Asia Pacific Management Review 25 (2020) 207e215

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Asia Pacific Management Review

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Evaluation of cross-national global market segmentation and strategy: The case of

Korean Wave for ASEAN countries
Sang Mook Kim a, Min Jae Park b, *
a
Korea Trade-Promotion Investment Agency, Seoul, Republic of Korea
b
Department of e-business, Ajou University, Suwon, Republic of Korea

a r t i c l e i n f o a b s t r a c t

Article history: We perform a cross-national market segmentation and analyze differences in the evaluation of made-in-
Received 19 July 2019 Korea electronic home appliances and cosmetics based on experience of and emotion towards Korean
Received in revised form drama and K-pop. We conducted a survey of consumers in five countries among the Association of
7 January 2020
Southeast Nations member countries, which have widely accepted the Korean Wave. We identify six
Accepted 13 April 2020
Available online 19 June 2020
market segments across nations, from “Korean Wave evangelists” to “cultural vigilances,” according to
the target nation’s experiences and emotions regarding the Korean Wave. This study could provide a
useful insight into standardizing or localizing marketing programs as appropriate for each market seg-
Keywords:
Global market segmentation
ment’s characteristics.
Korean wave © 2021 The Author(s). Published by Elsevier BV on behalf of College of Management, National Cheng
Experience of Korean wave Kung University.
Emotion towards Korean wave
Cross-national research
Perceived quality

1. Introduction consequently positive market performance (Schilke, Reimann, &

With the reduction of international trade barriers and global-
ization of firms’ value chain activities, firms can have more business
opportunities through advancement into the global market. On the
other hand, as the number of enterprises that wish to participate in
the global market increase, competition is getting fiercer. Because
market environments and business cultures vary greatly across
countries, the greatest challenge of firms entering the global mar-
ket is determining what marketing programdstandardization or
localizationdthey should employ. Such a decision is regarded as
one of the critical factors for firms to succeed in global businesses
(Kale, 1991; Malhotra, Sivakumar, & Zhu, 2009; Steenkamp &
Hofstede, 2002).
Standardization of global marketing use of the same products,
prices, distribution methods, and promotion strategies in all mar-
kets across countries (Broderick, Greenley, & Mueller, 2007; Jain,
1989), which is an attractive alternative due to realization of the
economy of scale, cost reduction, ease of management, and
* Corresponding author.
E-mail addresses: smkim@kotra.or.kr (S.M. Kim), geglove@ajou.ac.kr (M.J. Park).
Peer review under responsibility of College of Management, National Cheng
Kung University.
Thomas, 2009; Tan & Sousa, 2013; Zou & Cavusgil, 2002). Howev-
er, the products available for standardized marketing are limited.
Accordingly, the necessity of localization strategies reflecting dif-
ferences for each country and market has been raised (Kotler, 1986;
Thackray, 1985). In addition, the psychic distancedthe perception
of the difference between the home country and foreign countries
(Sousa & Bradley, 2008)dnegatively influences the standardization
of marketing programs (Tan & Sousa, 2013). Therefore, Ramarapu,
Timmerman and Ramarapu (1999) suggest that firms should
choose a marketing strategy in consideration of the national market
status (place), consumers (people), and products of the target
country rather than by selecting an exclusive marketing strategy.
As such, it is important for firms to understand the character-
istics of local consumers in the targeted overseas market in order to
establish a valid global marketing strategy (Yavas, Verhage, &
Green, 1992). Firat and Shultz (1997) pointed out that market
segmentation utilizing demographics, standard of psychological
statistics, or other segmentation criteria is necessary, because
consumer tastes are fragmented in the postmodern era. Steenkamp
& Hofstede (2002, 186) state, “International segmentation becomes
a particularly challenging issue when companies adopt a global or
pan-regional strategy.” Further, consumers evaluate product qual-
ity by utilizing the characteristics of the product and various

