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Reaching middle class consumers in emerging markets: Unlocking market potential through urban-based analysis

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  • Kardes, Ilke

Abstract

The international business landscape has transformed in dramatic ways over the past three decades. In particular, the importance of middle class households, concentrated especially in urban areas in emerging markets, is now well-recognized. We propose and demonstrate a systematic approach to urban-based market potential analysis. Based on international market segmentation literature, our key argument is that a more focused market potential analysis, based on middle class households, is superior to an aggregate, country-level market potential analysis. The proposed method highlights specific market potential indicators, especially suitable for middle class analysis. Further, we demonstrate this new approach through a case study. Finally, this manuscript positions itself as a managerial tool.

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  • Kardes, Ilke, 2016. "Reaching middle class consumers in emerging markets: Unlocking market potential through urban-based analysis," International Business Review, Elsevier, vol. 25(3), pages 703-710.
    • Handle: RePEc:eee:iburev:v:25:y:2016:i:3:p:703-710
    DOI: 10.1016/j.ibusrev.2016.03.005
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    Cited by:

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    3. Nikodemska-Wołowik Anna Maria & Wach Dagmara & Andruszkiewicz Katarzyna & Otukoya Ade, 2021. "Conscious shopping of middle-class consumers during the pandemic: Exploratory study in Mexico, Nigeria, Poland, and Sri Lanka," International Journal of Management and Economics, Warsaw School of Economics, Collegium of World Economy, vol. 57(3), pages 209-219, September.
    4. Ferreira, Jennifer & Ferreira, Carlos, 2018. "Challenges and opportunities of new retail horizons in emerging markets: The case of a rising coffee culture in China," Business Horizons, Elsevier, vol. 61(5), pages 783-796.
    5. McDonald, Conor & Buckley, Peter J. & Voss, Hinrich & Cross, Adam R. & Chen, Liang, 2018. "Place, space, and foreign direct investment into peripheral cities," International Business Review, Elsevier, vol. 27(4), pages 803-813.
    6. Chen, Jianxun & Zhan, Wu & Tong, Zhaodi & Kumar, Vikas, 2020. "The effect of inward FDI on outward FDI over time in China: A contingent and dynamic perspective," International Business Review, Elsevier, vol. 29(5).
    7. Tendai Chikweche & James Lappeman & Paul Egan, 2024. "Marketing financial services in Africa: exploring the heterogeneous middle-class consumer across nine countries," Journal of Financial Services Marketing, Palgrave Macmillan, vol. 29(1), pages 1-16, March.
    8. Singh, Jaywant & Shukla, Paurav & Schlegelmilch, Bodo B., 2022. "Desire, need, and obligation: Examining commitment to luxury brands in emerging markets," International Business Review, Elsevier, vol. 31(3).
    9. Li, Rong & Laroche, Michel & Richard, Marie-Odile & Cui, Xinyu, 2022. "More than a mere cup of coffee: When perceived luxuriousness triggers Chinese customers’ perceptions of quality and self-congruity," Journal of Retailing and Consumer Services, Elsevier, vol. 64(C).

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