Asia Pacific Journal of Marketing and Logistics

Consumer racism: a scale modification

Samshul-Amry Abdul-Latif, Asmat-Nizam Abdul-Talib,
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Samshul-Amry Abdul-Latif, Asmat-Nizam Abdul-Talib, (2017) "Consumer racism: a scale modification", Asia Pacific Journal
of Marketing and Logistics, Vol. 29 Issue: 3, doi: 10.1108/APJML-02-2016-0026
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 Consumer racism: a scale modification

Purpose – Consumer racism describes the act of purchase discrimination based on ethnic and/or
cultural differences. As the original consumer racism scale was developed based on a Western
context and environment, most of its items may be unsuitable for use in certain non-Western
countries. This paper aims to modify the existing consumer racism scale to include the elements
of inter-ethnic relationships, historical occurrences and political situations, which are crucial in
shaping and influencing racism in a multi-religion and multi-racial context.
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Design/methodology/approach – After generating new items and retaining or removing others

for a modified consumer racism scale, exploratory factor analysis (EFA) was performed based on
145 respondents followed by confirmatory factor analysis (CFA) based on 176 respondents. The
modified scale, including two other related constructs (consumer ethnocentrism and consumer
animosity), was then tested through structural equation modeling (SEM) using WarpPLS 5.0 and
data from 495 respondents.

Findings – EFA and CFA results suggest that the modified 8-item consumer racism scale is
applicable in a multi-ethnic scenario. However, SEM findings contradict previous studies; thus,
discussion of the possible effects of consumer racism is based on two different approaches.

Research limitations/implications – Future research could be expanded into other ethnic groups
and countries, and/or to different products, categories and brands.

Originality/value – The main contributions of this study are the validation of the modified
measurement scale and demonstration of its applicability in a multi-ethnic scenario. The study is
based on data from a multi-ethnic, multi-religion and multi-cultural country: Malaysia.

Keywords: Consumer racism, scale modification, consumer ethnocentrism, consumer animosity,

Malaysia, ethnic Malays, ethnic Chinese

Paper type: Research paper

1
 Introduction

For decades, racism has been an issue of great interest to many different fields of study,
including social psychology (Saucier & Miller, 2003), health (Huria, Cuddy, Lacey, & Pitama,
2014), sports (Kilvington & Price, 2013) and law (Goodall, 2013). Yet studies on racism within
the broad context of business and consumerism are rather limited (Hill & Paphitis, 2011; Ouellet,
2007). Within the marketing literature, Ouellet (2005) coined the term “consumer racism” to
describe a phenomenon wherein consumer purchasing decisions and behaviors are driven
primarily by the evaluated ethnicity, nationality and/or cultural origin associated with products or
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services.

Potential threats and detrimental effects of consumer racism on consumer behavior (Hill &
Paphitis, 2011; Ouellet, 2007) have been acknowledged, and other closely-associated constructs
like consumer ethnocentrism (Klein, Ettenson, & Krishnan, 2006; Sharma, 2014; Shimp &
Sharma, 1987) and consumer animosity (Ettenson & Klein, 2005; Klein, Ettenson, & Morris,
1998) have been well-researched. However, consumer racism has yet to gain researchers’
attention. Only a small number of studies have explored this area. This construct can still be
regarded as new within the marketing domain (Hill & Paphitis, 2011), with many areas yet to be
investigated.

Three studies, by Ouellet (2005), Ouellet (2007) and Hill & Paphitis (2011) are considered to be
the forerunners or cornerstones of consumer racism. However, replicating these studies and
applying the construct to different regions of the world (in the case of this study, the East and/or
Asian region) can invite potential problems or lead to inaccurate deductions (Finn & Kayande,
2004). This is due to obvious differences in historical background, socio-cultural milieu, power
inequalities and business environments (Sanson et al., 1997) between the research environment
and that which the construct was initially based on, conceived in, and conceptualized for.
Occasionally, the measurement scale of a construct may not be applicable or adaptable to a
different scenario or environment without modification (Riefler & Diamantopoulos, 2007).
Adopting or even adapting a measurement scale without understanding and examining its logical
application in a different scenario or environment may lead to erroneous results (Klein et al.,

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 2006; Riefler & Diamantopoulos, 2007; Sudbury-Riley & Kohlbacher, 2016). Furthermore, a
study whose framework focuses on majority/whites versus minorities within a Western (e.g., US)
context may lose its relevancy when applied to countries with a different racial or ethnic make-
up (Gao, Xu, & Kim, 2013).

Measurement scale modification is not uncommon in research; rather, it is expected (Finn &
Kayande, 2004). Many studies perform minor and even major modifications in anticipation of
accurately measuring a phenomenon in a specific context (Ettenson & Klein, 2005; Finn &
Kayande, 2004; Klein et al., 2006; Klein, Smith, & John, 2004). The well-researched service
quality scale, SERQUAL, (Parasuraman, Zeithaml, & Berry, 1988) underwent varying degrees
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of modification involving rewording, adding, and removing of measurement items. Other

examples of modified measurement scales within the broad scope of business studies include
Muncy-Vitell’s consumer ethics scale (Vitell & Muncy, 2005), the consumer animosity scale
(Fernández-Ferrín, Bande-Vilela, Klein, & Río-Araújo, 2015), the sports video game motivation
scale (Cianfrone, Zhang, & Ko, 2011) and the ethically-minded consumer behavior scale
(Sudbury-Riley & Kohlbacher, 2016).

