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The role of context in assessinginternational marketing

opportunitiesSusan P. Douglas and C. Samuel Craig

Stern School of Business, New York University, New York, New York, USA

Abstract

Purpose The choice of which country or countries to enter is a critical decision and needs to bemade with considerable care and deliberation. Initial market entry decisions have typically focused oncountry evaluations based on macro-economic data. While appropriate in providing an initialscreening of countries, other factors, notably contextual factors, can provide important insights inassessing international market opportunities. The purpose of this paper is to examine the impact ofcontext at four distinct levels.Design/methodology/approach The literature on the influence of context on consumption andpurchase behavior is reviewed to provide a framework to understand contextual factors as a means torefine entry strategy and develop effective segmentation strategies.Findings A wide range of contextual factors exert influence on consumption choices and contributeto within-country heterogeneity. These are typically examined at the macro-level, but also need to beexamined at the meso-level, micro-level and situational level to fully assess market opportunities andestablish viable market segments.Practical implications Examination of contextual factors provides a richer and deeperunderstanding of which international markets to enter and which segments to target. Within-countrycultural diversity, dramatic economic and regional disparities and marked differences in theinfrastructure need to be assessed. In particular, examination of contextual factors helps to shed lighton heterogeneity within countries not only in customer behavior, but also in the nature of the marketinfrastructure. This is a key element, not only in formulating entry and segmentation strategies, butalso in implementing those strategies.

Originality/value The effect of context has received little attention to date. The currentpaper highlights the importance of considering contextual factors and their impact on consumptionbehavior an issue which has largely been ignored in previous research.

Keywords International business, Market entry, Market segmentation, Consumption,Consumer behaviour

Paper type Research paper

IntroductionIn assessing international marketing opportunities for initial market entry, firms havetypically adopted a sequential approach, focusing first on macro-level data and thenselecting a limited number of countries to examine in more depth (Cavusgil, 1985;Papadopoulos and Denis, 1988; Kumaret al., 1994; Craig and Douglas, 2005). While

this approach provides a basis for ranking countries in terms of relative attractiveness,further data need to be collected to identify potential target customers or marketsegments and develop an effective marketing strategy to target such customers.Countries may be similar in terms of macro-economic factors such as the level ofeconomic development or urbanization, but vary dramatically in terms of othercontextual factors such as regional and cultural variation within-country, or the natureof the marketing and retail infrastructure. These have an important impact on targetmarket selection, as well as the formulation of marketing strategies. Further, asmarkets expand and become more complex, firms are developing finely tuned

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Received July 2009Revised July 2009Accepted October 2010

International Marketing ReviewVol. 28 No. 2, 2011pp. 150-162r Emerald Group Publishing Limited0265-1335DOI 10.1108/02651331111122641

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segmentation strategies, identifying target segments within and across countries, anddifferentiating strategies based on similarities in customer tastes and interests, as wellas the context in which consumption and purchasing take place.

As a result of the increased geographic and technological complexity of managing

international operations, firms need to pay more attention to the broader socio-culturaland ecological context of consumption and purchase behavior in evaluatinginternational marketing opportunities. This entails examining not only differences inthe macro-environmental or country level, but also within-country differences such asthe characteristics of an urban vs rural context, the household living arrangements andsocial interaction, the marketing and media infrastructure, as well as the specificsituational context in which consumption takes place. In addition, this approach canprovide important insights not only into how a product or service can best be designedto fit the consumption context, but also how it can be appropriately positioned andpromoted. This in turn requires greater attention to collecting information (bothquantitative and qualitative) relating to consumption contexts and factors which varyacross and within countries and influence behavior in these contexts. This paper

examines the impact of context at four distinct levels and suggests how this mayimpact market selection and segmentation decisions.

The role and influence of contextual factorsConsumption takes place within a context, and the context along with other factorshelps shape values and attitudes, as well as influencing both broad and specificconsumption choices. It is important to develop a deeper understanding not only ofthe role of the context in shaping consumption and purchase behavior, but also tounderstand the variations in contextual factors across and within countries. Figure 1shows the four key levels of context nested within each other. The key element is thattwo countries may have highly similar macro-environmental contexts, but differdramatically in context at other levels. Further, there may be significant variation

within a country that limits opportunities for segmentation strategies. There may alsobe opportunities to target consumers across countries where the macro-level contextsmay be dissimilar, but meso- or micro-level factors are highly similar, at least in aparticular region or area.

