CONSUMERS ETHNOCENTRIC TENDENCIES, DEMOGRAPHIC FACTORS AND DOMESTIC GOODS PURCHASE DECISION IN NIGERIA

Inoni Oghenenyerhovwo R.; Olannye Ajulu P.; Salami Charles G. E.

« DOI: 10.29141/2218-5003-2021-12-2-6 d JEL Classification: M31, M30, D12

■H

g Consumers ethnocentric tendencies, demographic factors § and domestic goods purchase decision in Nigeria

g Oghenenyerhovwo R. Inoni1, Ajulu P. Olannye1, Charles G. E. Salami1

m

2 1 Delta State University, Abraka, Nigeria £

Abstract. Consumer ethnocentrism is a socio-psychological concept that describes consumers' preference for purchasing goods produced in their own country, rather than imports. Increasing liberalization of world trade has encouraged dumping of all categories of foreign goods into Nigeria thereby making purchase of domestic products difficult, with negative consequences for the nation's economy. This study examines the effects of socio-demographic factors and consumers' ethnocentric tendencies on purchase decision of domestic shoes and bags. The methodological foundation of the research is social identity theory. Data were obtained from a cross-section of consumers from six urban centres in three senatorial districts in Delta State, Nigeria. Stratified and simple random sampling techniques were used to draw a sample of 391 respondents. Descriptive and inferential statistical analyses such as frequency distribution, multiple regression and Analysis of Variance (ANOVA) were used to analyse the data. Multiple regression results showed that consumer ethnocentric tendency and educational status exerted positive and statistically significant effects on domestic goods purchase decision; however, the impact of income was negative. The ANOVA results revealed that men, older people, individuals with higher educational status and high-income earners exhibited elevated levels of ethnocentric tendencies towards locally manufactured shoes and bags. The authors recommend that local manufacturers should factor the concept of consumer ethnocentrism into their marketing strategies to maintain competitive advantage over foreign competition.

Keywords: consumer ethnocentric tendencies; domestic goods purchase decision; consumer behaviour; socio-demographic factors; Nigeria.

Paper submitted: February 14, 2021

For citation: Inoni O.R., Olannye A.P., Salami C.G.E. (2021). Consumers ethnocentric tendencies, demographic factors and domestic goods purchase decision in Nigeria. Upravlenets - The Manager, vol. 12, no. 2, pp. 74-86. DOI: 10.29141/2218-5003-2021-12-2-6.

Тенденции потребительского этноцентризма, демографические факторы и предпочтение отечественной продукции в Нигерии

O.R Инони1, А.П. Оланние1, Ч.Г.Э. Салами1

1 Государственный университет штата Дельта, г. Абрака, Нигерия

Аннотация. Потребительский этноцентризм - это социально-психологическая концепция, согласно которой покупатели отдают предпочтение отечественным, а не импортным товарам. Растущая либерализация мировой торговли приводит к усилению демпинговых тенденций для всех иностранных товаров, поставляемых в Нигерию. Это снижает продажи продукции отечественного производства и, как следствие, негативно сказывается на экономике страны. В статье рассматривается влияние социально-демографических факторов и тенденций потребительского этноцентризма на решение покупателей о приобретении отечественных изделий (на примере рынка обуви и сумок). Методологическая основа исследования представлена теорией социальной идентичности. Информационную базу составили данные опроса 391 респондента из шести городов штата Дельта (Нигерия). Отбор респондентов осуществлялся с помощью методов стратифицированной выборки и простого случайного отбора. Для анализа полученных данных использовался описательный и инференциаль-ный статистический анализ, включающий частотное распределение, множественную регрессию и дисперсионный анализ ANOVA. Согласно результатам множественной регрессии, на выбор покупателями отечественного продукта положительное статистически значимое влияние оказывают тенденции потребительского этноцентризма и уровень образования, негативное - размер дохода. Дисперсионный анализ показал, что мужчин, пожилых граждан, людей с высшим образованием и лиц, имеющих высокий доход, отличает повышенный уровень этноцентризма в отношении отечественных товаров. Авторы подчеркивают, что для сохранения конкурентного преимущества над иностранными производителями местные компании должны учитывать специфику потребительского этноцентризма в своих маркетинговых стратегиях. Ключевые слова: потребительский этноцентризм; тенденции; предпочтение отечественной продукции; покупательское поведение; социально-демографические факторы; Нигерия. Дата поступления статьи: 14 февраля 2021 г.