https://doi.org/10.1016/j.apmrv.2020.04.001
1029-3132/© 2021 The Author(s). Published by Elsevier BV on behalf of College of Management, National Cheng Kung University.
208 S.M. Kim, M.J. Park / Asia Pacific Management Review 25 (2020) 207e215
information cues and apply this evaluation to purchasing decision-
making (Richardson, MacFie, & Shepherd, 1994). For instance,
consumers could evaluate products based on informational cues
such as brand name (e.g., Kwok, Uncles, & Huang, 2006; Peterson &
Jolibert, 1976), price (e.g., Ahmed et al., 2004; Dodds, Monroe, &
Grewal, 1991), and the country of origin (e.g., Han & Terpstra,
1988; Insch & McBride, 2004), etc. Further, the cues applied to
evaluate products differ according to the individual’s characteristics
(Lee & Lou, 1995). Cultural factors are one example of evaluative
criteria that affect consumers’ choices. In the case of nondurable
goods such as cosmetics, food, beverages, and medical substances,
cultural factors strongly influence product evaluation (Quelch &
Hoff, 1986; Ramarapu et al., 1999).
Due to the fact that the interrelation between popular culture
and consumer behavior is increasing (Kjeldgaard & Askegaard,
2006), studies on cultural diffusion from a marketing perspective
come to the forefront of research (Kim, Lee, Jang, Lee, & Kapstein,
2015; Lee, Kim, & Woo, 2014; Otmazgin, 2008). This is because
consumers’ quality evaluation and purchase intention towards an
imported product could differ according to the degree of awareness
of, acceptance for, and preference towards the originating culture.
In marketing research, diffusion is defined as “the process in which
an innovation is communicated through certain channels over time
among the members of a social system” (Rogers, 2003, p. 5). Among
the studies related to popular culture diffusion, studies on the
Korean Wave (Hallyu), which is spreading from Korea to East Asia
and the rest of the world, are drawing attention. The Korean Wave
refers to “the phenomenon where Korean film, popular music (K-
pop) and broadcasting, fashion, etc. become popular overseas”
(Jang, 2011, p. 166). The term ‘Korean Wave’ was named for
describing the phenomenon of Korean drama and pop music
rapidly spreading and becoming a major trend in China (Chua &
Cho, 2012). Along with the spread of the Korean Wave, the popu-
lar culture of Korea as well as products made in Korea are gaining in
popularity in the overseas market (KOTRA & KOFICE, 2015; Shim,
2006). As the Korean Wave is acknowledged to be not a tempo-
rary phenomenon but a sustainable business with its competi-
tiveness (Parc & Moon, 2013), it should accordingly be studied from
the perspective of marketing.
This study is designed to answer three research questions. The
first is to see whether cultural factors, especially popular culture,
can serve as a basis for market segmentation. Market segmentation
is typically based on economic, political, geographic, and de-
mographic information or cultural variables (Steenkamp &
Hofstede, 2002). By developing an understanding of market seg-
mentation based on ‘experience of and emotion towards popular
culture,’ we contribute to the field by extending the criteria of
segmentation research. Our research could also give a meaningful
insight in academia on maintaining interest in researching trans-
national popular culture phenomena as mentioned by During
(1997). The second research question is to confirm whether there
is a homogeneous market across borders. Bolton and Myers (2003,
123) state that the study of market segmentation is “particularly
challenging in global markets where cultural and economic dif-
ferences influence customer preferences.” Cross-national market
segmentation is necessary; however, most market segment studies
are limited to the analysis of individual nations, mainly due to the
difficulty of collecting consumer information across countries
(Papadopoulos & Martin, 2011). Therefore, this study, which ana-
lyzes cross-national market segments of consumers in five ASEAN
member countries with respect to acceptance of Korean popular
culture, could provide valuable insights to academics and mar-
keters. The third question is to analyze whether consumers in the
same market segment across borders have similar behaviors in
consumption decisions such as product evaluation. Expanding
understanding of cultural influence on consumer behavior has been
a critical topic for both managers and consumer researchers (Luna
& Gupta, 2001). Marketers should pay attention to whether it is
possible to utilize cultural factors in marketing communication
(Kale, 1991), since firms are highly pressured to adopt standardized
promotion strategies across countries and cultural zones due to
competitive market environments and restricted available
resources.
This study is organized in the following sections: first, we briefly
discuss the cross-border spread of Korean Wave, as well as market
segmentation based on cultural experience. Second, we cover
methodological issues including research design, research subjects,
and methods of analysis. Our findings highlight the relevance of
cross-national segmentation research. Finally, we discuss how our
results can be used to derive managerial insights into the identifi-
cation of market segments based on experience of popular culture.
2. Theoretical background
2.1. Cross-border spread of the Korean Wave
Popular culture is defined as “culture that is widely favoured or
well liked by many people” (Storey, 2009, p. 5). Kim (1995) de-
scribes that popular culture is the most generalized and universal
culture type of the era that majority of people accept, which is
delivered to the public through mass media such as TV, radio,
newspaper, and film and forms a new trend in lifestyle or ideology.
Due to the spread of popular culture across borders, consumer
groups who pursue similar lifestyles and consumption behaviors
are growing, even though they reside in different countries. The
typical example is the ‘youth’ group. Hassan and Katsanis (1991, 22)
state, “Teenage culture’ on a global scale shares a youthful lifestyle
that values growth and learning with appreciation for future
trends, fashion, and music.” Nowadays, as cross-cultural contact
