VOLUME 11 NUMBER 4
1994
A Convenience-oriented
Approach to Country
Segmentation
Implications for Global Marketing Strategies
Mushtaq Luqmani, Ugur Yavas and Zahir A. Quraeshi
The intricacies of consumer marketing are
greatest in international markets, where
companies invariably have to deal with
diverse cultural, political and economic
conditions. To grapple with this complexity,
multinational firms attempt to group countries
into seemingly homogeneous segments on the
bases of economic, geographic, political,
cultural, religious or resource variables
(Akaah and Yaprak, 1988; Day et al., 1988;
Dichter, 1962; Helsen et al., 1993; Jaffe,
1974; Liander et al., 1967; Luqmani et al.,
1980; Morris, 1979; Rostow, 1960; Sethi,
1971).
This segmentation approach commonly
clusters countries according to discrete
environmental macro factors (such as GNP
per capita, political system and/or stability,
geographic region and/or proximity, and
energy consumption). The effectiveness of
this method, however, is influenced by such
micro variables as the nature of the product
and, perhaps more important, the purchase
orientations of consumers (Jain, 1990; Wills
Journal of Consumer Marketing, Vol. 11 No. 4, 1994, pp. 29-40
© MCB University Press, 0736-3761
29
et al., 1991). Hence, macro segmentation
must be complemented by consideration of
specific micro variables that directly
influence consumers’ product preferences and
which are useful in the delineation of
international markets. Furthermore, while the
macro approach is helpful in assessing world
market opportunities and formulating
business plans, it has been less successful in
finding common elements among seemingly
disparate international markets. Such linkages
are essential for facilitating the effective and
orderly coordination of specific global
business strategies directed at not only cross-
country segments but also particular customer
groups which transcend national boundaries
(Kale and Sudharshan, 1987; Yavas et al.,
1992).
To accomplish this, markets need to be
viewed on a continuum rather than as entirely
similar or dissimilar. The continuum
perspective is justified for several reasons.
First, international markets vary from one
another more in the level of need
sophistication than in kind. For example,
although there is demand for telephones in all
markets, the degree of sophistication is
 JOURNAL OF
CONSUMER MARKETING
affected by affluence, supply and competitive
factors. It is conceivable that a company can
alter its product-market strategy as the
sophistication of needs increases or decreases
in world telephone markets (regular, touch
tone, cordless, cellular and so forth). Second,
treating various countries as part of a
continuum enables companies to fine tune
their international strategies. Third, a
consistent overall strategy can be used to
market to consumers along the continuum.
Fourth, the concept of thinking globally and
acting locally can be meaningfully
implemented within markets lying on the
continuum. This article posits that the level of
convenience demanded in products and
services by consumers worldwide represents
such a continuum. It is also argued that the
convenience orientation, when used in
conjunction with economic measures of
affluence, can serve as a potentially useful
international market segmentation variable.
The article first discusses the concept of
convenience orientation and provides a
rationale for its usefulness as an international
segmentation variable. A conceptual
framework is then developed to help
marketers identify global marketing
opportunities and design appropriate
strategies to reach consumers at various
points on the convenience continuum.
What Is the Convenience Orientation?
As aptly defined by Brown (1989, 1990) in his
thought-provoking articles, the convenience
orientation refers to the value placed on, and
the active search for, products and services that
provide personal comfort and/or save time in
performing various activities. As he points out,
it is often confused with the “convenience”
classification of goods and services discussed
in marketing textbooks, but convenience-
oriented consumption is not limited to the
purchase of only low-risk or low-involvement
30
products and services (Brown, 1989). Indeed,
prior studies clearly suggest that convenience-
driven demand exists for a diversity of low-
and high-involvement/risk products and
services, ranging from frozen foods to
microwave ovens (see, for example, Bellizzi
and Hite, 1986; Brown, 1989; Reilly, 1982;
Riecken and Yavas, 1993). The convenience
orientation is also manifested in the use of
various home shopping modes and pick-up and
delivery services (Brown, 1990; Lavin, 1993).
Dimensions
Past research reveals that the convenience
orientation is a multidimensional construct.
For example, Yale and Venkatesh (1985)
proposed that it can be decomposed into six