Country A

Macro-level factors Macro-level factors

Micro-level factors Micro-level factors

Situational factors Situational factors

Consumption

and purchase

behavior

Consumption

and purchase

behavior

Meso-level factors Meso-level factors

Country B

Figure Levels of contextu

comparison within aacross countr

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The wide range of contextual factors existing at different levels impact consumervalues, attitudes and consumption behavior. These range from macro-environmentalfactors relating to a given country or region in the world including, for example,economic factors such as the level of GNI per capita, socio-cultural factors such as

values, income distribution, the role of women and demographic factors such as thesize of different age groups, or urbanization; meso- or middle-level factors such asregional, economic or cultural variations within a country; micro-level or more specificfactors such as local population density, the media or distribution infrastructure, localeducational or social institutions and living arrangements such as extended vs primaryfamily habitations; and situation-specific factors relating to differences in behavior onspecific occasions vs daily routines. Illustrative factors in each of these categories aresummarized in Table I to provide some indication of the range and diversity ofcontextual influences.

In addition to being surrogates for market potential, contextual factors play a keyrole in the formation and perpetuation of cultural values and behavior, as well asdirectly impacting consumer attitudes and behavior. Interactions within and beyond

the family unit will mediate the impact of macro-environmental forces. In some cases,these interactions may reinforce the impact of contextual variables on individualsbehavior. In other cases, they may diminish the influence of these factors on values,attitudes and behavior, and act as barriers to change, both at a societal or individuallevel (Craig and Douglas, 2006). Contextual factors are thus key elements influencingconsumer attitudes and behavior and patterns of segmentation. Even where theirinfluence is subtle and indirect, they need to be taken into account in assessing marketopportunities and determining which countries offer the best market potential.

Macro-environmental factorsMacro-environmental factors constitute an important element of context and have beenwidely used in cross-cultural research, largely due to their availability in data sources

such as the World Bank and United Nations (UN) publications. The types of macro-environmental variables, which condition consumer behavior, include economicvariables such as GNI per capita, income distribution, demographic factors such aspopulation size and rate of growth, levels of education, socio-cultural factors such ascultural values, religion and geographic factors such as climate or topography. Whileeach of these different factors can be clearly identified, it is important to rememberthat they interact with each other, as well as conditioning variables at other levels ofcontext.

Beyond being primary indicators of market potential, there is ample evidence thatmacro-environmental factors exert influence on underlying consumption values andbehavior. Work by Berry and colleagues (Berry, 1975, 2001; Georgas and Berry, 1995)provides a framework for examining the role of contextual factors at the macro- and

meso-levels. Differences in human behavior and attitudes are viewed as a set ofcollective and individual adaptations to contextual factors and more specifically,ecological and sociopolitical systems (Mishraet al., 1996). Ecological and socio-politicalinfluences follow a pattern of interaction and adaptation as change in one areaor part of the system impacts another part. Human organisms both interact with andadapt to their physical environment in order to satisfy basic needs for food, shelter,friendship, achievement, etc. At the same time, changes in human interaction andbehavior occur through socio-political institutions such as education, employmentand religion.

