Consumer ethnocentrism, cultural sensitivity, brand credibility on purchase intentions of domestic cosmetics

Abstract

Brands investigate cultural sensitivity in order to stand out from global market competition and reach more diverse customers. The research emphasized on the relationship between consumer ethnocentrism, cultural sensitivity and brand credibility toward purchase intention to domestic products. The product category was cosmetic brands including Mustika Ratu, Sari Ayu, Wardah and Viva as the four top brands representing Indonesian cultural attitudes on the beauty of women. Meanwhile, cultural sensitivity determines the level of awareness, understanding, and acceptance of foreign-culture values. This study highlights consumer culture theory as the foundation for building a model of consumer ethnocentrism on the purchase intention of domestic products. This model focuses on the importance of cultural sensitivity as an antecedent that can influence consumer ethnocentrism and purchase intention of domestic products. The research was conducted using a survey method and also observed to be associative through the testing of the relationship between the variables contained in the conceptual model. The survey was conducted using WarpPLS 7.0. to 120 consumers of Indonesian cosmetics selected using the non-probability sampling method. The results concluded that cultural sensitivity has a negative influence on consumer ethnocentrism and purchase intentions of domestic brands. Brand credibility and consumer ethnocentrism were found to have a positive effect on domestic brand purchase intentions.

Keywords:

• Consumer ethnocentrism
• cultural sensitivity
• brand credibility
• purchase intention
• domestic brand

Jel classification:

• D70
• Z13

1. Introduction

Cultural sensitivity has a crucial role in shaping global consumer attitudes. Local consumer behavior that hesitates to purchase imported cosmetic products is associated with the concept of consumer ethnocentrism. This is one of the main concepts in determining consumer purchasing intentions and attitudes in terms of negative attitudes toward foreign products. The concept states that consumers have a tendency rather than an attitude which is generally used to reference consumer feelings towards a particular object (Sharma et al., 1994; Shimp & Sharma, 1987). The term was used by Shimp and Sharma (1987) to describe the beliefs held by consumers concerning the moral appropriateness of purchasing foreign-made products. Moreover, Shimp and Sharma (1987), Hsu and Nien (2008), and Nakos and Hajidimitriou (2007) showed the concept states that consumers tend to choose products produced in their home countries and try to avoid those from foreign countries regardless of the price or quality based on their nationalism (Shankarmahesh, 2006). Highly ethnocentric consumers believe purchasing a foreign product or brand is unpatriotic; therefore, they tend to choose local products or brands (Liu et al., 2006). This study used 17 indicators of CETSCALE by Shimp and Sharma (1987) and Sharma et al. (1994) to measure the construct of consumer ethnocentrism.

Previous empirical studies showed that consumer ethnocentrism has a significant influence on purchasing attitudes and intentions on foreign products, as indicated in Nakos and Hajidimitriou (2007), Nguyen et al. (2008), Hsu and Nien (2008), Evanschitzky et al. (2008), Rose et al. (2009), and Ranjbarian et al. (2010). Moreover, Nguyen et al. (2008) studied local and foreign motorbikes and milk powder products in Vietnam and found consumer ethnocentrism negatively related to imported product decisions and positively associated with the intention to purchase local products. Meanwhile, cultural sensitivity is reported to have a positive relationship with the purchase decision of imported products but hurts consumer ethnocentrism. It was discovered that the impact of consumer ethnocentrism on the decisions to purchase imported products and the intention to purchase local products was different in relation to product categories, gender, income, and level of education. The highest variation was observed between young and older consumers, with consumer ethnocentrism found to have a powerful influence on older consumers both for the decision to purchase imported products and the intention to buy local products.

The credibility of foreign brands was also found to significantly influence the competition to purchase domestic products. Erdem and Swait (2004) also measured brand credibility using two factors: expertise and trustworthiness. Therefore, cultural sensitivity, the credibility of foreign brands, and consumer ethnocentrism are essential factors consumers consider in purchasing domestic brands. Limited studies were observed to have been conducted to examine the relevance of cultural sensitivity and brand credibility in the consumer ethnocentrism model in purchasing domestic products, especially in developing countries where foreign brands are considered to be of better quality.

