Country and Consumer Segmentation: Multi-Level Latent Class Analysis of Financial Product Ownership
AbstractThe 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.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Tilburg University, Center for Economic Research in its series Discussion Paper with number 2003-75.
Date of creation: 2003
Date of revision:
Contact details of provider:
Web page: http://center.uvt.nl
market segmentation; finance;
Find related papers by JEL classification:
- C2 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables
- D1 - Microeconomics - - Household Behavior
- F00 - International Economics - - General - - - General
- G1 - Financial Economics - - General Financial Markets
- M31 - Business Administration and Business Economics; Marketing; Accounting - - Marketing and Advertising - - - Marketing
This paper has been announced in the following NEP Reports:
- NEP-FIN-2003-08-24 (Finance)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Berger, Allen N. & Dai, Qinglei & Ongena, Steven & Smith, David C., 2003.
"To what extent will the banking industry be globalized? A study of bank nationality and reach in 20 European nations,"
Journal of Banking & Finance,
Elsevier, vol. 27(3), pages 383-415, March.
- Allen N. Berger & Qinglei Dai & Steven Ongena & David C. Smith, 2002. "To what extent will the banking industry be globalized? a study of bank nationality and reach in 20 European nations," International Finance Discussion Papers 725, Board of Governors of the Federal Reserve System (U.S.).
- Allen N. Berger & Qinglei Dai & Steven Ongena & David C. Smith, 2002. "To what extent will the banking industry be globalized? a study of bank nationality and reach in 20 European nations," Finance and Economics Discussion Series 2002-25, Board of Governors of the Federal Reserve System (U.S.).
- Michel Wedel, 2002. "Concomitant variables in finite mixture models," Statistica Neerlandica, Netherlands Society for Statistics and Operations Research, vol. 56(3), pages 362-375.
- Paas, Leonard J., 1998. "Mokken scaling characteristic sets and acquisition patterns of durable- and financial products," Journal of Economic Psychology, Elsevier, vol. 19(3), pages 353-376, June.
- Wagner A. Kamakura & Michel Wedel, 2003. "List augmentation with model based multiple imputation: a case study using a mixed-outcome factor model," Statistica Neerlandica, Netherlands Society for Statistics and Operations Research, vol. 57(1), pages 46-57.
- Geoffrey Soutar & Steven Cornish-Ward, 1997. "Ownership patterns for durable goods and financial assets: a Rasch analysis," Applied Economics, Taylor & Francis Journals, vol. 29(7), pages 903-911.
- Marois, Bernard, 1997. "French banks and European strategy," European Management Journal, Elsevier, vol. 15(2), pages 183-189, April.
- Focarelli, Dario & Pozzolo, Alberto Franco, 2001. "The patterns of cross-border bank mergers and shareholdings in OECD countries," Journal of Banking & Finance, Elsevier, vol. 25(12), pages 2305-2337, December.
- Ramaswami, Sridhar N. & Srivastava, Rajendra K. & McInish, Thomas H., 1992. "An exploratory study of portfolio objectives and asset holdings," Journal of Economic Behavior & Organization, Elsevier, vol. 19(3), pages 285-306, December.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Richard Broekman).
If references are entirely missing, you can add them using this form.