Ссылка для цитирования: Инони О.Р., Оланние А.П., Салами Ч.Г.Э. (2021). Тенденции потребительского этноцентризма, демографические факторы и предпочтение отечественной продукции в Нигерии // Управленец. Т. 12, № 2. С. 74-86. DOI: 10.29141/2218-5003-2021-12-2-6.

INTRODUCTION

The globalisation strategy of businesses across the world has resulted in increased competition among domestic and multinational firms in both foreign and domestic markets. Owing to the greater availability of foreign brands, consumers in virtually all countries face an ever-expanding choice of purchase options. Globalisation is due to factors such as advances in information and communication technologies, worldwide investment, production and marketing, increases in world travel and the growth of global media [Mak-san, Kovacic, Cerjak, 2019]. Thus, globalisation of the world economy has created enormous market opportunities for countries and industries to exploit [Thomas, Singh, Ambady, 2020]. Furthermore, limited growth potentials of firms, saturation of national markets and government incentives are also significant stimuli that motivate firms to expand internationally. As stated by Kaynak and Kara [2002], due to increasing globalisation of business environment, target consumers are more than ever exposed to a massive array of imported products and brands that they are selecting from. As a result, consumer decision-making in global markets has become progressively more complex across all product categories. Therefore, there is a need for marketing practitioners to understand the dynamics affecting consumers' evaluations of imports over domestic products in cross-national settings. In Nigeria, globalisation of world trade and continuous trade liberalization have encouraged dumping of all manner of imported products into the country thereby making marketing of homemade goods very difficult [Eleboda, Abiala, 2020]. Furthermore, the preference of Nigerians for imported products as well as their negative attitudes towards made-in-Nigeria goods have worsened the business outlook for local manufacturers in comparison to their foreign counterparts [Ezeh et al., 2017]. According to Okechuku and Onyemah [1999], Nigerian consumers have a negative image of the 'Made in Nigeria' label, thereby rating it lower than labels from more developed countries.

Sumner [1906] cited by Balabanis and Siamagka [2017], introduced the concept of ethnocentrism as the view of things in which one's own group is the centre of everything, and all the others are scaled with reference to it. The term "consumer ethnocentrism" represents the beliefs held by American consumers about the appropriateness, indeed morality, of purchasing foreign-made products instead of domestic goods [Shimp, Sharma, 1987]. Ethnocentric consumers believe that purchasing imported products is wrong because it affects the domestic economy, leading to loss of jobs and economic strangulation. Sharma, Shimp and Shin [1995], however, noted that consumer ethnocentrism might inevitably lead to over-valuation of domestic products and underestimation of imported goods.

o z

Studies have found ethnocentrism as an impor- 3 tant predictor of consumers' preferences for domestic I goods rather than imports, and a better predictor of g purchase intention than demographic variables. While Si-research conducted in economically advanced nations < have revealed that consumers tend to prefer domes- g tic products over imports [Siagmaka, Balabanis, 2015; ¡Si He, Wang, 2015], the reverse is the case in developing £ nations, where consumers perceive foreign products 5 to be of superior quality compared to their domestic H counterparts [Teo, Mohamad, Ramayah, 2011; Al Gani- S deh, Al Taee, 2012]. Although marketing research show that many Nigerians still prefer imported goods, Chen-do [2013] reported that Nigerian consumers would show a high preference for some domestic products if their quality is comparable to imports. The study, therefore, addresses the following research questions: What impact do consumers' ethnocentric tendencies have on buying decision of domestic goods? Do demographic variables exert any influence on consumer purchase decision of domestic goods? What is the extent of Nigerian consumers' ethnocentric tendencies (CET)? How do CET vary among different demographic groups? The specific objectives are: to determine the effect of consumers' ethnocentric tendencies and demographic variables on purchase decision of domestic goods; to determine the extent of ethnocentric tendencies among Nigerian consumers; and to examine the roles of demographic factors in determining the level of CET.

LITERATURE REVIEW

Consumer ethnocentrism (CE) is a cultural dimension that influences buyers' attitudes to products and brands. It refers to consumers' ardent preference for domestic products and obvious dislike for imports [Balabanis, Diamantopoulos, 2004]. The term "consumer ethnocentrism" was introduced as a distinctive economic form of ethnocentrism, which has practical marketing implications in the field of consumer behaviour. It is the belief of the consumers about the appropriateness, and indeed morality, of purchasing imported goods instead of domestic products. Thus, CE provides an individual a sense of identity and a feeling of belonging-ness that translates to what purchase is acceptable or unacceptable to the in-group [Shimp, Sharma, 1987]. Consumers with high ethnocentric tendencies are prone to biased judgements by being more inclined to adopt the positive aspects of local-made products and discount the virtues of foreign-made products [Fakhar-manesh, Miyandehi, 2013; Balabanis, Siamagka, 2017]. Therefore, they tend to purchase local products due to patriotism and nationalistic inclinations, even if the quality is inferior to and the price is higher than that of imports [Balabanis et al., 2001; Nadiri, Tumer, 2010; Siagmaka, Balabanis, 2015].