This study, therefore, examined the relationship between cultural sensitivity and the credibility of foreign brands in the consumer ethnocentrism model to purchase domestic brands based on the concept of consumer ethnocentrism (Sharma et al., 1994; Shimp & Sharma, 1987). The domestic cosmetic products used were categorized as the four Top Cosmetics Brand in Indonesia, including Mustika Ratu, Sari Ayu, Wardah, and Viva.

The role of culture is significant in influencing consumer decision-making because culture affects attitudes, norms, and other cognitive processes (Putit & Arnott, 2007). We use the theory of consumer culture theory (CCT) as a basis for this research. CCT, from a theoretical perspective, is a theory that discusses the dynamic relationship between consumer actions, markets, and cultural meanings (Arnould & Thompson, 2018). Pratono and Arli (2020) stated that consumer ethnocentrism seems to be a partner of global consumer culture. Therefore, this study examines the effect of cultural sensitivity on purchase intention. Domestic brands either directly or indirectly through consumer ethnocentrism mediation. In addition, this study also analyzes the influence of local brand credibility as a consideration of consumer rationality aspects on the purchase intention of domestic brands.

2. Literature review

2.1. Cultural sensitivity

Culture is a collection of knowledge, faith, value, custom, law, ideas, norms, and behavior accumulated by humans (House et al., 2004; Leung et al., 2002; MacDonald, 1991; Nakata & Huang, 2015; Sherry, 1986). It affects every aspect of society, including all aspects of business practices such as advertisement tactics and strategies, free trade policy, effectiveness and efficiency of the brand, decision for localization and standardization strategy, international negotiation, business relationship, international business management, consumer behavior, and international marketing (Darley et al., 2013).

Culture has an important influence on various areas of an individual’s life, as it affects attitudes toward work, on behavior related to consumption or leisure activities (Richardson & Crompton, 1988). A high level of cultural sensitivity encourages consumers to accept differences from other cultures (Nguyen et al., 2008). Consumers are more open to enjoying togetherness and do not perceive other people’s cultures as a threat to themselves (Loo & Shiomi, 1999). This encourages consumers with a high cultural sensitivity to see imported products as not a problem. So ethnocentric consumer behavior decreases due to sensitivity to a more open culture that respects other cultures’ values (Sharma et al., 1994).

It was reported that consumers’ cultural distance had reduced perception of product quality (Skarmeas et al., 2008). This means global products need to adjust to the differences in cultures, while local products are observed to be potentially closer to a country’s culture (TM Nguyen & Dinh Nguyen, 2014). Moreover, consumers with different cultures, attitudes, perceptions, tastes, preferences, and values tend not to buy foreign products (Suh & Kwon, 2002). This is because positive perception usually leads to purchasing a domestic product (He & Wang, 2015; Kibera et al., 2015). Furthermore, the preference for one’s own culture was reported to influence a consumer in buying domestic products (Maison & Maliszewski, 2016; Quang et al., 2017). These explanations, therefore, led to the formulation of the following hypotheses:

H1:

Cultural Sensitivity has a negative influence on Consumer Ethnocentrism.

H2:

Cultural Sensitivity has a negative influence on consumer’s intention to purchase domestic brand.

2.2. Consumer ethnocentrism

Consumer ethnocentrism is a mental concept depicting how consumers buy items based on their country of origin. It refers to the ethnocentric views held by consumers in one nation towards goods and services from another nation (Shimp & Sharma, 1987). Ethnocentrism has, however, become one of the potential factors in the marketing field affecting and creating consumer behavior (Javalgi et al., 2005). Meanwhile, Consumer Ethnocentrism is an important concept used to understand the international market phenomenon (Jimenez & San Martín, 2010; Nakos & Hajidimitriou, 2007).