expands widely, global marketing activities are increasingly
required to understand how consumers react to other forms’ or
other countries’ culture (Alden, Steenkamp, & Batra, 1999). Due to
this, market segmentation research to understand Korean Wave
consumers’ lifestyles could provide an important insight to firms’
marketing strategy decision-making.
Among previous studies of the Korean Wave phenomenon,
studies from anthropology and marketing viewpoint took prece-
dence. Studies from the anthropological point of view have focused
on explaining the motive for accepting the Korean Wave and dis-
cussing the phenomenon of consumer behaviors in response to the
Korean Wave. The current phenomenon of the spread of the Korean
Wave is explained by various theories such as cultural diffusion (e.g.,
Kim et al., 2015; Xu, Park, Kim, & Park, 2016), acculturation (e.g., Kim
& Kim, 2015), appropriation (e.g., Suh, Hur, & Davies, 2016), hy-
bridity (e.g., Lee, 2012; Shim, 2006), and fandom (e.g., Huang, 2011;
Siriyuvasak & Shin, 2007). The result of the Korean Wave phe-
nomenon is that it improves the Korean national image (Han, Chen,
& Rhee, 2011; Hanaki, Singhal, Han, Kim, & Chitnis, 2007) and helps
to create a new, positive image of Korea (Otmazgin, 2008) among
people in recipient countries. As such, it could be utilized as a means
of cultural diplomacy (Chen, 2016; Jang & Paik, 2012).
One stream of studies related to the Korean Wave is analysis of
the Korean Wave phenomenon itself. According to the Ministry of
Culture, Sports, and Tourism of Korea (2013), the Korean Wave
phenomenon, which started in Japan, China, and Mongolia in the
late 1990s, spread over Southeast Asia, Europe, and South America
in the 2000s. The subjects of the Korean Wave have extended from
TV drama to popular music (K-pop) and film and have diversified to
include food, games, animation, broadcasting formats, and ‘web
toons’ since the 2010s. According to the analysis performed by
 S.M. Kim, M.J. Park / Asia Pacific Management Review 25 (2020) 207e215
PCNB and KOTRA (2011) on the Korean Wave phenomenon, based
on the degree of experience of Korean Wave content over 15,070
consumers in 28 countries, Southeast Asian and some of Central
Asian countries were classified as ‘mature stage regions’ of Korean
Wave, most of Central Asia, the Middle East, and South American
countries were classified as ‘diffusing stage regions,’ Eastern Eu-
ropean and some Western European countries were classified as
‘adapting stage regions,’ and North America and most Western
European countries were classified as ‘entering stage regions.’
Another strain of research on the Korean Wave is about the
economic effect generated by the Korean Wave, such as changes in
attitudes of consumers in the recipient countries towards products
made in Korea or Korea-originating brands. The economic effect
generated by the Korean Wave could be explained through the AIDA
(attention, interest, desire, action) model. According to the AIDA
model (Rawal, 2013), overseas consumers may pay attention to
Korean-made products through Korean Wave content, thus getting
interested in the products. Such interest is transferred to desire and
finally to purchase (action). According to previous studies on the
Korean Wave, experience of, preference towards, and satisfaction
with the Korean Wave positively influences the Korean national
image (e.g., Han et al., 2011; Hanaki et al., 2007), as well as the
reliability and brand image of firms originating from Korea (e.g., Lee,
2015; Yu, Kim, & Kim, 2012) and the quality evaluation of and pur-
chase intention towards products made in Korea (e.g., Huang, 2011;
Kim & Li, 2013). Huang (2011) said that the popularity of Korean
drama intensified awareness of Korean brands in the Taiwanese
market and stood behind the sales of various Korean products, such
as mobile phones, electronic appliances, cars, cosmetics, and
clothes. Analyzing the Korean Wave’s impact over 67 countries, Choi
(2012) described a positive influence on Korean exports. Further, the
longer the duration of the Korean Wave, the greater the positive
export effect. Lee, Kim, and Woo (2014) has analyzed the correlation
between YouTube views, Google search frequencies for K-pop, and
exports of Korean products in 55 countries using multiple regression
analysis. Their results show a positive correlation between the fac-
tors, and the size of impact is stronger on low-priced consumer
goods, such as cosmetics and clothes, compared to high-priced
goods, such as cars and electronic products.
2.2. Market segmentation based on popular culture experience
Culture is defined as “a learned, shared, compelling, interrelated
set of symbols whose meaning provides a set of orientations for
members of a society” (Terpstra & David, 1985, p. 5), and “the col-
lective programming of the mind that distinguishes the members of
one group or category of people from others” (Hofstede, Hofstede, &
Minkov, 2010, p. 6). Culture is an intrinsic characteristic that dis-
tinguishes one society from others, describes value systems that
define human behaviors. Since consumers are influenced by culture
in every aspect of their behavior, culture is a critical factor related to
global market entrance. Accordingly, strategies to enter a market
should be established by considering cultural differences (Luna &
Gupta, 2001; Quester & van Wendt-Eccles, 2002).
According to consumer studies, cultural interest is an important
antecedent factor that influences consumers’ overall attitudes and
purchase behaviors (Asgari & Hosseini, 2015). For example, accul-
turation occurs in the process of mutual exchange of influence
between immigrants and natives (Cleveland & Laroche, 2006), and
such acculturation causes a radical change in consumer behavior
(Douglas & Craig, 1997). Acculturation appears to mediate the in-
fluence of subordinate cultural factors in attitudes towards adver-
tisements (Deshpande, Hoyer, & Donthu, 1986), in the role of
spouse and family in the process of consumption decision-making
(Ganesh, 1997), in general consumption patterns (Wallendorf &
209
Reilly, 1983).
Hannerz (1990, 237) states that global culture appears through
“the increasing interconnectedness of varied local cultures, as well
