Influence of perceived value and demographics on the relationship between consumer national ethnocentrism and willingness of university of Nairobi community to buy commercial banking services in Kenya
Abstract
This study sought to assess the influence of perceived value and demographics on the relationship between consumer national ethnocentrism and willingness to buy commercial banking services by the University of Nairobi community. In particular the study aimed to establish the relationship between consumer national ethnocentrism and the willingness to buy banking services; assess the effect of consumer demographic characteristics on the willingness to buy banking services; examine the effect of consumer national ethnocentrism on consumer perceived value of banking services from commercial banks in Kenya; assess the effect of consumer perceived value on the willingness to buy banking services; determine the mediating effect of consumer perceived value on the relationship between consumer national ethnocentrism and the willingness to buy banking services; assess the moderating effect of consumer demographic characteristics on the relationship between consumer national ethnocentrism and willingness to buy banking services and establish the joint effect of consumer perceived value and demographic characteristics on the relationship between consumer national ethnocentrism and willingness to buy banking services. The study had seven hypotheses which were tested and it was anchored on an integration of two social psychological theories: the Social Identity Theory (SIT) and the Realistic Group Conflict Theory (RCT). A descriptive cross - sectional research design was used in the study. The population of the study comprised the University of Nairobi Staff and Students who were estimated to be above 74,733. Using disproportionate stratified sampling plan, data was collected using questionnaires from a sample size of 374 respondents and analyzed using both descriptive and inferential statistics. As a multi faceted construct, consumer national ethnocentrism was found to have a negative influence on the willingness to buy banking services from foreign owned banks. These related well with other previous literature. This relationship is however mediated by a number of factors and the study found out consumer perceived value is one of the partial mediators. Subsequently the relationship was found not to be influenced by all the demographic characteristics. The evaluation of the joint effect of consumer perceived value and demographic characteristics on the relationship between consumer national ethnocentrism and willingness to buy banking services only revealed a negatively significant relationship with demographic characteristics and none with consumer perceived value. Therefore the study concludes that consumer national ethnocentrism construct should not be limited to the country as whole but to specific social groups within a country. As such when any social group within a population perceives itself threatened by competition from outsiders, foreignness assume negative connotations and ethnocentrism or nationalism increase. The study thus recommends that foreign investors in the banking industry should have pertinent localization strategies incorporated in their broad corporate strategies in order to enhance domestic consumption. The study also recommends the government to delineate measures that can protect domestic production, create employment, improve balance of trade and support national identity. Further research is recommended on other mediators of the relationship between consumer national ethnocentrism and willingness to buy other services or products such as corporate image or branding strategies.
Publisher
University of Nairobi