Ethnocentric consumers usually prioritize their own country’s products even though foreign products are considered superior (Riefler & Diamantopoulos, 2007; Shankarmahesh, 2006; Siamagka & Balabanis, 2015). The concept of consumer ethnocentrism has been reported to be influenced by emotions, positive feelings, social responsibility (Misra et al., 2018), patriotism (Cazacu, 2016; Pentz et al., 2017), and nationalism (Shankarmahesh, 2006). This was further evidenced by the preference of such consumers for their own culture and prioritization of domestic products (Maison & Maliszewski, 2016; Quang et al., 2017; C. L. Wang & Chen, 2004).

Consumer ethnocentrism, with its emphasis on patriotism, nationalism, and conservatism, influences the consumer to reject products from foreign countries (Kaynak & Kara, 2002; Shimp & Sharma, 1987). The concept was, therefore, classified into the pro-in and anti-out groups construction (Cargile & Bolkan, 2013; Prince et al., 2019) due to its ability to strengthen a consumer’s dislike for foreign products (Jimenez & San Martín, 2010; Shankarmahesh, 2006).

This concept is against purchasing imported products based on the perception that it causes a loss to the domestic economy. Ethnocentric consumers usually feel it is unpatriotic to purchase foreign products because it has the ability to cause job loss in their country and it also serves as a threat to the social culture of the country (Cleveland et al., 2009; Liu et al., 2006; Shankarmahesh, 2006; Shimp & Sharma, 1987; Strizhakova et al., 2008).

Consumer ethnocentrism is one of the factors with possible effects on consumer decision to purchase either a local or foreign product (Karoui & Khemakhem, 2019). It was also found to have an impact on the purchase intention of consumers in buying domestic products (Han & Guo, 2018). It is important to note that ethnocentrism is identified as a human disposition affecting the choice of consumers in different buying situations (Bojei et al., 2010). This concept produces a positive perception towards the purchase of domestic products (He & Wang, 2015; Kibera et al., 2015), and when attitude and intention to buy local products are positive, the consumer potential to buy is usually high (Giang, 2015). Therefore, the following hypothesis was formulated.

H3:

Consumer Ethnocentrism has a positive influence on consumers’ intention to purchase domestic products.

2.3. Brand credibility

This is defined as the believability of the product information contained in a brand to make the consumers believe in its ability or expertise and willingness or trustworthiness to continuously deliver what has been promised (Erdem & Swait, 2004). Brand credibility promises product quality to gain consumer trust and increase purchase intention (Vidyanata et al., 2022). Previous studies also showed it has the ability to significantly stimulate and affect consumers’ purchase intention (Daneshvary & Schwer, 2000; S. W. Wang et al., 2017). Moreover, this concept influences the consideration of consumers to buy at a premium price (Mandler et al., 2021) and also has a positive relation to brand quality perception (Baek et al., 2010; Hyun Baek & Whitehill King, 2011; Zayerkabeh et al., 2012). Therefore, the following hypothesis was formulated.

H4:

Brand Credibility has a positive influence on consumers’ intention to purchase a domestic product.

2.4. Domestic brand purchase intention

This concept was defined by Blackwell et al. (2001) as “what we think we will buy”. It was also described as a “situation where consumers tend to buy certain products in certain conditions” (Mirabi et al., 2015). This means purchase intention has a tight connection with attitude, perception, and consumer behavior (Vuong & Khanh Giao, 2020) and has the ability to decide the future (Ajzen, 2015; Diallo, 2012; Wu et al., 2011).

Several elements are affecting domestic brand purchase intention, such as sensitivity to local culture (Maison & Maliszewski, 2016; Vadhanavisala, 2014). Moreover, purchase intention reflects the consumer’s intention to buy a product or service based on their attitude and emotions (Phau et al., 2015), with the positive ones reported to be caused by loving attitudes toward local products (Misra et al., 2018). This further provides positive attitudes and perceptions, which are the leading indicators to justify a product with the potential to attract consumer purchases (Vuong & Khanh Giao, 2020). The concept is further associated with the credibility of a domestic brand that represents a local culture (Li et al., 2011; X. Wang & Yang, 2010). These explanations, therefore, led to the formulation of the following hypothesis displayed in Figure 1.