major dimensions: time use, accessibility,
portability, appropriateness, handiness, and
avoidance of unpleasantness. Brown (1989,
1990) suggests five dimensions: time, place,
acquisition, use and execution; with the
exception of the last, these closely parallel the
four utilities promulgated by economic utility
theory (Brown, 1990, p. 55).
A closer examination of the original work
by Yale and Venkatesh (1985) and Brown
(1989, 1990) suggests that their dimensions
relate primarily to two universal human
tendencies: a time-saving orientation and a
comfort orientation. These two combined
make up the convenience orientation and
account for the consumption of convenience-
driven goods and services.
Rationale as a Segmentation Variable
Segmenting international markets according
to the convenience orientation is promising
for several reasons. First, the desire for
convenience has a direct and substantive
effect on consumer preferences and shopping
styles (Bellizzi and Hite, 1986; Korgaonkar,
1984; Lavin, 1993). It can be considered one
 VOLUME 11 NUMBER 4
1994
of the common determinants of buying
behavior worldwide regarding numerous
products and services. Comparing consumers
cross-culturally on the basis of their
convenience-oriented consumption can lead
to a useful differentiation among buying
preferences and aid in selecting target
markets.
Second, convenience-oriented
consumption is on the rise worldwide
(Benway et al., 1987). Fundamental factors
are making time scarce everywhere.
Increasing affluence in some countries, rapid
population growth and congestion in others,
rising numbers of working women and dual-
income families, hectic lifestyles, and the
desire to pursue “me-time” activities to
enhance physical and mental wellbeing are
prompting consumers to place greater value
on time. Consequently, they are seeking
products and services which save them time
and provide increased comfort (Bartos,
1989; Bellante and Foster, 1984; Berry,
1979; Brown, 1990; McCall, 1977; Sheth,
1983). Moreover, the onset of convenience-
oriented consumption further fuels
convenience-driven demand. For example,
time saved as a result of purchasing a
convenient product or service, such as
home-delivered laundry, may be used by the
consumer to perform other chores or
activities (Cowan, 1983; Linder, 1970),
which in turn may lead the consumer to seek
other convenience-oriented products and
services. This demand is also stimulated by
the desire for a more comfortable lifestyle,
reflected in the growth of home-delivery
businesses (foods, groceries, services) and
convenience stores. All indications are that
products and services which provide time
savings and comfort to consumers represent
a growth industry well into the future.
Third, consumers around the world do
differ in their time-savings and comfort
orientations, which are the two key
determinants of a convenience orientation. A
31
number of writers have argued that cultural
groups differ in their time perception
depending on whether they have a past,
present or future perspective on life (Graham,
1981; Hall, 1959; Lane and Lindquist, 1989;
McGrath and Rotchford, 1983). In this
context, anthropologists consider Eastern
cultures to be slower paced than Western
cultures (Bohannan, 1980; Calvert, 1975;
Hall, 1959). Hoch (1976) attributes a faster
pace not only to cultural but also to economic
factors. Accordingly, Gross (1987) contends
that consumers in industrialized nations lead
faster paced lifestyles, are more sensitive to
time constraints, and are more likely to view
time as a scarce resource than are consumers
in less developed countries. Some economists
believe that a rise in productivity with
increased industrialization makes time more
valuable (Becker, 1965).
People from different cultures may vary in
convenience orientation not only because of
time pressures but also because of the value
placed on physical or mental comfort. For
example, consumers in the Arabian Gulf
countries place less value on time and more
on high levels of comfort, as their oil wealth
fuels convenience-driven demand. In the US
consumers also have a penchant for comfort.
For example, using computerized software to
fill out tax returns may be just as
time-consuming as traditional methods, but it
is becoming popular because it requires less
mental effort. Similarly, increasing numbers
of US consumers have their car oil changed at
service stations, not necessarily only to save
time but also because it may save physical
effort.
In short, influenced by both cultural factors
and industrial development, consumers
around the globe differ in their time savings
and comfort orientations. Hence, countries
can be placed on a convenience continuum
ranging from low to high.
Fourth, international market segmentation
according to the convenience orientation is
 JOURNAL OF
CONSUMER MARKETING

