XENOCENTRISM AND BRAND PREFERENCES AMONG MILLENNIALS: THE MEDIATING ROLE OF BRAND AUTHENTICITY AND BRAND INNOVATIVENESS

Abstract

This study explores how xenocentrism influences brand preferences among millennial consumers in Pakistan. Grounded in system justification theory, this research examines the mediating effect of brand authenticity and brand innovativeness. Data were collected from 387 millennials in Karachi using a structured questionnaire. Correlation and regression analyses revealed that xenocentrism significantly influences brand preferences. However, brand authenticity did not mediate this relationship, suggesting that authenticity may not be a decisive factor for xenocentric consumers. In contrast, brand innovativeness significant mediates the effect on the relationship between xenocentrism and brand preferences. These findings provide practical insights for marketers targeting highly engaged consumers and highlight the need for policymakers to support local industries in competing against foreign brands.

Purpose – This study examines the impact of consumer xenocentrism on brand preferences among millennial consumers in Pakistan. Xenocentrism reflects a consumer’s belief in the superiority of foreign brands over domestic ones, influencing purchasing decisions. The study also explores the mediating role of brand authenticity and the brand innovativeness.

Design/methodology/approach – A quantitative research approach was employed using survey data from 387 millennial consumers in Karachi, Pakistan. The study utilized descriptive statistics, correlation analysis, and regression analysis to assess the relationships between xenocentrism, brand authenticity, brand innovativeness, and brand preferences.

Findings – The results confirm that consumer xenocentrism has a significant positive impact on brand preferences, indicating a strong preference for foreign brands among Pakistani millennials. However, no significant mediating effect of brand authenticity was found. In contrast, brand innovativeness was found to significantly mediate the relationship between xenocentrism and brand preferences, suggesting that consumers highly involved in an innovation exhibit stronger xenocentric tendencies in their brand choices.

Originality/value – This study contributes to the understanding of xenocentric consumer behavior in an emerging market context. The findings offer a fresh perspective about the role of brand authenticity while highlighting the importance of innovativeness in shaping brand preferences. The study provides valuable insights for marketers seeking to develop strategies to position domestic brands more effectively in response to xenocentric tendencies among millennials.