Consumer ethnocentrism: A comparison between generations X and Y

Abstract

Consumer ethnocentrism implies the normative belief that purchasing domestic products is more beneficial than purchasing foreign goods. Several empirical studies indicate that consumer ethnocentrism strongly influences purchase behaviour toward foreign products. This study aims to examine the perceptions of Indian Generation X and Generation Y consumers about whether it is right and appropriate for them to purchase products that are manufactured in foreign countries. The Generations X and Y represent a major portion of Indian population and they also constitute major consumer segments for almost all product categories. The primary objectives of the study include examining the relationship between consumer ethnocentrism and attitude towards Indian vs. foreign products; and analysing whether the ethnocentric tendencies and consumer attitudes vary by the demographic variable of age by comparing the tendencies between Gen X and Gen Y consumers. Consumer ethnocentrism has gained considerable attention in strategic marketing literature as components of foreign product purchase behaviour. The findings of the study throws light on consumer perception, preference and purchase intentions towards Indian vs. foreign products and enable companies to re-examine their existing positioning and promotional strategies. Such an understanding enables companies to revise and fine tune their strategies to capitalize on the opportunities arising out of positive consumer perceptions and overcome the challenges arising out of unfavourable perceptions.