Convergence analysis of household expenditures using the absolute β-convergence method
Background: The paper examines the convergence of household expenditures, in terms of a possible usage of the standardized, rather than consumer-tailored marketing, mainly on a regional level. Objectives: The main goal of this research is to study the existence of consumption expenditure convergence in the EU-27 countries, in the period between 2000 and 2007. Methods/Approach: The analysis used the absolute β-convergence method, in order to investigate the existence of a negative correlation between the growth over time in the overall consumption expenditure in EU member-countries for each individual product and service category and the initial expenditure level. Results: According to the obtained results, in the period between 2000 and 2007, the EU-27 countries reached a high level of consumer expenditure convergence, which provides a basis for developing a regional concept of the standardized international marketing for these countries' markets. Conclusions: The results provide an empirical contribution to claims on consumer convergence in the countries included into economic integrations. Also, the obtained results can be used to create a basis for defining and applying the regional marketing concept for companies focusing on the EU-27 countries' market.
If the inline PDF is not rendering correctly, you can download the PDF file here.
Agarwal, J., Malhotra, N. K., Bolton, R. N. (2010), "A Cross-National and Cross-Cultural Approach to Global Market Segmentation: An Application Using Consumers' Perceived Service Quality", Journal of International Marketing, Vol. 18, No. 3, pp. 18-40.
Boyle, G. E., McCarthy, T. G. (1999), "Simple Measures of Convergence in Per Capita GDP: A Note on Some Further International Evidence", Applied Economics Letters, Vol. 6, No. 6, pp. 343 - 347.
Cateora, P. R., Gilly, M. C., Graham, J. L. (2009). International marketing, 14th ed., New York: McGraw-Hill/Irwin.
De Mooij, M. (2003), "Convergence and divergence in consumer behavior: implications for global advertising", International Journal of Advertising, Vol. 22, No. 2, pp. 183-202.