Usefulness of Ethnicity in International Consumer Marketing

Abstract

Internationalization is the term that can characterize the current state of the consumer market in many parts of the world. The phenomenon of an internationalized consumer market is noteworthy particularly because consumer mobility beyond their national boundaries has increased resulting in a significant growth of diverse immigrant populations in the international marketplace. The theory of intercultural accommodation suggests that consumers who have relocated beyond their national/cultural boundaries adapt to the new market environment developing new consumption patterns. At the same time international consumers do not entirely lose their original ethnic identity that had guided their socialization process. The evolving nature of ethnic identity of international consumers may pose an interesting question about the usefulness of observable ethnicity as a market segmentation basis in international consumer marketing. This study examined how consumers' ethnic identity, specifically the strength of ethnic identification of those who are experiencing intercultural accommodation, influenced consumer apparel shopping orientations and retail format preferences, using a sample of Latino and Asian consumers residing in the U.S. The results of this study showed that Latino and Asian consumers demonstrated significant differences in their retail format preferences but shared similarities in apparel shopping orientations. Some differences in market behavior relative to the strength of ethnic identification were also observed within the Asian sample. Finally, implications and future research directions are discussed.