as through the development of cultures without a clear anchorage
in any one territory,” and states that people belonging to global
culture seem to share symbols (that is, brands, consumption be-
haviors, etc.), experiences (travel, events, etc.), and attitudes (global
viewpoint, etc.). Steenkamp (2001) also points out the emergence
of ‘meta cultures (global culture)’ that emphasize modernity,
technology, freedom, and personal choice beyond cultural homo-
geneity in a country. Appadurai (1990) suggests five routes of cross-
border cultural diffusion flowsdethnoscapes, technoscapes, finan-
scapes, ideoscapes, and mediascapesdin terms of spreading systems
of global culture. Appadurai (1990) particularly mentions that the
important diffusion route for marketing is media, and mass media
plays an important role in the creation of global culture.
Some research on market segmentation shows the existence of
homogeneous markets across countries with the emergence of
global culture, whereas some results have reported that it varies
upon countries. Wedel, Hofstede and Steenkamp (1998) provide
evidence of the existence of a pan-regional or global consumer
segment. Broderick et al. (2007) also insist that there is homoge-
neity within cultural boundaries or between cultural boundaries in
the context of consumer involvement. Ko, Kim, Taylor, Kim, and
Kang (2007) report a global market segment in fashion clothing
consumers of Korea, the U.S., and France based on lifestyle
regardless of nationality, which is named ‘information seekers,
sensation seekers, utilitarian consumers, conspicuous consumers.’
They argue that each segment of consumers reacted similarly to a
specific advertisement message. On the contrary, studies on issues
of standardization or localization of advertisements in ASEAN
markets show that standardized advertisement has different effects
by country (Pae, Samiee, & Tai, 2002; Taylor & Raymond, 2000). A
study has also revealed that the proliferation of the Korean Wave
has different impacts at the national level (Jang & Paik, 2012).
Therefore, in order to clarify whether there are market segments
cross borders that can produce the same effect with a standardized
marketing program in accordance with the spread of the Korean
Wave, it is necessary to study the homogeneity among Korean
Wave consumers in multiple countries. In this regard, as raised as a
necessity by Agarwal, Malhotra, and Bolton (2010), this study as-
sesses the validity of culture-based horizontal segmentation
beyond national boundaries rather than nation-based vertical
segmentation. This article further extends the scope of the study to
ASEAN consumers in response to Park’s (2014) note that Korean
Wave studies have been limited to China and Japan.
3. Method
3.1. Measurement and questionnaire
The questionnaire is composed of five parts: experience of and
emotion towards Korean Wave content; perceived quality evalua-
tion; experience with Korea such as food and visits; information
sources; and personal data. It was first written in Korean, and then
translated into Thai, Indonesian, Vietnamese, and English (for
Malaysia and Singapore). Finally, it was translated into Korean in
order to maintain construct equivalence through double-blind
translation.
3.1.1. Measurement of experience of and emotion towards Korean
Wave content
To measure experience of and emotion towards Korean Wave,
the authors chose Korean drama and K-pop, which are recognized
as representative content, as the research instrument. Yim and
210 S.M. Kim, M.J. Park / Asia Pacific Management Review 25 (2020) 207e215
Chae (2014) reported that the representative Korean Wave content
types are drama and pop music. KOTRA & KOFICE (2015) also
classified drama and K-pop as representative Korean Wave content.
The parameters for segmenting Korean Wave consumers are
determined by experience measured by the frequency of con-
sumption (exposure) and emotion measured by consumers’ feel-
ings regarding content. These parameters reflect attention and
interest in the AIDA model. Experience and emotion act as impor-
tant factors in the process of formation of customers’ attitudes.
‘Experience’ is personal and memorable, and contextual experi-
ences are more important in contributing to consumers’ value
perception than the quality of products or services (Alex & Thomas,
2012; Pine & Gilmore, 1998). Yu and Fang (2009) argued that
contextual experience and service are directly influencing factors in
value perception for high income consumers. A positive or negative
‘emotion’ related to service plays an important role in satisfaction,
which is an important cue to anticipate future behavioral intentions
(Allen, Machleit, & Kleine, 1992; Yu & Dean, 2001). Koenig-Lewis
and Palmer (2008) also argue that emotion could anticipate be-
haviors in the future better than traditional perception based on
measurements of satisfaction.
The measurement questionnaire of experience of Korean Wave
content was developed by following the studies of Chae and Yoon
(2006) and Yu, Nam, Park and Jin (2014). The frequency of watch-
ing Korean drama per week during the last year was questioned on
a scale of five, ranked as “not at all,” “less than once,” “2e3 times,”
“4e6 times,” and “over 7 times.” The frequency of listening K-pop
weekly during the last year was also questioned on a scale of five,
ranked as “not at all,” “1e2 times,” “3e4 times,” “5e6 times,” “over
7 times.” The measurement questionnaire on emotion towards
Korean Wave content referenced the cognitive emotional response
scale that was used in the studies of Havlena, Holbrook, &
Lehmann, 1989 and Lee (2015). The questionnaire consisted of
nine items for each of Korean drama and K-pop such as, “I know
very well,” “I feel good,” “I prefer,” “It is reliable,” “It provides
consistent quality of content,” “It has excellent quality of content,”
“It identifies well consumers’ needs,” “It leads the trends of the
industry,” “I believe it has global competitiveness.” The scale was 7-
point Likert from “1: do not agree at all” to “7: agree very much.”
3.1.2. Perceived quality of products made in Korea
To measure perceived quality of products made in Korea, this
study chose electronic home appliances and cosmetics. Electronic
