The Influence of Ethnic Identity on Consumer Behavior: Filipino and Lao Consumers in Australia

Abstract This research examines how Lao and Filipino consumers’ ethnicity and ethnic identity may influence consumer behavior and how individual acculturation may affect ethnic identity and ethnic consumer behavior in a multicultural environment. Multi-culturalism is a global phenomenon that has impacted how firms and consumers interact in Australia and Asian countries. Using self-ascribed samples from two ethnic groups (Lao and Filipino) residing in Australia, an exploratory mixed-method approach was used to examine how an individual’s ethnicity and ethnic identity influence individuals’ consumer behavior who ascribe to their respective ethnicities. To observe acculturation tendencies and any effects on consumer behavior, each ethnic group was divided into three generational sub-groups. The study revealed varying degrees of individual acculturation between three generations of consumers from the same ethnic background and between consumers from two different ethnic backgrounds. Inter-generational and inter-group differences affected the consumption of ethnic products such as food, clothes, movies, music, and choice of service providers. Implications for doing business in Asia are explored, drawing on the insights and connections that emerge from understanding the Lao and Filipino consumer behavior considering the increased intra-regional movement and multicultural clusters in Asia.