Consumers ethnocentric tendencies, demographic factors and domestic goods purchase decision in Nigeria

Abstract

Consumer ethnocentrism is a socio-psychological concept that describes consumers’ preference for purchasing goods produced in their own country, rather than imports. Increasing liberalization of world trade has encouraged dumping of all categories of foreign goods into Nigeria thereby making purchase of domestic products difficult, with negative consequences for the nation’s economy. This study examines the effects of socio-demographic factors and consumers’ ethnocentric tendencies on purchase decision of domestic shoes and bags. The methodological foundation of the research is social identity theory. Data were obtained from a cross-section of consumers from six urban centres in three senatorial districts in Delta State, Nigeria. Stratified and simple random sampling techniques were used to draw a sample of 391 respondents. Descriptive and inferential statistical analyses such as frequency distribution, multiple regression and Analysis of Variance (ANOVA) were used to analyse the data. Multiple regression results showed that consumer ethnocentric tendency and educational status exerted positive and statistically significant effects on domestic goods purchase decision; however, the impact of income was negative. The ANOVA results revealed that men, older people, individuals with higher educational status and high-income earners exhibited elevated levels of ethnocentric tendencies towards locally manufactured shoes and bags. The authors recommend that local manufacturers should factor the concept of consumer ethnocentrism into their marketing strategies to maintain competitive advantage over foreign competition.