The role of ethnocentrism in relation to national and geographical indication products – The case of Hungarian pálinka

Abstract

Consumer ethnocentrism plays a key role in the markets of developed countries when governments take protectionist measures due to economic crises and downturns. Consumer ethnocentrism appears to be stronger in relation to the choice and purchase of food and beverages. The purpose of the current study is to investigate the relationship between consumer ethnocentrism and socio-demographic characteristics in the case of a Hungarian national ‘geographical indication’ (GI) spirit called pálinka. The literature emphasises the importance of testing the impact of consumer ethnocentrism on different products, and research on national and GI products is quite limited. Although pálinka is one of the best-known products in Hungary, the perception and quality of the alcoholic beverage have undergone significant changes in recent decades. The analysed sample, representative of the Hungarian alcohol-consuming population, contains the answers of 760 respondents. Consumers' Ethnocentric Tendencies Scale items were used to cluster consumer groups with different perceptions using latent profile analysis (LPA). According to the results, consumer ethnocentrism remains a significant issue in the Hungarian pálinka market despite growing globalisation and consumers' openness to foreign products. There is a higher level of ethnocentrism with national and GI products, which needs to be taken into account by market participants. With the help of cluster analysis, four consumer groups with different socio-demographic characteristics were identified. The results may help actors in the pálinka industry and their competitors (e.g., vodka and whiskey producers and distributors) to understand the Hungarian alcohol market and related consumer groups in respect of ethnocentrism.