CARLA ANGÉLICA LONDERO LAZZARI

Ethnoconsumerism in the European market

Market research on the intergenerational influences on ethnic consumption using

examples of Germany and the UK

Exposé

Kassel

22/09/2015

Master thesis research proposal for the European Master of Business Studies - EMBS

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Content

1 Abstract ................................................................................................................. 2

2 Introduction/Background ........................................................................................ 3

3 Problem statement ................................................................................................. 4

4 Hypotheses ............................................................................................................ 5

5 Purpose of the study .............................................................................................. 5

6 Relevance .............................................................................................................. 5

7 Review of literature table ....................................................................................... 6

8 Methodology ........................................................................................................ 11

8.1 Desktop research.......................................................................................... 11

8.2 Field research ............................................................................................... 11

9 Overview of chapters ........................................................................................... 13

10 Plan of work ..................................................................................................... 14

11 References ....................................................................................................... 15

11.1 Already analyzed .......................................................................................... 15

11.2 Considered interesting for further steps ........................................................ 16

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1 Abstract

The globalization effect that we have been experiencing in the last decades has

brought the understanding of cultural differences as a crucial determinant to succeed in

business. Considering that ethnic sub-groups have been moving around the world in a

long time, and have maintained different consumption patterns and roots that still are

difficult to understand, this thesis proposes to build a concrete research on how these

influences and exchanges actually influence the consumption pattern of these

individuals. It is known that some of the groups that will be analyzed during the

research conducted in Germany and UK are out of their home country for more than

one generation, which will make it possible to analyze the intergenerational influence

integrated with the ethnic identity on their consumption patterns. From this challenge,

the study expects to be an important contribution to the field of Ethnoconsumerism and

ethnicity studies.

KEYWORDS: Ethnoconsumerism; identity; consumption; intergenerational influences;

European market (Germany / UK)

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2 Introduction/Background

The topic of ethnic subcultures is frequently debated in the field of international

marketing, especially because understanding these groups is essential to become

successful in today’s environment. The cultural and socio-cultural background has a

great influence on the identity of the consumer, which represent an even bigger picture

when we think about the ethnic groups and their space in the current scenario

(Rapaille, 2006).

The thesis will explore the different consumption habits of determined groups that are

driven by their cultural background (ethnic identity) once they face decision making

process, which differ from the process of natives in the host country they are in.

Consumer research conducted among varied ethnic subcultures has found that the

strength of ethnic identification significantly impacts on the consumption patterns

(Chattaraman & Lennon, 2006).

Culture has been recognized as the main backstage where consumption behaviors are

assumed and, as a result, it raised a tendency in the academic and research

community worldwide to think about marketing in a cultural framework. One of the most

recent concepts that took place into this is the Ethnoconsumerism, which studies the

act of consumption from the point of view social or cultural group that is on focus

(Venkatesh, 2006).

These authors understand consumption as an identity builder for the individual; in this

sense cultures that are living abroad tend to have a different pattern of consumption if

compared with locals (natives of the host country) or even comparing with other

subgroups in the same place. This study proposes to make a homogeneous study into

the cultural factors that mostly influence the decision process of the ethnical

consumers, and going deeper on the intergenerational influences on the consumer

behavior among these subcultures.

Considering a number of works in the field of consumption and identity, this research

will focus on a gap perceived on this concepts: the intergenerational approach. Many

studies suggest the need of understanding the evolution of behavior of ethnical

consumers across generations, to recognize the influence of parents on the next

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generation’s consumption behaviors and even if they keep the ethnical conscious

regardless of the parents’ behaviors (Sekhon, 2015).

Further to the theoretical approach of the study, a market research will be applied in

two countries that will provide data to build a consistent analysis in a European level.

Germany and UK were chosen as focus of the quantitative market research for two

main reasons: both countries represent today the engines of the European market and

are home of the biggest number of immigrants among the European countries (11.9%

of the total population in Germany and 12.4% in the UK) (UN International Migrant

Stock, 2013).

3 Problem statement

According to Sekhon (2015), further researches on the topic of the Ethnoconsumerism

should search to “examine further these concepts across different generations”. As is

already of knowledge, consumption decisions are closely linked to and an expression

of one’s identity.

This study proposes five main questions that are going to be the guidelines for the

problem of this research proposal.

1. How does consumption and culture act together on the expression of one’s

identity?

2. In which ways consumption is stimulated by ethnic identity, and how does it

change from generation to generation?