home appliances are representative export consumer goods in
Korea, and cosmetics are known as products for which brand image
is easily enhanced by the Korean Wave due to its product charac-
teristics. The questionnaire has developed four questions to mea-
sure perceived quality from the studies of Li, Murray, and Scott,
2000 and Laroche, Teng, Michon and Chebat (2005); three ques-
tions to measure preference from the study of Jamal and Al-Marri
(2007); and two questions to measure purchase intention from
the study of Wu, Chan and Lau (2008). The scale was 7-point Likert
from “1: I do not agree at all” to “7: I agree totally.”
3.2. Analytical procedure
To analyze market segments and their characteristics upon
consumption of Korean Wave content in the Asian region, this
study selects five countriesdMalaysia, Vietnam, Thailand,
Singapore and Indonesiadamong ASEAN member countries with
consideration of the Korean Wave proliferation situation, popula-
tion size, and the degree of interaction between Korea and these
countries. According to PCNB and KOTRA (2011), the proliferation of
the Korean Wave is in its mature stage in Malaysia, Vietnam,
Thailand, and Singapore and is in the diffusion stage in Indonesia.
The total population of the five chosen countries is 452 million as of
August 2016, accounting for 71.9% of the population of the ten
ASEAN member countries (ASEAN Statistics). Based on foreign
trade statistics of KITA (2017), the trade volume between Korea and
the five chosen countries is 105.37 billion US dollars in 2016, ac-
counting for 88.7% of the total trade volume between Korea and the
ten ASEAN member countries.
A survey was conducted by general consumers in the five
countries. Because there were reports that Chinese consumers had
different preferences across genders for Korean Wave stars (Choi,
Ju, & Kim, 2009), the subjects were evenly distributed between
males and females. The survey was conducted online through a
specialized research institute that has respondent pools in the five
target countries.
The data collected through the survey was analyzed using the
statistical package SPSS 23.0. First, frequency analysis was con-
ducted to determine demographic characteristics of the research
sample. Then, factor analysis was carried out to evaluate the val-
idity of the variables. As a result of performing the hierarchical
cluster analysis using the overall average of variables loaded in each
factor, six clusters were classified with consideration to coefficient
and cluster characteristics. Next, K-means cluster analysis was
conducted. The validity of clustering analysis was verified through
discriminant analysis. Finally, we suggest policy and managerial
implications by analyzing the perceived quality evaluation and
purchase intention for Korean-made products by each market
segment.
4. Analytical results
4.1. Sample
Demographic characteristics of the respondents are shown in
Table 1. The number of respondents is on average 482 people per
country, varying from 431 people in Indonesia to 538 people in
Malaysia and Singapore. The total sample size was 2414 people,
which consists of 1220 (50.5%) male and 1194 (49.5%) female re-
spondents. The age distribution is 48 (2.0%) teenagers, 821 (34.0%)
people in their 20s, 871 (36.1%) people in their 30s, 467 (19.3%)
people in their 40s, and 206 (8.5%) people in their 50s or older. The
age distribution of the sample has a relatively large 20se40s pop-
ulation; this group is actively involved in economic activities.
Regarding occupation distribution, the sample consists of 264
(10.9%) students, 100 (4.1%) housewives, 1387 (57.5%) full-time
workers, 394 (16.3%) self-employed workers, 144 (6.0%) tempo-
rary or part-time workers, and 125 (5.2%) individuals who are un-
employed or other.
4.2. Validity and reliability analysis
To identify the validity of measurement variables used in this
study, we conducted an exploratory factor analysis (EFA) for mea-
surement variables, which are consumers’ emotion towards Korean
Wave content (K-pop, drama) and perceived quality evaluation for
Korean-made products (cosmetics, electronic home appliances).
The factor analysis was applied to the principal component analysis
and varimax rotation, which is rotating with assuming mutual in-
dependence among the factors. Four factors were extracted
through the factor analysis. The KMO value, which indicates cor-
relation degree among the input variables, was 0.970, Bartlett’s
sphericity test was X2(df) ¼ 126655.464, and the probability of
significance was p ¼ .000. In general, in cases when the KMO value
is over 0.5, and in cases where the probability of significance (p
value) for Bartlett’s sphericity test is below 0.1, factor analysis is
determined to be acceptable. Our results have a very high
 S.M. Kim, M.J. Park / Asia Pacific Management Review 25 (2020) 207e215
significance by securing factors that are over 0.6 of factor-loading
index of the measurement items and over 1.0 of Eigen value, such
that the validity of measured items was secured with an 81.807%
accumulated dispersion ratio.
Tests of the reliability of the construct used in this study through
checking Cronbach’s a value show the following results: emotion
for K-pop (0.975), emotion for drama (0.973), perceived quality
evaluation for cosmetics (0.975), and perceived quality evaluation
of electronic home appliances (0.963). This determines that the
reliability of the construct is secured, as it exceeds 0.7, which is the
indicated criteria according to Nunnally (1978).
4.3. Clustering analysis
To segment the market according to the experience of and
emotion towards Korean drama and K-pop of ASEAN consumers,
the overall average of variables of each factor was calculated, and
cluster analysis was performed by applying the overall average of
variables. For the cluster analysis, hierarchical clustering was firstly
performed using Ward’s clustering method in order to derive the
proper number of clusters. After this, K-means clustering, which is
non-hierarchical clustering, was utilized based on the results of
hierarchical clustering.
4.3.1. Determination of number of clusters
Ward’s clustering method, which is a hierarchical clustering,