Figure 1. Conceptual framework.

3. Methodology

3.1. Sampling design

The research was conducted using a survey method and was also observed to be associative through testing the relationship between the variables in the conceptual model. The variables analyzed include consumer ethnocentrism, cultural sensitivity, the credibility of foreign brands, and domestic brand purchase intentions. It is important to note that a quantitative approach was employed with the hypotheses tested and explanations provided, thereby indicating this is explanatory research.

The population consists of cosmetics consumers in Indonesia while 120 samples used as respondents were selected using the non-probability method based on the criteria that they are 1) aged 17 years and above, 2) have a minimum education level of high school, and 3) have purchased Mustika Ratu, Sari Ayu, Wardah, and Viva brand cosmetics.

Sekaran and Bougie (2016) showed that the findings of the study conducted using the non-probability method could not be conclusively generalized to the population, but it is sometimes the only way to obtain data. Sekaran and Bougie (2016) further showed that some of the non-probability sampling designs are more reliable than others and can provide some critical clues to helpful information relating to the population. This research selects the convenience sampling method commonly known as the accidental samples in order to conduct exploratory studies in understanding the research phenomenon. In addition, the measurement items for each variable used in this study are presented in Table 1.

Table 1. Research instrument

No	Variables	Source
Consumer Ethnocentrism		(Sharma et al., 1994; Shimp & Sharma, 1987)
1.	Indonesians need to always purchase products made in Indonesia instead of imported goods.
2.	Only products that are not available in Indonesia may be imported.
3.	Purchase products made in Indonesia so that the domestic economy is advanced.
4.	For me, products made in Indonesia are always my choice.
5.	Purchasing foreign-made products mean not being Indonesian.
6.	It is not good to purchase foreign-made products since it may trigger unemployment.
7.	True Indonesians always need to purchase products made in Indonesia only.
8.	We need to purchase products made in Indonesia instead of allowing other countries to obtain wealth from us.
9.	Purchasing Indonesian products is always the best course of action.
10.	Purchases of goods from other countries should be as little as possible unless they are urgently needed.
11.	Purchasing foreign products means ruining domestic business and may trigger unemployment.
12.	Restrict purchasing of every imported product.
13.	The act of purchasing this domestic product might be a burden for me in the long run, but I prefer supporting Indonesian products.
14.	Foreigners should not be allowed to sell their products in Indonesia’s domestic market.
15.	Foreign products need to be burdened with taxes to reduce their income in Indonesia.
16.	Foreign-manufactured products can be purchased only if the products are not available in Indonesia.
17.	Indonesian consumers purchasing products made abroad are responsible for unemployed Indonesians.
	Cultural Sensitivity	(Nguyen et al., 2008)
1.	I enjoy participating in cultural events that are different from Indonesian culture.
2.	I believe that the influence of foreign cultures does not threaten any Indonesian culture.
3.	In my opinion, people coming from different cultures do not have to be separated from each other.
4.	In my opinion, people in this world naturally have the same culture.
5.	I enjoy learning about different cultures.
Brand Credibility		(Erdem & Swait, 2004)
	Expertise
1.	This brand reminds me of a competent company that knows what it is doing.
2.	This brand can deliver what is promised.
	Trustworthiness
1.	The claims of this cosmetic brand are valid.
2.	Over time, my experience with this brand has made me look forward to using it since it fulfills its promise.
3.	This brand has a name that you can trust.
4.	This brand does not pretend to be something that does not describe cosmetics.
5.	The claims of this cosmetic brand are valid.
The intention of Domestic Brand Purchases		(Nguyen et al., 2008)
1.	I will not purchase foreign or imported cosmetics when I want to purchase cosmetics.
2.	I always purchase Indonesian cosmetics brands.
3.	I will only purchase foreign cosmetic brands (imports) when local cosmetic brands (Indonesia) are unavailable.

