Consumer ethnocentrism and purchasing behavior: moderating effect of demographics

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Shahin Akbarov

Purpose This study aims to investigate consumer ethnocentrism and determine its impact on actual purchasing behavior in relation to six product categories. It also examines the role of demographic variables as moderators in the relationship between ethnocentric tendencies and purchasing behavior. Design/methodology/approach A total of 467 completed questionnaires were obtained through convenience and snowball sampling. Data were analyzed using SPSS-24 and AMOS-23 software: SPSS to conduct the exploratory factor analysis and AMOS for the confirmatory factor analysis. Regression analysis was performed to determine the effect of ethnocentrism on purchasing behaviors; the SPSS process was used to test the moderating effects. Findings The consumer ethnocentric tendencies scale was collected in two dimensions: hard ethnocentrism, which influences actual purchasing behavior in five product categories; and soft ethnocentrism, which influences actual purchasing behavior in only two product categories. The results show that the effect of consumer ethnocentrism on purchasing behavior differs across product categories. Further, gender, marital status and personal income moderate this relationship. Originality/value Few studies investigate purchasing behavior across several product categories and the literature on consumer ethnocentrism does not address the impact of demographic variables as moderators in consumer behavior. This study contributes to the existing literature in four ways. First, it was conducted in Azerbaijan, a country with specific characteristics. Second, it examines the impact of ethnocentric tendencies on actual purchasing behavior. Third, it examines purchasing behavior in relation to six different product categories. Fourth, the moderating effect of demographic variables was tested.

2019 ◽  
Vol 38 (2) ◽  
pp. 548-560
Author(s):  
Dhananjay Madhukar Bapat

Purpose The profiling of young adult financial behavior can help financial service providers and financial advisors to target suitable marketing resources to specific customer segments. The purpose of this paper is to validate the scale for financial management behavior of young adults in an emerging market, segment these individuals and investigate the impact of demographic variables on key dimensions. Design/methodology/approach A structured questionnaire is used to validate a financial management behavior scale using data collected from 270 young adults in India. Based on dimensions obtained through factor analysis, cluster analysis is performed to identify young adult segments. Statistical techniques, such as the t-test and one-way analysis of variance, are used to examine the impact of demographic variables on financial management behavioral dimensions. Findings The factor analysis confirms three key financial management dimensions: cash management, credit management and savings management. Using cluster analysis, the young adults are segmented into three subgroups: responsible customers, credit-oriented customers and vulnerable customers. Young adults in these groups follow hierarchical patterns in terms of financial management behavior. Originality/value Since few studies are available from the standpoint of young adults in emerging markets, this study adds value to the literature by investigating the financial management behavior of young adults in India. Notably, it can serve as a reference for comparing similarities and differences on the basis of financial management behavior with other countries and customer segments.


2019 ◽  
Vol 37 (1) ◽  
pp. 44-68 ◽  
Author(s):  
Thuy Chung Phan ◽  
Marc Oliver Rieger ◽  
Mei Wang

Purpose The purpose of this paper is to investigate segmentations by finance-related attitudes and behavior of financial consumers in Switzerland and Vietnam. Design/methodology/approach The authors replicated the questionnaire measuring attitudes toward financial affairs as used in the study of Fünfgeld and Wang (2009). In order to extract factors and identify profiles of financial customers, the authors applied the same techniques including factor analysis and a two-step cluster analysis (Ward and K-means) to both samples. Linear regressions were used to examine the impact of socio-demographic variables. Findings Factor analysis reveals surprisingly similar underlying dimensions of financial attitudes and behavior for participants in both countries. The five clusters based on these dimensions exhibit strikingly similar characteristics. The authors also find that socio-demographic variables such as gender, age and education significantly vary across groups. Research limitations/implications There are small differences in the composition of the revealed dimensions between the two countries, mainly a mixture of intuitive decisions and free-spending aspects. Future research may investigate more countries with comparable samples to further test the reliabilities and validities of the scales. Practical implications The findings suggest that the instruments as developed by Fünfgeld and Wang (2009) can be used not only in highly developed Western markets but also in non-Western and emerging markets. Such instruments can be very useful for offering financial advice based on market segmentation in a global market. Originality/value The study provides empirical evidence on universal segmentation variables that reflect financial consumers’ psychological traits and attitudes toward saving and spending. Furthermore, the study stresses the need for a broad use of those variables when studying consumer decision-making in international financial markets.


