A Study on Consumer Ethnocentrism and Social Comparison in Rural India: Implications for Marketing Strategy

Abstract

Though rural India is the next growth destination for firms, rural-specific marketing research is scarce in literature. Rural marketing strategy for majority firms in India is based on generalized urban findings irrespective of significant differences between rural and urban consumers and their preferences. This study is an attempt to evaluate the utility of Consumer Ethnocentrism (CE) and attention to social comparison information (ATSCI) as possible drivers of a rural-specific marketing strategy in the Indian context. Data were collected from 177 rural consumers belonging to both the tribe and non-tribe category from Tripura, a hilly state located in North-Eastern India. Data analysis was carried out by using appropriate statistical techniques such as Confirmatory Factor Analysis (CFA), Structural Equation Modeling (SEM), and Friedman’s Test. From the results of the analysis, it could be concluded that rural consumers were open towards foreign goods and that social comparison was an important factor during purchase. Age and education were found to be predictors of ethnocentric tendencies and gender was a predictor for social comparison. CE and ATSCI were also found to be the two independent constructs in case of rural India. These findings of this study would be helpful in formulating a rural specific marketing strategy in the Indian context.

Keywords: Attention to Social Comparison Information (ATSCI), Consumer Behavior, Consumer Ethnocentrism (CE), Rural India, Structural Equation Modeling (SEM)