was performed to derive the number of clusters to be utilized in
non-hierarchical clustering (Gülagiz & Sahin, 2017). The result of
performing hierarchical clustering utilizing the SPSS statistical
package was derived a dendrogram. The Y-axis value of the
dendrogram is the ‘distance’ that determines the cluster, and the X-
axis indicates each ‘respondent’. Checking each branch of the
dendrogram, the distance per group becomes wide over five when
they are collected in six clusters. Considering the distance from
other clusters grows in the class where clusters decrease to six, the
number of clusters was determined to be six.
4.3.2. Clustering of Korean Wave consumers
K-means clustering is “a method commonly used to automati-
cally partition a data set into k groups” (Wagstaff, Cardie, Rogers, &
Schroedl, 2001, p. 577). This study conducted K-means clustering by
using six clusters derived from hierarchical clustering, wherein the
variables are established as the degree of experience of Korean
drama (watching) and K-pop (listening) and their emotions to-
wards Korean drama and K-pop.
As shown in Table 2, cluster 1 is a favorable emotion group with
relatively greater experience with K-pop and drama, cluster 2 is the
most experienced group regarding K-pop and drama with very
favorable emotions, and cluster 3 is a segment with favorable
emotions and a great deal of experience with drama rather than K-
pop. Cluster 4 is a segment with impartial emotions that does not
have much experience with K-pop and drama, cluster 5 is a
segment with unfavorable emotions and very little experience with
K-pop and drama, and cluster 6 is a segment with favorable emo-
tions but nevertheless little experience with K-pop and drama. The
population distribution for each of the surveyed five ASEAN
countries was clustered with no large difference in the distribution
as shown in Table 3. However, a small difference appeared in
clusters 1, 3, and 5 in the case of Vietnam, clusters 1 and 3 in case of
Indonesia, and clusters 1, 2, and 5 in the case of Thailand when
compared to the distribution of the general population. Such a
difference is assumed to be due to the difference in the degree of
diffusion of the Korean Wave and popular content per country.
To test the validity of the cluster analysis, we performed
multivariate discriminant analysis (Müller & Hamm, 2014) by
211
establishing the derived cluster as the dependent variable and the
degree of experience of drama and K-pop and emotion towards the
Korean Wave as the independent variable. As a result of discrimi-
nant analysis, four discriminant functions were derived, as shown
in Table 4. Discriminant function 1 displayed 6.527 of Eigen value
and 0.931 of canonical correlation value, and discriminant function
2 displayed 1.088 of Eigen value and 0.722 of canonical correlation
value. Discriminant function 3 displayed 0.481 of Eigen value and
0.570 of canonical correlation value, and discriminant function 4
had 0.033 of Eigen value and 0.178 of canonical correlation value.
The significance level on the whole was .000; therefore, all of 4
discriminant functions appeared statistically significant. The hit
ratio, which determines the degree of propriety of classification of
discriminant formula on the actual group, was 95.9%, the classifi-
cation of the cluster was proper, and the result of clustering can be
said valid (Müller & Hamm, 2014).
4.3.3. Chi-squared test to analyze differences of demographic
variables
In order to verify differences between clusters on Korean Wave
consumption behaviors, we conducted a chi-square (X2) test by
using crosstabs. Variables to test consisted of demographic vari-
ables, the degree of experience of Korean drama and K-pop, expe-
rience with visiting Korea, experience with eating Korean food, and
major sources of information in getting Korea-related news. The
result displayed significant differences among the six clusters with
respect to gender, age, occupation, degree of experience with
Korean drama and K-pop, and information sources related to Korea.
Clusters 1, 2, 3, and 6 are favorable emotion groups with much
experience of the Korean Wave. While clusters 2, 3, and 6 consist of
a relatively high proportion of female respondents, they have
especially high rates of experience as well as favorable emotions
towards Korean drama compared to the general population. Con-
sumers of these clusters had relatively more experience with
Korean food and visiting Korea. With respect to information sour-
ces for Korea-related news, they showed a tendency to depend on
image-based media such as TV news, films, dramas, etc. Clusters 4
and 5, which consist of a relatively high proportion of male re-
spondents, have little experience of Korean drama or K-pop and
have negative emotions towards Korean content. They showed a
tendency to depend on TV news, the Internet, and usage experience
of Korean-made products for getting information on Korea-related
news.
4.4. Segment characteristics of Korean Wave consumers
We named the six clusters based on their characteristics. On the
whole, one cluster among six was enthusiastic about all kinds of
Korean Wave content, two clusters intensively consumed Korean
drama, one cluster was ardent about K-pop, one cluster was a
bystander to Korean Wave content, and one cluster appeared un-
favorable or cynical towards Korean Wave content.
Group 1_K-pop comers: watch Korean drama 2e3 times a week,
listen to K-pop 5e6 times a week, have more favorable experience
of and emotion towards K-pop than Korean drama. Equally
distributed gender of male and female and composed of full-time
workers, self-employed persons, and students (87.6%) who are
mainly in their 20se30s (77.5%). Have high experience of Korean
food (84.4%) and visiting Korea (22.0%). Gather Korea-related in-
formation through the Internet and SNS.
Group 2_Korean Wave evangelists: watch Korean drama 4e6
times a week, listen to K-pop 5e6 times a week, have the most
favorable emotion towards Korean drama and K-pop. Composed of
a higher proportion of female (61.4%) and full-time workers, self-
employed persons, and students (85.9%) who are mainly in their
212 S.M. Kim, M.J. Park / Asia Pacific Management Review 25 (2020) 207e215