4. Findings

4.1. Profile of informant

One hundred twenty respondents were used as samples, and the data on their age, education, occupation, income, and others are presented in the following table.

4.2. Validity and reliability test

The outer model was tested for validity, and the indicators used to measure the CE construct were observed to have factor loadings below 0.6 as indicated in CE1, CE2, CE3, CE 4, CE6, CE7, CE8, CE9, CE10, CE12, CE13, and CE 16 while only CS2 was discovered among the indicators for cultural sensitivity as presented in Table 3. In the context of DBPI it is showing a lower result below 0.7 compared to other variables, as the lower Cronbach’s Alpha values tends to estimating a diverse response from respondent regarding the underlying construct. Therefore, the indicators were discarded in the analysis of the next model calculated from data on Table 2.

Table 3. Convergent validity

Variable	Indicator	Loading	AVE	Composite Reliability	Cronbach’s Alpha
Consumer Ethnocentrism (CE)	CE4		0.594	0.886	0.852
	CE5	0.766
	CE6	0.679
	CE7	0.656
	CE11	0.785
	CE14	0.706
	CE16	0.639
	CE17	0.754
Cultural Sensitivity (CS)	CS1	0.727	0.564	0.838	0.743
	CS3	0.763
	CS4	0.746
	CS5	0.768
Brand Credibility (BC)	BC1	0.704	0.614	0.927	0.910
	BC2	0.778
	BC3	0.741
	BC4	0.841
	BC5	0.771
	BC6	0.800
	BC7	0.786
	BC8	0.838
Domestic Brand Purchase Intention (DBPI)	DBPI1	0.819	0.562	0.793	0.608
	DBPI2	0.690
	DBPI3	0.735

Source: Primary Data (2022).

Table 2. Summary of respondents’ characteristics

Characteristics	Criteria	Frequency	Characteristics	Criteria	Frequency
Age	>50 (Years Old)	4	Domestic Brand Consumer	Yes	115
	25–50 (Years Old)	39		No	5
	<25 (Years Old)	77
Total		120	120
Education	Elementary School	-	Domestic Cosmetic Brand Experience	Martha Tilaar	23
	Junior High School	-		Mustika Ratu	24
	Senior High School	79		Wardah	78
	Associate Degree	15		Viva	23
	Bachelor Degree	26
Total		120	148
Occupation	Student	56	Length of Time for Using Domestic Cosmetic Brand	6 Month − 1 Year	40
	Private Employees	21		1–3 Years	40
	Entrepreneur	15		3–5 Years	19
	Civil Servant	15		>5 Years	21
	Others	13
Total		120	120

Source: Primary Data (2022).

Heterotrait Monotrait (HTMT) ratios is a scale to measure a discriminant validity of PLS research model. It is shown that a commonly valid research model should have HTMT ratios less than 0.85 values. The result of HTMT ratios is shown from Table 4 that suggests that the research construct meet the discriminant validity’s criteria.

Table 4. Discriminant validity validity

	CS	CE	DBPI	BC
CS
CE	0.225
DBPI	0.149	0.821
BC	0.385	0.212	0.166

4.3. Model fit and quality models

The employed statistical tools was WarpPLS 7.0. to test the research hypotheses. The value of the required index is in the level of conformity to a fit model, such as Average path coefficient (APC), Average R-squared (ARS), Average adjusted R-squared (AARS), Average block VIF (AVIF), Average full collinearity VIF (AFVIF), Tenenhaus GoF (GoF), Sympson’s paradox ratio (SPR), R-squared contribution ratio (RSCR), Statistical suppression ratio (SSR), and Nonlinear bivariate causality direction ratio (NLBCDR) that meet the reference value and are sufficient to state that a model is fit and appropriate.

4.4. Hypotheses testing

The inner model test is presented in Figure 2. R-squared (R²) values for CS to CE is 0.026 and 0.403 for BC to DBPI. The lowest R² values suggest that cultural sensitivity or CS as independent variables included in the research model has limited predictive power to influencing the dependent variables such as Consumer Ethnocentrism (CE) and Domestic Brand Purchase Intention (DBPI).

