Determinants of Consumer Ethnocentrism in the Furniture Market in Ethiopia: The case of Finfine Furniture Factory PLC (3F)
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Date
2017-06-14
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Addis Ababa University
Abstract
Consumer ethnocentrism is one factor that affects consumers ‘decision to prefer a product that is made locally more than a foreign made product and it also helps companies to prepare their plans and strategies. The main objectives of the study was to investigate the effect of demographic variables called gender, age, income and educational level and socio-psychological factors namely patriotism and cultural openness on consumer ethnocentrism in the furniture market in Ethiopia through a case analysis of Finfine Furniture Factory PLC (3F). The analyses of the demographic variables showed that people with older age, low educational level and low income exhibit a higher level of ethnocentrism however, no significant relationship was found between ethnocentrism and gender. Further, it was found that there is a positive and significant relationship between ethnocentrism and patriotism and a negative significant relationship with cultural openness. It was also shown that Ethiopian consumers are moderately ethnocentric and companies interested in operating in the local furniture market in Ethiopia can segment the market according to the level of ethnocentric tendency of consumers and this helps them in deciding the target market and in developing the appropriate positioning and marketing mix strategies.
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Consumer Ethnocentrism, Demographic Factors, Patriotism