Table 1
Demographic characteristics of Sample.

Malaysia Singapore Indonesia Thailand Vietnam Total

Gender Male 268 270 209 222 251 1220

Female 270 268 222 218 216 1194
Age Under 19 11 11 9 10 7 48
20e29 202 151 141 140 187 821
30e39 187 191 157 161 175 871
40e49 92 115 99 96 65 467
Over 50 46 70 25 33 32 206
Occupation Students 72 51 28 49 64 264
House wives 17 32 36 7 8 100
Full-time workers 332 355 189 229 282 1387
Self-employed 76 48 111 107 52 394
Temporary 21 33 47 9 34 144
Unemployed 15 15 5 16 10 61
Others 5 4 15 23 17 64
Total 538 538 431 440 467 2414

Table 2
Result of non-hierarchical clustering (K-means clustering).

Cluster F value p

1 (n ¼ 218) 2 (n ¼ 319) 3 (n ¼ 230) 4 (n ¼ 772) 5 (n ¼ 310) 6 (n ¼ 565)

K-pop experience 4 4 1 2 1 2 1080.587 .000

Drama experience 3 4 3 2 1 3 582.816 .000
K-pop emotion 4.94 6.17 2.25 4.05 1.97 4.71 1481.583 .000
Drama emotion 4.70 6.36 4.40 4.31 2.25 5.75 1378.282 .000

20se30s (80.9%). Have high experience of Korean food (87.5%) and
visiting Korea (23.8%). Mainly collect Korean-related information
through film, drama, and TV.
Group3_K-drama supporters: watch Korean drama 2e3 times a
week, listen to nearly no K-pop. Have more favorable emotions
towards Korean drama than K-pop. Composed of a relatively high
proportion of female respondents (52.6%) and respondents over the
age 40 (35.7%/compared to the general population 27.9%). No
vocational difference compared to general population. Receive
Korea-related information through film, drama, and TV.
Group4_Korean Wave bystanders: watch Korean drama less
than once a week, listen to K-pop 1e2 times a week. Have impartial
emotions towards Korean drama and K-pop. Composed of a high
proportion of male respondents (59.6%) and have relatively low
experience of Korean food (77.2%) and visiting Korea (12.8%).
Collect Korea-related information through newspapers, magazines,
and usage experience of Korean-made products.
Group5_Cultural vigilances: no or almost no experience
watching/listening to Korean drama or/and K-pop. Have negative
emotions regarding Korean drama and K-pop. Composed of a high
proportion of male respondents (56.1%) aged under 19 or over 40.
Have little experience with Korean food (70.3%) and visiting Korea
(11.0%). Receive Korea-related information through news, Internet,
and usage experience of Korean-made products.
Group6_K-drama holists: watch Korean drama 2e3 times a
week, listen to K-pop 1e2 times a week. Have very favorable
emotions towards Korean drama particularly, as well as K-pop.
Composed of a high proportion of female respondents (57.0%) who
are over the age of 30 (71.4%) and full-time workers (61.6%). Have
high experience of Korean food (84.2%), which is above the average
of population. Collect Korea-related information through film and
drama.
Based on the market segmentation model and using experience
of and emotion towards Korean Wave content, we investigated the
possibility of applying standardized marketing strategies to
Korean-made products in the market. This study analyzed differ-
ences in the perceived quality evaluation of Korean products per
cluster. The items chosen are consumer goodsdelectronic home
appliances and cosmeticsdand difference was verified through
one-way variance analysis. Variables for variance analysis were
established as cluster numbers, and the dependent variable was
established as the perceived quality evaluation of Korean-made
electronic home appliances and cosmetics. As a result of Levene’s
test for equality of variances, the significance probability appeared
as .000 (p < .05). A problem appeared in the homogeneity of
variance assumption; accordingly, this study performed robustness
tests of equality of means.
As the result of robustness tests of equality of means, Welch

Table 3
Cluster distribution by country.

Cluster

1 (n ¼ 218, 9.0%) 2 (n ¼ 319, 13.2%) 3 (n ¼ 230, 4 (n ¼ 772, 5 (n ¼ 310, 12.8%) 6 (n ¼ 565,

9.5%) 32.0%) 23.5%)

Malaysia 48(8.9%) 62(11.5%) 46(8.6%) 181(33.6%) 107(19.9%) 94(17.5%)

Vietnam 32(6.9%) 58(12.4%) 79(16.9%) 122(26.1%) 38(8.1%) 138(29.6%)
Singapore 57(10.6%) 54(10.0%) 46(8.6%) 206(38.3%) 82(15.2%) 93(17.3%)
Indonesia 22(5.1%) 63(14.6%) 32(7.4%) 145(33.6%) 60(13.9%) 109(25.3%)
Thailand 59(13.4%) 82(18.6%) 27(6.1%) 118(26.8%) 23(5.2%) 131(29.8%)

* ( ) is an occupation percentage of the width from the population (unit: %).

 S.M. Kim, M.J. Park / Asia Pacific Management Review 25 (2020) 207e215 213

statistics of electronic home appliances were 108.574 (p ¼ .000).

549(97.2%)
Function 4

Cluster 6

21(6.6%)

10(1.3%)
The result of performing the GameseHowell post hoc tests to

2(0.9%)

4(1.7%)
-.735

-.323

0()
.000
.000
.000
.000

.510

.752
Sig.
electronic home appliances, which does not assume homogeneity
of variance, is that 12 groups among 15 show significant differ-
ences (p < .05). The excepted groups are 1e3, 1e4, and 3e4.
Regarding electronic home appliances, we assume the reason
behind the lack of significant differences among K-pop comers
(group 1), drama supporters (group 3), and Korean Wave by-
standers (group 4) is that the consumers have considered other

301(97.1%)
Discriminant function significant

Cluster 5

2(0.9%)
factors (e.g., price, brand, etc.) besides country of origin image

0()
0()

0()

0()
when evaluating the product.
Function 3
7656.298
2795.893
1023.511
X2 value

Welch statistics of cosmetics appeared as 164.364 (p ¼ .000).

77.176

-.749
.169
.458
.447

The result of performing the Games-Howell post hoc test without

assumption of homogeneity of variance is that 14 groups among
15 groups show significant differences (p < .05), with group 3e4 as
the exception. The reason for differences between the results of
759(97.0%) cosmetic choices and electronic home appliances choices is mainly
Cluster 4

15(6.5%)

assumed that, as per a study by Lee et al. (2014), the Korean Wave
2(0.9%)

4(0.7%)
0()

0()
has a stronger impact on low price consumer goods compared to
high price consumer goods.
Wilks’ Lamda

5. Discussion
Function 2

-.456
-.409

Predicted cluster
.042
.313
.654
.968

.077

.807

As the connections between culture, consumers, and business

activities are globally expanded due to development of informa-
tion and communication technology and globalization, extension
208(90.4%)

of international marketing theory is becoming more important.

