The Impact of Cross-Cultural Advertising on Ethnocentric Consumerism with the Mediating Effect of Cultural Sensitivity: A Study in The Context of the FMCG Industry in Sri Lanka

Abstract

This research investigates the impact of cross-cultural advertising on consumer ethnocentrism in the context of the Fast-Moving Consumer Goods (FMCG) industry in Sri Lanka, with a specific focus on the mediating role of cultural sensitivity. Positioned within the context of the globalised economy and increased cross-border trade, the research explores the complexities faced by multinational corporations in formulating effective marketing strategies. The study adopts a deductive approach, employing a structured questionnaire survey to collect data from 410 participants within the employed population of Sri Lanka. Surprisingly, the findings reveal a positive association between these variables, suggesting that individuals in the defense stage of cultural sensitivity, characterised by a heightened awareness of cultural differences and a preference for one's own culture, exhibit increased consumer ethnocentrism. Moreover, it highlights the defense stage of cultural sensitivity, where individuals perceive their own culture as superior, leading to increased consumer ethnocentrism. Managerially, the research underscores the need for nuanced cross-cultural advertising strategies, considering the interplay between cultural sensitivity and ethnocentrism. Similarly, the theoretical implications contribute to a more comprehensive understanding of these dynamics, urging scholars to reevaluate existing frameworks. Limitations include a focus on the FMCG industry, regional bias in responses, an age group discrepancy, and oversight of medium-specific impacts. Despite these limitations, the study provides valuable insights for marketers navigating the complex relationship between cross-cultural advertising, cultural sensitivity, and consumer ethnocentrism in the Sri Lankan context.