Ethnic Identity Impact on Consumers’ Ethnocentric Tendencies: The Moderating Role of Acculturation and Materialism

Abstract

In the era of globalization and technological advancements, ethnic identity (EID) is creating both opportunities as well as challenges for domestic and international marketers in formulating suitable marketing and branding strategies. This study attempts to investigate the role of EID in shaping consumers’ ethnocentric tendencies (CET). By analyzing data obtained from 385 surveys completed by Indian consumers, the study assessed the association of EID dimensions and consumer ethnocentrism. The findings showed that Association with Local Culture, Preserving Local Culture, Feelings towards Local Culture and Local Interpersonal Relationship enhance consumers’ CET. Materialism strengthens the effects of association for three EID dimensions and ethnocentrism, whereas acculturation weakens the association for three dimensions of EID. This study contributes to the literature, especially in the understanding of social identity theory. Practically, the findings are useful to marketers and retailers dealing with consumers in India in formulating their cultural branding strategies.