not only intuitively appealing but also seems High convenience

orientation
to be empirically feasible. Such an orientation Quadrant I
Quadrant II
is expressed in the value placed on, and the (emulating/latent countries)
(Innovator/leader countries)

active search for, products, facilities and *Israel *USA

*Japan
processes that will either provide personal *Saudi Arabia,
*Spain Kuwait
comfort and/or save time in performing *Portugal *Singapore
*Greece, Russia *Germany
necessary activities. This definition can be *Turkey, Hungary *France
Ability*Pakistan *Britain Ability
consistently applied to various cultural groups to pay
poor
to pay
high
*Switzerland
around the world. Furthermore, it can be *Denmark
*Sweden
*Bangladesh *Norway
quantified via attitudinal, product use and *Sudan
*Somalia *Australia
acquisition variables (see, for example, *New Zealand
*Afghanistan *Guam
Anderson, 1971, 1972; Bellizzi and Hite,
1986; Reilly, 1982). Quadrant III
Quadrant IV
(Utopian countries)
(Traditional countries)
It should be noted, however, that time Low convenience
orientation
scarcity and comfort are necessary but
insufficient conditions for a convenience Figure 1.
orientation. Since catering to convenience Convenience Portfolio Matrix
may increase producer costs, consumers must
have the ability to pay for products and
services that save time or provide comfort. orientation. They can also serve as useful
Obviously, it costs more for the home models for evaluating progress toward more
delivery of groceries than it does to shop for convenience in follower countries.
them oneself. Additional features may add to Countries in Quadrant IV (Utopian),
similar to those in Quadrant I, enjoy high
comfort but increase acquisition costs. The
affluence, but at the present time they have a
dustbuster attachment on vacuum cleaners is
relatively low convenience orientation. Many
an added cost; alternatively, centralized home
people in Utopian countries think that their
vacuum cleaning systems may make the
convenience consumption is having undesired
cleaning task easier, but are costly to install.
consequences on the environment, such as
Automated sprinkling systems eliminate the
increased pollution. Consequently, they are
chore of manually watering the lawn, but are
attempting to redefine their values, lifestyles,
more expensive.
and concept of time and its proper use. In
such societies there eventually may be a
movement toward more time-consuming but
The Convenience Portfolio Matrix environmentally harmless activities.
Figure 1 presents a framework that Countries in Quadrant II (latent/emulating)
simultaneously considers convenience are high on convenience orientation but low
orientation and ability to pay in segmenting on ability to pay. Their desire for the
world markets. Countries in Quadrant I conveniences available in innovator countries
(innovator/leader) are high in demand for may be fueled by international media
convenience and ability to pay and therefore exposure and ready acceptance of Western-
provide the most immediate and significant style solutions to saving time and enhancing
market opportunities. They can be studied for comfort. Latent/emulating countries provide
indications of how consumption and demand product redesign opportunities.
patterns elsewhere may change in the future Countries in Quadrant III, such as Somalia
as a result of an increasing convenience and Sudan (traditional), are low on both