2 Empirical review on consumer ethnocentrism. Trade

3 barriers have been dismantled due to globalisation of £ trade and economic liberalisation in many countries of g the world. However, many firms still face a major chal-£ lenge in gaining consumer acceptance for their prod-£ ucts in many foreign markets. A study by Jain and Jain < [2013] in India on the influence of ethnocentrism and S its antecedents on consumer purchase behaviour towards foreign goods used 400 consumers drawn from different socio-cultural backgrounds residing in Delhi. Owing to non-response and filling errors, only 304 copies of the questionnaire were appropriately filled out and used for further analysis. The results revealed that Delhi consumers exhibited a moderate level of CET and there were significant differences among so-cio-demographic factors. The authors recommended strategies for international marketers to gain entry into new markets and acceptance for their products among different consumer segments.

Studying the influence of demographic factors on consumer ethnocentrism in Pakistan, Aziz et al. [2014] collected primary data from 427 consumers using a self-administered questionnaire. The findings showed that men, the elderly, low-income earners and people with a high level of education appear to have higher ethnocentric tendencies; while women, young people, high-income earners and consumers with lower educational status exhibit decreased levels of ethno-centrism. Therefore, international marketers need to consider consumer general socio-psychological factors and cultural affinities apart from the market size as they formulate and implement their marketing policies.

Lopez and Zunjur [2016] examined the influence of consumer ethnocentrism on purchase intention of foreign products in Pune, India. Using survey method, a pre-tested questionnaire was administered to 148 respondents in different locations in Pune city (Pune Camp, Kothrud, Aundh and Pimpri Chinchwad) to obtain a representative sample. However, due to incomplete information and non-response, data analysis was based on information obtained from 103 respondents. The findings showed a negative and significant correlation between consumer ethnocentrism and foreign product purchase intention. Thus, consumers in Pune, India exhibited high ethnocentric tendency towards locally made goods and dislike for foreign products.

Bada and Onuoha [2018] studied the southwest region of Nigeria which is home to many businesses and industries involved in both local goods production and importation. The research involved 196 (109 males and 87 females) undergraduates aged 20-40 from two public universities in Nigeria. The study aimed to investigate the impact of customer loyalty, consumer animosity and purchase intention on consumer eth-nocentrism. The results indicated that the three con-

structs exhibited significant (p < 0.01) association with CET. Among the demographic variables considered, gender had no significant impact on consumer preference for domestic products.

Kvasina, Crnjak-Karanovic and Tucak [2018] interviewed 420 respondents living in the Split-Dalmatia County, Croatia using a questionnaire based on the CETSCALE measurement. The findings revealed that higher educational status was significantly correlated with higher ethnocentric tendencies, but age had an indirect association with consumer ethnocentrism, contrary to previous research.

Ejiofor, Anayo and Otika [2019] studied customer' ethnocentrism and purchase intention of local wheat flour using data obtained from the interview of 210 registered bakers in Anambra State, Nigeria in 2017. Data were analysed using Pearson moment correlation coefficient and multiple linear regression technique. The findings showed that price and availability of goods were the major determinants of purchase intention, but not ethnocentrism as consumer patriotism had no significant influence on consumers purchase decision of home-grown wheat. Based on the findings, the authors concluded that consumer ethno-centrism can be employed in local wheat processing to determine and predict consumer purchase intentions of wheat flour. However, it is expected that local producers should make their products readily available and try to manage the cost of production to be competitive as foreign equivalents if they must enjoy the patronage of bakers.

Kiriri [2019] carried out a study on consumer eth-nocentrism and attitudes towards local products in Kenya. Using 315 respondents drawn from adult customers who live in Nairobi, the results indicated that Kenyan consumers were not ethnocentric, although they were concerned about the negative impact of imported goods on the domestic economy, especially on unemployment. The author concluded that Kenyans had no special preference for domestic goods compared to imported ones and hence displayed xenocentrism, coupled with a minimal level of dislike for foreign goods. Furthermore, the respondents have a low evaluation of Kenyan-made products in terms of durability, quality, technological advancement and value for money. Patriotism of Kenyans towards domestic goods was low because they do not support restrictions on the availability of imports in the Kenyan market.