Most items in the consumer racism scale by Ouellet (2007) directly (or indirectly) suggest that
the ethnic majority group in France, Canada and the US are dominant in businesses and
economic activities within their countries (as examples Item #4: [Recent arrivals in this
country]/[Generations of economic domination and discrimination] have created conditions that
make it difficult for [Dominant Minority Group] to create businesses and get us to purchase their
products; Item #5: It’s really a matter of some people not trying hard enough; if [Dominant
Minority Group] would only try harder, their products and services could be just as good as ours,
and I would then patronize their businesses as much as I patronize ours; and Item #7: How much
discrimination against [Dominant Minority Group]-owned businesses by consumers do you feel
there is in this country, limiting their chances to grow and succeed?). However, there are
countries (including Malaysia) where ethnic majorities are not business and/or economically
dominant. Thus, using Ouellet’s consumer racism scale in such conditions may lead to inaccurate
research results and deductions.

Additionally, Ouellet’s scale suggested that the emergence of ethnic minorities was a result of
recent immigration, whereas in some countries like Malaysia, ethnic minorities migrated into the

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 territories (of what now is known as Malaysia) many centuries ago in several different phases as
discussed in the upcoming literature section.

Racism can be socially and economically unhealthy. A recent Malaysian-based survey

(CENBET, 2016) suggested that Malaysians have racist tendencies, which can be translated to
their consumption behavior, as racist consumers tend to reject products and services of other
ethnic groups (Ouellet, 2007). There is yet a study to demonstrate direct racism between the
ethnic groups in Malaysia, but the results from two surveys on ethnic relations (Merdeka Center
for Opinion Research, 2006, 2011) provide some indication as to how the ethnic majority and
minority groups perceive one another, specifically between ethnic Malays and Chinese.
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According to these surveys, racial stereotyping by both ethnic groups is prevalent and increasing;
which could encourage incidents of racism. If not addressed, this problem could possibly
escalate to a bigger problem similar to the racial violence on May 13, 1969. As a result of this
tragedy, ethnic Chinese boycotted all products and services of Malays for at least three months
(Ting, 2009). Though undocumented, it is possible that Malays also avoided, refused or
boycotted Chinese products and services.

This study attempts to modify the consumer racism scale developed by Ouellet (2007) so that
measurement accuracy can be obtained in a different cultural context, by rewording retained
items, incorporating new items and removing unsuitable items from the scale, without
compromising the domain of the construct.

Conceptual background

Consumer Racism, Consumer Ethnocentrism and Consumer Animosity

Within the psychology literature, Wilson (1973, cited from Ouellet, 2007, p.114) defined racism
as “an ideology of racial domination or exploitation that incorporates beliefs of a particular
race’s cultural and/or inherent biological inferiority, and uses such beliefs to justify and prescribe
inferior or unequal treatment for that group.” Racism is a complex, multifaceted phenomenon
that can manifest through blatant or subtle actions (Dovidio, 2001). These actions are sometimes
unintentional and subtle, and can be directed at both the personal and group level. Instead of
having a conscious desire to harm, subtle racism (McConahay, 1986; McConahay & Hough,
4
 1976) can be implicit and difficult to directly identify. Occasionally, an omission, inaction or
refusal to help can be mistaken for subtle racism (Yoo, Steger, & Lee, 2010).

Incidents of blatant racism are less prevalent today than several decades ago, but it cannot be
denied that they do still occur (Dunn, Forrest, Burnley, & McDonald, 2005; Sanson et al., 1997;
Yoo et al., 2010), and these incidents are not limited to developed or developing countries. In
some cultures, covering one’s nose and mouth while communicating with another individual can
be an example of blatant racism, suggesting that the victim is smelly and dirty (Kwok & Lin,
2014). It also implies that the perpetrator views the victim as being low class or low caste
(Garner, 2010) or associated with a lower economic position and social status (Alatas, 1977; Gao
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et al., 2013).

Racism is expressed by individuals belonging to one group against individuals belonging to

another group whom they consider different. Differences can be culturally-based, with a group
being seen as inferior due to its nonconformity with common cultural norms (Dunn et al., 2005).
Racism can be manifested in many social contexts including the workplace, education and health
institutions (Huria et al., 2014; Yoo et al., 2010), construction sites (Kwok & Lin, 2014) and
even the marketplace (Ouellet, 2007). As with consumer animosity and consumer ethnocentrism
(Fernández-Ferrín et al., 2015; Klein & Ettenson, 1999), consumers may discriminate in their
purchases based on ethnic cues associated directly or indirectly with a product. Such behavior is
known as consumer racism, which is defined as “the antipathy toward a given ethnic group’s
products or services as a symbolic way of discriminating against that group” (Ouellet, 2007, p.
115).

Consumer racism, consumer ethnocentrism and consumer animosity are similar constructs in that
all three may have a negative effect on the consumption of “foreign” products but not necessarily
on the product’s image per se (Klein & Ettenson, 1999; Klein et al., 1998; Riefler &
Diamantopoulos, 2007). Examined from an ethnicity level, ethnocentric consumers believe that
products made or sold by people of the same ethnicity as themselves are superior, and that it is
morally right to support their people through purchases (Hill & Paphitis, 2011; Ouellet, 2007).
Consumers with animosity, by contrast, direct their anger towards certain ethnic group(s). Their

5
 animosity, based on specific event(s) and driven by moral and ethical beliefs, is expressed
through non-purchase of the target group’s products and offerings (Hill & Paphitis, 2011).