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 VOLUME 11 NUMBER 4
1994

Example countries Rationale for country position

Quadrant I: Innovator/leader countries: consumers in these countries demand high levels of convenience and
have high affluence.
USA Very high value on both time and comfort; few external constraints
Japan High value on time; space constraints and cultural constraints on comfort
Singapore High value on time; space constraints and technocratic government regulate comfort
Germany High value on time; rigor of German life/values place restrictions on comfort demands; high
regulatory constraints
France Traditional values place less pressure on time and more value on comfort. Likely to change with
EC integration
Britain Strong traditional values and culture-bound activities restrict demand for convenience
consumption. Likely to change with EC integration
Saudi Arabia, Kuwait Less value on time; availability of low-cost expatriate labor has made consumers more sensitive to
a comfort orientation
Quadrant II: Emulating/latent countries: in general, countries here are striving to emulate the convenience-
oriented consumption of innovator countries but are constrained by lack of affluence. Presently,
their convenience consumption is low, but their needs for this type of consumption are rapidly
increasing with rising incomes.
Israel Value placed on time and achieving comfort. Affinity for Western culture makes the culture less
tradition bound. Market promising with increased affluence
Spain, Portugal Less value on time but increase in affluence. Influence of Western tourists and EC membership are
adding to greater demand for comfort and more pressure to save time
Greece, Turkey Less value on time; more orientation on comfort. Though traditional values may dampen demand,
the country’s association with EC and emulation of Western technology may increase convenience-
oriented consumption
Russia Attempting to emerge from a system where comfort and convenience were low but homogeneously
distributed across the population. Economic realities have forced a portion of the population to seek
lower priced alternatives, often at the expense of comfort, yet an emerging upper/middle class and
desire to emulate Western technology is stimulating demand for convenience products
Hungary Increasing value placed on time and comfort as foreign direct investment and affinity for Western
technology/links increase
Pakistan Traditionally low value placed on time. This is changing within the upper/middle class where rising
affluence and exposure to wider media has increased aspirations for a more comfortable life
Quadrant III: Traditional countries: in general, these countries are low in convenience orientation, though
certain affluent segments within the society may increase their consumption of comfort-oriented
products and services. A number of these countries may be reducing convenience and comfort to
grapple with shrinking resources.
Bangladesh Traditionally, low value placed on time. Hard times have made country less sensitive to comfort
demands. Convenience demand may increase in the future for an emerging middle class
Sudan Affluence resulting from oil resources may trigger higher levels of convenience and comfort
orientation. Yet, poor infrastructure, and instability may reduce demand for Western-style
convenience-oriented products and raise demand for indigenous products
Somalia, Afghanistan Mired in tradition, poor infrastructure, lack of affluence and resources, instability, and little
connection to the outside world combine to continue to suppress the demand for convenience-
oriented consumption
Quadrant IV: Utopian countries: in general, consumers in these countries are willing to accept less convenience
if it helps achieve other important social goals.
Denmark Very high value on time influenced by thriving international trade. Less value on comfort, as
people perceive themselves as thrifty and have puritan values
Sweden High value on time and comfort moderated by social and health concerns
Switzerland High value on time and comfort influenced by thriving international tourist/business trade. Yet,
social and environmental concerns are paramount
Norway Value placed on time and, to some degree, comfort; monarchy, government policies, and rugged
terrain have moderated the demand for convenience
Australia, New Zealand Less value on time; demand for comfort resulting from low-cost indigenous labor but moderated by
rugged life
Guam Low value on time; higher value on comfort, moderated by desire to maintain pristine beauty of
country

Table I.
Rationale for Country Position on the Convenience Portfolio Matrix

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 JOURNAL OF
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convenience orientation and affluence.
Hence, they present only limited market
opportunities.
Table I presents the rationale for placing
various countries in the convenience portfolio
matrix. This two-dimensional grid indicates
appropriate product, price, distribution and
promotion strategies (see Tables II through
V), and is discussed in more detail below.
Marketing Strategies
Product
Based on convenience orientation, the same
product could be marketed simultaneously in
several countries to groups with similar levels
of demand for convenience. Furthermore,
products now in demand in one country,
because of their convenience, can be targeted
in the future to countries that presently are
low on the convenience continuum. Food
processors are an example. These products
can be designed to offer varying levels of
convenience, ranging from the basic model to
several features that can be added on as the
desire for convenience increases. A scaled-
down version of deluxe models can also be
marketed in countries with a low convenience
orientation and/or ability to pay. For example,
a product redesign strategy that aims at
providing a low-cost option would be needed
for countries with a high convenience
orientation but where current product
alternatives are unaffordable for consumers.
In this situation, a modular product design
that could be easily adjusted to accommodate
convenience features would be attractive.
Moreover, to accommodate increasing time
pressures, it would be essential to market
multipurpose products with easy-to-follow
instructions.
Conceivably, many convenience products
progress from being not very important in
fulfilling the needs of consumers, to being
significant in meeting revised consumer
needs, to becoming an established part of
34
regular, staple consumption. Convenience
products are likely to make the progression
from a low to a high necessity item in
innovator countries first, later to be emulated
by follower countries. The fax machine is one
example. Recently, sales have experienced
considerable growth in the United States, and
the fax truly can be considered a service
upgrade to telex machines and emergency
mail. Already a necessity for many
businesses, the fax is fast becoming popular
in households as well. Eventually, it is
expected to reach the status of a household
necessity, just as the answering machine did a
few years ago for many consumers.
Promotion
In terms of promotional strategies, appeals
can be centered on the need for convenience
and matched to consumer type, such as low-
cost convenience, high-cost/status
convenience, and so on. The identification of
international companies promoting
convenience products would bolster their
image and facilitate the acceptance of their
branded products worldwide. Product and
competitive positioning strategies would
invariably include a convenience dimension.
Even in cases in which convenience is not
considered a major differentiating factor in
appealing to consumers, it still can be used as
an important complement to other appeals.
For example, many products are presently
being sold to environmentally conscious
consumers. These purchasers generally
consider the trade-off between products that
provide more convenience but add to
pollution versus those that reduce
convenience but are environmentally safe.
Environmentally conscious people tend to
prefer the latter group, but they would
consider even more appealing those products
that are ecologically safe and yet have
convenience features. Promotional strategies
that combine convenience with other primary
 VOLUME 11 NUMBER 4
1994

