A STUDY ON CONSUMER ETHNOCENTRISM IN INDIA

Abstract

This study aims to examine the impact of consumer ethnocentrism on the perception and consumption of Khadi India products on the Indian market. The purpose of the study is to provide Khadi India and other domestic brands seeking to capitalise on the potential advantages offered by consumer ethnocentrism with valuable insights, allowing marketers to develop more effective strategies for promoting domestic goods and services. India, one of the world's largest and fastest-growing economies, offers a unique opportunity to examine the role of consumer ethnocentrism in influencing consumer preferences and consumption patterns. In recent years, the Khadi India brand, which represents traditional Indian crafts, textiles, and village industries, has experienced a surge in popularity. Government initiatives promoting the brand as a means of bolstering rural economies and preserving indigenous skills and craftsmanship, as well as consumer preferences for eco-friendly and sustainable products, have contributed to Khadi India's revival. The scope of the study is limited to individuals in the Delhi NCR area who are familiar with Khadi India products. Although the findings may not be directly applicable to other markets or product categories, the insights gained from this research can contribute to a better understanding of consumer ethnocentrism in emerging markets and serve as a valuable reference for future research in this area. Analysis of the 105 respondents revealed a nearly equal distribution of males and females, as well as a majority of respondents in the age range of 18-29. The majority of respondents held at least a bachelor's degree and reside in urban areas. Moreover, students constituted a significant majority of respondents, followed by working professionals and retirees. A multiple regression analysis was conducted to examine the relationship between various attitudes towards purchasing Indian-made products by taking statements from the CETSCALE and the dependent variable was selectd as “Consumer’s Preference for Khadi”. vi Significant predictors in the model include attitudes favouring the import of only unavailable products, purchasing Indian-made products to support the Indian economy, purchasing Indian products to prevent other countries from benefiting at India's expense, the belief that it is always preferable to purchase Indian products, and the desire to heavily tax foreign products to reduce their entry into the Indian market. The positive values of the coefficients (B) indicate a positive relationship between these predictors and Khadi, implying that individuals with these attitudes are more likely to favor or support goods made domestically. These findings can assist Khadi India and other domestic brands in developing effective marketing strategies that capitalise on consumer ethnocentrism and promote the growth and success of domestic products in the face of increasing competition from foreign goods. Understanding the role of consumer ethnocentrism in the Indian market is crucial, given India's rich and diverse cultural heritage, which has influenced consumer preferences and expectations. Moreover, the government's efforts to promote domestic industries and preserve traditional craftsmanship have fostered the growth of domestic brands such as Khadi India. By leveraging the power of consumer ethnocentrism, Khadi India and other national brands can not only strengthen their market position but also contribute to the country's economic growth. Therefore, marketers should carefully tailor their marketing strategies and communication messages to address the distinct needs and preferences of various consumer segments, ensuring that their domestic products appeal to a broad range of potential customers.