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WHITE GOODS MARKET IN THE EUROPEAN UNION.
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Discusses the issue of segmentation of major household appliances (white market).... More...
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Paper Abstract:
Discusses the issue of segmentation of major household appliances (white market). Defines the market segmentation process and various factors including population, demographics, preference segments, education attainment, income distribution, psychographic characteristics. Approaches to segmentation in the EU. Dividing customers into subsets. Provides comparative data for each European community member State. Four charts.

Paper Introduction:
SEGMENTATION OF THE WHITE GOODS MARKET IN THE EUROPEAN UNION: CONSIDERATIONS AND ALTERNATIVE SCENARIOS Introduction This research considers the issue of the segmentation of the white goods market in the European Union. The term “white goods”, for purposes of this research, includes all major household appliances. The definition of the European Union includes the 15 member states as of June 2001, which are as follows: Austria, Belgium, Denmark, France, Finland, Germany, Greece, Ireland, Italy, Luxembourg, Netherlands, Portugal, Spain, Sweden, and United Kingdom (“The ABC of the European Union,” 2001). Market Segmentation Market segmentation is the procedure by which a marketing or

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Support forenvironmental protection tends to be greater among university-educatedpersons ("Update for Energy Levels," 2 1; Jancsurak, 2 1). > Educational attainment (stated in years of formal education completed): This measure provides an indicator of the relative strength of the green market segment of the white goods market. All of the large population countries with theexception of the United Kingdom are in this group of 1 countries. These1 countries (Austria, Belgium, Denmark, Finland, France, Germany, Italy,Luxembourg, Netherlands, and Sweden) provide a strong identification forthe middle market segment of the white goods market in the European Union. (2 1, February). The four countries characterized bylower levels of annual per capita GNP [PPP] are as follows: Ireland($US19,18 ), Spain (US$16,73 ), Portugal (US$15,147), and Greece(US$14,595). (2 1). (2 1, March). Important factors for the segmentationof the white goods market include income, income distribution within amarket, population, and educational attainment. Approaches to Segmenting the White Goods Market in the European Union The 15 member countries of the European Union vary widely in relationto population. Energy & EnvironmentalManagement, 12. (1997, May). A., Jr. Majors: Good (not great) times aheadworldwide. > Income distribution - proportion of total GDP accruing to the middle 6 percent of the population of a country: This measure provides an indicator of the relative strength of the middle market segment for white goods in a country. Market Segmentation Market segmentation is the procedure by which a marketing organizationselects one or more groups of potential customers having similar withingroup characteristics. A variety of factors may provide the basis for marketing segmentation. The remaining threecountries among this group of eight are Belgium, France, and Luxembourg.These eight countries provide a strong identification for the premiummarket segment of the white goods market in the European Union. Marketing research. segmentation of the white goods market in the european union: considerations and alternative scenarios Introduction This research considers the issue of the segmentation of the whitegoods market in the European Union. These factors include demographic characteristics, geographic dispersion,preference segments, psychographic characteristics, and behavioristiccharacteristics (Churchill, 1999). Sociotechnology and the environment. Update for energy labels. HumanRelations, 5 (5), 6 5-624. [pic] The data reflected in Chart 3 indicate that the total national incomeshare accruing to the top 2 percent of the population exceeds a thresholdof 4 percent in eight of the 15 member countries of the European Union(World Bank, 2 ). The 11 higher incomecountries provide a good starting point for segmentation of the white goodsmarket in the European Union. The definitionof the European Union includes the 15 member states as of June 2 1, whichare as follows: Austria, Belgium, Denmark, France, Finland, Germany,Greece, Ireland, Italy, Luxembourg, Netherlands, Portugal, Spain, Sweden,and United Kingdom ("The ABC of the European Union," 2 1). Appliance Manufacturer, 49(2), G-13/G-16. The marketing organization then develops separatemarketing mixes for each customer group. None of the low per capita GDP [PPP]countries is in this group. As the countries form a contiguous block, however, factorsother than total population appear to be of greater relevance in segmentingthe white goods market than is total country populations. Retrieved from the Internet 2 1- 6-25 at: http://europa.eu.int/abc-en.htm Churchill, G. The market segmentation processsubdivides potential customers into distinct sub-sets. The information reflected in Chart 2 indicates that 1 of the 15member countries of the European Union exceed a threshold of a 52.5 percentshare of total annual national income for the middle 6 percent of thepopulation (World Bank, 2 ). The charts are as follows: > Chart 1 - Per Capita GDP [PPP] > Chart 2 - Income Distribution - Middle 6 % Share > Chart 3 - Income Distribution - Top 2 % Share > Chart 4 - Educational Attainment [pic] The data presented in Chart 1 indicate that 11 of the 15 membercountries have per capita GNP [PPP] levels that exceed a threshold ofUS$2 ,75 per year (World Bank, 2 ). The justification for therelevance of educational attainment as a segmentation factors relates toenvironmental concerns. The term "white goods", for purposesof this research, includes all major household appliances. World development report - 2 -2 1. There is a relationship between educationalattainment and the demand for environmentally friendly household appliances(Heller, 1997). World Bank. FortWorth, Texas: The Dryden Press. These eight countries include all of the low percapita GDP [PPP] countries and the United Kingdom. Brussels, Belgium: EuropeanUnion. (7th ed.). > Income distribution - proportion of total GDP accruing to the top 2 percent of a population of a country: This measure provides an indicator of the relative strength of the premium market segment for white goods in a country. Jancsurak, J. [pic] The data reflected in Chart 4 indicate that formal educationalcompletion levels in five of the 15 European Union member countries exceedthe 16-year threshold, which is an indicator of the completion equivalentof a bachelor-level university education (World Bank, 2 ). Charts 1 through 4 (on the following pages) present comparative datafor each of the European Community member states in relation to each of theabove factors. (2 ). Among the otherfactors of relevance in the segmentation of the white goods market are thefollowing: > Per capita gross domestic product (GDP) measured according to the purchasing power parity (PPP) model (stated in US$): This measure provides an indicator of the relative capacity of residents of each of the member countries of the European Union to afford to purchase white goods. Of the 11 higher income countries, the highest is Denmark(US$24,28 ), while the lowest is Italy (US$2 ,751). (1999). Conceivably, amarketing organization may select any sub-set as a target market for whichthe marketing organization will develop a distinct marketing mix(Churchill, 1999). Heller, F. These fivecountries - Belgium, Finland, Germany, Netherlands, and the United Kingdom- define a strong green segment for the white goods market in the EuropeanUnion.[pic] References The abc of the European Union. New York:Oxford University Press.

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