values
Transnational corporations
Structural model
Proliferation

Keywords

  • Cross-cultural research
  • Cross-national research
  • Global market segmentation
  • Perceived service quality
  • Structural equation modeling

ASJC Scopus subject areas

  • Business and International Management
  • Economics and Econometrics
  • Marketing

Cite this

A cross-national and cross-cultural approach to global market segmentation : An application using consumers' perceived service quality. / Agarwal, James; Malhotra, Naresh K.; Bolton, Ruth.

In: Journal of International Marketing, Vol. 18, No. 3, 2010, p. 18-40.

Research output: Contribution to journalArticle

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