2015 ◽  
Vol 9 (2) ◽  
pp. 159-180 ◽  
Author(s):  
Alaa Aldin Abdul Rahim A. Al Athmay

Purpose – The purpose of this study is to measure the impact of demographic factors as determinants of citizens’ perceptions toward two dimensions of e-governance, namely: e-openness and e-participation. Design/methodology/approach – A questionnaire was administered to collect data from three locations in the United Arab Emirates (UAE). Demographic data were analyzed to test two dimensions, namely: e-openness and e-participation of e-governance underpinning five demographic variables. More specifically t-test and the Scheffe method of multiple comparisons were conducted on a sample of 1,500 respondents to measure the significance of gender, age, educational level, nationality and type of employment in relation to the aforementioned dimensions of e-governance. Findings – Findings indicate that, with the exception of nationality, all other demographic variables including gender, age, education and type of employment clearly explain differences among the respondents of e-governance. Furthermore, our findings suggest that respondents perceive moderate satisfaction with one dimension, namely, e-openness, but less satisfaction with the other dimension of e-governance, namely: e-participation. Research limitations/implications – The study is limited by the exclusive emphasis of the influence of five independent demographic factors on only two dimensions of e-governance. In addition, the sample represents highly educated and experienced respondents of Internet use and thus the results might be biased. Future studies may look beyond the demographic variables by evaluating UAE citizens’ attitudes and behavior towards the adoption of e-services. Furthermore, future research could be an in-depth examination, through focus groups, of the factors that impede an active interaction in the UAE. To overcome the possibility of biasness of the results, future work should include non-users and comparing the adoption behavior of online and offline users. Practical implications – The key findings are useful for policy-makers and decision-makers for a real understanding of the needs of the citizens and to re-conceptualize the government Web sites as an interactive channel of communication in enhancing transparency and participation and, therefore, to contribute to democratic process. Originality/value – The primary value of this research lies in extending the understanding of citizens’ perceptions of two dimensions of e-governance according to their demographic attributes. The two dimensions of e-governance identified in this study are neither studied before in the context of Arab countries nor explored in relation to the identified demographic variables. Furthermore, this study combines the two dimensions (e-openness and e-participation) and is in contrast with previous studies which examined these two dimensions separately.


2020 ◽  
Vol 31 (3) ◽  
pp. 465-487 ◽  
Author(s):  
Carla Ruiz-Mafe ◽  
Enrique Bigné-Alcañiz ◽  
Rafael Currás-Pérez

PurposeThis paper analyses the interrelationships between emotions, the cognitive information cues of online reviews and intention to follow the advice obtained from digital platforms, paying special attention to the moderating effect of the sequencing of review valence.Design/methodology/approachThe data were collected from 830 Spanish Tripadvisor users. In a two-step approach, a measurement model was estimated and a structural model analysed to test the proposed hypotheses. SmartPLS 3.0 software was used. The moderating effect of sequencing of reviews is tested.FindingsThe data analysis showed a bias effect of review sequence on the impact of online information cues and emotions on intention to follow advice obtained from Tripadvisor. When the online reviews of a restaurant begin with positive commentaries, their perceived persuasiveness is a stronger driver of the pleasure and arousal elicited by online reviews than when they begin with negative reviews. On the other hand, the perceived helpfulness of online reviews only triggers arousal when the user reads negative, followed by positive, comments. The impact of pleasure on intention to follow the advice provided in an online travel community is higher with positive-negative than with negative-positive sequences.Originality/valueWhile researchers have demonstrated the benefits of customer reviews on company sales, a largely uninvestigated issue is the interplay between emotions and cognitive information cues in the processing of online reviews. This is one of the first studies to examine the moderating effect of conflicting reviews on the impact of emotions and cognitive information cues on consumer intention to follow the advice obtained from digital services.