Innovator Utopian Latent Traditional Coordinated global

countries countries countries countries strategies

Market deluxe models Develop environmentally- Develop scaled-down Concentrate on basic Introduce modular
(e.g. kitchen friendly models with versions (e.g. dishwashers models/services product designs
appliance/home combinative convenience and home tools; automatic
entertainment centers) features (e.g. washer/ vs semi-automatic garage Plan for addition of Use interchange-
dryer combination doors low-cost convenience able parts, develop
Add loaded convenience which conserves water, features fast assembly/
features/service options energy/space, and runs Add low-cost convenience disasssembly
(e.g. interactive video very quietly) features (e.g. pre-cooked Adapt low-cost procedures
disks) foods) product extension
Use product redesign strategies (e.g. hand- Plan for
Develop convenience- strategies Use low-cost product cranked dishwashers) convenience
guided new product redesign strategies (e.g. changes over the
innovations/improve- Offer customized services conversion of tortilla Examine potential of product life cycle
ments (e.g. Thermoscan that are user friendly/ maker for chapattis) low-cost services range
thermometers) controllable
Tradeoff low-cost Offer range of
Offer high value/ Offer quality sources convenience services with flexible services/
customized products that link to quality of life product offerings (e.g. product options
(e.g. automated lawn considerations (e.g. manual cleaning services
sprinklers) portable health clinics) versus self-cleaning) Develop worldwide
flexible service
Offer high-quality Concentrate on marginal personnel with
convenience-guided modifications that could` training/retraining
services (e.g. home lead to substantial centers
decorating services, retail improvements in comfort/
store consultants) convenience (e.g. redesign Develop multi-
product use instructions/ purpose use of
maintenance requirements) products

Telephone example:
Portable cellular phones Portable phones (reduce Low-cost affordable Easy to use; good Interchangeable
with picture ID/caller ID health concerns) portable phones; cellular quality touch phones phone designs/
capabilities (ease of use; phones for affluent groups packages/features
speed dialing, display and
key pad conveniences)

Table II.
Global Product Strategies within a Convenience-oriented Framework

appeals would be very effective in targeting
convenience-oriented consumers.
Distribution
In terms of distribution, the availability and
mix of products that match varying levels of
convenience demand would need to be
determined for various countries. Just as with
promotional appeals, a proper match should
be sought between convenience-oriented
consumers and the distribution channel. The
rise of one-stop shopping stores, such as
Carrefour in France and Meijer in the United
States, reflects a response to the growing
number of consumers who are sensitive to
convenience. Moreover, the popularity of
such convenience-oriented institutions as fast
food and bank drive-ins is expected to spread
to other distribution structures where
convenience is not always well served, such
as bakeries. Overall, the drive-in concept is a
step toward personalized catering to service,
mobility and providing ultimate convenience.

