Consumer ethnocentrism and the purchase decision of electrical wires and cables

Abstract

Consumer ethnocentrism has been an important subject in the field of consumer behavior for several decades, and has serious implications for the implementation of appropriate marketing strategies on the global stage. Consumer ethnocentrism is also a meaningful concept in contemporary business world because of its effects on consumer behavior, the domestic economy, and international trade in goods and services, as many economies are grappling with rising inflation, balance of payment deficits, exchange rate devaluations and dwindling external reserves. Therefore, the purpose ofthe study is to ascertain the effects ofconsumer ethnocentric tendency, perceivedvalue and socio-psychological factors on domestic electrical wires and cables purchase decision in Nigeria. Data were drawn from a cross section of 403 owners of residential and office buildings from six cities in Delta and Edo States, Nigeria. Analysis of data generated is based on descriptive and inferential statistics, including ANOVA and regression. The resultsshowthatconsumerethnocentrictendency, educationallevel, income, patriotism, nationalism, individualism, economic development factors and perceived product value exert positive and significant effects on the buying decisions ofdomestic goods, while the influence of politicalantecedent is negative. The dominant effect of perceived product value is an indicator of the need for domestic producers to sustain the higher value judgement placed on their goods vis-à-vis imports. The significant impact of consumer ethnocentric tendency on consumers’ buying decision of locally-made electrical wires and cables, underscores the need for domestic manufacturers to implement consumer ethnocentrism into their strategic marketing plans to muster a competitive edge over foreign brands.