Consumer ethnocentrism tendency in Malta : a focus on the Maltese services industry

Abstract

One of the main changes brought about by globalisation is that businesses' potential consumers are no longer just the local consumers but international consumers. Today, in most countries, markets and industries are composed of a mixture of local and foreign businesses. Thus, it is important for both local and foreign businesses to gain information on how their products/services are perceived and whether the fact that they are local or foreign has an impact on whether or not they are purchased. Such is the situation in Malta as well, where local and foreign businesses compete simultaneously to attract local consumers towards their products or services. The purpose of this study is to gain an insight into the levels of consumer ethnocentrism amongst Maltese consumers, with a focus on the services industry. The study aims to determine some antecedents of consumer ethnocentrism, and determine whether there is a relationship between levels of consumer ethnocentrism and actual choice between local and foreign service providers. The results from this study can be interpreted with optimism by both local and foreign businesses that already do or are interested in operating in Malta. Whilst Maltese consumers are not highly ethnocentric, which is a positive thing for foreign businesses, given the availability of a good quality local service provider, they go for the local service provider, which is good news for Maltese businesses. Thus both local and foreign businesses can utilise the results of this study to improve their marketing strategy. The main antecedents for consumer ethnocentrism in Malta were found to be cultural openness, patriotism and level of education. Other antecedents of ethnocentrism were identified in the review of literature, however, these were not fou Data for this study was gathered through an online questionnaire, which consisted mostly of 7-point likert statements and some multiple choice questions. The statements used in the questionnaire were taken from previously established and tested questionnaires, particularly the CETSCALE, which measures consumer ethnocentrism. The questionnaire was distributed randomly to 482 respondents and all replies were anonymous. Results were analysed through correlation testing using the statistical software SPSS.