A consumer can have animosity and be ethnocentric simultaneously (Fernández-Ferrín et al.,

2015). In such a case, his or her product choices are filtered both by the avoidance of a particular
ethnic group based on a perceived incident/event, and by the desire to purchase products from his
or her own ethnic group. Tragedies or traumatic events can increase a consumer’s level of
animosity (Ettenson & Klein, 2005), ethnocentrism (Dube & Black, 2010), and perhaps racism
as well. Symbolic acts of consumption (or non-consumption) are an indirect way for a consumer
to express likes (or dislikes), as well as show support for (or hatred) of a country, ethnic group or
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cause.

Instead of justifying consuming foreign products as appropriate or moral, or directing anger

towards a product based on a traumatic incident, consumer racism is centered on the evaluated
product’s ethnic origin (Ouellet, 2005) and signals a “long-lasting emotional aversion to [that]
particular ethnicity” (Hill & Paphitis, 2011, p. 59).

Inter-ethnic relations in Malaysia

Malaysia is a multi-ethnic and multi-religious country situated in Southeast Asia. In Peninsular

Malaysia, there are three main ethnic groups: Malays, Chinese and Indians. Ethnic Malays are
often regarded as the indigenous and predominant group (Muzaffar, 2010) constituting 63.1% of
the population. The Chinese and Indians constitute 24.6% and 8% of the population,
respectively. Islam is integral to the Malays’ ethnic identity and is often regarded as synonymous
(Alatas, 1977; Idris, 2008). Other ethnic groups practice their religions freely, including
Buddhism, Hinduism, and Christianity among others.

Generally, the migration of the Chinese into Southeast Asia including the Peninsula region is
categorized in three phases: before the 14th century, between the 15th and 17th centuries, and after
the 18th century. Migrations were motivated by three factors: political, economic and religious
(Lee, 2014). After the 18th century, British colonial forces brought more Chinese and Indian

6
 immigrants to the Peninsula region as laborers and traders to support capitalist industries, mainly
mining and agriculture (Alatas, 1977).

As a result of British colonial divide-and-conquer policies, the ethnic groups in the Peninsula
were separated, with most of the Malays remaining in rural areas as fishermen and farmers and
discouraged from participation in any other economic activities (Alatas, 1977; Idris, 2008; Wan
Husin, 2012b). With such limitations, most Malays remained economically disadvantaged. On
the other hand, most Chinese were located in urban areas and encouraged to participate in
business and commerce activities (Alatas, 1977; Idris, 2008; Wan Husin, 2012b).
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As the policies were implemented for many decades, many ethnic Chinese had a head start and
became the largest ethnic community involved in business, dominating small and medium
enterprises as well as large-scale industries (Ali, 2008; Wan Husin, 2013) despite being a
minority group.

Because of their dominant presence in business and commerce activities, ethnic Chinese have at
times been regarded as a threat and negatively stereotyped by some ethnic Malays (Ali, 2008;
Gao et al., 2013; Wan Husin, 2012b). The Chinese are generally perceived to have vast
economic resources and powerful economic influence (Wan Husin, 2012b), not only in Malaysia
but extending throughout the Southeast Asia region (Suryanidata, 2007). This creates a sense of
resentment, distrust and suspicion among the Malays towards the Chinese (Ali, 2008; Putra,
2012).

Several communal conflicts between the Malays and Chinese arose after the Second World War
(Ali, 2008; Putra, 2012), but the one most often referred to as the climax of inter-ethnic conflict
in the modern history of Malaysia occurred on May 13, 1969 (Kua, 2011; Putra, 2012). This
outbreak of racial violence, which exploded in Kuala Lumpur and later spread to other major
cities in Malaysia, resulted in many deaths on both sides, and is considered to be the darkest
period to date by many Malaysians (Baharuddin, 2012; Putra, 2012).

Many other factors contributed to racial conflicts in Malaysia; however, exploitation, further
expansion, and the deepening of economic, social and political differences (Feagin & Feagin,
1996) among ethnic groups by former colonial masters (Alatas, 1977; Ali, 2008) were key to
creating a fertile environment for inter-ethnic conflict.

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 Though almost five decades have passed, such incidents can still evoke a strong sense of
resentment (Klein et al., 1998), leading to ethnocentrism, animosity and possibly racism by
ethnic Malays toward non-Malays, specifically the Chinese (Ali, 2008).

The results from two surveys on ethnic relations in Malaysia (Merdeka Center for Opinion
Research, 2006, 2011) provide hints as to how ethnic Malay and Chinese groups perceive one
another. These surveys suggested that racial stereotyping by both ethnic groups is prevalent and
increasing, which could lead to further resentment and escalate to racial conflicts.
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Study 1: Item Generation

In order to generate the new scale items, we used both interviews (n=10) and a review of
assorted literature related to racism following Ouellet (2007). For the interviews, each of ten (10)
non-student consumers was interviewed in real-time via online chats using a semi-structured
format. Following Ouellet (2007), these consumers were purposely selected based on the belief
that they would have certain racist sentiments. The interview transcripts were then analyzed, and
potential items were developed based on identified themes.

