Factors influencing enthnocentric marketing of businesses in Kenya: a case of the Kenyan Exporting firms

Abstract

The form and . substance of a company" response to the global market depends on' management assumptions and beliefs both conscious and unconscious. The global orientation adopted by firms in the global market has implication on a firm's ability to match its offering effectively in the global market to be able to complete effectively in the overseas market and long term decision in respect to international operation which determine areas of priority in resources allocation. Despite all those implications most of Kenyan firms adopt ethnocentric orientation towards the international market. Most of those firms assume that there product is superior to a rest of a world and can be exported to the rest of a world without tailoring the product to customer needs, marketing policies and to specific international requirements. This is because little investment is required and· no additional selling cost, are incurred with exception of distribution costs. International market is seen as secondary to domestic market and as away of dealing with demand deficiencies, increased competition and surplus demand rather than strategic decision. Thus the study focused on ethnocentrism and it's affects on the growth of export market. The objective of a study was to establish what factors influence ethnocentric marketing of Kenyan exporting firm. The primary data was collected using a structured and semi structured questionnaire. Secondary data was also used in the study which was collected from relevant journals, magazines and annual reports in the ministry of trade and industry and export promotion council. A total of 60 managers of exporting firms dealing with consumer goods and industrial goods were used as sample. The sample was selected using systematic sampling. Data was analysed using descriptive statistics which include frequencies, accumulative frequencies and cross table tabulation while inferential statistics used include mean, standard deviation and multiple regression analysis The study established that risk and uncertainty, attitudes and perception, resources and resource commitment were statistically significant at < 0.05 while experience was not statistically significant. > 0.05 therefore did not influence ethnocentrism. The study also established that 43.7% of these factors account for ethnocentrism while 56.3% of ethnocentrism is explained by other factors. The study recommends use of less risky entry strategy into the global market such as joint venture and strategic alliance to reduce risks. and establishment of good relationship with a host country government in order to reduce hostility and risks. The provision of knowledge and information by government in order to change altitudes. On resources the study recommends the use of unique resources which provide competitive advantage in order to compete effectively in the global market. To minimize problem of foreign exchange fluctuation, exporting firms to enter into forward contract with banks to protect foreign currency fluctuations and for firms whose host country currencies are weak to invoice customers on basis of home currency.