Reducing the Negative Effect of Consumer Ethnocentrism on Patronage Behaviour at Foreign Retailers

Abstract

This study investigates whether consumer ethnocentrism affects patronage behaviour at foreign retailers. Moreover, the activities of retailers that can potentially reduce the negative influence of ethnocentric tendencies, that is, domestic assortment, perceived brand localness and local corporate social responsibility, are analysed. Using social identity theory, the related hypotheses are tested based on a sample of 505 consumers from the United States through partial least squares analysis. The findings indicate that the proposed moderating factors do not reduce the negative effect of consumer ethnocentrism on patronage behaviour at foreign retailers; however, direct effects are found. Perceived brand localness and local corporate social responsibility are found to directly affect consumers' patronage behaviour at foreign retailers. This study fills two research gaps: it conducts an analysis of the retail sector from the perspective of consumer ethnocentrism, and it investigates the role of retail-specific moderating variables.

Perceived Brand Globalness/Localness: A Systematic Review of the Literature and Directions for Further Research

“…We propose that as a way forward, further research on PBL should treat PBL as entailing both perceived limited market reach and local symbolism, because prior research focusing on perceived limited market reach as the only component of PBL does not capture cases in which foreign brands accrue localness perceptions through local cultural adaptability (e.g., Akram, Merunka, and Akram 2011;Davvetas and Diamantopoulos 2018;Punyatoya 2013Punyatoya , 2014. Likewise, research examining local symbolism as the only component of PBL does not capture the case in which local brands are not yet local icons (e.g., Heinberg et al 2020;Keane and Morschett 2016;Swoboda, Pennemann, and Taube 2012). Moreover, further research should explore different forms of conceptual combinations of PBG and PBL-for example, the combination of perceived wide market reach, high global symbolism, and high local symbolism (e.g., hybrid brands such as foreign global brands achieve localness perceptions through local culture adaptability); the combination of perceived wide market reach, high global symbolism, and low local symbolism (e.g., "true" global brands such as technology brands that do not require local culture adaptations of their products); the combination of perceived limited market reach, low global symbolism, and high local symbolism (e.g., domestic/regional brands with local symbolism: local iconic brands); and the combination of perceived limited market reach, low global symbolism, and low local symbolism (e.g., domestic/regional brands that do not contain local and global symbolism: local brands but not local iconic brands).…”