[Podcast] The consumer behavior drivers of consumer ethnocentrism, ethnic identity, and consumer extraversion: An overview from the perspective of social identity theory
22 July, 2024
Keywords: National identity, Consumer ethnocentrism, Consumer externalism, Social identity theory.
Built on the foundation of social identity theory, the research by the authors of the University of Economics Ho Chi Minh City (UEH) was conducted to evaluate the relative influence of national identity, ethnocentrism and consumers’ externalism that affects their value assessment of foreign goods and their purchasing behavior of domestic goods. The research findings present that the marketers, in accordance with the characteristics of the above reaction chain of the consumers in Hanoi Capital and Ho Chi Minh City as being different, must handle consumer segments defined by different regions carefully.

Customers’ bias in terms of evaluating domestic products and their tendency to consume domestic products as substitutes for foreign products have received attention from various scholars (Nguyen et al., 2008; Zeugner-Roth et al., 2015; Mishra & al., 2023). Researchers often use consumer ethnocentrism to explain this problem. However, the recent studies have confirmed that focusing solely on consumer ethnocentrism is more likely to provide an incomplete picture of the behavior of biased consumers in one country (Josiassen, 2011). As a result, considering a broader range of consumer characteristics is necessary to analyze their preferences for domestic and foreign goods in a more comprehensive manner.
This research is in accordance with the Social Identity Theory (SIT) and the findings in the previous studies regarding the impacts of social psychological factors on characteristics of consumer behavior, usage, and behavior. Using a structural model to describe the impact of the concepts of national identity, ethnocentrism and consumer extraversion, as well as the interactive influence between these three concepts on consumers’ domestic purchasing behavior in Vietnam. The study also considers the impact of evaluating the value of foreign products on consumers’ purchasing behavior of domestic products in the context described above. The multi-group analysis techniques are used to deeply understand the differences in the above response chain of consumers in two places, Hanoi Capital and Ho Chi Minh City.
Research findings
In both Hanoi Capital and Ho Chi Minh City, it can be concluded that national identity is a strong predictor of domestic purchasing behavior; on the other hand, national identity does not influence the value assessment of foreign goods. Consumer ethnocentrism is another strong predictor of domestic purchasing behavior. These findings which are similar to that of the research results of Zeugner -Roth & colleagues (2015) or by Cao (2015) are consistent with the previous theoretical arguments.
From the consistent findings in both localities, the author found a positive relationship between two consumer ethnocentric variables and the value of foreign goods. Consequently, it can be concluded that: the more ethnocentric the consumer is, the more positive the attitude toward foreign goods becomes. This finding contrasts with that of the researches of Nguyen et al. (2008) and that of Zeugner-Roth et al. (2015). Actually, although the role of consumer ethnocentrism in consumer behavior and consumer evaluation has been thoroughly researched, the fact that the field remains fraught with contradictions (Balabanis et al., 2017) remains associated with other different research outcomes.
In terms of Hanoi consumers, the stronger the ideology of externalism is, the less domestic products are bought. This is reasonable with the definition of the concept of externalism based on social identity theory; therefore, the hypothesis has been proven (Cao: 2015). The situation of this relationship is different from that of the consumers in Ho Chi Minh City: the fact that their externalist ideology does not affect their domestic purchasing behavior is also consistent with the arguments of Cannon & Yaprak (2012) that “the concept of externalism can be misunderstood due to the fact that people who carry externalism can still have strong local connections”; therefore, the fact that consumers are externalists doesn’t mean that they turned their backs on other domestic products.
In contrast, in both localities: Hanoi capital and Ho Chi Minh City, the more extroverted consumers are, the more positively the foreign goods are evaluated. This finding is consistent with the results of Zeugner-Roth et al. (2015).
