Country segmentation based on objective quality‐of‐life measures

In order to address the recent demands for innovation in international marketing segmentation, evaluates a set of six commonly‐derived measures for objective quality of life (QoL) – or material conditions of living – across 165 countries of the world. Using clustering analysis, 12 segments of countries based on objective QoL are identified. These segments can be used by policy makers to discern strategic rivals or alliance partners. Alternatively, international marketing practitioners can use these macro‐level clusters as the first stage in hybrid segmentation schemes to find micro groups of consumers dispersed across a number of countries. In addition, an exchange phenomenon between a country and its citizens is suggested by the results of confirmatory factor analysis in which two dimensions of objective QoL – a “benefits” dimension and a “costs” dimension – were identified.