CONSERVATISM, CONSUMER ETHNOCENTRISM, VARIETY SEEKING, CONSUMER COSMOPOLITANISM, AND CULTURAL INTELLIGENCE AS DETERMINANTS OF PURCHASING FOREIGN LUXURY BRANDS
Keywords:
conservatism, consumer ethnocentrism, variety seeking, consumer cosmopolitanism, cultural intelligence
Abstract
Geopolitical tensions caused by the war in Ukraine, the migrant crisis, and economic instability are strengthening nationalist sentiments. Conservatism and consumer ethnocentrism are cohesive factors during crises, based on the principle that it is every citizen's moral duty to protect the domestic economy by purchasing domestic products. Some citizens have cosmopolitan attitudes and are open to accepting ideas from other cultures. The aim of the research is to examine the impact of conservatism, consumer ethnocentrism, variety seeking, consumer cosmopolitanism, and cultural intelligence on consumers' decision to purchase foreign luxury brands. The study was conducted in early 2024. in the territory of the Republic of Serbia. The total number of respondents in the sample was 511, and their responses were analyzed using SEM model within the statistical program SmartPLS 4. The results showed that conservatism has not statistically significant, while consumer ethnocentrism has a statistically significant negative impact on the purchase of luxury foreign brands. Variety seeking, consumer cosmopolitanism, and cultural intelligence have a positive and statistically significant impact on consumers' decision to purchase foreign luxury brands. The research contributes by providing information that can be useful to managers in formulating marketing strategies for the market of the Republic of Serbia.
References
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Alshaibani, E. & Bakir, A. (2017). A reading in cross-cultural service encounter: Exploring the relationship between cultural intelligence, employee performance and service quality. Tourism and Hospitality Research, 17(3), 249–263. Doi: 10.1177/1467358416651474
Beerli-Palacio, A. & Martin-Santana (2018). Cultural sensitivity: An antecedent of the image gap of tourist destinations. Spanish Journal of Marketing- ESIC, 22(1), 103-118. Doi: 10.1108/SJME-03-2018-002
Bizumic, B. (2019). Effects of the dimensions of ethnocentrism on consumer ethnocentrism: An examination of multiple mediators. International Marketing Review, 36(5), 748-770. Doi: 10.1108/IMR-04-2018-0147
Casando-Aranda, L.A., Sanchez-Fernandez, J., Ibanez-Zapata, J.A. & Liebana-Cabanillas, F.J. (2020). How consumer ethnocentrism modulates neural processing of domestic and foreign products: A neuroimaging study. Journal of Retailing and Consumer Services. 53 (March 2020). Doi: 10.1016/j.jretconser.2019.101961
Cleveland, M. & Balakrishnan, A. (2019). Appreciating vs venerating cultural outgroups: The psychology of cosmopolitanism and xenocentrism. International Marketing Review, 36(3), 416-444. Doi: 10.1108/IMR-09-2018-0260
Cleveland, M., Papadopoulos, N. & Laroche, M. (2022). Global consumer culture and national identity as drivers of materialism: an international study of convergence and divergence. International Marketing Review, 39(2), 207-241. Doi: 10.1108/IMR-02-2021-0097
Cui, Z., Liu, J., Xia, B. & Cheng, Y. (2019). Beyond national culture difference: The role of cultural intelligence in cooperation within international construction joint ventures and insights from Chinese companies. Engineering, Construction and Architectural Management, 26(7), 1476-1497. Doi: 10.1108/ECAM-04-2018-0182
Fazli-Salehi, R., Torres, I.M., Madadi, R. & Zúñiga, M.Á. (2021). Is country affinity applicable for domestic brands? The role of nation sentiment on consumers' self-brand connection with domestic vs foreign brands. Asia Pacific Journal of Marketing and Logistics, 33(3), 731-754. Doi: 10.1108/APJML-11-2019-0656
Fernández-Ferrín, P., Bande, B., Martín-Consuegra, D., Díaz, E. & Kastenholz, E. (2020). Sub-national consumer ethnocentrism and the importance of the origin of food products: an exploratory analysis. British Food Journal, 122(3), 995-1010. Doi: 10.1108/BFJ-09-2019-0746
Fong, L.H.N., He, H., Chao, M.M., Leandro, G. & King, D. (2019). Cultural essentialism and tailored hotel service for Chinese: the moderating role of satisfaction. International Journal of Contemporary Hospitality Management, 31(9), 3610-3626. Doi: 10.1108/IJCHM-11-2018-0910
Frias-Jamilena, D., Sabiote-Ortiz, C., Martin-Santana, J. & Beerli-Palacio, A. (2018). The effect of Cultural Intelligence on consumer-based destination brand equity. Annals of Tourism Research, 72(September), 22-36. doi:10.1016/j.annals.2018.05.009