Figure 2. Result of inner model test.

The t-test for each independent variable on the dependent variable is presented in Table 5.

Table 5. Model fit and quality models

Model Fit Index	Recommended Value*	Measurement Model	Result
Average path coefficient (APC)	P < 0.05	P<0.001	Accepted
Average R-squared (ARS)	P < 0.05	P=0.004	Accepted
Average adjusted R-squared (AARS)	P < 0.05	P=0.005	Accepted
Average block VIF (AVIF)	≤3.3	1.023	Accepted
Average full collinearity VIF (AFVIF)	≤3.3	1.331	Accepted
Tenenhaus GoF (GoF)	small ≥ 0.1 medium ≥ 0.25 large≥ 0.36	0.346	Accepted
Sympson’s paradox ratio (SPR)	≥0.7	1.000	Accepted
R-squared contribution ratio (RSCR)	Ideally = 1	1.000	Accepted
Statistical suppression ratio (SSR)	≥0.9	0.750	Accepted
Nonlinear bivariate causality direction ration (NLBCDR)	Ideally =1	1.000	Accepted
*Recommended values as suggested by Hair et al. (2008)

Source: Primary Data (2022).

4.4.1. Hypothesis test 1

It was assumed that Cultural Sensitivity (CS) has a negative influence on Customer Ethnocentrism (CE), and the results showed CS (X1) has a significant negative effect on customer ethnocentrism (X2) with a Beta value of −0.161 at a significant level of 0.034. Therefore, H1 was accepted.

4.4.2. Hypothesis test 2

H2: It was assumed that cultural sensitivity (CS) has a negative influence on the intention of purchasing domestic brands (DBPI), and the regression test results with t-test showed CS (X1) has a negative influence on the intention to purchase domestic products (Y1) with a Beta value of − 0.131 at a significance level of 0.070. Therefore, H2 was accepted.

4.4.3. Hypothesis test 3

H3: It was assumed that customer ethnocentrism (CE) has an effect on the intention to purchase domestic brands (DBPI), and the regression test results with path analysis showed that customer ethnocentrism (X2) influences the intention to purchase domestic products (Y) with a Beta value of 0.577 at a significance level < 0.001. Therefore, H3 was accepted.

4.4.4. Hypothesis test 4

H4: It was assumed that brand credibility (BC) has an effect on the intention to purchase domestic brands (DBPI), and the regression test results with path analysis showed that brand credibility (X3) influences the intention to purchase domestic products (Y) with a Beta value of 0.168 at a significance level of 0.028 (<0.05). Therefore, H4 was accepted.

5. Discussion

Cultural Sensitivity is proven to have a negative influence on Customer Ethnocentrism. This research is in line with previous research, which states that cultural Sensitivity has the opposite effect on customer ethnocentrism (Evanschitzky et al., 2008; Hsu & Nien, 2008; Nguyen et al., 2008; Ranjbarian et al., 2010; Rose et al., 2009; Rambocas & Mahabir, 2021). This is in line with the findings of Watson and Wright (2000) and Hsu and Nien (2008) that cultural similarity between countries is one of the factors influencing ethnocentric consumer trends and attitudes toward foreign products. This was also explained by Watson and Wright (2000) in an article used to examine the relationship between consumer ethnocentrism and the evaluation of foreign products. Based on path analysis result shown in Table 6 it is concluded that overall proposed hypothesis is accepted. Therefore, foreign exporters can enter through global community issues to create sensitivity to foreign cultures.