In their study on the effect of ethnocentrism and attitude towards foreign brands purchase decision of automobiles in India, Thomas, Singh and Ambady [2020] used data drawn from a sample of 108 consumers. Data were analysed using exploratory factor analysis, CART technique and regression analysis. The findings imply that ethnocentrism influences consumers' attitudes,

which, in turn, affect their decision to purchase Indian-made cars. The results of the study have practical implications for both domestic and international marketers operating in the Indian market: the authors suggest that domestic companies should employ patriotic and nationalistic advertisement campaign by highlighting the 'Made in India' label, while foreign marketers focus should be on technical qualities of their products rather than on the country-of-origin mantra.

RESEARCH METHODOLOGY

Researchers have developed conceptual frameworks to study CE, the causes and possible consequences [Sharma, Shimp, Shin, 1995; Javalgi et al., 2005; Shankarmahesh, 2006]. Thus, the conceptual model for this study is modified from the works of Javalgi et al. [2005] and Shankarmahesh [2006] who argue that consumer ethnocentric tendencies do not develop in isolation, but rather it is shaped by an array of socio-psychological, economic and demographic antecedents. In Figure, domestic goods purchase decision is the dependent variable, to which five demographic variables (age, gender, income and marital status, educational level) and CET are related. However, the model requires the determination of CET of the sampled population. The computed CET values were then regressed on domestic goods purchase decision alongside the demographic variables.

Dependent Variable

Domestic Goods Purchase Decision

Conceptual model for the study1 Концептуальная модель исследования

Research hypotheses

The following hypotheses formulated in their null forms were tested in the study.

HI: Consumers' ethnocentric tendencies have no significant impact on purchase decision of domestic goods.

H2: Demographic variables have no significant influence on domestic goods purchase decision.

H3: Nigerian consumers are not ethnocentric with regard to the purchase of domestic products.

1 Source: Modified from Javalgi et al. [2005] and Shankarmahesh [2006].

H4: Consumer ethnocentrism does not vary with ° demographic characteristics. 3

A research design is the strategy for a study and the I plan by which the strategy is to be carried out, and it g specifies the methods and procedures for the collec- £ tion, measurement, and analysis of data. In other words, < it is a detailed plan for the collection, measurement, g and analysis of data generated to answer the research ¡Si questions posed in the study [Sekaran, Bougie, 2016]. £ This study adopted descriptive and causal designs as a 5 structured questionnaire was administered to a cross- H section of consumers of shoes and bags among the £ populace in urban centres of Delta State, Nigeria, from whom data were generated. Data were used to establish a causal relationship between the dependent variable and independent variables.

A structured questionnaire is the instrument for data collection and is comprised of three sections, A, B, and C. Section A dwelt on the socio-economic factors of the respondents (7 questions); Section B is the modified 10-item CETSCALE assessed on a 5-point Likert scale with sores ranging from 10 to 50; while Section C covers domestic purchase decision construct (5 questions). Questionnaire items were adapted from previous studies [Shimp, Sharma, 1987]. The respondents were requested to mark their perceived choice/ response in Sections B and C on a 5-point Likert-type scale, where (1) strongly disagree, (2) disagree, (3) undecided, (4) agree, and (5) strongly agree.

The target population of respondents is unknown; therefore, the formula for calculating sample size for large population with unknown variance was used to arrive at a representative sample [Cochran, 1984].

z2pq

n0=-p~, (1)

where n0 is sample size; Z = 1.96 (the area under the normal curve corresponding to 95 % confidence level); p (unknown variance in a large population assumed to be 0.5); q = 1 - p (the estimated proportion of an attribute that is absent in the population); e (the level of precision at 5 %). Arising from equation (1):

(1.96)2 0.5(0.5) 0.9604 "° = (0.05)2 =00015 = 384/16 "385. (2)

Multi-stage sampling procedure was adopted to draw a sample of 391 respondents. At the first stage, 2 towns were purposively selected from each of the three senatorial districts to give 6 towns from which sample elements were chosen. At the second stage, 450 copies of the research instrument were administered randomly at the rate of 75 per each of the six towns (Asaba, Agbor, Warri, Ozoro, Ughelli, and Sapele). Out of the 450 copies of the questinnaire administered, 401 were returned, giving a response rate of 89.1 %.