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Macro-levelfactors

Meso-levelfactors

Micro-levelfactors

Situationalf

actors

Economicfactors

LevelofGNIpercapita

Rateofeconomicgrowth

Incomedistribution/inequality

Governmentexpendituresa

spercentofGDP

Productregulationandenfo

rcement

Demographicfactors

Population

Sizeofdifferentagecohorts

Populationgrowth

Homeownership

Educationlevel

Degreeofurbanization

Socio-culturalfactors

Socio-culturalvalues

Roleofwomeninsociety

Importanceofdifferentrelig

ions

Internetusage

Networkingsitesandbehav

ior

Geographicfactors

Topography

Climate

Arableland

Availabilityofnaturalresou

rces

Within-country

differencesiny

Topography

Climate

Ethnicgroupings

Urbanization

Affluence

Language

Lifestyle

Culture

Locallevelinformationoneconomic

,

demographic

,geographicandsocio-culturalfactors

Marketinfrastructure

Number,

sizeandtypesofsto

resavailable

Socialandlivingcontext

Natureofhousingandfamily

living

arrangements

Mediacontext

Availability

Cost

Specificsitua

tioninwhich

consumption

takesplace

Athomevs

out-of-home

Personaluse

vsgift

Event-specif

ic

Weddings

Birthdays

Ritesofpassage

Workvsleis

ure

Familyvscolleagues

TableTypical contextual facto

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Georgas et al. (2004) applied the ecological framework to examine differences inpsychological characteristics and in particular, in values across countries andgeographic zones, identifying six principal contextual dimensions: ecology, economy,education, mass media, population and religion. Since these are critical in

understanding psychological values, similar factors may be expected to impactconsumer values, attitudes and behavior patterns as these are deeply imbedded in andto a large extent formed by social values.

Economic factors. A range of economic factors condition consumer behavior andvary substantially between countries. A key economic factor is the level of GNI percapita that impacts consumer ability to purchase and is particularly relevant for amarketer of luxury or high-end goods or marketers of discretionary goods such asclothing, consumer electronics and entertainment. It is important to view such factorswithin the context of the general economic climate and rate of economic growth. Whenconsumers are pessimistic about the economic climate and the future, they may delayexpenditure in discretionary items such as travel, clothing or replacement of itemssuch as consumer electronics or home furnishings in favor of essential items such as

food or household maintenance.It is, however, important to note that the average level of GNI per capita may mask

factors such as income distribution, which may be highly unequal in certain countries,notably, for example, a number of countries in the Middle East and Latin America.Consequently, in these countries marketers of expensive items may find a sizeablemarket at the upper end of the income spectrum. This is in marked contrast to theScandinavian countries where there is considerable social inequality and displays ofconspicuous consumption are considered inappropriate. Equally, in considering incomelevels, it is important to take into consideration local prices that impact living costs.For example, while Norway had the highest GNI per capita in 2008 at US$87,070(World Bank, 2010), this was estimated to be only US$58,000 in terms of purchasingpower parity. Levels of taxation impact consumer discretionary income, as well as

prices of selected products such as fuel, alcohol and automobiles. Again, governmentexpenditures on health, welfare and education as well as the physical infrastructurecan substantially impact private expenditures in such categories, as well as livingcosts and conditions.

Demographic factors. Demographic factors are important in delineating market sizeand growth potential. Population size in conjunction with income levels determinesmarket potential for a wide range of products from fast-moving consumer goods andconsumer durables to services and industrial products. Equally, population growth,whether as a result of the natural growth rate or immigration, as well as the relativesize of different age groups, affects long-run market potential for different productcategories. The aging population in developed countries of the industrial triad leads tohigher levels of expenditure on health care, pharmaceuticals and related services.

Middle and high-income retirees provide a prime market for travel, notably cruises, aswell as certain forms of entertainment and leisure activities. Teenagers and youngadults, on the other hand, are a key target for electronic games and other electronicgadgets, and young married couples for inexpensive household durables andhousing. Education levels are another factor influencing consumption patterns. This is,however, strongly associated with income. Consequently, when considering theimpact of education in consumption it is important to consider relative income levels(Katz-Gerro, 1999). For example, certain professions such as clergy, teachers and socialworkers may have high levels of education relative to income, resulting in allocation of

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a high proportion of income to literary and educational activities. Illiteracy levels alsovary from country to country, as well as among different groupings within countries.In many countries in the Middle East and in some Asian countries, illiteracy isconsiderably higher among women than men (World Bank, 2010).

Socio-cultural factors. Socio-cultural factors reflect a blend of demographic andeconomic factors and have an immediate impact on how people carry out their dailylives. Housing arrangements influence behavior patterns and vary considerably fromone country to another as well as within countries. While in Western countries, couplestypically establish their own households and purchase homes after marriage, in othercountries, notably in Asia, the extended family lives together in one home or housingcomplex. Extended family arrangements often result in collective consumptionpatterns in relation to meals, social occasions, etc. where one or more family members(typically the female members of the household) are responsible for shopping, othersfor cooking, cleaning and so on. The degree of urbanization also varies from onecountry to another, and influences housing and consumption patterns. The proportionof the population living in apartments is likely to be strongly associated with

urbanization and impacts living and consumption patterns, notably in relation tosocialization, entertainment and leisure behavior. Urban areas also typically have ahigher concentration of affluent consumers, though in many developed countries,affluent families may have two or more homes. However, consumption of higherend products, expenditure on entertainment, financial services and eating out inrestaurants is likely to be considerably higher in urban areas.