Table 6. Path analysis

Hypothesis	Path Coefficients	P Values	Results
H1 (CS ⟶ CE)	−0,161	0.034	H1 Accepted
H2 (CS ⟶ DBPI)	−0.131	0.070	H2 Accepted
H3 (CE ⟶ DBPI)	0.577	<0.001	H3 Accepted
H4 (BC ⟶ DBPI)	0.168	0.028	H4 Accepted

Cultural sensitivity has a negative influence on the intention of purchasing domestic brands. This implies that consumers with a degree of cultural sensitivity those who are high tend to rate imported products as not a priority for purchase. Consumers will prioritize domestic products if there are assumptions about cultural differences, attitudes, perceptions, tastes, preferences, and values (Suh & Kwon, 2002; TM Nguyen & Dinh Nguyen, 2014). The perceived cultural differences are unacceptable to local consumers who view domestic products more closely and understand existing needs. In cosmetic products, consumers view cultural suitability as related to geographical conditions, beliefs, and habits with their values.

Customer ethnocentrism is believed to influence the purchase intention of domestic brands. Research shows that consumers in developing countries perceive local products as being of higher quality than imported products (e.g., Damanpour, 1993; Elliot & Cameron, 1994). Although this opinion may change, this may be relevant to cosmetic products. It is considered that local cosmetic products are more trusted to pay attention to the needs that suit domestic consumers. The impact of consumer ethnocentrism on consumers differs by brand and product category (Evanschitzky et al., 2008; Nguyen et al., 2008; Sharma et al., 1994) and has also been found to be more significant in high-involvement products.

Brand credibility affects the intention to buy domestic products. Trust in product information encourages consumers to believe in the ability or expertise of a product to continue to deliver what has been promised (Erdem & Swait, 2004). According to previous research, brand credibility can increase purchase intention (Vidyanata et al., 2022; S. W. Wang et al., 2017).

6. Implications

This study has contributed to the development of science, especially in consumer culture theory. Where a culture has an essential role in consumer decision-making to buy products. This study shows that cultural sensitivity, either directly or through consumer ethnocentrism, affects consumer intentions in purchasing domestic products or brands. Cultural sensitivity has a negative effect on consumer ethnocentrism and purchase intention of domestic products. In addition, consumer ethnocentrism was proven to have a substantial positive effect (B = 0.520) on the purchase intention of a domestic brand. So that domestic companies, together with the government, need to design strategies to promote the love of domestic products. For example, with the movement “I love Indonesian products”. This study also provides evidence that culture and nationalism have a strong influence in encouraging purchases of domestic products. For a developing country like Indonesia, love for domestic products has become very important in supporting economic activity amid the large number of imported products that enter. This research emphasizes that love for household products is still necessary if stakeholders continue to concentrate on maintaining domestic products to maintain superior value compared to imported products that continue to flood the domestic market.

Brand credibility concerns the expertise and brand trust that consumers trust. Through their brands, companies can demonstrate their competence and ability to provide brand value as promised. This is done to meet consumer expectations to encourage consumers to buy the brand. Promises must be confirmed and can be claimed, not deceptive. The higher the level of expertise and trust in a brand, the more credible the brand is.

Therefore, the love movement for domestic products must be balanced with increasing the quality and value of domestic products or brands in order to have high brand credibility.

7. Conclusion, limitation and suggestion

This study proved that cultural sensitivity negatively influences consumer ethnocentrism and domestic brand purchase intention. This shows a higher sensitivity of people to foreign cultures led to more openness to whatever comes from outside their country. This further makes them accept and favor foreign brands, thereby reducing consumer ethnocentrism and the intention to purchase domestic brands. The findings also showed that the consumer ethnocentrism factor could influence domestic brand purchase intention based on the condition that the quality and value offered are able to compete with foreign brands. Moreover, brand credibility was found to have a positive effect on the domestic brand purchase intention, and this means a good domestic brand can compete better in the market, thereby encouraging the intention to purchase its products. Therefore, this means company management needs to focus on factors that can increase consumer ethnocentrism.

This study examines the effect of cultural sensitivity, consumer ethnocentrism, and brand credibility on the purchase intention of domestic brands. Suggestions for further research to develop a more comprehensive research model to examine the influence of other factors beyond this current research, such as country of origin, quality of domestic and foreign products, cultural intelligence, and others. In addition, this study only surveyed the category of cosmetic products in Indonesia, and further research can test other product categories.

Disclosure statement

No potential conflict of interest was reported by the author(s).