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Reprint: Cosmopolitan Consumers as a Target Group for Segmentation

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Key Developments in International Marketing

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Abstract

For international companies, the literature recommends directing segmentation efforts at customer characteristics rather than country characteristics. Consumers’ degree of cosmopolitan orientation has been suggested as a powerful segmentation base, as this characteristic is expected to drive consumers’ tastes and preferences. To advance research on this segmentation base, this article offers a conceptualization of the consumer cosmopolitanism construct by: (1) delineating its conceptual domain; (2) highlighting its key dimensions, namely open-mindedness, diversity appreciation, and consumption transcending borders; and (3) examining its links with theoretically relevant variables, specifically consumer ethnocentrism and global consumption orientation. Based on the aforementioned conceptualization, a consumer-research-specific and psychometrically sound measurement instrument—the C-COSMO scale—is subsequently developed and tested in a series of complementary studies. Finally, empirically based insights into the characteristics of cosmopolitan consumers are offered, by: (1) profiling them on consumption-relevant variables (innovativeness, risk aversion, susceptibility to normative influence, consumer ethnocentrism, and demographic characteristics); (2) examining the link between consumer cosmopolitanism and willingness to buy foreign products; and (3) developing an empirically based typology of cosmopolitan/local consumers using a cluster analysis approach. From a managerial perspective, findings suggest that the identification and subsequent targeting of cosmopolitan consumers may well represent an appropriate strategy for internationally active companies.

Riefler, P., Diamantopoulos, A., & Siguaw, J. A. (2012). Cosmopolitan consumers as a target group for segmentation. Journal of International Business Studies 43, 285–305.

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Notes

  1. 1.

    Note, however, that at the time COS was developed, the critical review paper by Riefler and Diamantopoulos (2009) had not yet been published (indeed, it is not cited in Cleveland et al. 2009), and thus the developers of COS were obviously not aware of the multidimensional conceptualization of consumer cosmopolitanism that had been recently proposed.

  2. 2.

    Literature indicates that “it is impossible to specify the number of items that should be included in an item pool. Suffice it to say that you want considerably more than you plan to include in the final scale” (DeVellis 2003: 65). In our case, item generation was guided, on the one hand, by the desire to have at least three items per dimension in the final C-COSMO scale and, on the other, by the need to avoid semantic redundancy, which might induce mindless response behavior (Drolet and Morrison 2001). We thus sought to generate three to four times as many items per dimension for inclusion in the initial item pool.

  3. 3.

    Anderson and Gerbing (1991) apply the item-sort task methodology at a construct level: that is, sorting items to different constructs. We, in contrast, apply the methodology at a dimensional level, as also suggested by Anderson and Gerbing (1991: 739), who note that “assignment categories could be defined in terms of specific facets rather than the constructs themselves. Respondents would then sort items by facets.”

  4. 4.

    For the psa index, a cut-off value of 0.5 implies that an item remains in the item pool only if, at a minimum, half of all respondents allocate it to the correct conceptual dimension. For the more stringent csv index, a threshold value of 0.3 indicates that the number of respondents allocating the item to the correct dimension has to exceed the number of respondents allocating it to any another dimension by at least six respondents (i.e., approximately 30% of the sample).

  5. 5.

    Specifically, we used Eq. (4) in Lindell and Whitney (2001: 116) to adjust the correlations for CMV.

  6. 6.

    Note that in this, as well as the other studies reported in this article, we also used various procedural steps to reduce CMV, as recommended in relevant literature (e.g., Chang et al. 2010; Podsakoff et al. 2003). These included the allocation of predictor and criterion variables to separate sections of the questionnaire, the variation of scale formats, and the protection of respondent anonymity.

  7. 7.

    As in Studies I and II, we used Lindell and Whitney’s (2001) approach to assess CMV; the results showed that, again, CMV was not a major problem in the data.

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Acknowledgements

We thank Barbara Egger for her assistance in collecting data for Study III. We also thank the Area Editor and three anonymous reviewers for helpful suggestions on previous versions of the article.

Author information

Authors and Affiliations

  1. Department of Economics and Social Sciences, Institute of Marketing and Innovation, University of Natural Resources and Life Sciences, Vienna, Austria

    Petra Riefler

  2. Department of International Marketing, University of Vienna, Vienna, Austria

    Adamantios Diamantopoulos

  3. College of Human Ecology, East Carolina University, Greenville, NC, USA

    Judy A. Siguaw

Authors
  1. Petra Riefler
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  2. Adamantios Diamantopoulos
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  3. Judy A. Siguaw
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Corresponding author

Correspondence to Petra Riefler .

Editor information

Editors and Affiliations

  1. Collins College of Business, University of Tulsa, Tulsa, OK, USA

    Saeed Samiee

  2. Leeds University Business School, University of Leeds, Leeds, UK

    Constantine S. Katsikeas

  3. Department of Economics and Social Sciences Institute of Marketing and Innovation, University of Natural Resources and Life Sciences, Vienna, Austria

    Petra Riefler

Appendices

Appendix 1

Table 12.5 Sample composition (Study I)
Full size table

Appendix 2

Self-developed Scales

Consumer localism, α = 0.81

  • News from my home country interests me a lot.

  • I pay much attention to local news.

  • I appreciate the importance of following traditions.

  • I like having traditional dishes from my home country.

  • I have close bonds to the people in my home country.

  • I like being in my home country.

  • Response format: seven-point Likert scale, 1 = I strongly disagree, 7 = I strongly agree

Usage of COO information, α = 0.75

  • For making a buying decision, country-of-origin information is:

  • information I frequently look for/information I never look for;

  • not at all important/very important;

  • an aspect I would definitely consider/an aspect I would definitely not consider;

  • irrelevant to my choice/very relevant to my choice;

  • Response format: seven-point Semantic Differential Scale.

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Riefler, P., Diamantopoulos, A., Siguaw, J.A. (2024). Reprint: Cosmopolitan Consumers as a Target Group for Segmentation. In: Samiee, S., Katsikeas, C.S., Riefler, P. (eds) Key Developments in International Marketing. JIBS Special Collections. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-031-17366-0_12

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