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If such retailing institutions do not exist in example, may be appropriate in convenience-

areas where the demand for convenience is on driven economies, particularly in highly
the rise, then multinationals could vertically congested urban areas.
integrate their operations and invest in
developing these facilities wherever feasible.
In these circumstances, flexibility in Pricing
distribution will also be an important factor in In value-based pricing, it would be necessary
success. The store-on-wheels concept, for to incorporate convenience as a new

Innovator Utopian Latent Traditional Coordinated global

countries countries countries countries strategies

Position products/ Position products/company Determine/indicate Cultivate/educate selected Develop global mission
company on the basis on the basis of convenience potential cost savings consumerss on the value for multinationals,
of convenience ecology (e.g. product is obtained from of convenience partly based on
energy efficient and convenience- convenience-oriented
Promote convenience convenient) oriented consumption Use selective media for consumption
features of products/ promoting convenience-
services Include time saving as Conduct/provide oriented consumption Develop sets of
important complementary trade-off analysis for standardized conve-
Include convenience appeal/theme with other convenience models Stimulate primary demand nience appeals to
as a key determinant primary quality-of-life as opposed to for convenience products combine/include with
of company image appeals alternative options among urban/high-income other primary appeals
and for product customers (e.g. emphasize
differentiation Link emotive values with Use well-trained/ importance/prestige of Develop/increase inter-
the concept of convenience low-cost personnel convenience) active media to facilitate
Use provision of to sell convenience rapid communication
convenience, time- products Use personal selling as an with suppliers/customers
savings and comfort effective and low-cost and distributors
as basic promotional Emphasize ease of option
themes and appeals using products/
services Link prestige/status with
Use time-responsive/ convenience
interactive media for Identify/develop
customer communication convenience-oriented
(e.g. electronic search opinion leaders
services)

Position convenience,
both as a necessary
commodity and as one
imparting prestige/
status

Washing machine example:

Ad/Copy: Show busy Ad/Copy: Show product Ad/Copy: Show Ad/Copy: Show advantage Ad/Copy: Use prototype
househusband/“on the using less water vs others; middle income of a manually operated advertising for progres-
move” executive wife; demonstrate shorter cycles housewives using washer over handwashing; sively convenience–
combined features (less water and detergent product; fewer pro- ease of usage because of oriented segments; use
of saving time/ease usage) blems with fewer “barebones” features; less copy/more visuals
of use. Show clothes features; emphasize affordable product in latent/traditional
sorting bins inside brand name/prestige countries
(one wash vs two
separate washes)

Table III.
Global Promotion Strategies within a Convenience-oriented Framework

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1994

Innovator Utopian Latent Traditional Coordinated global

countries countries countries countries strategies

Focus on one-stop Provide convenient and Place emphasis on Continue with conven- Provide/improve on
shopping centers accessible, sophisticated low–cost priced tional, generally small- inventory support
(e.g. Builders Square) recycling centers convenience stores scale outlets (e.g. systems
(e.g. utility stores prepared bread, baked in
Make available wide Design convenient providing low prices/ commercial ovens) Encourage/invest in
variety of products protective packaging fast service) convenience-oriented
accessible at materials for hazardous Focus on convenience outlets
convenient locations products Plan for low prices/ outlets in key urban
(e.g. USA Today introduction of centers, affluent Develop rapid inventory/
newspaper) Develop specialized convenience-oriented neighborhoods (e.g. fast delivery services
distribution to avoid chain stores (e.g. food outlets)
Anticipate/plan for mixing of unconventional 7-11 in Asia) Work closely with well
scrambled merchand- product lines Explore feasibility of coordinated chain stores/
ising assortments Offer formalized low- low-cost home delivery/ credible distributors
cost, labor-oriented pushcart stores in con-
Expand automated Develop alternative services in distribution centrated urban areas Formulate worldwide
vending (e.g. coupon systems to counter outlets (e.g. laundry (e.g. small self-contained distribution networks
vending) restrictions on home service outlets) wagon stores on wheels)
deliveries/direct mail/
Expand home/on-site drive-ins Offer creative mix of
delivery (e.g. grocery unconventional services
delivery to homes) Examine potential for rapid (e.g. photo developing
maintenance services (e.g. while you shop)
Offer/streamline oil change centers
direct mail order compatible with recycling) Provide low–cost/increase
capabilities delivery services (e.g.
Seek expert advice on scooter delivery)
Develop drive-in product availability to
options (e.g. fast reduce inventory needs/ Examine feasibility of push-
food chains) distribution needs cart/store-on-wheels
distribution system
Offer rapid Emphasize personalized
installation/main- time-saving services at Introduce automated
tenance services the distributive level (e.g. vending in centralized
cashless transactions; locations (cigarette
Examine market for health-care advice centers) dispensing machines)
highly-specialized
services (e.g. in-home Initiate warranty/return
school instruction) policies

