Consumer Ethnocentrism – Marketing Challenge for Companies: The Case of Serbia

Authors

  • Mira Rakic Megatrend University, Graduate School of Business Studies
  • Beba Rakic Megatrend University, Graduate School of Business Studies
  • Ljiljana Stanojević University Business Academy, Faculty of applied management, economics and finance

DOI:

https://doi.org/10.7595/management.fon.2018.0019

Keywords:

consumers, consumer ethnocentrism (CE), marketing challenge, Serbia

Abstract

Research Question: This paper examines consumer ethnocentrism (CE) as marketing challenge for companies. Motivation: The purpose of the paper is to examine the antecedents and consequences of CE, who high-ethnocentric consumers are and whether CE can be used in marketing. Data: Results are derived from primary data collected from a consumer sample in Serbia during 2016 in retail stores of different retail chains in Belgrade. Sample included 200 examinees between 16 and 74 years. Tools: CE is measured by CETSCALE (consumer ethnocentric tendencies scale, 17 statements) developed by Shimp and Sharma (1987). Findings: The results indicate that CE can best be explained by a combination of national culture, the characteristics of consumers, product categories, the perceived value of companies and the integrated marketing communications of companies and countries. Furthermore, the results show that significant differences in CE exist between different groups of consumers and product categories. The theoretical contribution and the managerial impactions based on the findings are provided. The conceptual frameworks (Figure 1 and Figure 2) represent the theoretical contribution. The frameworks can be used by marketers for their effective target marketing (market segmentation, market targeting and market positioning). This study underlines the different practical implications of the high level of CE for domestic and foreign companies in the Serbian market. Domestic companies have the opportunity to encourage CE. This study provides marketers with useful marketing strategies and tactics for domestic and foreign companies with respect to CE. The high level of CE is a marketing opportunity for domestic companies. Foreign companies face a bigger challenge with certain product categories which are directed towards certain groups - high-ethnocentric consumers. Particular challenges for foreign companies are promotional campaigns of domestic companies and governments in countries that are directed towards domestic products purchasing. Contribution: This study suggests the marketing strategies and tactics for the encouragement of CE for domestic companies. On the other hand, the high level of CE is a marketing threat to foreign companies. This study suggests the marketing strategies and tactics for decreasing the influence of CE for foreign companies. The results of this study can be used both for further research and in practice.

Author Biographies

Mira Rakic, Megatrend University, Graduate School of Business Studies

Mira Rakić is a Full Professor of Marketing, Consumer Behavior, Digital Marketing and Strategic Marketing at Graduate School of Business. Her areas of interest include marketing, global marketing, consumer behavior, digital economy, sustainable development and sustainability. Author and co-author of papers in the area of marketing, two textbooks (International Marketing and Consumer Behavior), and monograph (Digital marketing). Her research profile is available at: https://www.researchgate.net/profile/Mira_Rakic

Beba Rakic, Megatrend University, Graduate School of Business Studies

Beba Rakić is a Full Professor of Marketing, International Marketing and Digital Marketing at Graduate School of Business Studies. Author and co-author of papers in the area of marketing, three textbooks (Marketing, International Marketing, and Consumer Behavior), and monograph (Digital marketing). Her main research and publications are related to marketing, digitalization, and sustainability. Her research profile is available at: https://www.researchgate.net/profile/Beba_Rakic

Ljiljana Stanojević, University Business Academy, Faculty of applied management, economics and finance

Ljiljana Stanojević is Associate Professor of Information Technology at Faculty of applied management, economics and finance. Author and co-author of papers in the area of applied information technology information systems and business intelligence, textbook (Introduction to Geography Information Systems), monograph (Development of Business Intelligence Methodology). Her main research and publications are related to applied information technology and artificial neural networks for data analysis, business intelligence, and Information systems. Her research profile is available at: https://www.researchgate.net/profile/Ljiljana_Stanojevic

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Published

2018-10-27

How to Cite

Rakic, M., Rakic, B., & Stanojević, L. (2018). Consumer Ethnocentrism – Marketing Challenge for Companies: The Case of Serbia. Management:Journal of Sustainable Business and Management Solutions in Emerging Economies, 23(3), 81–92. https://doi.org/10.7595/management.fon.2018.0019

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