A factor analytic study of international segmentation performance measures

The relevance of international market segmentation is predicated upon its ability to contribute to firm performance. The challenge is to identify appropriate measures of performance that will allow a firm to assess the success of its segmentation strategy. Toward that end, this paper presents the results of a two-phase study where international segmentation performance dimensions are identified through a series of case studies (phase I), measured through a survey of qualified key informants (phase II), and analyzed using factor analysis. The analysis identifies 16 performance dimensions and four underlying factors that organizations are using to evaluate international segmentation strategy.