In Hanoi Capital and Ho Chi Minh City, the positive relationship is identified between the two variables of domestic purchasing behavior and foreign product value. Discussing this, Zeugner-Roth et al. (2015) argue that consumers with extroversion are willing to come into contact with other countries and the products of other countries. Thanks to that, they are likely to have more “information” or “understanding” to compare and to conclude that domestic products are also absolutely high-quality (Zeugner-Roth & al., 2015). Product evaluation affects purchasing behavior (Klein & al., 1998). Therefore, when consumers have the information to evaluate the value of foreign products as high-quality, to compare their similar experiences with other domestic products, to consider the relationship between domestic and foreign prices and other emotional factors listed as national identity or consumer ethnocentrism, they will increase their purchases of domestic goods.
Recommendations
The research results indicate that the following elements: variables consumer ethnocentrism, national identity and externalism are all important to be used in analyzing domestic purchasing behavior. In particular, while local managers are advised to focus on domestically-oriented consumers, this study demonstrates that these consumers’ in-group characteristics can be considered, concurrently, in conjunction with other out-group consumer characteristics, making extroverted consumers especially interesting for marketers who target to reach them.
For consumers with ethnic identities, in accordance with the outcomes by Mishra et al. (2023), the previous studies reflect that different people in one society may not consistently respond to patriotism-based advertisements. These authors support the idea that commercial displays of patriotic themes influence consumer evaluations only favorably for brands that support national identity. Domestic companies should, therefore, identify the characteristics of patriotic consumers as well as the marketing strategies should be designed in accordance with consumer emotions directed at this in-group customers.
What is more, the research results clarify that national identity has no impact on the evaluation of foreign products whereas the fact that consumer ethnocentrism has a positive influence on it is rather important for international marketers working with international markets. In the Vietnamese market, to maintain this effect, they should ensure their advertising strategy/products do not contain elements that could trigger reactions that defend the in-group of the national identity and oppose the out-group of the consumer ethnocentrism in Vietnamese consumer psychology.
Additionally, when it comes to outbound consumers, companies selling foreign goods in the domestic market must be careful in how they target them. According to SIT, the key to success needs to be considered so that the media campaign does not affirm the unjustified support for the mother country. For example, a Belgian Cheese advertising campaign used the tagline “Belgian Cheese continues to amaze other cheeses available on the market.” This type of advertising campaign, although directed at domestic purchases, is a good example of media targeting externalism because it does not conflict with the central values of the externalist consumer with extroversion (which refers to seeking diversity and openness), in accordance with the analysis by Zeugner-Roth et al. (2015).
Since international trade has developed steadily over the past decades and Vietnam has officially become a member of the world trade organization WTO since 2006, market globalization, up to the present time, has changed competitive conditions of Vietnamese enterprises. In this context, understanding consumers’ bias towards domestic products and their attitudes towards foreign products becomes a necessary need for marketers. In accordance with the author’s research, the topic regarding Vietnamese consumers’ preferences for domestic products over foreign products has been studied in various separate studies besides other studies have combined both factors together in a model. Assessing the value of foreign goods along with consumer ethnocentrism affects domestic purchasing behavior (Nguyen & al., 2008). Nevertheless, no research has simultaneously combined all three factors: national identity, consumer ethnocentrism and consumer extraversion with the perceptions of the quality of foreign products. The fact that these factors dominate the domestic purchasing behavior of Vietnamese people is the main contribution of this research.This topic adds some contributions to international marketing research built on social identity theory. This research can also serve as a reference for students majoring in Marketing and Business Statistics.
Please refer to the full research paper titled The consumer behavior drivers of consumer ethnocentrism, national identity, and consumer extraversion: A review from the perspective of social identity theory HERE.
Author: PhD. Chu Nguyen Mong Ngoc, PhD. Ha Van Son, MSc. Hoang Trong – University of Economics Ho Chi Minh City (UEH).
This is an article in a series of articles spreading research and applied knowledge from UEH with the message “Research Contribution For All – Research For The Community”, UEH respectfully invites dear readers to look forward to the upcoming UEH Research Newsletter Insights #121 .
News and photos: Author group, UEH Department of Marketing and Communications

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