Marketing Management Graduate program The Effect of Consumer Ethnocentrism on Purchase Intention towards local Leather Shoes

Abstract

The protection of local companies from foreign competition has shifted from tariff to non-tariff barriers, of these non-tariff barriers consumer ethnocentrism is one of the most powerful intangible barriers to international trade and its consequences has been studied and confirmed in a number of countries (Shankamahesh, 2006). But this concept got little attention in Ethiopia both by scholars and business peoples. Therefore, the main purpose of this study is to investigate the effect of consumer ethnocentrism on purchase intention towards local leather products. Understanding the relationship between patriotism, nationalism and cultural openness with consumer ethnocentrism is the other key objective of the study. Similarly, the relationship between consumer ethnocentrism and demographic variables was evaluated. The research design is explanatory research which utilized co-relation and regression research methodology. Questionnaires were distributed to 385 consumers and 304 questionnaires was collected and analyzed. The findings from this research inferred that patriotism and nationalism has a significant positive relationship with consumer ethnocentrism. The relationship between cultural openness and consumer ethnocentrism is statistically insignificant. As far as the relationship between consumer ethnocentrism and purchase intention concerned, their relationship is positive and statistically significant. Regarding to the ethnocentric tendencies of Ethiopian consumers, it differs among different demographic factors. The findings of this study reveals the existence of consumers’ ethnocentric tendencies in Ethiopia’s leather shoe market, thus domestic manufacturers can use a “Made in Ethiopia” marketing campaign to change the general beliefs that foreign products are better than local.