Retailing example:
Emphasize full-line, Emphasize full-line, fast Emphasize limited line Place emphasis on limited Develop flexible store
fast-checkout conve- checkout ecology-oriented convenience stores line convenience stores in distribution networks
nience stores stores selected regions with product line/services

Table IV.
Global Distribution Strategies within a Convenience-oriented Framework

dimension to the traditional price/quality/
service group of evaluative factors. Similarly,
prestige and status-oriented approaches may
be complemented with convenience-oriented
pricing. The unbundling of convenience-
oriented services or product features and their
pricing would provide useful comparisons for
consumers seeking to maximize utility.
Estimating elasticities of demand for varying
levels of convenience would be necessary to
gauge demand and project profits. Trade-off
analysis could be used by quantifying the

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Innovator Utopian Latent Traditional Coordinated global

countries countries countries countries strategies

Develop wide range Quantify “quality of life” Bundle/unbundle Use marketing skimming Enhance prestige/status of
of pricing combin- benefits of convenience- convenience features for high-value/prestige- convenience products
ations of high-price/ oriented consumption to provide purchasing imparting convenience-
high-prestige flexibility oriented products for Develop high price and
convenience products Use convenience as an affluent segments low price convenience
added dimension in value- Offer credit/install- products/service options
For smaller based pricing ment purchase options Cultivate convenience/
specialized markets, (e.g. credit card develop low-price Work closely with
use price skimming Provide pricing options to purchases) convenience products/ suppliers to develop
policies for con- add/exclude convenience service options flexibility in pricing
venience-oriented features from product/ Expand leasing options options for convenience
products (e.g. home service (e.g. feature options of high-value Offer credit installment products
gyms) for energy-efficient convenience products purchase options to
vacuum cleaners such as select group for conve-
For larger, widely dirt disposal) Develop low-price nience products (e.g.
accepted covenience convenience products/ credit card purchases)
products, use a service options
market penetration
pricing policy (e.g.
cellular phones)

Use convenience as
an added dimension
in value-based
pricing

Medical testing kit example:

Wide range of low- High quality and price, Low-priced medical High-priced in-home Pricing options/
priced and high- well-regulated testing service laboratories; medical testing services payment plans co-
priced do-it-yourself laboratories/home single-function testing for affluent customers; ordinated with various
multifunctional medical kits kits low-priced medical convenience-inclined
medical testing kits centers/options for urban groups
areas

Table V.
Global Pricing Strategies within a Convenience-oriented Framework

benefits of convenience, such as saving time Viewing convenience as a common factor in

or expending less physical effort, and
comparing the results with the cost of paying
for the added convenience. Product redesign
and creative package options that offer
convenience and yet are affordable, need to
be developed for less affluent but
convenience-inclined customers.
Conclusion
An alternative approach for assessing and
developing strategies for international
consumer markets has been presented.
consumption worldwide may provide useful
insights for global strategic planning.
International firms that desire an integrated
approach to world markets should consider
the continuum framework suggested in this
article. This necessitates a dynamic approach,
where countries placed along this continuum
should be periodically evaluated for their shift
in convenience preferences. Admittedly, this
framework is conceptual, and measures of
convenience must be developed and validated
before the approach is applied. Yet, the model
is useful in light of the many convenience-

38
 VOLUME 11 NUMBER 4
1994
driven economies that already exist or are
emerging. In this milieu, a convenience-
centered approach could be an important
starting point, or complementary strategy, for
international companies catering to world
markets.
n Winter, pp. 53-9.
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Mushtaq Luqmani is Professor of Marketing
and International Business and Zahir A.
Quraeshi is Professor of Marketing and
International Business, both at Western
Michigan University, USA. Ugur Yavas is
Professor of Marketing at East Tennessee
State University, USA.