3. What is the level of influence of older generations on the consumer behavior

of the next generation?

4. How does Ethnoconsumerism explain different patterns of cross-cultural

consumer behavior and decision making process?

5. How is Ethnoconsumerism going to shape the consumption patterns in

Europe?

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4 Hypotheses

H1: Ethnic groups have different behavior regarding consumption and decision making

processes compared with nationals from the host country, and above they represent an

important market for these countries.

H2: Older generations have a bigger ethnic identity influence, thus consider it more

when they consume.

H3: Younger generations have big ethnical influence on consumption even though they

have not been in contact with the “home country”

H4: Even with the big influence of ethnic identity on the consumption pattern, older

generations tend to have a different perception of the link if compared with the younger

ones.

5 Purpose of the study

The purpose of this study, therefore, is to increase the understanding of the ethnic

consumption behavior, from a perspective of the impacts on the economy and

development of the European market. The choice of Germany and UK to implement

the field research is due in reason of the number of immigrants, as explained on the

introduction earlier.

Secondly, the study also wants to answer the question about the influence of

intergenerational behavior on the consumption. In this way, the study will search to

respond the need of understanding the actual relevance that ethnic identity has from

parents to younger generations.

6 Relevance

The extent to which ethnic minority segments of a population integrate into a host

society has been a major concern in the social science, and it is coming to be a big

topic into the business field as well. There is a growing demand for marketing

strategies and theories that incorporate ethnicity, ethnic identity and culture, and recent

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scholarly work has provided useful insights into ethnic consumers’ responses to ethnic

marketing efforts such as sales promotions, advertising and media, to name a few

(Jamal & Peñaloza & Laroche, 2015).

7 Review of literature table

AUTHOR TITLE KEYWORDS MAIN OUTCOMES

Chattaraman,

V. & Lennon,

S.

Ethnic identity,

consumption of

cultural apparel, and

self-perceptions of

ethnic consumers.

Ethnic groups;

Consumer

behavior; Clothing;

USA.

Answers the question if positive or

negative emotions are associated

with the ethnical consumption pattern

(in the fashion industry).

The discussion of identity is

extremely present, because apparel

is usually a choice that sub-groups

make to state their ethnical

presentation.

“Studies have shown that higher

levels of ethnic identification

positively affect consumption of

ethnic products…”

Market research among four ethnic

sub-groups in the USA on the

attribution of meaning and emotions

to the act of consumption by ethnic

groups; proved that there was a

significant link with the consumer

behavior and ethnic identity.

Geertz, C. The interpretation of

culture.

Culture; ethos;

symbols; meanings

Is the main reference on the concept

of culture and ethos;

Main contribution on the first part of

the thesis where identity will be the

main focus for the later discussion on

how consumption is important for the

ethnical representativeness.

Provided background on the analysis

of values, symbols and rituals on

cultural demonstrations.

The chapter about meanings will be

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of great importance to write the

chapters 2 and 3 of the thesis,

regarding the concepts of culture and

the levels of Ethnoconsumerism.

Hamlett, J. &

Bailey, A. &

Alexander, A.

& Shaw, G.

Ehtnicity and

Consumption: south

Asia food shopping

patterns in Britain,

1947-1975.

Ethnicity;

consumption

Relationship between ethnic

identities and food consumption in

the British market.

The paper demonstrates that cultural

preferences of immigrants are

differentially maintained, negated

and in some cases adapted to the

host country, and its reasons.

It is of great relevance to the thesis

because it gives an important

background on the immigrants

behavior in the UK and the

intergenerational approach, as it

analyses a long period.

Huang, H. H.

Self-identity and

consumption: a study

of consumer

personality, brand

personality and brand

relationship.

Self-identity;

consumption;

personality; brand

relationship.

The thesis presented in the Warwick

University is a great model for the

chapters 1 and 2, where the question

of identity and consumption will be

linked.

Huang brings a lot of insights related

to the involvement of the self-identity

and the act of consumption.

The author realized a market

research as well on these subjects

(not related with ethnic background,

but only identity). It will be a good

model for the field research design

as well.

Moralez, D.

Ethnomarketing, the

cultural dimension of

marketing.

Ethnomarketing;

culture and

marketing;

ethnoconsumenris

m;

In this paper, the author assumes

culture as the conduct and guide

entrepreneurial success.

Proposes Ethnomarketing as a new

concept of marketing with four

postulates: ethnicity,

Ethnoconsumerism, cultural

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dimensions and organizational

culture.