The review of related literature included areas such as history (Abdullah, 2005; Kua, 2011;
Putra, 2012), politics (Putra, 2012; Thock, 2007), economics (Idris, 2008; Wan Husin, 2013;
Wan Husin & Ong, 2012), and social relations and inter-ethnic studies (Abdullah, 2005; Ali,
2008; Baharuddin, 2012; Wan Husin & Tee, 2012; Wan Husin, 2012b, 2012a). The purpose was
to identify potential factors affecting racism and relevant keywords. To complement this
literature review, previous racism scales and literature (Ouellet, 2005; Saucier & Miller, 2003;
Yoo et al., 2010) were also examined. In total, 59 items were generated for the expanded
consumer racism scale.

We were careful to avoid items that were lengthy, redundant, double-barreled, or contained
jargon or slang (Devellis, 2003). To avoid potential bias, the item pool contained both positively
and negatively-worded items (Devellis, 2003).

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 Instrument pre-testing

The initial pool of items was reviewed by an academic who was proficient in consumer behavior,
which resulted in the removal of 48 items from the initial pool.

The remaining 11 items in the pool were then pre-tested on students (n=50) from a local
university using a self-administered questionnaire. Potential respondents were advised that some
items might be offensive. Based on the results of the pre-test, further minor adjustments,
including paraphrasing to achieve greater clarity, were made to the items.
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Study 2: Scale Purification, Stability and Dimensionality

The objectives of this study were to purify the items of the modified scale and establish its
dimensionality. This study employed both purposive sampling and snowball sampling due to the
sensitivity of the proposed items (Tourangeau & Yan, 2007). We opted for an online survey (Sue
& Ritter, 2007; Wouters, Maesschalck, Peeters, & Roosen, 2013) and sourced potential
respondents from social media platforms, particularly Facebook (Ramo & Prochaska, 2012). A
total of 145 usable ethnic Malay responses were obtained from the online survey, satisfying the
sample size recommended by Tabachnick & Fidell (2007).

Of the respondents, 54.5% were female and 45.5% male. The age of respondents ranged from 18
to 65 years old, with 76.5% being between 26 and 45 years old. In terms of employment status,
67.6% were employed, of which 21.4% were at the managerial level. 26.9% were self-employed
and the remaining 5.5% were retirees. In terms of education, 42% of the respondents had a
bachelor’s degree.

Item reduction and reliability testing

To begin evaluation of the modified consumer racism scale, we inspected the items for
intercorrelation. The majority of coefficients must be greater than .3; otherwise, factor analysis
may not be appropriate (Tabachnick & Fidell, 2007). Items which had no correlation or fell
below .3 were removed from the generated pool. One item (CR 1) was removed since the
majority of its correlations were below .3. Table 1 shows that the correlation coefficients are

9
 generally acceptable since most are well above .3, as recommended. The Kaiser-Meyer-Olkin
(KMO) measure of sampling adequacy value is .874, which is well above the minimum value of
.6, while Bartlett’s Test of Sphericity is significant (p = .000) (Tabachnick & Fidell, 2007). The
fact that all of these conditions were met indicated that factor analysis was suitable and
appropriate.

To examine the structure of the modified scale, the items were subjected to principal component
analysis (PCA) using IBM SPSS version 19 (SPSS, 2010). PCA is a common factor analysis
technique often used by researchers to develop and/or evaluate a measurement scale. Exploratory
factor analysis (EFA) was performed on all nine items using PCA extraction with oblique (direct
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oblimin) rotation. One item (CR 9) was removed as it formed another component on its own.
After this item was removed, the analysis was again performed. All items fitted well and formed
only one component with the results.

Using Kaiser’s criterion, components with eigenvalues above 1 were retained, and one
component had an eigenvalue of 5.114. This single component explained 56.824% of the
variance.

Unidimensionality is achieved if all items are significantly loaded on a single factor consistent
with previous studies (Hill & Paphitis, 2011; McConahay, 1983, 1986; Ouellet, 2007; Saucier &
Miller, 2003). Since all of the items are strongly loaded on one component, a one-factor solution
(unidimensional) would be most appropriate.

Study 3: Reliability Assessment and Validation

The objectives of this study were to establish the reliability and validity of the refined modified
consumer racism measurement scale developed in Study 2. The methods and techniques to
obtain respondents in this study were the same as in Study 2 above. For Study 3 it was essential
to include other related constructs in the study: consumer ethnocentrism, consumer animosity,
product judgment and willingness to buy. Following Ouellet (2007), these constructs were
adjusted accordingly to fit at the ethnic level instead of the national level.

10
 Data collection yielded 176 respondents aged 18 to over 55 with the majority in the 36-40 age
group (33.5%). Gender distribution was 36.9% male and 63.1% female. In terms of employment
status, 69.9% were employed, 2.3% were self-employed, 5.6% were unemployed or retired and
22.2% were students. In terms of education, 42% of the respondents had a master’s degree, 30%
a bachelor’s degree, and 17% a secondary education.

To evaluate the reliability and validity of the modified scale, we employed partial least squares
structural equation modeling (PLS-SEM) since this study is at the exploratory level, building
towards theory development rather than theory confirmation (Hair, Ringle, & Sarstedt, 2011). A
recently introduced method, factor-based PLS SEM -- or in short PLSF SEM -- is consistent and
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on a par with co-variance based SEM for confirmatory factor analysis (CFA) as well as full-
blown SEM analyses (Kock, 2013, 2015). This method provides both composite and factor
estimates, along with taking full account of measurement errors in its algorithm (Kock, 2015).
As this method is implemented in WarpPLS 5.0, this study used WarpPLS to perform its CFA
and SEM analyses.