Geographic factors. Consumers exist in physical environments that differ in climate,topography and the availability of natural resources. These geographic factors shapetheir consumption choices and standard of living, as well as influencing values andbeliefs. Parker and colleagues (Parker, 1997; Parker and Tavassoli, 2000; Van de Vliertet al., 2004) have examined the effect of geographic location on a variety of factorsincluding mood and values, diet, housing and clothing choices, activity levels and

consumption of alcoholic beverages. Geographic location thus explains a significantamount of variation in human behavior and the most pronounced differences are afunction of latitude. Countries that span large north/south differences, such as Chinaand India, tend to have substantial within-country variation in consumption behavior.

Meso-level factorsContextual variations can also occur at the meso- or middle level, i.e. within countriesand regions within countries. This is particularly likely to occur within large countrieswhere there are marked differences in topography, climate, ethnic groupings and urbanvs rural populations. These in turn may result in major differences in consumptionpatterns and purchasing behavior, especially where there are significant differencesin the distribution and market infrastructure between regions. In China, for example,

there are marked differences in the economic infrastructure, consumer purchasingpower and distribution channels between different regions (Batra, 1997; Cui andLiu, 2000).

One study (Cui and Liu, 2000) identified seven different regional markets in China:south, east, north, central, southwest, northwest and northeast. The major growthmarkets are in the south and east around cities such as Guangdong, Fujian andShanghai. Consumers in these areas are among the most prosperous in China, andsince they are closer to Hong Kong and Taiwan and have long been exposed to foreignproducts, tend to be innovative and highly cosmopolitan. Consequently, they are

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setting trends in fashion and lifestyles. Markets in the north, central and southwest ofChina have also been growing rapidly in recent years and are becoming increasinglyattractive for global companies. North China includes Beijing and Tianjin and hashistorically been the geopolitical base of the country. Recently, substantial investment

has been made in industries such as telecommunications, computer technology andpharmaceuticals. Central and southwest China are also becoming increasinglyindustrialized, particularly around Wuhan, Chongqing and other major cities in theregion, though this area has traditionally placed heavy emphasis on agriculture. Inaddition, this area is characterized by diverse local cultures in cuisine, dialects andoperating styles. The northeast and northwest of China are the least well-developedareas, and income levels in these areas are substantially lower than in other parts ofChina. While the northeast contains heavy industry such as automobile and machinerymanufacturing, it has been slow to adapt to changes arising from modernization andthe shift away from a command economy. Consumption patterns and particularlyownership of consumer durables such as microwave ovens, washing machines,color televisions, air conditioners, as well as access to more advanced information

technology such as mobile phones or computers tends to follow income levels, andhence is high in east and south China, but low in northeast and northwest China.

The marked regional disparities in different parts of China suggest that contextualfactors and in particular local market conditions have an important impact with regardto consumption behavior. While there is little variation across regions with regard totraditional food and beverage items, such as rice, cooking oil and tea, there aredifferences with regard to the penetration of Western items such as instant coffee,chocolate or ice cream. Consumers in east China have the highest consumption rate forsuch items as well as frozen entrees and soft drinks, closely followed by consumers insouth China. Consumption of alcoholic beverages and in particular liquor is, however,considerably higher in northeast and north China.

Equally, there are significant regional variations within India, not only in terms of

affluence, but also in terms of terrain, language, lifestyle and culture (Bijapurkar, 2007).The land in the extreme north of India is more arid and mountainous compared withthe fertile southern and western regions, the source of most of Indias agriculturalproduction in grain, rice, vegetables and tea. Equally, while Hindi and English arethe official languages, there are 15 regional languages recognized by the constitution,an estimated 180 local languages and an estimated 544 dialects. Similarly, there aresubstantial differences in food consumption and lifestyle patterns, as well asperceptions of gender roles and other aspects of culture from one state or region toanother. In Gujarat, for example, consumption of alcohol is rare and strictly regulatedand food consumption is predominantly vegetarian.