Independent Variables + ~

Consumers' Ethnocentric Tendencies

Demographic Factors

Age. Gender. Education. Income. Marital status

2 However, only 391 that were appropriately filled were

3 used for statistical analyses as 10 copies were discard-£ ed due to missing data. The survey was conducted beg tween 1st August and 15th December, 2020.

£ Data generated from the survey were subjected £ to descriptive and inferential statistical analyses to | achieve stated objectives and test the hypotheses. The Is reliability and internal consistency of the constructs were determined by Cronbach's coefficient alpha on a threshold of 0.7 [Nunnally, Bernstein, 1994; Hair et al., 2014] while construct validity was established by significant Pearson correlation coefficients between construct statements and overall construct scores. Normality test was also conducted on the data to ensure that the assumption of normal distribution was not violated in order to carry out regression analysis to determine the impact of the independent variables on the dependent variable. IBM SPSS Statistics 22.0 for Windows was used to analyse the data.

RESULTS AND DISCUSSION

The socio-economic characteristics of respondents indicated that males were 44.8 %, while females constituted 55.2 %. About 90 % of the consumers are within the economically active age group with a mean age of 41 years; 45.5 % of them are married, 32.5 % are single, while others are divorced or widowed (Table 1). The educational level of respondents was reasonably high as 71.6 % of them had diploma, bachelor degrees or postgraduate degree certificates. The analysis further revealed that public and private sector employees comprised 48.3 %, while self-employed individuals accounted for 37.1 %. Income distribution is negatively skewed with income of the majority (55.2 %) ranging from N 20,000.00 to N 60,050.00 (US$57.14-171.57) and a mean monthly income of N 70,201.39 (US$200.58).

The reliability and internal consistency of the constructs were assessed by Cronbach's alpha. According to Sekaran and Bougie [2016], the Cronbach's alpha is the most cited measure of reliability for a multi-item scale with an acceptable cut-off point that is greater than or equal to 0.70. The Cronbach's alpha values are 0.826 for domestic goods purchase decision; 0.825 for CET; and 0.829 for the research instrument. All values exceeded the minimum acceptable threshold of 0.7 [Nunnally, Bernstein, 1994; Hair et al., 2014]. Construct validity for CETSCALE and purchase decision were examined using correlation analyses. The correlation coefficient between all CETSCALE items and the overall construct ranged from 0.134 to 0.471, while the correlation coefficient between domestic goods purchase decision construct and specified scale items ranged between 0.27 and 0.41. All of them were statistically significant, confirming construct validity among the measurement scales.

Table 1 - Socio-economic characteristics of sampled consumers

(n = 391)

Таблица 1 - Социально-экономические характеристики

выборки (n = 391)

Parameter Frequency Percentage, % Mean/ (Mode)

X Ф 1Л Male Female 175 216 44.8 55.2 (Female)

Age Group 25-34 35-44 45-54 55-64 117 140 84 50 29.9 35.8 21.5 12.8 41 years

Marital Status Single Married Divorced Widow Widower 127 178 39 23 24 32.5 45.5 10.0 5.9 6.1 (Married)

Education Level Primary school (1) Secondary school (2) Polytechnic / NCE (3) HND / First Degree (4) Masters / Ph.D. (5) 42 69 115 130 35 10.7 17.6 29.4 33.3 9.0 (HND / First Degree)

Income (N) 20,000.00-60,050.00 60,051.00-100,101.00 100,102.00-140,152.00 140,153.00-180,203.00 180,204.00-220,254.00 216 76 60 21 18 55.2 19.4 15.4 5.4 4.6 N 70,201.39

Employment Status Artisan Trader Teacher Civil servant Self-employed Private-sector employed Retiree 39 55 50 72 51 67 57 10.0 14.1 12.8 18.4 13.0 17.1 14.6 (Civil servant)

Source: Computed from survey data, 2020.

The multiple regression analysis showed an adjusted R2 value of 0.61 indicating that 61 % of the variance in purchase decision is explained jointly by all the independent variables, age, sex, marital status, educational status, income and consumers' ethnocentric tendencies (Table 2).

The Durbin-Watson statistic, an indicator of serial correlation of errors is 1.64, and falls within the acceptable level [Ndubisi, Koo, 2006]. Furthermore, the ANOVA panel shows that the regression model is significant (F(6,384) = 102.269, p < 0.01), indicating that the model fits the data well. Besides, there was no problem of multicolinearity among the variables as the variance inflation factor (VIF) values ranged between 1.007 and 1.222, far less than the acceptable threshold of 10 [Hair et al., 2014]. The results further indicated that educational status, income and CET significantly affected buying decision: while educational status and CET were positive, income exerted an inverse effect.

