The impact of globalization on consumer acculturation

Abstract

PurposeThis paper seeks to explore whether predisposition towards foreign brands and consumer acculturation would differ across demographic segments in an emerging market (India). Further, the paper aims to investigate if predisposition towards foreign brands (acting as a proxy for forces of globalization) would lead to consumer acculturation among consumers in India.Design/methodology/approachInstruments to measure predisposition towards foreign brands and consumer acculturation were developed on the basis of extensive literature review. The data comprised of urban, educated, middle‐class Indian consumers. The data were collected using structured questionnaire. ANOVA and T‐test results were used to determine if extent of predisposition towards foreign brands and consumer acculturation would differ across demographic segments. Multiple regression analysis was used to test the impact of predisposition towards foreign brands on consumer acculturation.FindingsThe findings indicate that significant difference exists among various demographic segments with respect to predisposition towards foreign brands and consumer acculturation. Also, predisposition towards foreign brands does impact consumer acculturation among Indian consumers. Various demographic factors such as age, income and educational qualification level significantly affect this causal relationship.Practical implicationsThis paper provides interesting insights about the buying behavior of Indian consumers. These insights would enable corporate managers to develop more focused strategies catering to the Indian consumers.Originality/valueThe paper empirically demonstrates that Indian consumers, when segregated into various demographic segments, do show significant differences in their predisposition towards foreign brands and consumer acculturation. It also ascertains that predisposition towards foreign brands does lead to consumer acculturation.