The role of ethnic affiliation in consumer ethnocentrism

TLDR

Unlike prior studies treating citizens as a uniform group, this research examines ethnocentrism by ethnic affiliation rather than nation‑state. The study investigates how ethnic affiliation influences consumer ethnocentrism and domestic purchase bias, testing a model of antecedents and outcomes in a multi‑ethnic transitional economy. Data were collected from 580 urban consumers in Bosnia and Herzegovina via personal interviews, and a structural model with five reflective constructs tested the hypothesized relationships. Results show that national identity, nationalism, and ethnic affiliation significantly predict consumer ethnocentrism and domestic purchase bias, while cultural openness was not a predictor, suggesting that both nation‑state constructs are reliable predictors and that differentiated marketing may be needed in multi‑ethnic markets.

Abstract

Purpose In view of the increasingly dynamic ethnic composition of nation states in Europe and elsewhere, this paper aims to examine the effects of ethnic affiliation on ethnocentrism and domestic purchase bias, and to test a model of consumer ethnocentrism antecedents and outcomes in a multi‐ethnic transitional economy. Design/methodology/approach Empirical data were collected via personal interviews from 580 urban consumers in Bosnia and Herzegovina, which was, in the aftermath of violent ethnic conflicts in the Balkans, divided into two major sub‐regions inhabited by three clearly identifiable ethnic groups. A structural model with five first‐order reflective constructs was evaluated to test the hypothesized relationships. Findings The findings confirm that both national identity and nationalism are significant predictors of consumer ethnocentrism, and that ethnic affiliation has a direct effect on both consumer ethnocentrism and on domestic purchase bias. However, the antecedent nature of cultural openness in relation to consumer ethnocentrism was not confirmed. Practical implications While it has been suggested previously that, when consumers have dual allegiances, the construct of national identity may be of a lesser explanatory power, the results attest to the value of both nation‐state level constructs in the model as reliable predictors of consumer ethnocentrism. The findings also suggest that a differentiated marketing strategy may be warranted on entering multi‐ethnic markets. Originality/value Unlike most prior studies that tested ethnocentrism models across different countries with citizens of each country being addressed as a culturally/ethnically uniform group, this study does not limit in‐groups to a nation state, but examines groups based on ethnic affiliation.