Consumption convergence across countries: measurement, antecedents, and consequences
Ayse Ozturk (),
S. Tamer Cavusgil () and
O. Cem Ozturk ()
Additional contact information
Ayse Ozturk: University of South Carolina
S. Tamer Cavusgil: Georgia State University
O. Cem Ozturk: University of South Carolina
Journal of International Business Studies, 2021, vol. 52, issue 1, No 7, 105-120
Abstract Are consumers across countries becoming more similar over time in terms of their spending across product categories? If so, what are the antecedents and consequences of convergence in consumption? These questions are of interest to scholars and managers alike. To examine them, we propose a novel empirical framework that encompasses: (1) a new measure of consumption convergence (budget allocation gap), and (2) an econometric model that links consumption convergence to its antecedents and consequences of convergence. Our empirical analyses – using data from 71 countries in 21 product categories between 1990 and 2017 – suggest that, overall, consumption patterns have been converging across countries. Yet, the speed of consumption convergence has been decelerating over time. We also show that consumption convergence is influenced by several previously unexplored antecedents, including technological advances, inward trade openness, and ethnic diversity. Of direct interest to managers and policymakers is the finding that the higher the level of consumption convergence, the higher the market concentration. These findings offer key implications for scholars, managers, and policymakers regarding global marketing strategy and audit, global demand forecasting, international market segmentation and penetration, and global competition.
Keywords: consumption convergence; global consumer behavior; budget allocation; market share; market concentration (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
http://link.springer.com/10.1057/s41267-020-00334-w Abstract (text/html)
Access to full text is restricted to subscribers.
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:pal:jintbs:v:52:y:2021:i:1:d:10.1057_s41267-020-00334-w
Ordering information: This journal article can be ordered from
http://www.springer. ... nt/journal/41267/PS2
Access Statistics for this article
Journal of International Business Studies is currently edited by John Cantwell
More articles in Journal of International Business Studies from Palgrave Macmillan, Academy of International Business
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().