Apart from such differences observed in large markets, in-depth studies of marketswithin the European region (ter Hofstede, 1999) show significant differences in

consumption and behavior patterns within European countries. In some cases within-country differences are greater than between-country ones, resulting in the emergenceof transnational consumption segments. For example, ter Hofstede (1999) examinedmeat store images relating to attributes such as assortment, pricing, product quality,service quality and store atmosphere, as well as overall evaluations of store image for120 regions in seven countries in Europe. This resulted in the identification offive spatial market segments of which only one was located in a single country, Italy.All others transcended national boundaries, though one was predominantly inGermany and border regions in Belgium and France, e.g. Liege, Trier and Lorraine.

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This suggests that while in some cases potential market segments extend beyondnational boundaries, in other cases they may be confined to regions within a givencountry. Consequently, in some cases a firm may be able to identify and target a globalor regional market segment, while in others segments may be country-specific.

Another factor is what has been termed institutional voids (Khannaet al., 2005) or,more specifically, lack of a strong soft infrastructure of auxiliary institutions togetherwith ineffective regulatory systems and contract-enforcing mechanisms. This isparticularly likely to occur in emerging and developing markets. This is often rooted inthe inadequacy of the communication system, and is particularly marked in ruralareas. Consumers do not necessarily have adequate information (which in some casesis compounded by low levels of education and literacy) to assess and evaluateproducts, and in particular to be cognizant of purchase regulation relating tocounterfeit or knock-off brands and other types of consumer exploitation. Product andmarket regulations are often poorly developed or followed, and more importantly areenforced locally. Inefficient judicial systems and variability from one location toanother mean that there is considerable uncertainty about contracts with distributors,

as well as regulation relating to retail price maintenance, product or brandcounterfeiting promotion or advertising claims and other deceptive practices. Inaddition, in many instances these are not effectively enforced, resulting in considerableconsumer exploitation, deception and corruption.

Micro-environmental factorsA third element of the context in which consumption takes place is the micro-environment that comprises more proximate influences. This is defined here asconsisting of the basic physical infrastructure in a village, town or city, includingroads, water, electricity, the market infrastructure, i.e. the number and type of storesavailable, the social and housing/living context, i.e. the nature of housing and familyliving arrangements, and the media context. All these form the immediate context in

which consumers make consumption and purchase decisions and hence influence thenature of those decisions, which are in turn influenced by the economic, societal andethnic patterns characterizing the environment.

Another important aspect of the micro-environment is the retail infrastructure,particularly in terms of the number, size and type of stores. This may include a widerange of modern distribution outlets, such as department stores, hypermarkets,superstores or supermarkets as well as traditional outlets, such as Mom and Popshops, roadside stalls, itinerant retailers and bazaars. Countries such as China havebeen through and are continuing to undergo dramatic changes in the structure and sizeof their retail infrastructures (Wang and Jones, 2002). The relative importance ofdifferent types of stores is likely to have an important impact on consumption, andparticularly product and brand choice and package size, as well as the price paid by the

consumer. The range of products and brands carried by traditional retailers is likely tobe considerably smaller than that available in organized retail outlets, thus restrictingbrand choice, and resulting in focus on major global brands or alternatively onlow-priced local brands. The price paid for a global or major brand is often higher,given limited scale efficiencies and high operating costs. At the same time, ifconsumers are in the habit of shopping at a particular store, they may rely on theadvice of the retailer, particularly in the case of new products and brands. Consumersshopping in organized retailing, on the other hand, are more likely to be influenced bystore layout and promotions as well as media advertising. Again, this suggests that

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while a segment may exist in different regions throughout an entire country, size oraccessibility may limit potential opportunities.