Table 2 - Regression results of determinants of domestic goods purchase decision ° Таблица 2 - Результаты регрессионного анализа детерминант решения о покупке товаров местного производства «

15

A. Model Summaryb

Model R R2 Adjusted R2 Std. Error of the Estimate Change Statistics Durbin-Watson

R2 Change F Change df1 df2 Sig. F Change

1 0.78a 0.62 0.61 0.496 0.615 102.27 6 384 0.000 1.64

B. ANOVAb

Model Sum of Squares df Mean Square F Sig.

1 Regression 150.7 6 25.11 102.27 0.001b***

Residual 94.3 384 0.25

Total 244.9 390

C. Coefficientsb

Model Unstandardized Coefficients Standardized Coefficients t Sig. Collinearity Statistics

B Std. Error Beta Tolerance VIF

1 (Constant) 1.028 0.322 3.195 0.002

Age -0.004 0.002 -0.046 -1.413 0.159 0.951 1.052

Sex 0.022 0.068 0.010 0.320 0.749 0.945 1.058

Marital status -0.038 0.025 -0.048 -1.526 0.128 0.993 1.007

Education level 0.139 0.023 0.199 5.986 0.001*** 0.904 1.106

Income -3.760E-6 0.000 -0.423 -12.205 0.001*** 0.835 1.197

CET 0.741 0.063 0.415 11.848 0.001*** 0.818 1.222

a. Predictors: (Constant), Age, Sex, Maritstatus, Leveleduc, Income, CET.

b. Dependeent Variable: Consumer purchase decision. *** (p < 0.01); ** (p < 0.05). Source: Computed from survey data, 2020.

The standardized beta coefficients show that income, CET and educational level are the major predictors of domestic goods purchase decision in that order. This implies that a unit increase in CET and educational level of the respondents will cause a 0.415 and 0.199 increase respectively in purchase decision of shoes and bags, while a unit increase in income will depress purchase decision by 0.423.

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Consumers with a high level of ethnocentric tendencies exhibit greater preference for domestic products, which is one of the reasons why they would buy Nigerian-made products. This finding is in agreement with that of Renko, Karanovic and Matic [2012] who established that consumer ethnocentrism was found to have a positive and significant influence on attitude and purchase intention of local brands. Other studies that support our findings are those of Ozden and Eser [2019] in Turkey, and Karoui and Khemakhemb [2019] who found that consumer ethnocentrism affects positively and significantly the willingness of Tunisian consumers to buy domestic products. Hence, H1 is rejected and it is concluded that consumers' ethnocentric tendencies have a significant impact on domestic products purchase decision.

Educational level and income were the only demographic variables that affected purchase decision for domestic products. Highly educated individuals tend to purchase certain products due to their in-

trinsic value and this will ultimately affect domestic goods purchase decision. The results of the study are consistent with the findings of Luu [2019] in Vietnam where a unit increase in higher educational status resulted in a 0.34 likelihood of buying domestic apparels by highly educated consumers than their less educated counterparts. However, consumption by high-income earners is usually affected by their status symbol and many would rather buy foreign shoes and bags which they rate to be of higher quality than locally manufactured products. The negative impact of income on purchase decision can be attributed to this, because as their disposable income increases, their purchase of imported products increase compared to domestic goods. Moreover, the negative response of income to buying decision of locally made products is high as a unit rise in income reduced the probability of buying decision by 0.423. Thus, H2 is rejected for educational level and income as both variables exerted significant effects on purchase decision; but it cannot be rejected for age, sex and marital status.

Consumer Ethnocentric Tendencies and Demographic Factors

The descriptive statistical analysis revealed that consumers in Delta State, Nigeria are ethnocentric with a mean CET value of 4.02. Therefore, H3 is rejected, and the alternative accepted that Nigerians are ethnocen-

8 • Маркетинговые стратегии и практики

g tric with respect to the purchase decision of shoes and

3 bags. Consumers within the age bracket of 55-64 ex-

£ hibited the highest level of CET with an average of 4.18,

g while the youngest consumers had the least value of

£ 3.95. Males also show higher CET (4.07) than women

u

£ (3.79). Ethnocentric tendencies appear to increase with | the educational level as Masters/Ph.D. degree holders Is showed more preference for domestic goods with an average CET value of 4.2, while primary school leavers showed the least value (CET = 3.88). Similarly, high-income earners were found to exhibit greater ethno-

centric tendencies than consumers in the low-income group (Table 3). This implies that wealthier consumers showed greater preference for Nigerian-made products than low-income earners.

