Investigating Factors Affecting the Purchase of Domestic Products in Iran: An Ethnocentrism Approach
Bagher Asgarnezhad Nouri*, Hossein Rahimi*, Ghasem Zarie*, Ali Fathi*, and Masoume Mir Mousavi **
University of Mohaghegh Ardabili, Iran*
University of Tehran, Iran**
Abstract: The economic growth of countries in today’s highly competitive environment requires attention to domestic products. In this regard, many countries are continuously striving to provide sustainable economic development with the support of the domestic industry by employing a variety of solutions, especially with an emphasis on marketing solutions. Using an ethnocentrism approach, this study examines factors affecting the purchase of domestic products in Iran. The review of the literature shows that so far no coherent research has been done on the modelling of consumer purchasing behaviour in relation to domestic home appliances products. Therefore, this study can provide new marketing insights for policymakers at a macro level, taking into account a complete list of variables influencing domestic purchasing decisions. The population consisted of consumers of home appliances products in Tehran. Using Cochran's formula and convenience sampling method, 384 consumers were determined as the sample. Data analysis was carried out using structural equation modelling and SmartPLS software. The results show consumer ethnocentrism has a positive effect on the consumers' attitude toward and buying intention of domestic products. The perceived cost, perceived quality, the image of the country of origin, and brand trust play a mediating role in the relationship between consumer ethnocentrism with the attitude towards and intention to purchase domestic products. Perceived product necessity has a moderating role in the relationship between consumer ethnocentrism with mentioned mediator variables, but the perceived economic threat has no moderating role in this relationship. In the home appliance market in Iran, conditions such as complex economic factors, the introduction of new technologies, continuous competitive changes and etc. have led marketing managers to fail to easily make the suitable decisions about the sustainable improvement of domestic product purchases. Therefore, the results of this study can promote the knowledge of managers about the key factors affecting the purchase of home appliances in Iran by creating a thorough scientific view, so that marketing managers can make effective decisions in choosing appropriate marketing strategies in competitive markets.
Keywords: Domestic Products, Consumer Ethnocentrism, Intention to Purchase, Home Appliance Industry