Dimensionality and Reliability

The internal consistency and reliability of the modified scale was assessed through the
calculation of composite reliability (Hair, Ringle, & Sarstedt, 2011). The results shown in Table
1 below suggest that the modified scale possesses good reliability as the CR score is above
0.700. Convergent validity is also demonstrated, as the AVE score is greater than 0.500 (Bagozzi
& Yi, 1988). By fulfilling these criteria, unidimensionality is achieved. These results suggest that
no deletion of items is required.

Table 1: Construct’ Composite Reliability and Average Variance Extracted

Composite Reliability Average Variance Extracted

Constructs
(CR) (AVE)
1) Consumer Racism 0.934 0.643
2) Consumer Ethnocentrism 0.923 0.667
3) Consumer Animosity 0.936 0.786
4) Product Judgment 0.909 0.666
5) Willingness to Buy 0.916 0.690

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 Indicator reliability is measured through the loadings of the construct items, which must be equal
to or above 0.700 (Hair et al., 2011). All of the loadings for the modified consumer racism
construct were between 0.737 and 0.911 except for one item (CR2), which yields a loading of
0.597. Low loadings can be acceptable and retained if they contribute to the content validity of
the construct (Hair et al., 2011).

To test for discriminant analysis, two other constructs were used, which are very much related to
consumer racism: consumer ethnocentrism and consumer animosity (Ouellet, 2007). Two
methods were used to examine discriminant validity: first, an item’s outer loading must be higher
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than all of its cross loadings (Hair et al., 2011), and second, the square root of the AVE of a
latent construct must be greater than its highest correlation value with other constructs (Fornell &
Larcker, 1986). Both of these criteria were met.

Table 2: Correlations among latent constructs with squared roots of AVEs

Constructs 1 2 3 4 5
1) Consumer Racism 0.802 0.659 0.785 -0.166 0.686
2) Consumer Ethnocentrism 0.659 0.817 0.580 -0.132 0.794
3) Consumer Animosity 0.785 0.580 0.887 -0.158 0.633
4) Product Judgment -0.166 -0.132 -0.158 0.816 -0.149
5) Willingness To Buy 0.686 0.794 0.633 -0.149 0.831

Study 4: Nomological Validation and Testing of the Modified Consumer Racism Scale

The objectives of this study were to achieve nomological validation and testing of the modified
consumer racism measurement scale. Nomological validity is achieved when a measurement
construct is theoretically fit within the network of relationships (Netemeyer, Bearden, & Sharma,
2003) and “behaves as expected with respect to some other constructs to which it is theoretically
related” (Churchill, 1995, p. 538). Nomological validation and model testing can be performed
simultaneously through structural equation modeling (SEM) (Chen et al., 2014). Therefore, all
five of the constructs previously included and examined in both Study 2 and Study 3 were used:

12
 modified consumer racism, consumer ethnocentrism, consumer animosity, product judgment and
willingness to buy.

Again, we drew from Ouellet’s (2007) consumer racism model but extended it further by
including consumer ethnocentrism and consumer animosity. Both consumer ethnocentrism and
animosity constructs were modified accordingly so that they were measureable at the ethnic level
rather than the national level (Ouellet, 2007).

Legitimization of domination of one ethnic group over another is a key component in the
consumer racism construct (Hill & Paphitis, 2011). Legitimization implies the possession of
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power or control by the majority ethnic group over minority ethnic groups. Oppression is the
unjust systematic exercise of power by a dominant majority group, which leads to denigrating
views, perceptions and judgments of non-dominant ethnic minority groups. Such negative
judgments may include perceptions of inferiority and lesser human worth (Hill & Paphitis, 2011;
Sanson et al., 1997).

Consumption is a symbolic extension of the self which is a form of expression of feelings

(Wattanasuwan, 2005). Positive feelings like happiness can be easily expressed and interpreted
through purchases and consumption. However, negative feelings such as antipathy, hatred and
racism can also be expressed through selective purchasing or non-purchasing of products
associated with a targeted ethnic group (Hill & Paphitis, 2011). Consumers who degrade and
reject products perceived as originating from other ethnic groups, while justifying their actions
based on racial antipathy, aversion and/or hatred, can be labeled as racists (Hill & Paphitis, 2011;
McConahay, 1983; Ouellet, 2005, 2007). Based on the above, the following hypotheses are
forwarded:

Hypothesis 1a: Consumer racism negatively influences Malay consumers’ willingness to buy
Malaysian Chinese products; and

Hypothesis 1b: Consumer racism negatively influences Malay consumers’ judgment of

Malaysian Chinese products.

Consumer ethnocentrism describes consumer preference for domestic products and aversion
towards foreign products. Ethnocentric consumers tend “to view their own group as the center of

13
 the universe while interpreting others from their perspective” (Shimp & Sharma, 1987, p. 280),
making them likely to reject those who are culturally different from themselves but accept those
who are culturally alike (Watson & Wright, 2000). As with consumer racism, ethnocentric
consumers tend to degrade the quality of and refuse to purchase foreign products, believing that
such behavior is morally right, patriotic and nationalistic (Klein et al., 1998).