The ANOVA results revealed that significant differences (p < 0.01) exist in the age, educational status and income level of consumers, except type of employment (Table 4). Consequently, Tukey HSD Post-hoc tests were conducted on each of the demographic factors in order to identify the groups where significant differences occurred (Table 5).

Table 3 - Mean CET and groups of demographic variables Таблица 3 - Среднее значение показателя тенденций потребительского этноцентризма и демографических переменных

Variable N Mean Std. Deviation Std. Error

25-34 118 3.9466 0.45440 0.04183

35-44 140 3.9675 0.41058 0.03470

45-54 83 4.1346 0.42131 0.04624

55-64 50 4.1818 0.43840 0.06200

Male 175 4.0733 0.43065 0.02393

Female 216 3.7861 0.39876 0.04872

Primary School 42 3.8817 0.42117 0.06499

Secondary School 69 3.9828 0.46850 0.05640

Educational level ND/NCE 115 3.9461 0.42330 0.03947

HND / First Degree 130 4.1113 0.41024 0.03598

Masters / Ph.D. 35 4.2086 0.44694 0.07555

20,000.00-60,050.00 216 3.9573 0.45715 0.03034

60,051.00-100,101.00 76 4.0059 0.40143 0.04163

Income level (N) 100,102.00-140,152.00 60 4.2185 0.31349 0.04347

140,153.00-180,203.00 21 4.2573 0.42551 0.12830

180,204.00-220,254.00 18 4.5450 0.21448 0.07583

Artisan 39 3.9190 0.40650 0.06509

Trader 55 4.0300 0.42237 0.05695

Civil Servant 50 4.0644 0.41063 0.05807

Employment status Self-employed 72 3.9949 0.47195 0.05562

Private-Sector employee 51 3.9794 0.40559 0.05679

Teacher 67 4.0827 0.47909 0.05853

Retiree 57 4.0628 0.43547 0.05768

Source: Computed from survey data, 2020.

Table 4 - ANOVA results of demographic factors and consumers' ethnocentric tendencies Таблица 4 - Результаты теста ANOVA демографических показателей и тенденций потребительского этноцентризма

Variable Sum of Squares df Mean Square F Sig.

Age Between groups Within groups Total 3.414 71.563 74.976 3 387 390 1.138 0.185 6.153 0.001***

Educational level Between groups Within groups Total 3.850 71.127 74.976 4 386 390 0.962 0.184 5.223 0.001***

Income level Between groups Within groups Total 5.776 69.200 74.976 4 386 390 1.444 0.179 8.055 0.001***

Employment status Between groups Within groups Total 0.993 73.984 74.976 6 384 390 0.165 0.193 0.859 0.525

*** Significant (p < 0.01). Source: Computed from survey data, 2020.

Table 5 - Results of Tukey HSD post hoc tests of differences in CET among demographic groups Таблица 5 - Результаты апостериорных тестов с HSD-критерием Тьюки для определения различий в тенденциях потребительского этноцентризма между демографическими группами

Dependent Variable: Consumers' Ethnocentric Tendencies Tukey HSD

Variable Groups Mean Difference Std. Error Sig.

Age Group 25-34 35-44 45-54 55-64 45-54 55-64 -0.18797** -0.23519*** -0.16708** -0.21430** 0.06160 0.07256 0.05957 0.07085 0.013 0.007 0.027 0.014

Educational level Primary School ND/NCE HND/First Degree Masters/Ph.D. HND/First Degree Masters/Ph.D. -0.22964** -0.32690*** -0.16522** -0.26248** 0.07619 0.09824 0.05495 0.08287 0.023 0.008 0.023 0.014

Income Group N 20,000.00-60,050.00 N 60,051.00-100,101.00 N 100,102.00-140,152.00 N 180,204.00-220,254.00 N 100,102.00-140,152.00 N 180,204.00-220,254.00 -0.26115*** -0.58769*** -0.21255** -0.53909*** 0.06509 0.15231 0.07332 0.15600 0.001 0.001 0.032 0.005

M

о

M

ее

*** Mean difference is significant (p < 0.01); ** Mean difference is significant (p < 0.05). Source: Computed from survey data, 2020.

Analysis of the post-hoc comparison revealed significant variation in CET between respondents aged 25-34 and those aged 45-54 and 55-64 years; and also between those aged 35-44, and 45-54 and 55-64 years. The results imply that older people are more ethnocentric than younger persons due to their conservative nature and are likely more patriotic [Sharma, Shimp, Shin, 1995]. Consequently, their attitudes towards domestic products become more favourable with increasing age. This finding is supported by the works of Pentz, Terblanche and Boshoff [2014] in South Africa, Schnettler et al.