Situational factors

The specific situation in which consumption takes place can also impact consumptionbehavior. This can range from differences in behavior common to all members of aparticular social, ethnic or religious group or community on a given occasion such asfestivals and rites of passage or gift giving, as well as differences in individualbehavior depending on the specific social identity evoked by the occasion ( Joy, 2001).A young adult, for example, may exhibit different behavior and consumption patternsat a family dinner, as compared to eating with friends. Distinctions are sometimesmade between brands, particularly of liquor, which are offered to guests vs those thatare typically consumed by a household. Thus premium or prestige brands will bereserved for guests or special occasions. This type of conspicuous consumption variesconsiderably from one country or culture to another and may be particularly marked incertain parts of emerging markets, as for example, northern India, where there are

marked class differences.Situational factors may also impact behavior at the individual level (Belk, 1975;

Wooten, 1995). This is most likely to occur where an individual interacts with multiplegroups, which vary in terms of age, gender, education, ethnicity, religion or otherbackground or group characteristics. For example, a young American adult from anAsian American family may consume Asian food when at home, but go to US casualrestaurants, such as Olive Garden or TGI Fridays, when with friends. Equally,members of different ethnic groups may tend to behave differently when out withfriends from the same ethnic group as compared with mixed ethnic groups.

Information sources for contextual factorsContextual data are most readily available at the macro-level from sources such as the

UN, the World Bank, the Economist Intelligence Unit (EIU) and the CIA World FactBook. Most are online and readily accessible. The challenge is to go beyond reliance onmacro-economic data such as GNI per capita, population, trade flows or urbanization,which reflect market size and wealth, and look more broadly at other socio-eco-culturalvariables such as kilometers of coastline, climate, terrain or land use, which impactconsumption patterns and form the socio-geographic context in which consumptiontakes place (Parker, 1997; Parker and Tavassoli, 2000). In each case, the relevance of aparticular contextual variable for the specific product or service examined needs to beassessed. Information on meso-factors, such as ethnic groupings, lifestyles, culturalconventions and communication patterns, is not readily available and usually requiressurvey research or qualitative research. An exception to this is the Nomenclature ofTerritorial Units for Statistics data, which are compiled by Eurostat (European

Statistical Office of the European Commission). In 2009 these data covered all27 members of the EU as well as all four candidate countries and four EFTA countries.Typical breakdowns include counties (97 units across the 27 countries) anddistricts within counties (1,303 units). At Level 1, data are collected in relation topopulation, different demographics and population density. These data are available onalmost all regions. At Level 2, data are collected relating to the use of informationand communication technology among private persons and households, as well asbusinesses and educational levels in the EU regions, and where available in the otherregions. At Level 3, data are collected in relation to local demography, GDP and labor

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market data. These data can provide an indication of within-country heterogeneity andcross-country similarities, but do not provide insights into variation in consumption.Data on values, attitudes and consumption choices are often collected by internationalresearch agencies, but are typically proprietary or very expensive to obtain. There is

also an issue of comparability across units. Consequently, while these data provide auseful basis for further in-depth research and estimating market opportunities, they arenot necessarily accurate bases for developing transnational segmentation strategies.

International research organizations or large MNCs collect consumption data, buttypically in relation to a specific product or service category, with little attention toacquiring data about the context in which the individuals make consumption choices.Data on some micro-level factors such as the physical infrastructure are readilyavailable in UN or World Bank sources or geographic atlases. Equally, informationrelating to the market and media infrastructure can be found in sources such asEuromonitor or the EIU data. However, more detailed information relating to specificregions or cities within a country is typically more difficult to obtain, as are datarelating to social and family interaction. Similarly, while some data relating to

situational factors may be available in the anthropological literature, this is rarelycollected on a cross-national basis, raising issues of comparability and equivalence.

Implications and conclusionThe impact of context on consumption behavior and market opportunities is pervasiveand complex. Examination of contextual factors provides a richer and deeperunderstanding as to which international markets to enter and which segments totarget. In particular, it helps to shed light on heterogeneity within countries notonly in customer behavior and competitive behavior, but also in the nature of themarket infrastructure. This may be a key element not only in formulating entry andsegmentation strategies, but also in implementing those strategies. This suggests theimportance of going beyond the macro-environmental level in analyzing data for

market selection and segmentation decisions. While international market selectiondecisions tend to use the country as the focal unit of analysis in collecting data relatingto these decisions, contextual factors operating at different levels within a country helpto shape behavior both within and across countries. A high degree of within-countryheterogeneity may make a country less attractive, as it suggests diverse contexts andfragmented markets, although in some cases transnational market segments may beidentified. Consequently, while contextual factors are frequently ignored, it is criticalfor management to consider their impact both in selecting which countries to enter andhow to segment markets.