Although most previous studies examined consumer ethnocentrism at the national level, i.e.
between countries, or at the regional level (Seidenfuss, Kathawala, & Dinnie, 2013; Siemieniako
et al., 2011) the construct can also be measured at the ethnic level within a single multi-ethnic
and multi-cultural country (Ouellet, 2007). Hence the following hypotheses:
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Hypothesis 2a: Consumer ethnocentrism negatively influences Malay consumers’ willingness to

buy Malaysian Chinese products; and

Hypothesis 2b: Consumer ethnocentrism negatively influences Malay consumers’ judgment of

Malaysian Chinese products.

Consumer animosity is defined as “the remnants of antipathy related to previous or on-going

military, political or economic conflicts” (Klein, et al, 1998, pg 91). As countries interact,
provocation, hostility, anger, displeasure and enmity (Shimp, Dunn, & Klein, 2004) may
transpire either deliberately or unintentionally (Abd-Razak & Abdul-Talib, 2012). Previous
studies on consumer animosity usually involved geographical boundaries and contexts, such as
states, cities, districts and regions (Riefler & Diamantopoulos, 2007; Shimp et al., 2004);
however, as with the other constructs discussed above, consumer animosity can also be
examined at the ethnic level within the borders of a single country (Ouellet, 2007). Based on the
above, the following hypotheses are proposed:

Hypothesis 3a: Consumer animosity negatively influences Malay consumers’ willingness to buy
Malaysian Chinese products; and

Hypothesis 3b: Consumer animosity negatively influences Malay consumers’ judgment of

Malaysian Chinese products.

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 Data Collection and Sample

The data for this study was collected through a combination of purposive sampling and an online
questionnaire following Ramo & Prochaska (2012). The total number of respondents was 500,
with 485 usable responses.

In terms of gender, 66% of the respondents were female and 33% were male. A small majority
were employed, with 46% employed and 9% self-employed, while 44% were not employed (of
these, 33% identified students and 4% were retirees. Education was generally high, with 71% of
the respondents having tertiary education; of these, 30% had a bachelor’s degree, 30% college
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diplomas, 10% a master’s degree, and 1.5% a PhD. Of the remainder, 28% of the respondents
had completed only secondary education while less than 1% had only a primary level education.
In terms of consumer habits, 36% of respondents reported doing their grocery shopping on a
monthly basis, 30% on a weekly basis and 19% on a bi-weekly basis.

Measurement Model

The evaluation for the reflective measurement model includes the assessment of composite
reliability for internal consistency; item loadings and AVE for convergent validity; assessment
of items’ cross loadings; and the Fornell-Larcker criterion (Fornell & Larcker, 1986) for
discriminant validity (Hair et al., 2011; Kock, 2013)

As shown in Table 3, all of the constructs surpassed the recommended value of 0.700 for
composite reliability (Bagozzi & Yi, 1988; Nunnally & Bernstein, 1994). The AVE scores for all
constructs also exceeded the minimum value of 0.500 (Bagozzi & Yi, 1988). Loadings of the
items ranged from 0.672 to 0.901. It is preferred that loadings be above 0.700; however, items
with loadings between 0.400 and 0.700 can be considered for retention on the basis of their
contribution to content validity (Hair et al., 2011).

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Table 3: Loadings, Composite Reliability and Average Variance Extracted

Items Constructs Loadings p-values CR AVE

Consumer Racism 0.915 0.575
CR2 Malaysian Chinese business owners tend to give hefty discounts to their Chinese customers, while their 0.684 <0.001
Malay customers only get small discounts.
CR3 Malaysian Chinese do not like Malays. If possible, they would not buy Malay products/services. Why should 0.813 <0.001
we buy and support their products?
CR4 Generations of economic domination and discrimination have created conditions that make it easy for the 0.684 <0.001
Chinese Malaysians to create businesses and get consumers to purchase their products.
CR5 Malaysian Chinese are cheaters and liars. Why should we buy and support their businesses? 0.819 <0.001

CR6 Generally, Malaysian Chinese business owners do not value and respect their Malay customers. They are 0.804 <0.001
only interested in our money.
CR7 After dominating the economy and business world in Malaysia, Malaysian Chinese tend to look down on the 0.830 <0.001
Malays.
CR8 I feel that most Malaysian Chinese business owners are dirty and unhygienic. 0.688 <0.001

CR11 Malaysian Chinese business owners tend to give lower pay and commissions to Malay workers compared to 0.723 <0.001
their Malaysian Chinese workers.
Consumer Ethnocentrism 0.931 0.694

CET1 Malays should always buy Malay-made products. 0.810 <0.001

CET4 We should purchase domestic/local products manufactured by Malays instead of letting other ethnic groups 0.854 <0.001
in this country get rich off us.
CET5 We should only buy local/domestic products from other ethnic groups if we cannot obtain the products from 0.792 <0.001
our own people. Buy Malay made products.
CET6 Keep Malays working, in business and rich. 0.865 <0.001

CET7 Malay products, first, last and foremost. 0.854 <0.001

CET8 A real Malay should always buy Malay-made products. 0.821 <0.001

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Items Constructs Loadings p-values CR AVE

Consumer Animosity 0.916 0.733

CA1 I dislike the Malaysian Chinese. 0.861 <0.001

CA2 I feel angry toward the Malaysian Chinese. 0.901 <0.001

CA3 I will never forgive the Malaysian Chinese for marginalizing and discriminating against the Malays. 0.834 <0.001

