THE MEDIATING ROLE OF EXTERNAL TRENDS IN THE RELATIONSHIP BETWEEN ETHNOCENTRISM AND INTENTION OF USING DOMESTIC GOODS

Abstract

In recent years, there have been many promotional programs for the consumption of products made in Vietnam, which has increased the competitive position of
Vietnamese brands in the world market. However, from an academic perspective, very little research has been done on this issue. Thus, the study fulfills some need from a
theoretical perspective. The survey of the study is a convenience sample, collected from households in Ho Chi Minh City with a total of 323 sheets. The mixed method was used
in this study. Specifically, qualitative research with focus group are used to adjust the scale set to suit the context, while quantitative one is used to evaluate the reliability of
the scale and test the model. The results show that all the hypotheses are statistically significant at the 5% level of significance, specifically: ethnocentrism affects external
trends and propensity to consume domestic goods with coefficients of -0.38 and 0.13 respectively; while external trends has a positive impact on the trend of domestic
consumption with a coefficient of 0.55. The research results imply that state officials need to promote the trend of consuming domestic goods by influencing the national
spirit and love of the homeland of the people in order to increase their ethnocentrism. In that case, business managers need to position products according to both functional
and psychological attributes. Finally, the authors also points out some limitations of the study such as sampling technique and survey scope.