The limitations of assessing international marketing opportunities based onmacro-economic or country-level factors suggest the need for a broader and morecomprehensive approach, which includes not only country-level factors, but also

within-country factors. These should include consumer characteristics that enable thefirm to identify potential target segments, based on demographics, consumptionpatterns, media habits and so on, as well as contextual factors relating to the generalenvironment such as ecological or topographical factors, the nature of the localenvironment, for example, urban vs rural, and the specific consumption situation oroccasion. While frequently ignored, these are often critical factors influencing thenature, formation and evolution of consumption patterns.

In-depth examination of contextual factors at different levels of aggregation helps toshed light on the diversity of consumption patterns both within and across countries.

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In recent years the geographic scope of international operations has expanded toinclude not only developed countries, i.e. the Industrial Triad, but also emergingmarkets such as China, India and Brazil. As a consequence, marketers have to copewith an increasingly diverse array of cultures and behavioral patterns worldwide.

Consumption patterns in emerging markets not only reflect different cultural valuesand behavior from Western industrialized nations, but are also characterized bymarked differences within countries, particularly the gulf between the surging class ofaffluent, mostly urban entrepreneurs, and the rural poor.

Understanding how contextual factors at different levels of aggregation impactconsumption patterns within and across countries provides valuable insights that canaid in designing product, pricing, promotional and distribution strategies tailored tocontextual differences. In addition, it can help in identifying target market segmentsboth within and across countries. As markets become ever more diverse, resulting ingrowing market fragmentation and segmentation, developing context-based strategiescan be an important tool in increasingly competitive international markets.

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About the authors

Susan P. Douglas was the Paganelli-Bull Professor of Marketing and International Business at

New York Universitys Stern School of Business. She received her PhD from the University of

Pennsylvania. Prior to joining New York University, Professor Douglas taught at Centre-HEC,

Jouy-en-Josas, France, and was a faculty member of the European Institute for Advanced Studies

in Management in Brussels. She also taught international marketing in executive programs inFrance, Belgium, Italy, Greece, Taiwan, Singapore, India, South Africa and the former

Yugoslavia. A past president of the European Marketing Academy, and former vice president of

the Academy of International Business, Professor Douglas was elected as a Fellow of the

Academy of International Business in 1991 and was Dean of the Fellows from 1999 to 2002.

She was made a Fellow of the European Marketing Academy in 2002 and chaired the Fellows

from 2002 to 2005. Professor Douglas co-authoredGlobal Marketing Strategy (McGraw-Hill) and

International Marketing Research (Wiley), 3rd edition. Her research appeared in the Journal

of Marketing, Journal of Consumer Research, Journal of Marketing Research, Journal of

International Business Studies, Columbia Journal of World Business, International Journal of

Research in Marketing,International Marketing Review,Journal of International Marketingand

other publications.

Susan P. Douglas passed away on 3 January 2011.C. Samuel Craig is the Catherine and Peter Kellner Professor, Professor of Marketing and

International Business and Director of the Entertainment, Media and Technology Program at

New York Universitys Stern School of Business. He received his PhD from the Ohio State

University. Prior to joining New York University, Professor Craig taught at Cornell University.

He has taught marketing for executive programs in the USA, as well as France, the UK,

Thailand, Singapore, Greece, India and Slovenia. Professor Craig co-authored Consumer

Behavior: An Information Processing Perspective (Prentice Hall), Global Marketing Strategy

(McGraw-Hill) and International Marketing Research, 3rd edition (Wiley). His research has

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appeared in the Journal of Marketing Research, Journal of Marketing, Journal of Consumer

Research, Journal of International Business Studies, Columbia Journal of World Business,

International Journal of Research in Marketing, Journal of International Marketing,International

Marketing Review and other publications. His research is widely cited and he has been the

recipient of six best article awards. He is currently on the editorial boards of the Journal ofAdvertising Research, International Journal of Advertising and the Journal of International

Marketingand is a past member of the editorial boards of theJournal of Marketing Researchand

the Journal of Retailing. His research interests focus on the entertainment industry, global

marketing strategy and methodological issues in International Marketing Research. C. Samuel

Craig is the corresponding author and can be contacted at: [email protected]

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