Author(s):  
Ahmad Farhan Alshira'h ◽  
Hijattulah Abdul-Jabbar

Purpose The purpose of this paper is to investigate the impact of tax audit, tax rate and tax penalty on sales tax compliance and examine the moderating effect of patriotism on the associations between tax audit, tax rate and tax penalty with sales tax compliance among Jordanian manufacturing small- and medium-sized enterprises (SMEs). Design/methodology/approach In this study, 660 questionnaires were distributed by using systematic random sampling to manufacturing SMEs in Jordan, after which a total of 385 useable questionnaires were deemed suitable for analysis. Partial least squares structural equation modelling (PLS-SEM) was used to validate the measurement model and structural model and the predictive relevance of the study’s model. Findings The findings showed that tax audit and tax penalty were positively associated with the level of sales tax compliance, whereas tax rate was insignificantly associated with sales tax compliance. They also demonstrated the moderating significant effect of patriotism on the relationship between tax penalty, tax audit and tax rate with sales tax compliance. Research limitations/implications Tax authorities and policymakers in developing majority societies in developing countries and in other Arab countries, especially in Jordan may use the results to focus their interest on the formulation of policies founded on the outcomes of the study to strengthen eligible SMEs to comply to further boost their sales collections. Originality/value This study extends the deterrence theory in the context of sales tax compliance by proposing the moderating effect of patriotism in the deterrence theory on sales tax compliance among SMEs. Moreover, the suitability for the use of PLS-SEM as a statistical tool in investigating the extended deterrence theory with patriotism as a moderating variable as well as its implications for theory and practice was also discussed.


2016 ◽  
Vol 27 (1) ◽  
pp. 88-115 ◽  
Author(s):  
Rashmi Singh ◽  
J. K. Nayak

Purpose – The purpose of this paper is to investigate the impact of family communication patterns (FCPs) on adolescents’ choice of conflict resolution strategies during family holiday planning. Design/methodology/approach – The paper is framed by and builds on the literature on the adolescents’ choice of conflict resolution strategies and the FCP. The sample was collected using a survey among 400 adolescents in India. Exploratory factor analysis, confirmatory factor analysis and structural equation modelling have been used to analyse the data. Findings – The paper provides a significant relationship between FCP and the choice of conflict resolution strategies. The study findings suggested that adolescents’ choice of resolution strategy depends on the type of communication environment in the family. It has been seen that adolescents have more say in concept-oriented families and use different types of resolution strategies compared to socio-oriented families. Practical implications – The present study has considerable implications for the marketers and the academicians. Through FCP, marketers will be able to segment the families and, hence, may introduce efficient and competent marketing strategies and promotional campaigns. Originality/value – The paper offers insights into the choice of conflict resolution strategy by adolescents’ in different FCPs. The study has originality and offers value to marketers as it focuses on adolescents, and explores their perceptions about their influence during the decision process.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Xujia Wang ◽  
Billy Sung ◽  
Ian Phau

PurposeThe purpose of this study is to investigate how exclusivity and rarity (natural versus virtual) influence consumers' perceptions of luxury. Further, it examines whether exclusivity and rarity can function as distinct marketing strategies in today's luxury market environment.Design/methodology/approachOnline questionnaires were administered by adapting developed scales from prior research. Research stimuli were chosen from three luxury categories including bags, wine and cruise. Confirmatory factor analysis and multiple regressions were used to test the hypotheses.FindingsThe results confirmed that exclusivity, natural rarity and virtual rarity were perceived as relatively distinct constructs among our sample. Findings also highlighted that perceived natural rarity (PNR) has consistently emerged as a positive and significant contributor to consumers' perceptions of luxury across all three luxury categories. The influence of perceived exclusivity (PE) on perceptions of luxury has also shown to be significant for two product categories (luxury bag and luxury wine), whereas perceived virtual rarity (PVR) did not show any significant effects across all three categories.Practical implicationsThe results indicate that consumers perceive natural rarity, virtual rarity and exclusivity as relatively distinctive marketing strategies. This suggests that luxury businesses can adopt each strategy independently to achieve desired marketing outcomes.Originality/valueThis study offers theoretical support for the proposition that exclusivity and rarity may have different functions in luxury marketing implementations. It provides empirical evidence showing the distinctiveness of perceived exclusivity and perceived rarity, which have not be done in previous research.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Amal Mohammed Al-Masawa ◽  
Rasidah Mohd-Rashid ◽  
Hamdan Amer Al-Jaifi ◽  
Shaker Dahan Al-Duais

