The Direct Drivers of Ethnocentric Consumer, Intention and Actual Purchasing Behavior in Malaysia

The Malaysian government had consistently revived
its campaign for “Buy Malaysian Goods” from time to time. The
purpose of the campaign is to remind consumers to be ethnocentric
and patriotic when purchasing product and services. This is necessary
to ensure high demand for local products and services compared to
foreign products. However, the decline of domestic investment in
2012 has triggered concern for the Malaysian economy. Hence, this
study attempts to determine the drivers of actual purchasing behavior,
intention to purchase domestic products and ethnocentrism. The
study employs the cross-sectional primary data, self-administered on
household, selected using stratified random sampling in four
Malaysian regions. A nine factor driver of actual domestic purchasing
behavior (culture openness, conservatism, collectivism, patriotism,
control belief, interest in foreign travel, attitude, ethnocentrism and
intention) were measured utilizing 60 items, using 7-point Likertscale.
From 1000 questionnaires distributed, a sample of 486 were
returned representing 48.6 percent response rate. From the fit
generated structural model (SEM analysis), it was found that the
drivers of actual purchase behavior are collectivism, cultural
openness and patriotism; the drivers of intention to purchase
domestic product are attitude, control belief, collectivism and
conservatism; and drivers of ethnocentrism are cultural openness,
control belief, foreign travel and patriotism. It also shows that
Malaysian consumers scored high in ethnocentrism and patriotism.
The findings are discussed in the perspective of its implication to
Malaysian National Agenda.





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