The Influence of Ethnicity on Consumer Behaviour: A study of inter-generational and inter-group differences Jamealla V Intharacks Doctor of Philosophy This research document is presented for the degree of Doctor of Philosophy School of Business Western Sydney University Primary Supervisor: Associate Professor John Stanton Co-Supervisor: Doctor Tendai Chikweche © J Intharacks 2016 Dedication This thesis is dedicated to my family, especially my late, beloved father who has always inspired me to excel academically; I miss you so much daddy and you are never far from my mind or my heart. My awesome husband—you are my best friend and my soul mate. This journey would not have been possible without you and your support; and lastly my beautiful children—you are my heart and my soul, always and forever. ii Acknowledgements I would like to thank everyone who took the time to participate in my research. Thank you for your support and generosity. To my supervisors, Associate Professor John Stanton and Doctor Tendai Chikweche, thank you for your feedback, guidance and generous support in helping me through the PhD journey. Thank you to the senior members of the Lao community, in particular my uncles and aunts for your support, guidance and help in the participation and recruitment of research participants for my study. Most importantly, thank you for sharing your knowledge of the beauty and richness of the Lao culture with me, and providing me with a better understanding of my Lao heritage. Thank you to the senior members of the Filipino community for your support, guidance and help in the participation and recruitment of research participants for my study. I would also like to thank the local Baptist church of Filipino congregation for supporting my research. Thank you for welcoming me into your church and allowing me to share in the celebration of your faith and providing me with an even greater appreciation of my late father’s Filipino culture. Lastly, thank you to my family, especially my husband and children, for being the beacons of light that inspire me each and every day. Love you always and forever. iii Statement of Authentication The work presented in this thesis is, to the best of my knowledge and belief, original except as acknowledged in the text. I hereby declare that I have not submitted this material, either in full or in part, for a degree at this or any other institution. ……………………………………………….. Jamealla Vilayvanh Intharacks July 2017 iv Abstract While studies of ethnic consumer behaviour examine the role an individual’s ethnicity and/or ethnic identity has on this behaviour, a lack of clarity exists on how ethnicity and ethnic identity can be used in the development of marketing strategies targeting specific ethnic groups. Therefore, within an Australian context, this research seeks to understand: 1. How individuals may be influenced by their ethnicity and ethnic identity; 2. How ethnic identity may influence consumer behaviour; and 3. How individual acculturation may affect ethnic identity and ethnic consumer behaviour. Developing an understanding of the relationship between ethnicity, acculturation and ethnic identity is crucial because it may provide insights into why there are differences in consumer behaviour between consumers from the same ethnic background, as well as between different ethnic backgrounds. Using self-ascribed samples from two ethnic groups (Lao and Filipino) residing in Australia with very different patterns of settlement, an exploratory mixed-method, qualitative approach was used to examine how an individual’s ethnicity and ethnic identity may be expected to influence the consumer behaviour of individuals who ascribe to their respective ethnicities. To observe acculturation tendencies and any effects on consumer behaviour, each ethnic group was further divided into three generational sub-groups. Using an emic perspective to describe the Lao and Filipino cultures, a theory building approach was employed to derive an understanding of how ethnicity and ethnic identity may influence consumer behaviour. Primary data for this study was collected in Sydney, NSW in 2011 and included: 1. In-depth individual interviews conducted with individuals of Lao and Filipino background from different generations; v 2. Focus group interviews conducted with three Lao and three Filipino focus groups; and 3. Field observations of individuals of Lao and Filipino background conducted at ethnic and non-ethnic events. The findings contribute to existing knowledge on the connection between an individual’s ethnic heritage and the perception they have of their ethnic identity. Adding new insights into individual acculturation, the findings revealed there were different degrees of individual acculturation between three