“Ethnomarketing is conceived as

marketing for homogeneous ethnic

groups under the great cultural

diversity that characterizes current

cultures”.

One of the basic papers to

understand the concepts of

Ethnoconsumerism and

Ethnomarketing.

Peñaloza, L.

Border crossings: A

critical ethnographic

exploration of the

consumer

acculturation of

Mexican Immigrants.

Acculturation;

immigrants;

adaptation;

consumption

experiences.

The article examines the

consumption experiences of Mexican

immigrants in the USA.

It is significant for the thesis, since it

shows how the process develops,

and it contributes with the idea of the

consumption habits that remain,

which is the focus of this particular

research proposal.

Peñaloza found remarkable

outcomes in this paper, such as the

fact that Mexican immigrants

assimilated consumption patterns of

the Americans to feel “accepted”.

Yet, even using the same

consumption patterns, the usage of

the products and services maintained

the tie with the Mexican culture.

Even if the article focuses more on

the study of the acculturation of the

consumption patterns, it brings some

highlights to understand the process

that immigrants go through in the

host country.

Sekhon, Y. Ethnic consumer

decision making.

Ethnic; consumer

decision making;

identity; culture

The article is part of a book on ethnic

consumption and marketing, which

will also be entirely considered for

the further construction of the thesis.

The study will be definitely important,

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since the topic is very aligned with

the proposition of this study.

The gap for focusing this thesis on

the intergenerational approach was a

suggestion from this article, which

realized the need of this study on

further researches.

Townsend.

P. & Wong,

A.

Managing ethnic

differences in the

global organization:

an analysis of the

changes in

relationship marketing

with the growth of

ethnoconsumerism.

Ethnoconsumerism;

Relationship

management;

Multicultural

concepts.

The paper focuses more on the

Australian environment, but gives a

good perspective on the new

approaches of Ethnoconsumerism.

It brings an organizational

perspective on ethnic management;

it is interesting to see that the

tendency is to acculturate and not to

assimilate the “different”.

It goes deeper on the idea of bonds

between organization and customer,

which can be social, financial,

spiritual or others. This is a curious

support on the levels of

Ethnoconsumerism that the thesis

will approach on chapter 3.

Velioglu, M.

& Karsu, S. &

Umut, M.

Purchasing behaviors

of the consumers

based on ethnic

identities in Turkey.

Ethnic identity;

ethnic marketing;

Turkey market and

habits.

The article examines the impact of

ethnic identity on purchasing

behavior through a research realized

with 11 ethnic groups in Turkey.

The study concluded that food and

beverage were the mean products to

recognize others ethnic identity.

“Ethnic marketing, is not only the

development of products that are

special to a certain ethnic sub group,

but it is also the product of a unifying

understanding the meaning of

accepting and favoring of the

products that are belonging to all

consumers of the ethnic groups”.

The research conducted was

qualitative and it will be relevant to

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analyze the questions in case of

using a qualitative method in this

thesis.

Venkatesh,

A.

Ethnoconsumerism: a

new paradigm to study

cultural and cross-

cultural consumer

behavior.

Ethnoconsumerism;

consumption;

culture; ethnicity;

cross-cultural

comparative

research

The study is one of the most

complete publications in the

Ethnoconsumerism concept;

Makes a good analysis on the

individual as being part of a cultural

representation, thus an common

ethnic identity;

Interesting analogy on the symbolism

of the scooter in three different

scenarios (Italy, Britain and India).

Guideline to how conduct researches

for Ethnoconsumerism, being careful

with the homogenization of cultures

and how to distinctly differentiate the

sub-groups;

Research applied in India, which will

be interesting to evaluate the indian

consumption patterns that might

raise when analyzing the sub-groups

in the UK.

Xu, J. &

Shim, S &

Lotz, S. &

Almeida, D.

Ethnic Identity,

Socialization Factors,

and Culture-Specific

Consumption

Behavior.

Socialization,

generations;

acculturation;

ethnic identity

Research study on the degree on

which ethnic identity and

socialization factors influence the

consumption. The study was

conducted among young Asian

American in the USA.

The study is relevant on the subject

of intergenerational influences on the

consumption patterns.

Interesting fact that the study raised:

the period from 18 to 25 years of age

have great influence on the

consumption patterns that the person

will adopt in life, because their ethnic

identity and develops during this

time.

