The influence of ethnicity on consumer behaviour : a study of inter-generational and inter-group differences

Abstract

While studies of ethnic consumer behaviour examine the role an individual's ethnicity and/or ethnic identity has on this behaviour, a lack of clarity exists on how ethnicity and ethnic identity can be used in the development of marketing strategies targeting specific ethnic groups. Therefore, within an Australian context, this research seeks to understand: 1. How individuals may be influenced by their ethnicity and ethnic identity; 2. How ethnic identity may influence consumer behaviour; and 3. How individual acculturation may affect ethnic identity and ethnic consumer behaviour. Developing an understanding of the relationship between ethnicity, acculturation and ethnic identity is crucial because it may provide insights into why there are differences in consumer behaviour between consumers from the same ethnic background, as well as between different ethnic backgrounds. Using self-ascribed samples from two ethnic groups (Lao and Filipino) residing in Australia with very different patterns of settlement, an exploratory mixed-method, qualitative approach was used to examine how an individual's ethnicity and ethnic identity may be expected to influence the consumer behaviour of individuals who ascribe to their respective ethnicities. To observe acculturation tendencies and any effects on consumer behaviour, each ethnic group was further divided into three generational sub-groups. Using an emic perspective to describe the Lao and Filipino cultures, a theory building approach was employed to derive an understanding of how ethnicity and ethnic identity may influence consumer behaviour. Primary data for this study was collected in Sydney, NSW in 2011 and included: 1. In-depth individual interviews conducted with individuals of Lao and Filipino background from different generations; 2. Focus group interviews conducted with three Lao and three Filipino focus groups; and 3. Field observations of individuals of Lao and Filipino background conducted at ethnic and non-ethnic events. The findings contribute to existing knowledge on the connection between an individual's ethnic heritage and the perception they have of their ethnic identity. Adding new insights into individual acculturation, the findings revealed there were different degrees of individual acculturation between three generations of consumers from the same ethnic background and between consumers from two different ethnic backgrounds. A further contribution to existing theory is determining how these inter-generational and inter-group differences affect the consumption of ethnic products, such as food, clothes, movies and music, as well as choice of service providers. The findings of this study help clarify our understanding of how individual acculturation between consumers from the same ethnic group and between consumers from different ethnic groups may vary due to cultural distance; ethnic group size; inter-generational differences; and the political and economic environment in which the ethnic individual resides. All of these factors have an impact on the implications for understanding ethnic consumer behaviour. It is therefore critical that marketers understand the complexity in using ethnicity as a market segmentation strategy. The cost effectiveness and reach involved in using an integrated marketing strategy that reaches a broader audience need to be weighed against using a targeted ethnic marketing strategy aimed at reaching a specific ethnic group.

Date of Award	2017
Original language	English