Global vs Local: A Choice Influenced by Consumer Ethnocentrism Level

Abstract

Purpose: The purpose of the research is to investigate the determinants of consumer ethnocentrism (CE) and its influence on the actual purchase behaviour (APB) of domestic versus foreign products among Indians post COVID-19 pandemic using the theory of planned behaviour (TPB). Design/methodology/approach: To obtain the results, statistical techniques such as EFA, CFA, t-test, ANOVA and regression were applied to 861 responses, conducted via a structured questionnaire in the different metropolitan cities of India in two phases. Findings: Two major determinants of CE, i.e., patriotism and nationalism, are found. Indians have moderate to high ethnocentrism levels, and their tendency to be ethnocentric significantly differs across demographic traits; there is a significant influence of CE on attitude formation that subsequently leads to favourable intention and finally to APB. Practical implications: The findings indicate that marketers can feel confident in targeting both genders in their promotional campaigns as there were no pertinent variations in both genders’ ethnocentric tendencies. The increasing level of ethnocentrism will surely be an opportunity for Indian manufacturers and sellers. Their promotional tools must carry a visible message that the product is domestically manufactured and its consumption will lead to value addition in the country. Originality/value: The research provides insights to understand ethnocentrism through the lenses of TPB and social identity theory. The study will augment our understanding of the plausible reasons behind the increasing ethnocentrism among Indians, especially after the COVID-19 pandemic.