Purpose This study aims to investigate the link between audit committee characteristics and the liquidity of initial public offerings (IPOs) in Malaysia, which is an emerging economy in Southeast Asia. Another purpose of this study is to examine the moderating effect of the revised Malaysian code of corporate governance (MCCG) on the link between audit committee characteristics and IPO liquidity. Design/methodology/approach The final sample consists of 304 Malaysian IPOs listed in 2002–2017. This study uses ordinary least squares regression method to analyse the data. To confirm this study’s findings, a hierarchical or four-stage regression analysis is used to compare the t-values of the main and moderate regression models. Findings The findings show that audit committee characteristics (size and director independence) have a positive and significant relationship with IPO liquidity. Also, the revised MCCG positively moderates the relationship between audit committee characteristics and IPO liquidity. Research limitations/implications This study’s findings indicate that companies with higher audit committee independence have a more effective monitoring mechanism that mitigates information asymmetry, thus reducing adverse selection issues during share trading. Practical implications Policymakers could use the results of this study in developing policies for IPO liquidity improvements. Additionally, the findings are useful for traders and investors in their investment decision-making. For companies, the findings highlight the crucial role of the audit committee as part of the control system that monitors corporate governance. Originality/value To the authors’ knowledge, this work is a pioneering study in the context of a developing country, specifically Malaysia that investigates the impact of audit committee characteristics on IPO liquidity. Previously, the link between corporate governance and IPO liquidity had not been investigated in Malaysia. This study also contributes to the IPO literature by providing empirical evidence regarding the moderating effect of the revised MCCG on the relationship between audit committee characteristics and IPO liquidity.


2018 ◽  
Vol 39 (5) ◽  
pp. 22-30
Author(s):  
Aaron Gazley ◽  
Hamish Simmonds

Purpose The purpose of this paper is to investigate the effect of outsourcing and offshoring on brand loyalty in a service recovery context. In addition, the effect that consumer ethnocentrism has on these relationships is examined. Design/methodology/approach An experiment was designed using a series of service recovery scenarios that manipulated whether the recovery effort was conducted by an in-house/outsourced or local/offshored party. Findings The study shows that while outsourcing service recovery within the home country has no effect on loyalty, outsourcing to an offshore location does. In addition, the effect of offshoring of loyalty is greater for consumers who hold ethnocentric tendencies. Practical implications This research suggests the need to consider the delivery channel of service recovery to recover a service failure and retain customer loyalty. The results show that outsourcing within a local country may be effective, but the risks associated with offshoring are much greater. Originality/value Despite previous attempts to understand outsourcing and offshoring in a range of service scenarios, their role in service recovery is not well understood. Similarly, the impact that ethnocentrism might have on this process is overlooked. This paper therefore responds to calls within business theory, practice and consults for further study in this under-researched area.


2018 ◽  
Vol 23 (6) ◽  
pp. 500-517 ◽  
Author(s):  
Himanshu Shee ◽  
Shah Jahan Miah ◽  
Leon Fairfield ◽  
Nyoman Pujawan

PurposeTheorising from the intersection of supply chain and information systems (IS) literature, this study aims to investigate supply chain integration (SCI) as a multidimensional construct in the context of cloud-based technology and explores the effect of cloud-enabled SCI on supply chain performance, which will eventually improve firm sustainability from a resource-based view (RBV). In addition, the moderating effect of top management is explored.Design/methodology/approachUsing cross-sectional survey data collected from a sample of 105 Australian retail firms, this study used structural equation modelling to test the hypothesised relationship of cloud-enabled SCI with performance in a theoretical model.FindingsResults show that cloud-based technology has positive effect on SCI, and the cloud-enabled SCI is positively related to supply chain performance which eventually influenced firm sustainability. Further, top management intervention moderates the relationship between supplier and internal integration with supply chain performance. But it is found to have no moderating effect on the relationship between customer integration and supply chain performance.Practical implicationsRecognising the potential benefits of emerging cloud-based technologies reported in this study, retail managers need to understand that higher order SCI requires the support of cloud-based technology to improve supply chain performance and firm sustainability.Originality/valueThis research extends prior research of information and communication technologies-enabled SCI and its effect on supply chain performance which overly remains inconsistent. In addition, IS literature abounds with discussion on cloud computing technologyper se, and its adoption in supply chain is overly rhetoric. This study fills this gap by conceptualising the multiple dimensions of SCI enabled by cloud-based technology and the way it affects supply chain and firm sustainable performance. Investigating SCI in context of cloud-based technology is a unique contribution in this study. The moderating effect of top management in this decision also adds to the current body of literature.


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