The Impacts of Consumer Ethnocentrism on Foreign Product Judgment and Local Helping Purchase: A Case of Malaysian Cross-Border Shoppers in Hatyai, Thailand

Wanwisa Kuncharin,Badaruddin Mohamed

doi:10.5539/ijbm.v9n9p135

Wanwisa Kuncharin, Badaruddin Mohamed

Open Access

https://doi.org/10.5539/ijbm.v9n9p135

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Abstract

Cross-border shopping is the phenomenon when consumers travel to an adjacent country for the specific purpose of purchasing products or services and purchasing activities that can be made during a business or tourist visit. It is also viewed as a subcategory of tourism and leisure. Hatyai, Thailand is located around 30 km from the Malaysian border. The statistics reports that each year more than 400,000 Malaysian visitors visited Hatyai, Thailand. This study aims to investigate the impact of consumer ethnocentrism on foreign product judgment and local helping purchase. The data were collected through self-administered questionnaires among a sample of 423 Malaysian tourists who have done some shopping in Hatyai, Thailand. The results revealed that consumer ethnocentrism have a significant negative impact on foreign product judgment, while consumer ethnocentrism has a significant positive impact on local helping purchase. The result from this study would be helpful in designing and improving effective marketing strategies and conducting marketing campaigns for retailers and tourism marketers on both sides of the border while satisfying the needs of the shoppers.

Highlights

Cross-border shopping is the phenomenon when consumers travel to an adjacent country for the specific purpose of purchasing products or services and purchasing activities that can be made during a business or tourist visit (Euromonitor, 2004; Dmitrovic & Vida, 2007; Lau et al, 2005; Mogab et al, 2005)
Based on the finding of this study, consumer ethnocentrism was found to have a negative impact on foreign product judgments
The marketing strategies by retailers and tourism marketers in Thailand should focus on the lower price of products, services, transportation and other expenditures in order to attract less ethnocentric cross-border shoppers to cross the border to shop

Summary

Introduction

Cross-border shopping is the phenomenon when consumers travel to an adjacent country for the specific purpose of purchasing products or services and purchasing activities that can be made during a business or tourist visit (Euromonitor, 2004; Dmitrovic & Vida, 2007; Lau et al, 2005; Mogab et al, 2005). Traditional definitions of international tourists are normally defined with an element of temporary travel, which involves crossing an international border, and often includes pleasure as a purpose of the trip (Ganster & Lorey, 2005). Jarratt (1998) supported that during these trips to a neighbouring country, cross-border shoppers may participate in other activities such as going to the movies, visiting a museum and an historic or natural attraction, eating in a restaurant, and staying in local accommodations. Some authors elaborated that cross-border shopping is the purchase and the consumption that take place in border areas beyond one’s own national state border, regardless of whether the products are bought and consumed on the other side, or are brought back to the home country, and it includes a broad range of products and services (Follo, 2003; Kim & Sullivan, 2003; Nijssen & Herk, 2009)

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