He, H. & Harris, L. (2020). The impact of Covid-19 pandemic on corporate social responsibility and marketing philosophy. Journal of Business Research, 116 (2020), 176–182. doi:10.1016/j.jbusres.2020.05.030
Hu, S., Hu, L. & Wang, G. (2021). Moderating role of addiction to social media usage in managing cultural intelligence and cultural identity change. Information Technology and People, 34(2), 704-730. Doi: 10.1108/ITP-10-2019-0518
Kromidha, E., Altinay, L., Kinali Madanoglu, G., Nurmagambetova, A. & Madanoglu, M. (2022). Cultural intelligence, entrepreneurial intentions and the moderating role of the institutional environment. International Journal of Entrepreneurial Behavior and Research, 28(6), 1581-1608. Doi: 10.1108/IJEBR-02-2022-0109
Lee, H.-M., Chen, T., Chen, Y.-S., Lo, W.-Y. & Hsu, Y.-H. (2021). The effects of consumer ethnocentrism and consumer animosity on perceived betrayal and negative word-of-mouth. Asia Pacific Journal of Marketing and Logistics, 33(3), 712-730. Doi: 10.1108/APJML-08-2019-0518
Marinković, V. (2017). Effects on the Republic of Serbia’s Citizens’ patriotism and animosity towards the European Union on consumer ethnocentrism. Economics Horizons, 19(1), 3-15. Doi: 10.5937/ekonhor1701003M
Mishra, S., Shukla, Y., Malhotra, G. and Arora, V. (2023). Investigating the impact of consumers’ patriotism and ethnocentrism on purchase intention: Moderating role of consumer guilt and animosity. International Business Review, 32(4), August 2023. Doi: 10.1016/j.ibusrev.2022.102076
Pentz, C., Terblanche, N. & Boshoff, C (2017). Antecedents and consequences of consumer ethnocentrism: evidence from South Africa. International Journal of Emerging Markets, 12(2), 199-218. Doi: 10.1108/IJoEM-09-2015-0189
Prince, M., Yaprak, A.N. & Palihawadana, D. (2019). The moral bases of consumer ethnocentrism and consumer cosmopolitanism as purchase dispositions. Journal of Consumer Marketing, 36(3), 429-438. Doi: 10.1108/JCM-11-2017-2432
Rabêlo Neto, A., Sousa-Filho, J.M.d. and Carneiro Lima, A. (2022). Internationalization of culture and soft power. European Business Review, 34(1), 103-126. Doi: 10.1108/EBR-09-2019-0240
Rahbari, M., Arshadi Khamseh, A. & Sadati-Keneti, Y. (2023). Resilience strategies in coping to disruptions of wheat supply chain caused by the Russia–Ukraine war crisis: case study from an emerging economy. Kybernetes, Vol. ahead-of-print No. ahead-of-print. Doi: 10.1108/K-12-2022-1728
Rambocas, M. and Mahabir, J.M. (2021). The effects of consumers' cultural sensitivity, ethnocentrism and demographical characteristics on attitude toward luxury fashion brands in Trinidad and Tobago. Journal of Fashion Marketing and Management, 25(4), 644-664. Doi: 10.1108/JFMM-03-2020-0049
Šapic, S., Filipovic, J. & Dlacic, J. (2019). Consumption in fast-food restaurants in Croatia and Serbia. British Food Journal, 121(8), 1715-1729. Doi: 10.1108/BFJ-04-2018-0264
Srivastava, A., Gupta, N. & Rana, N.P. (2023). Influence of consumer cosmopolitanism on purchase intention of foreign vs local brands: a developing country perspective. International Journal of Emerging Markets, 18(9), 2301-2325. Doi: 10.1108/IJOEM-01-2021-0057
Tajfel, H. & Turner, J. (1979), An integrative theory of intergroup conflict, in Austin, W.G. and Worchel, S. (Eds), The Social Psychology of Intergroup Relations, Brooks-Cole, Monterey, CA, pp. 94-109.
Tomić Maksan, M., Kovačić, D. & Cerjak, M. (2019). The influence of consumer ethnocentrism on purchase of domestic wine: Application of the extended theory of planned behaviour. Appetite, Vol. 142 (November 2019). Doi: 10.1016/j.appet.2019.104393
Vlajcic, D., Marzi, G., Caputo, A. & Dabic, M. (2019b). The role of geographical distance on the relationship between cultural intelligence and knowledge transfer. Business Process Management Journal, 25(1), 104-125. Doi: 10.1108/BPMJ-05-2017-0129
Zdravković, S. & Gašević, D. (2022). Effects of Consumer Ethnocentrism, Cosmopolitanism and Cultural Intelligence on the Acceptance of Foreign Brands. Economic Analysis: Applied Research in Emerging Markets, 55(1), 48-62. Doi: 10.28934/ea.22.55.1.pp48-62
Zdravković, S. & Peković, J. (2021). The impact of the metacognitive and behavioral factors of cultural intelligence on foreign brand acceptance. The European journal of applied economics, 18(1), 73-88. Doi: 10.5937/EJAE18-26618
Published
2024/11/13
Section
Original Scientific Paper