[2017] in Chile, and Rakic, Rakic and Stanojevic

[2018] in Serbia who reported the likelihood of ethnocentric tendency to increase with consumer's age. CET values were also significantly different with respect to educational levels, as the CET of Masters/ Ph.D. degree holders was significantly different from primary and secondary school leavers and ND/NCE1 holders. Highly educated individuals have a better understanding of possible harm unwarranted consumption of imports can cause to the domestic economy by way of unemployment and balance of payment deficit. Thus, they are more able to differentiate between imported substandard goods and certified locally manufactured quality products than less educated individuals. This finding is in accordance with the study of Nadiri and Tumer [2010] in North Cyprus where consumers' with postgraduate degree showed higher ethnocentric tendencies than those with lower levels of education. Kvasina, Crnjak-Karanovic and Tucak [2018] also reported that more educated people expressed greater CET

1 ND/NCE is National Diploma/National Certificate of Education.

in Croatia. However, Wanninayake and Chovancova [2012] found less educated individuals to be more ethnocentric in a study in the Czech Republic.

Turkey post-hoc tests indicated that respondents in (N 20,000-60,050) income group exhibited lower ethnocentric tendencies than those in (N 100,102140,152) and (N 180,204-220,254) groups. The implication is that high-income earners show higher ethnocentric tendencies than those with relatively lesser income. This finding is consistent with the report of Gasevic, Tomasevic and Vranjes [2017] in Serbia where CET showed a direct association with the level of income. The eventual purchase of domestic goods does not necessarily depend on the income class of the individual, but rather on the consumers' evaluation of the products. Thus, if majority of high-income earners have adjudged locally manufactured shoes and bags more durable and give value for money, their propensity to purchase them will be higher. Furthermore, if domestic goods are of comparable quality as imports, rational consumers would prefer to buy the local products because it would reduce unemployment in the economy [Acikdilli, Ziemnowicz, Bahhouth, 2018].

The independent sample t-test of differences in CET between genders shows that males are more ethnocentric than females (Table 6).

Although previous studies have reported that women are more conservative and more conformist than men and thus are likely to exhibit greater ethnocentric tendencies [Bawa, 2004], this study has found otherwise. Many Nigerian women have an ardent preference for foreign shoes and bags which they evaluate to be of better quality and more durable, hence the low level of CET is exhibited by them in this study. Furthermore, many women perceive ownership of imported shoes

Table 6 - Independent sample t-test of differences in CET between male and female respondents Таблица 6 - Критерий Стьюдента при определении различий в тенденциях потребительского этноцентризма с учетом пола респондентов

M

о сч

Parameter Gender N Mean Std. Deviation Mean Difference t-value Sig (2-tailed)

Ethnocentric tendency Male 175 4.07 0.431 0.28715 5.03 0.001***

Female 216 3.79 0.399

*** Mean difference is significant (p < 0.01). Source: Computed from survey data, 2020.

and bags as a social symbol, and thus would rather buy them instead of purchasing their domestic counterparts. This finding agrees with the reports of Aziz et al. [2014] in Pakistan and Gasevic, Tomasevic and Vranjes [2017] in Serbia. Arising from the results of ANOVA and independent sample t-test, H4 is rejected as significant variation in consumer ethnocentrism existed in age, gender, educational level and income. However, employment status of consumers did not affect their level of ethnocentric tendencies.

CONCLUSION

The study has examined the effects of demographic factors and consumers' ethnocentric tendencies on the purchase decision of Nigerian-made goods. The findings showed that CET and educational status exerted significant and positive effects on the decision to buy domestically manufactured shoes and bags in Nigeria, while consumer income had a negative impact. In the

age of globalisation and trade liberalisation, with huge balance of trade deficits among developing nations, the concept of consumer's ethnocentrism could be promoted to encourage import-substitution development strategy. Given that the study has found demographic factors such as age, gender, educational status and income as significant antecedents of consumers' ethnocentrism, such variables can form the basis to target market segments which domestic producers can use by associating their goods with national symbols and using patriotic messages. Therefore, the authors recommend that local manufacturers must factor the concept of consumer ethnocentrism into their marketing strategies in order to maintain competitive advantage over foreign competition with regard to specified products. Domestic firms can achieve this by ensuring that their products continually address consumers' core values of quality, reliability and durability.

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