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AUTTITLE KEYWORDS MAIN OUTCOMES RELEVANCE FOR THEONS

8 Methodology

The working process on the thesis will be divided in two major subprojects: Desktop

and Field Research. The two of them will be complementary and aimed at obtaining a

global perspective of the topic.

On the Plan of Work table, by the end of this exposé, there is a detail planning on when

both of the subprojects will be developed and the categories for each of it. Below there

is a brief description of the proposal of work for each of them.

8.1 Desktop research

Objectives

1. Provide with a sustainable background of knowledge in:

a. The core concepts of identity, consumption and ethnoconsumerism.

b. The field methodologies used by scholars specialized in this field.

2. Be an input for the field research

Implementation

- Research on existing bibliography on the topic1. Academic journals’

articles and books;

- Theory

- Companies’ case studies

8.2 Field research

Objectives

1. Obtain primary data to complement the findings obtained during the

desktop stage of the project.

2. Confirm or deny the theoretical assumptions

1 Some of the documents that I am already considering can be seen at the bibliography section of this document.

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Implementation

- A Quantitative technique will be used to gather the data for the

analysis of the German and the British market.

- The questionnaire aims for 400 respondents in both countries;

o In Germany the use of academic and social media contacts

will be important to target the aimed population of

respondents.

o In UK, the use of Amazon Mechanical Turk might be

interesting to achieve the number of respondents wished.

Also, the use of academic and social media contacts will be

used for spreading of the questionnaire.

The later data analysis will be conducted through SPHINX, which will also be the

software to develop the questionnaire. There will be considerations regarding the

NUDIST platform as well, which is very interesting to develop and conduct the

questionnaire.

Considering that qualitative interviews might be also good for collecting data that is

important for the research, the proposal considers a combination of qualitative and

quantitative techniques. The input from the qualitative interviews will be used after the

collection of data from the quantitative method.

Qualitative methods, like an in-depth interview, may provide me with detailed

information to justify my conclusions, whereas quantitative methods, like an online

questionnaire, may bring a pool of answers to establish the base ground.

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9 Overview of chapters

1. Introduction

1.1. Background on the topic

1.2. Purpose of the study

1.3. Methodology used

1.3.1. Desktop Research

1.3.2. Field Research

2. Theoretical framework

2.1. The concept of identity and consumption

2.1.1. We are what we buy…?!?!

2.1.2. Consumer Behavior and identity

2.1.3. Social and mental process of consumption

2.2. Cultural manifestations

2.2.1. Thinking patterns

2.2.2. Comparing cultures

2.2.3. Dimensions of culture

2.2.3.1. Classifying cultures

3. Ethnoconsumerism: a new concept to study Cross-Cultural Consumer Behavior

3.1. How does culture stimulus consumption?

3.2. The cultural and the social level on Ethnoconsumerism

3.2.1. Beliefs and norms

3.2.2. Social organizations and institutions

3.3. The study of the individual level

3.3.1. Personality

3.3.2. Behavior

3.3.3. Mental constructs

4. Ethnoconsumerism role in the development of the European market

4.1. Field research in Germany and UK

4.2. Results and conclusions

4.3. Development and considerations on the European market

5. Outcomes of the thesis

6. Conclusions

7. References

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10 Plan of work

Task to perform Duration Start End aug/15 sep/15 oct/15 nov/15 dec/15 jan/15

DESKTOP RESEARCH 40 days 03/08 12/09

Theoretical framework definition 30 days 20/08 18/09

Chapter 1 – Introduction 08 days 17/09 24/09

Chapter 2 - Theoretical framework 20 days 25/09 14/10

Culture and ethnic identity 10 days 25/09 04/10

Consumer Behavior 10 days 04/10 14/10

Chapter 3 – Ethnoconsumerism 25 days 15/10 10/11

Definition and concepts 5 days 15/10 20/10

Cross-Cultural Consumer Behavior 5 days 20/10 25/10

Ethnic groups / patterns 15 days 25/10 10/11

Chapter 4 - Role in the European market 20 days 25/11 15/12

German and UK environment 5 days 25/11 30/11

Research development and results 10 days 30/11 15/12

FIELD RESEARCH DESIGN 10 days 10/11 20/11

Relevant articles/books identification 4 days 10/11 14/11

Design and structure proposal 6 days 14/11 20/11

FIELD RESEARCH 15 days 20/11 15/12

Field research adjustment 4 days 20/11 24/11

Field research implementation 15 days 25/11 10/12

Analysis of the results 5 days 10/12 15/12

FINAL CONCLUSIONS 10 days 15/12 25/12

FINAL REPORT ELLABORATION 117 days 01/10 25/01

Final Report 102 days 01/10 10/01

Final Presentation 15 days 10/01 25/01

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11 References

The references were divided into two sub-sections in order to have a better view of the

bibliography already analyzes, and the gathered for further research.