Cluster 3

6(0.8%)
9(2.9%)
3(0.5%)
0()
0()

This study identified existing segmented markets across countries

based on experiences of and emotions towards Korean pop and
drama. The market segments showed significant differences in the
perceived quality evaluation of Korean-made electronic home
Discriminant

correlation

Function 1
Canonical

appliances and cosmetics, as well as in information channels for

.931
.722
.570
.178

.537
.536

.371
.360

getting Korea-related news and behaviors such as consuming

Korean food and visiting Korea. Therefore, we believe the results of
this study give valuable insights into forming global marketing
strategies and enriching international marketing theory as
294(92.2%)
Cluster 2

4(0.7%)

follows:
0()

0()
0()
0()

Firstly, this study verified that popular culture that is also a

transnational phenomenon influences the formation of homoge-
neity of consumer behavior. After the experience (consumption) of
% of variance

Korean drama and K-pop as popular culture, consumers experi-

80.3%
13.4%
5.9%
.4%

ence specific emotions, which then affect their behaviors. More-

over, consumers have tended to be homogenized across borders
Variance explanation

based on the same experiences. This study identified six clusters of

homogeneity regarding the Korean Wave: ‘Korean Wave evange-
214(98.2%)
Cluster 1
Standardized discriminant function coefficient

lists,’ ‘K-Pop comers,’ ‘K-drama supporters,’ ‘K-drama holists,’

4(1.3%)
1(0.4%)
7(0.9%)

5(0.9%)
0()

‘Korean Wave bystanders,’ and ‘Cultural vigilances.’

Secondly, the consumers who belong to each market segment
evaluate the perceived quality of Korean-made cosmetics and
Eigen value

electronic home appliances differently. They also have different

6.527
1.088
.481
.033

experiences with Korean food and visiting Korea, and differ even
in the information sources they use to collect Korea-related news.
Result of multivariate discriminant analysis.

This could be an important insight for the global marketer. For

Degree of drama experience
Degree of K-Pop experience

instance, global marketers could apply standardized promotion

Frequency

strategies to go across countries and cultural zones. Likewise,

(2414)

218
319
230
772
310
565

public authorities who are in charge of building national image

should consider increasing the publication of articles favorable
Drama emotion
K-Pop emotion

towards the country in newspapers and on the Internet. This is

because the consumer groups that reject the Korean Wave have
been shown to acquire Korea-related information through news-
* Hit ratio ¼ 95.9%.
Function

papers or the Internet.

1
2
3
4

Thirdly, the market segment that has different cultural pref-

Variable1:
Variable2:
Variable3:
Variable4:

Cluster

erences and information-acquisition paths evaluated the

Table 4

1
2
3
4
5
6

perceived quality of Korean-made cosmetics and electronic home

appliances differently. Such a difference implies that marketing
214 S.M. Kim, M.J. Park / Asia Pacific Management Review 25 (2020) 207e215
tools should be selected according to the targeted market segment
based on the product characteristics. For example, if a firm is tar-
geting female consumers over 40 years of age, they would benefit
from utilizing drama PPL rather than K-pop stars for marketing.
This is because female consumers over the age of 40 belong mainly
to group 3 (K-drama supporters) and group 6 (K-drama holists).
Fourthly, it should be noted that the composition of ‘cultural
vigilances’ (group 5) by country is particularly low in Thailand
(5.2%) and Vietnam (8.1%) compared to Indonesia (13.9%),
Singapore (15.2%), and Malaysia (13.9%). Considering the compo-
sition of the ‘cultural vigilances’ group, we can judge that the other
groups will most likely expand further with the spread of ‘Korean
Wave evangelists’ in Thailand and Vietnam. Marketing in these
countries is relatively promising for taking advantage of the Korean
Wave.
The academic contribution of this study is, first, that this study
extends market segmentation research to culture-based horizontal
segmentation across borders. As mentioned by Agarwal et al.
(2010), market segmentation research should respond to global
market trends, which are weakening the borders between the
countries and allowing populations to enjoy the same culture at the
same time. This study also responds to Park (2014)’s opinion that
research on the Korean Wave has been performed mainly with
Chinese and Japanese consumers, because it studies consumers
across ASEAN member nations.
Second, we statistically verified the research question regarding
whether the proliferation of popular culture can create homoge-
neous market segments across borders. We confirmed the exis-
tence of cross-national homogeneous market segments in five
ASEAN countries according to experiences of and emotions towards
the Korean Wave. Among ASEAN countries, a homogeneous market
segment appeared through the medium of Korean Wave popular
culture despite vast differences in standards of living, religion, and
GDP per capita. This supports the argument that marketing stra-
tegies for the global market should be established with consider-
ation for cultural difference, as customers are influenced by culture
in every aspect of behavior (Luna & Gupta, 2001; Quester & van
Wendt-Eccles, 2002).
6. Limitation and further study
However, this study has limitations regarding its significance in
analyzing cross-national market segments that target Korean Wave
consumers. Although it investigated five countries of consumers
among ASEAN member nations, the study could not cover a wider
range of nations. However, the Korean Wave is spreading across
almost the entire world. As such, additional research is necessary to
study the effects of standardized advertisement based on the pro-
gression of the Korean Wave in various countries and the impact of
the spread of the Korean Wave to other regions and markets.
Furthermore, additional research is needed to determine why the
‘cultural vigilances’ group in Thailand and Vietnam is smaller than
in other countries. While we speculate that it could be due to
sharing a Buddhist cultural tradition with Korea or a universal
generosity towards other cultures, more research is needed.
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