Country and Consumer Segmentation: Multi-Level Latent Class Analysis of Financial Product Ownership

T.H.A. Bijmolt, L.J. Paas, J.K. Vermunt

Research output: Working paperDiscussion paperOther research output

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Abstract

The financial services sector has internationalized over the last few decades.Important differences and similarities in financial behavior can be anticipated between both consumers within a particular country and those living in different countries.For companies in this market, the appropriate choice between strategic options and the resulting international performance may critically depend on the cross-national demand structure for the various financial products.Insight into country segments and international consumer segments based on domain-specific behavioral variables will therefore be of key strategic importance.We present a multi-level latent class framework for obtaining simultaneously such country and consumer segments.In an empirical study we apply this methodology to data on ownership of eight financial products.Information is available for fifteen European countries, with a sample size of about 1000 consumers per country.We find that both country segments and consumer segments are highly interpretable.Furthermore, consumer segmentation is related to demographic variables such as age and income.Our conclusions feature implications, both academic and managerial, and directions for future research.
Original languageEnglish
Place of PublicationTilburg
PublisherMarketing
Number of pages33
Volume2003-75
Publication statusPublished - 2003

Publication series

NameCentER Discussion Paper
Volume2003-75

Fingerprint

Consumer segmentation
Latent class analysis
Ownership
Financial products
International performance
Financial services
Sample size
Empirical study
Demographic variables
Methodology
Income
Latent class
Strategic options
Financial behavior
Cross-national
Service sector
European countries

Keywords

  • market segmentation
  • finance

Cite this

Bijmolt, T. H. A., Paas, L. J., & Vermunt, J. K. (2003). Country and Consumer Segmentation: Multi-Level Latent Class Analysis of Financial Product Ownership. (CentER Discussion Paper; Vol. 2003-75). Tilburg: Marketing.
Bijmolt, T.H.A. ; Paas, L.J. ; Vermunt, J.K. / Country and Consumer Segmentation : Multi-Level Latent Class Analysis of Financial Product Ownership. Tilburg : Marketing, 2003. (CentER Discussion Paper).
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Bijmolt, THA, Paas, LJ & Vermunt, JK 2003 'Country and Consumer Segmentation: Multi-Level Latent Class Analysis of Financial Product Ownership' CentER Discussion Paper, vol. 2003-75, Marketing, Tilburg.

Country and Consumer Segmentation : Multi-Level Latent Class Analysis of Financial Product Ownership. / Bijmolt, T.H.A.; Paas, L.J.; Vermunt, J.K.

Tilburg : Marketing, 2003. (CentER Discussion Paper; Vol. 2003-75).

Research output: Working paperDiscussion paperOther research output

TY - UNPB

T1 - Country and Consumer Segmentation

T2 - Multi-Level Latent Class Analysis of Financial Product Ownership

AU - Bijmolt, T.H.A.

AU - Paas, L.J.

AU - Vermunt, J.K.

N1 - Pagination: 33

PY - 2003

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N2 - The financial services sector has internationalized over the last few decades.Important differences and similarities in financial behavior can be anticipated between both consumers within a particular country and those living in different countries.For companies in this market, the appropriate choice between strategic options and the resulting international performance may critically depend on the cross-national demand structure for the various financial products.Insight into country segments and international consumer segments based on domain-specific behavioral variables will therefore be of key strategic importance.We present a multi-level latent class framework for obtaining simultaneously such country and consumer segments.In an empirical study we apply this methodology to data on ownership of eight financial products.Information is available for fifteen European countries, with a sample size of about 1000 consumers per country.We find that both country segments and consumer segments are highly interpretable.Furthermore, consumer segmentation is related to demographic variables such as age and income.Our conclusions feature implications, both academic and managerial, and directions for future research.

AB - The financial services sector has internationalized over the last few decades.Important differences and similarities in financial behavior can be anticipated between both consumers within a particular country and those living in different countries.For companies in this market, the appropriate choice between strategic options and the resulting international performance may critically depend on the cross-national demand structure for the various financial products.Insight into country segments and international consumer segments based on domain-specific behavioral variables will therefore be of key strategic importance.We present a multi-level latent class framework for obtaining simultaneously such country and consumer segments.In an empirical study we apply this methodology to data on ownership of eight financial products.Information is available for fifteen European countries, with a sample size of about 1000 consumers per country.We find that both country segments and consumer segments are highly interpretable.Furthermore, consumer segmentation is related to demographic variables such as age and income.Our conclusions feature implications, both academic and managerial, and directions for future research.

KW - market segmentation

KW - finance

M3 - Discussion paper

VL - 2003-75

T3 - CentER Discussion Paper

BT - Country and Consumer Segmentation

PB - Marketing

CY - Tilburg

ER -

Bijmolt THA, Paas LJ, Vermunt JK. Country and Consumer Segmentation: Multi-Level Latent Class Analysis of Financial Product Ownership. Tilburg: Marketing. 2003. (CentER Discussion Paper).