Abstract

The continued growth in international trade results in the fact that consumers in many countries are exposed to increasing amounts of product offerings from various countries of origin. As the origin of products might have an influence on consumer behavior, many marketers realize that extended knowledge on consumer behavior toward both domestic and imported products can be useful in the formulation of more effective marketing strategies. Past research in the field of international marketing suggest that the concept of consumer ethnocentrism can be an influencing factor in the decision of consumers to purchase locally-produced rather than imported products. While the concept of consumer ethnocentrism has been actively researched in a number of contexts and countries, research on this phenomenon has been limited in developing countries. The present study aims to add to the existing body of knowledge on consumer ethnocentrism in developing markets by investigating the possible relationships between consumer ethnocentrism and a number of demographic variables in South Africa. A unique contribution of this study is that the investigation focused on two different samples in terms of race, namely on a sample of “white” respondents and a sample of “black” respondents to account for the ethnic diversity in South Africa. The results of the study revealed that for both groups of respondents there was a positive relationship between age and consumer ethnocentrism, while a negative relationship was found for both groups in terms of the relationship between consumer ethnocentrism and income. In terms of the relationship between consumer ethnocentrism and gender, the results differed between the two groups of respondents. The findings can be used rewardingly by marketers wishing to operate more successfully in developing markets, such as South Africa.

Highlights

  • To remain competitive, marketers need to understand the dynamics and complexities of their target markets in an increasingly competitive and often globalised business environment

  • The primary objective of this study was to investigate the possible effects of demographic variables on consumer ethnocentrism in a developing country, namely South Africa, and to compare the results with previous and sometimes inconsistent results

  • The primary objective of this study was to investigate the possible effects of demographic variables on consumer ethnocentrism in a developing country, South Africa

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Summary

Introduction

Marketers need to understand the dynamics and complexities of their target markets in an increasingly competitive and often globalised business environment. It can be argued that local marketers, especially in developing countries, can build on these negative feelings towards imported products to encourage local consumers to purchase domestic products and, in this way, to support the domestic economy. Luque-Martinez, Ibāńez-Zapata and Del Barrio-Garcia (2000) propose that research on consumer ethnocentrism may be a vital step towards developing a better understanding of the way in which individual and organisational consumers draw comparisons between domestic and foreign products, and of the reasons that lead to the development of patriotic prejudices against imports. It is believed that an improved understanding of whether the level of ethnocentrism influences customer attitudes towards products originating from overseas could be extremely useful in developing effective marketing strategies for local products (Kucukemiroglu, 1999)

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