generations of consumers from the same ethnic background and between consumers from two different ethnic backgrounds. A further contribution to existing theory is determining how these inter-generational and inter-group differences affect the consumption of ethnic products, such as food, clothes, movies and music, as well as choice of service providers. The findings of this study help clarify our understanding of how individual acculturation between consumers from the same ethnic group and between consumers from different ethnic groups may vary due to cultural distance; ethnic group size; inter-generational differences; and the political and economic environment in which the ethnic individual resides. All of these factors have an impact on the implications for understanding ethnic consumer behaviour. It is therefore critical that marketers understand the complexity in using ethnicity as a market segmentation strategy. The cost effectiveness and reach involved in using an integrated marketing strategy that reaches a broader audience need to be weighed against using a targeted ethnic marketing strategy aimed at reaching a specific ethnic group. Key Words: acculturation, consumer behaviour, ethnic, ethnicity, ethnic identity, inter-generational, inter-group, social network. vi Table of Contents Dedication ii Acknowledgements iii Statement of Authentication iv Abstract v Table of Contents vii CHAPTER 1 INTRODUCTION 1 1.1 MULTICULTURAL AUSTRALIA 1 1.2 RESEARCH FOCUS 2 1.3 RESEARCH OBJECTIVES 4 1.4 RESEARCH QUESTIONS 5 1.5 RESEARCH JUSTIFICATION 7 1.6 STUDY GROUP JUSTIFICATION 9 1.7 RESEARCH METHOD 10 1.8 ANTICIPATED CONTRIBUTION 11 1.9 OUTLINE OF THESIS 11 CHAPTER 2 AUSTRALIA, LAOS AND THE PHILIPPINES 15 2.1 MULTICULTURAL AUSTRALIA 15 2.2 PEOPLE OF LAO BACKGROUND 17 2.2.1 Laos, the Land of One Million Elephants 17 2.2.2 The Peoples of Laos 17 2.2.3 Population with Lao Ancestry in Australia 17 2.2.4 Population with Lao Ancestry in Sydney 18 2.3 PEOPLE OF FILIPINO BACKGROUND 18 2.3.1 The Philippines 18 2.3.2 The Peoples of the Philippines 19 2.3.3 Population with Filipino Ancestry in Australia 19 2.3.4 Population with Filipino Ancestry in Sydney 19 2.4 SUMMARY 20 CHAPTER 3 ETHNICITY AND ETHNIC IDENTITY 22 3.1 INTRODUCTION 22 3.2 ETHNICITY 24 vii 3.2.1 Definitions of Ethnicity 24 3.2.2 Justification for Definition of Ethnicity 25 3.2.3 The Influence of Ethnicity on Ethnic Identity 26 3.3 ETHNIC IDENTITY 26 3.3.1 Definitions of Ethnic Identity 26 3.3.2 Justification for Definition of Ethnic Identity 28 3.3.3 Development of Ethnic Identity 28 3.3.4 Situational Ethnic Identity 29 3.4 ETHNIC GROUPS 31 3.4.1 Definition of Ethnic Group 31 3.4.2 Justification for Definition of Ethnic Group 31 3.4.3 The Influence of Ethnic Groups on Ethnic Individuals 32 3.5 PERCEPTIONS OF ETHNICITY AND ETHNIC IDENTITY 33 3.6 LINKS BETWEEN ETHNICITY AND ETHNIC IDENTITY 34 3.7 SUMMARY 34 3.7.1 Research Gap 35 3.7.2 Link to Research Gap 35 CHAPTER 4 UNDERSTAND THE INFLUENCE OF ETHNIC IDENTITY ON CONSUMER BEHAVIOUR 36 4.1 INTRODUCTION 36 4.2 CONSUMER BEHAVIOUR 38 4.2.1 Definition of Consumer Behaviour 38 4.2.2 Family Consumer Behaviour 38 4.2.3 Individual Consumer Behaviour 39 4.2.4 Consumer Decision-Making Process 40 4.2.4.1 Problem Recognition 40 4.2.4.2 Information Search 41 4.2.4.3 Evaluation of Alternatives 43 4.2.4.4 Product Choice 43 4.3 ETHNIC IDENTITY AND MARKETING PREFERENCES 44 4.3.1 Ethnic Identity and Product Preference 44 4.3.2 Ethnic Identity and Promotional Preference 46 4.3.3 Ethnic Identity and Media Preference 47 4.3.4 Ethnic Identity and Media Language Preference 48 4.3.5 Ethnic Identity and Communication Preference 48 viii 4.3.6 Ethnic Identity and Shopping Location Preference 49 4.3.7 Ethnic Identity and Price 49 4.4 SUMMARY 49 4.4.1 Research Gap 50 4.4.2 Link to Research Gap 50 CHAPTER 5 UNDERSTAND HOW INDIVIDUAL ACCULTURATION AFFECTS ETHNIC CONSUMER BEHAVIOUR 51 5.1 INTRODUCTION 51 5.2 ACCULTURATION 53 5.2.1 Definition of Acculturation 53 5.2.2 Justification for Definition of Acculturation 58 5.2.3 Schools of Thought on Acculturation 58 5.2.4 Acculturation Paths 60 5.2.5 Indicators of Acculturation 61 5.2.6 Acculturation Forces 62 5.2.7 How Acculturation Paths May Differ 62 5.2.8 Individual Acculturation 64 5.3 ACCULTURATION AND ETHNIC HOMOPHILY 65 5.3.1 Inter-Generational Ethnic Homophily 66 5.3.2 Inter-Group Ethnic Homophily 67 5.4 ACCULTURATION, ETHNICITY AND ETHNIC IDENTITY 68 5.5 ACCULTURATION AND CONSUMER BEHAVIOUR 69 5.5.1 Acculturation and the Consumer Decision-Making Process 73 5.5.2 Acculturation and Media Preference 74 5.5.3 Acculturation and Media Language Preference 75 5.6 Lao-Australian vs. Filipino-Australian Acculturation Differences 75 5.7 ACCULTURATION AND INTER-GENERATIONAL DIFFERENCES IN CONSUMER BEHAVIOUR