CA4 Malaysian Chinese should pay for marginalizing and discriminating against the Malays. 0.825 <0.001

Product Judgment 0.885 0.658

PJ1 Malaysian Chinese products are carefully produced and have fine workmanship. 0.807 <0.001

PJ2 Malaysian Chinese products show a very high degree of technological advancement. 0.839 <0.001

PJ3 Malaysian Chinese products show a very clever use of color and design. 0.815 <0.001

PJ4 Malaysian Chinese products usually are quite reliable and seem to last the desired length of time. 0.783 <0.001

Willingness to Buy 0.906 0.660

WTB1 I would feel guilty if I bought Malaysian Chinese products. 0.831 <0.001

WTB2 I would never buy Malaysian Chinese products. 0.859 <0.001

WTB3 Whenever possible, I avoid Malaysian Chinese products. 0.811 <0.001

WTB4 I do not like the idea of owning Malaysian Chinese products. 0.873 <0.001

WTB5 If two products were equal in quality, but one was from a Malay, I would pay 10% more for the Malay 0.672 <0.001
product.
Note: All of the above items were measured on a five-point Likert-type scale (1 = strongly disagree and 5 = strongly agree)

17
 Discriminant validity is assessed through the Fornell and Larcker criterion whereby the square
root of the AVE value of each latent construct must score higher than the construct’s highest
squared correlation with any other latent constructs (Hair et al., 2011). Table 4 below
demonstrates that discriminant validity is achieved.

Table 4: Discriminant Analysis

Constructs 1 2 3 4 5
1) Consumer Racism 0.758 0.710 0.660 0.055 0.646
2) Consumer Ethnocentrism 0.710 0.833 0.547 -0.049 0.758
3) Consumer Animosity 0.660 0.547 0.856 0.006 0.596
4) Product Judgment 0.055 -0.049 0.006 0.811 0.077
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5) Willingness to Buy 0.646 0.758 0.596 0.077 0.813

Structural Model

Path coefficient analysis looks at the strength of relationships between the constructs.
Hypotheses are rejected if the coefficient values are insignificant or have conflicting directional
relationships, as hypothesized earlier (Hair et al., 2011). The diagram and results of the SEM
analysis are shown in Figure 1 and Table 5, respectively.

Based on the results shown in Table 5, three hypotheses (H1a, H2a and H3a) are rejected because
the path coefficient results exhibit a positive relationship instead of a negative relationship as
hypothesized. Though rejected, these results suggest that consumer racism, consumer
ethnocentrism and consumer animosity have positive relationships on Malay consumers’
willingness to buy Malaysian Chinese products since the ß values are sizeable. This will be
discussed further below.

Hypothesis 1b, which predicts that consumer racism negatively influences Malay consumers’
product judgment was not sufficiently supported and thus is rejected. Hypotheses H2b and H3b,
which postulate that consumer ethnocentrism and consumer animosity have negative influences
on Malay consumers’ judgment of Malaysian Chinese products are sufficiently supported and
thus accepted. Finally, Hypothesis 4 which predicts a positive relationship between product
judgment and willingness to buy is also supported and thus accepted.

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Figure 1: Structural Model and Results

19
 Table 5: Hypotheses Testing Results
Path Standard
No Hypothesis P-value Decision
Coefficient Error
Consumer racism negatively influences
Malay consumers’ willingness to buy
H1a 0.084 0.048 0.040 Not Supported
Malaysian Chinese products.

Consumer racism negatively influences

Malay consumers’ product judgment of
H1b 0.072 0.048 0.069 Not Supported
Malaysian Chinese products.

Consumer ethnocentrism negatively

influences Malay consumers’ willingness
H2a 0.568 0.045 <0.001 Not Supported
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to buy Malaysian Chinese products.

Consumer ethnocentrism negatively

influences Malay consumers’ product
H2b -0.158 0.048 <0.001 Supported
judgment of Malaysian Chinese products.

Consumer animosity negatively

influences Malay consumers’ willingness
H3a 0.230 0.047 <0.001 Not Supported
to buy Malaysian Chinese products.

Consumer animosity negatively

influences Malay consumers’ product
H3b -0.126 0.048 0.004 Supported
judgment of Malaysian Chinese products.

Product judgment positively predicts

H4 0.094 0.048 0.025 Supported
willingness to buy.

Discussion

The results of this research are consistent with previous studies on consumer racism (Hill &
Paphitis, 2011; Ouellet, 2007) where the scale was single-factor or unidimensional. Previous
studies on racism also developed unidimensional scales to measure such phenomena
(McConahay, 1986; Saucier & Miller, 2003).

There are two different interpretations that we can put forward. First, by rejecting all three
hypotheses with opposing path directions, we are only left with evidence which supports the
simultaneous coexistence and operationalization of consumer ethnocentrism and consumer
animosity (Fernández-Ferrín et al., 2015), and the constructs’ effects on consumers’ product
judgment and willingness to buy. These findings are consistent with previous studies on
consumer ethnocentrism and consumer animosity and are indeed measureable at the ethnic or
sub-national level (Ouellet, 2007; Seidenfuss et al., 2013). The relationships between consumer
20
 racism and willingness to buy, and consumer racism and product judgment, on the other hand,
are both not significant.