11.1 Already analyzed

Chattaraman, Veena & Lennon, Sharon J. Ethnic identity, consumption of cultural

apparel, and self-perceptions of ethnic consumers. Journal of Fashion Marketing

and Management, vol. 12, no.4, 2008. p.518-531.

Geertz, Clifford. The interpretation of culture: selected essays by Clifford Geertz. Basic

Books Inc. Publishers. New York, 1973.

Hamlett, Jane; Bailey, Andrian; Alexander, Andrew & Shaw, Gareth. Ethnicity and

Consumption: South Asian food shopping patterns in Britain, 1947 – 1975.

Journal of Consumer Culture, vol. 8, issue 1, 2008. p.91-116.

Huang, Hazel Hsiu-chen. Self-identity and consumption: a study of consumer

personality, brand personality and brand relationship. Thesis submitted for the

degree of PhD at the University of Warwick.

Morales, Dagoberto P. Ethnomarketing, the cultural dimension of marketing.

Pensamiento y Gestión, no. 18, Universidad del Norte, 2005.

Peñaloza, Lisa. Border crossings: A critical ethnographic exploration of the consumer

acculturation of Mexican Immigrants. Journal of Consumer Research. Vol 21,

June 1994. Doi. 0093-5301/95/2101-

Sekhon, Yasmin K. Ethnic consumer decision making.in The Routledge Companion to

Ethnic Marketing. Routledge, London, 2015.

Townsend, Peter & Wong, Amy. Managing ethnic differences in the global

organisation: an analysis of the changes in relationship marketing with the growth

of Ethnoconsumerism. Working paper, Monash University, 1999.

16

Velioglu, Meltem N.; Karsu, Süreyya & Umut, Meftune Ö. Purchasing behaviors of the

consumers based on ethnic identities in Turkey. Journal of Management and

Marketing Research, vol.13, 2013.

Venkatesh, Alladi. Ethnoconsumerism: a new paradigm to study cultural and cross-

cultural consumer behavior. Project NOAH, University of California, 1995.

Xu, Jing; Shim, Soyeon; Lotz, Sherry & Almeida, David. Ethnic Identity, Socialization

Factors, and Culture-Specific Consumption Behavior. Psychology & Marketing,

vol. 21, 2004. p.93-112.

11.2 Considered interesting for further steps

Arnould, Eric J. & Wallendorf, Melanie. Market-oriented ethnography: interpretation

building and marketing strategy formulation. Journal of Marketing Research, vol.

31. Pg. 484-504. November, 1994.

Chung, Ed & Whalem, Kim. The embedded entrepreneur: recognizing the strength of

social ties. New England Journal of Entrepreneurship, vol. 9, n. 1, 2006.

Engström, Lisa. Marketing BILLY to ethnic subcultures: a explorative study of ethnic

subcultural consumption behavior. Bachelor Thesis, Wexio, 2010.

Hannerz, Ulf. Cultural complexity. New York, Columbia Uni. Press.1992

Henry, Walter. Cultural values do correlate with consumer behavior. Journal of

Marketing Research. Vol.3, no 2, 1976, p.121-127.

Jamal, Ahmad; Peñaloza, Lisa & Laroche, Michel. The Routledge Companion to Ethnic

Marketing. Routledge, 2015.

Kniel, Sarah. Consumer preferences in a comparative European market research

study. GRIN Verlag, 2003.

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McCracken, Grant. Culture and consumption: a theoretical account of the structure and

movement of the cultural meaning of consumer goods. Journal of Consumer

Research. Vol.13, no 1 (Jun, 1986) pp 71-84

Miller, Daniel; Jackson, Peter; Thrift, Nigel; Holbrook, Beverley & Rowlands, Michael.

Shopping, Place and Identity. Routledge, London, 1998.

Rapaille, Clotaire. The culture code. Crown Publishing Group, 2006.

Slater, Don. Consumer culture and modernity. London:Polity. 1997.

Üçok, Mine & Kjeldgaard, Dannie. Consumption in transnational social spaces: a study

of Turkish transmigrants. European Advances in Consumer Research, vol. 7,

2006.