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The purpose of this study is to investigate the effects of consumer ethnocentrism and consumer animosity at the ethnic level. This study examines both effects on an ethnic majority’s consumption of an ethnic minority’s products and services, focusing on the relationship between two ethnic groups in Malaysia.

The relationship between the constructs were analyzed using the co-variance-based structural equation modeling techniques with analysis of a moment structures version 21. Self-administered questionnaires were obtained from 325 Malay respondents in 2 Malaysian cities.

The results suggest that ethnic-based consumer ethnocentrism can negatively affect product judgment and product judgment can affect consumers’ willingness to buy. Two significant findings were rejected as the directions of the results were not as hypothesized.

Future research could study other ethnic groups of different countries using specific ethnic related products and/or brands.

This research suggests that ethnic-based ethnocentrism and ethnic-based animosity are important factors for businesses to consider as both can affect ethnic consumers’ purchasing behavior. Depending on ethnic consumers’ perception toward a brand, a manager may face either an opportunity or a challenge.

This case study can be used for courses under marketing management, international marketing or public relations.

This case study may be suitable for courses which discuss decision-making and/or executive actions and execution, at both undergraduate and graduate levels. It could also be used in graduate classes as some open-ended questions are also included to illicit critical thoughts and fresh ideas.

Companies can be boycotted for many reasons; for example, a company may be associated with or engage in egregious acts which trigger a consumer boycott. However, it is unusual for racial and political elements to form the basis of a consumer boycott. This paper describes how a current leader in the packaged bread market, Gardenia Bakeries Sdn Bhd (GBKL), responded to one such online campaign. This case study highlights the importance of effective communications and marketing strategies for responding to sensitive issues involving racism and politics.

Students are introduced to the concept of consumer boycotts and how this may affect a business. Students are exposed to the development of appropriate public relation strategies and explore creative methods to combat bad publicity and/or a smear campaign. Students can learn to appreciate the sensitivity of allegations of racism in a multi-ethnic country and understand how multi-ethnic consumers respond to these types of issues. Students are exposed to the effects of political and socio-demographic influences on purchase behavior in a particular market or country. Students may explore the effects of consumer activism on a company's brand image.

Teaching notes are available for educators only. Please contact your library to gain login details or email support@emeraldinsight.com to request teaching notes.

Franchise, strategic management, food and beverages, Malaysia.

First year undergraduate students of management courses.

This case study explores the strategies employed by franchisor Gloria Jean's Coffees (GJC) in reestablishing its market presence in the Malaysian coffee market. GJC recently underwent an exchange of ownership. Under the new leadership, the company decided to appoint a new strategic master franchisee in Malaysia to see a section of its expansion plan in the ASEAN region reestablished. The selection of a suitable and well-connected master franchisee is very important for reestablishing presence and brand name development. The deteriorating position of GJC's brand name in Malaysia prior to the appointment of a new master franchisee created a unique situation requiring an in-depth evaluation and examination of unseen but highly related critical factors. In-depth and “behind-the-scene” examination on efforts made through the implementation of business and marketing strategies to reestablish its brand and presence in Malaysia; given demanding market challenges and intense competitions.

After carrying out this exercise, students are expected to be able to: understand how business start up grows in foreign markets; identify the basic issues of international franchising and how the system works; analyze the various factors of considerations prior to internationalization; and evaluate strategies undertaken by company in establishing its market in foreign countries.

Teaching note.

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. The purpose of this paper is 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.

After generating new items and retaining or removing others for a modified consumer racism scale, exploratory factor analysis (EFA) is 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), is then tested through structural equation modeling (SEM) using WarpPLS 5.0 and data from 495 respondents.

EFA and CFA results suggest that the modified eight-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.

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

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.

This paper aims to examine non-Muslim consumers’ willingness and motivation to boycott American-based companies operating in Malaysia, where Islam is prominent. The underlying base used in this study is an on-going boycott spurred by the Palestinian/Israel conflict in the Middle East.

Two products were selected based on their market presence: consumer familiarity and product affordability. A total of 340 completed questionnaires were obtained from non-Muslim university students and validated by partial least squares approach.

Three factors were found to be significant in predicting willingness to boycott, which were self-enhancement, perceived egregious behavior and country image.

This paper addresses boycott motivations from the context of Malaysian non-Muslims quantitatively, based on an issue strongly related to Muslims. The results may have some implications on multinational firms, non-government organizations, policymakers as well as consumers.