<abstract xml:lang="en" xmlns="http://www.w3.org/1999/xhtml"><p><bold>Background:</bold> The paper examines the convergence of household expenditures, in terms of a possible usage of the standardized, rather than consumer-tailored marketing, mainly on a regional level. <bold>Objectives:</bold> The main goal of this research is to study the existence of consumption expenditure convergence in the EU-27 countries, in the period between 2000 and 2007. <bold>Methods/Approach:</bold> The analysis used the absolute β-convergence method, in order to investigate the existence of a negative correlation between the growth over time in the overall consumption expenditure in EU member-countries for each individual product and service category and the initial expenditure level. <bold>Results:</bold> According to the obtained results, in the period between 2000 and 2007, the EU-27 countries reached a high level of consumer expenditure convergence, which provides a basis for developing a regional concept of the standardized international marketing for these countries' markets. <bold>Conclusions:</bold> The results provide an empirical contribution to claims on consumer convergence in the countries included into economic integrations. Also, the obtained results can be used to create a basis for defining and applying the regional marketing concept for companies focusing on the EU-27 countries' market.</p></abstract>

Background: The paper examines the convergence of household expenditures, in terms of a possible usage of the standardized, rather than consumer-tailored marketing, mainly on a regional level. Objectives: The main goal of this research is to study the existence of consumption expenditure convergence in the EU-27 countries, in the period between 2000 and 2007. Methods/Approach: The analysis used the absolute β-convergence method, in order to investigate the existence of a negative correlation between the growth over time in the overall consumption expenditure in EU member-countries for each individual product and service category and the initial expenditure level. Results: According to the obtained results, in the period between 2000 and 2007, the EU-27 countries reached a high level of consumer expenditure convergence, which provides a basis for developing a regional concept of the standardized international marketing for these countries' markets. Conclusions: The results provide an empirical contribution to claims on consumer convergence in the countries included into economic integrations. Also, the obtained results can be used to create a basis for defining and applying the regional marketing concept for companies focusing on the EU-27 countries' market.

Convergence analysis of household expenditures using the absolute β-convergence method

Department of Marketing, School of Economics and Business, Sarajevo, Bosnia and Herzegovina

Business Systems Research Journal

Background: The paper examines the convergence of household expenditures, in terms of a possible usage of the standardized, rather than consumer-tailored...

Convergence analysis of household expenditures using the absolute β-convergence method

Published Online: Sep 17, 2012

Page range: 23 - 29

DOI: https://doi.org/10.2478/v10305-012-0003-3

Keywords
Globalization, Convergence, Household consumption expenditure, European Union, International marketing

This content is open access.

Convergence analysis of household expenditures using the absolute β-convergence method

Published Online: Sep 17, 2012

Page range: 23 - 29

DOI: https://doi.org/10.2478/v10305-012-0003-3

KeywordsGlobalization, Convergence, Household consumption expenditure, European Union, International marketing

This content is open access.

Keywords
Globalization, Convergence, Household consumption expenditure, European Union, International marketing