Cross-Border Shopping Motivation, Behaviours and Ethnocentrism of Malaysian in Hatyai, Thailand

Authors: Wanwisa Kuncharin, Badaruddin Mohamed

Abstract:

There have been few studies of cross-border shopping. However, many have focused on macroeconomic effects rather than on discovering the motivation and behaviour of cross-border shoppers who purchase abroad. Hatyai, Thailand is located about 30 km from the Malaysian border. The statistics reports that each year more than 400,000 Malaysian visitors visited Hatyai. The aims of this study are fourfold: (1) to investigate factors motivating cross-border shoppers to shop in Hatyai, Thailand; (2) to examine the relationship between ethnicity and shopper ethnocentrism; (3) to discover the impact of shopper ethnocentrism on foreign product judgment; and (4) to explore the impact of shopper ethnocentrism on the willingness to buy foreign products. The results reveal that the three most popular consumption items were food and beverages, clothing, and grocery products. Factor analysis shows that the three key reasons for choosing Hatyai as the cross-border shopping destination included product and store, close distance, and low exchange rate. Moreover, there were significant differences in ethnocentrism by three ethnic groups. Shopper ethnocentrism had a significant negative correlation with foreign product judgment, while shopper ethnocentrism was not significantly correlated with willingness to buy foreign products.

Keywords: Cross-border shopping behaviours, Malaysian shoppers, Ethnocentrism, Hatyai, Thailand.

Digital Object Identifier (DOI): doi.org/10.5281/zenodo.1336018

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