The second interpretation, should the opposing direction of the path analysis results be ignored,
is that all three constructs – consumer racism, consumer ethnocentrism and consumer animosity
– can manifest concurrently while having significant effects on consumers’ product judgment
and willingness to buy. Previous studies suggest that consumer racism is negatively related to
product judgment and willingness to buy. However, our results indicate otherwise. Our findings
suggest that a racist consumer may not entirely reject and may even consume products associated
with other ethnic groups despite his or her racist attitude, contrary to previous studies (Hill &
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Paphitis, 2011; Ouellet, 2007). Given that this study was done in multi-cultural and multi-ethnic
Malaysia, perhaps there is a valid explanation for this unusual result.

As mentioned, in Malaysia, ethnic Chinese are a minority group but are dominant in the business
world; hence, consumers often believe that most products are associated with, or come from
companies owned by, ethnic Chinese (Minai, Ibrahim, & Kheng, 2012; Wan Husin, 2013). The
participation of ethnic Malays in business is generally increasing, but it is still limited (Minai et
al., 2012; Wan Husin, 2013) to certain industries or product categories, and is usually confined to
certain geographical areas. As such, racist or ethnocentric consumers or those showing animosity
have limited product choices or none at all, and are thereby forced to consume products from
targeted ethnic group(s).

Consistent with previous studies, ethnocentric consumers and those showing animosity tend to
have negative judgments of foreign products (Hamin & Elliott, 2006; Klein & Ettenson, 1999).
However, though ethnocentric consumers and those with animosity may denigrate the quality of
a product, due to limited product accessibility and availability they are still willing (though
perhaps “forced”) to purchase the product. Though from a different level of analysis, a previous
study also found a positive relationship between consumer ethnocentrism and willingness to buy
foreign products (Mostafa, 2010).

Previous studies suggest that people with lower education levels tend to have racist tendencies
and that racism is more prevalent among males (Dunn et al., 2005); however, the results of this
study suggest otherwise, as the respondents were mainly educated Malay females.

21
 Implications

The results of these studies have several implications for marketers of products associated with
both a majority group and a minority group. First, there are obvious opportunities for marketers
of products associated with a majority group to expand their markets to cater to and tap into their
own ethnic group. While it may seem unethical to profit from racism, animosity and/or
ethnocentrism, this has occurred in Malaysia, to the point where certain parties have manipulated
gullible consumers to their advantage and in the process stirred up racial issues with product
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consumption (Abdul-Latif & Abdul-Talib, 2015).

Second, businesses owned by minority groups may wish to consider repositioning their products
or brands as ethnically-neutral, removing clues that might suggest ethnic origins to avoid
potential discrimination. Marketers of these businesses could also consider repositioning their
products in terms of national identities or images common to and identifiable by all ethnic
groups while promoting harmony and unification (Li, Tsai, & Soruco, 2013). On the other hand,
opting for a globalized image (Han, 2016; Hill & Paphitis, 2011), may have its operational and
financial benefits but may backfire as consumers might reject the product due to its “foreign”
image. Additionally, though ethically questionable, businesses owned by minority groups could
also adopt images and the identities of the majority ethnic group for their products to attract the
consumers from the ethnic majority. Alternatively, and perhaps more ethically, businesses owned
by minority groups could collaborate or establish joint ventures with entrepreneurs from majority
ethnic groups when adopting images and identities of the ethnic majority for their products.

Third, the modification of the scales in this study indicates that measurement scales that were
constructed based on Western contexts may need to undergo a modification process to ensure
scale applicability in non-Western study contexts. The modified consumer racism scale could
possibly be applied in countries with similar cultural traits and/or historical similarities, such as
Indonesia, Laos, Thailand, and the Philippines to name a few. In these countries, ethnic Chinese
are economically dominant despite being an ethnic minority group (Yeung, 1999).

22
 Limitations and Future Direction

As with previous studies, the possibility of social desirability bias affecting the results cannot be
discounted when dealing with “direct expression of racial antagonism” (Tarman & Sears, 2005;
Tourangeau & Yan, 2007). Even with the sampling techniques used in this study, it is still a
challenge to gauge the honesty and truthfulness of respondents; they may withhold their true
feelings and thoughts relating to racism, ethnocentrism and animosity towards other ethnicities
(Tarman & Sears, 2005).

Future research could examine the effects of consumer racism on different products, product
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categories and/or brands typically associated with certain ethnic groups or nationalities, or the
effects of consumer racism on ethnic cues directly or indirectly associated with products. To
date, consumer racism has only been examined within the borders of a country; perhaps it is
possible to examine the construct at international or inter-regional levels, since the “new racism”
(Garner, 2010) includes religion (as examples; Islamophobia or anti-Semitism) and cultures (the
East versus the West). Extending this research further, perhaps, future research should examine
how ethnic Malay consumers behave towards Chinese products or services from China, Taiwan
and Hong Kong. Previous studies have examined differences in attitude and consumption
behavior between Muslims and non-Muslims from a multi-ethnic and multi-religious country
(Abdul-Talib, Abd-Latif, & Abd-Razak, 2016; Abdul-Talib & Abdul-Latif, 2015); it could be
worthwhile to examine the possible effects of religion and racism (Dunn, Klocker, & Salabay,
2007; Hall, Matz, & Wood, 2010) as well as consumer xenocentrism (Mueller, Wang, Liu, &
Cui, 2016) on ethnic consumption choices.

Acknowledgements

This research was supported by a grant from the Malaysian Ministry of Higher Education, FRGS
grant #11867, for which the authors are indebted.

23
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