Together with the development of transformative technologies that epitomize globalization, the ongoing movements of people across borders and other socio-economic pressures are creating a fast-changing business environment that is difficult for business to understand, let alone control. Dominant social expectations that immigrants should seek to adopt an assimilationist socialization path towards the host country’s mainstream are contradicted by minority ethnic group resilience. There is no evidence that these groups naturally disappear within the cultural and behavioural contexts of their adopted countries. Since ethnic minority consumers cannot be expected to assimilate, then they maintain some significant degree of unique ethnicity related consumer characteristics that convert into threats and opportunities for business. The inherent socialisation process also provides opportunities for ethnic entrepreneurship and for proliferation of ethnic minority business.
Following from the extensive examination of scholarly perspectives of ethnic marketing theory, there is an acknowledged and marked divide between theoretical exhortations and what is done in practice, a relative oversight of the implications of mixed embedded markets, and a propinquity to overlook the crucial role played by ethnic entrepreneurship and ethnic networks. Opportunity valuations are difficult to enact due to a lack of intelligence about ethnic markets. Variable sentiment about the future of ethnic marketing links to different predictions on how the drivers of globalization will impact on the acculturation paths of ethnic minorities.
Keeping a focus on the ethnic group as the unit of analysis, combining ethnic marketing and ethnic entrepreneurship theories provides intelligence about contemporary ethnic marketing and practice perspectives. The ultimate objective is to reduce the theory-practice divide through the development of a collaborative framework between business and scholars that converts into theory-in-use.
CHAPTER 1: ISSUES IN ETHNIC MARKETING THEORY, PRACTICE AND ENTREPRENEURSHIP Conceptual ambiguity What is ethnic marketing? Definitional differences Ethnic marketing issues Other issues identified by researchers Causes of a gap and approaches to reconciliation Recognising the gap On the need for pragmatism or theory-in-use Pragmatism in ethnic marketing theory Summary The path ahead References CHAPTER 2: ETHNICITY, ETHNIC GROUPS AND ETHNIC IDENTITY The meaning and relevance of ethnicity Basis for defining ethnicity We are all ethnic – or are we? Meaning and centrality of ethnic groups Ethnic groups as social networks Ethnic group heterogeneity The interlinking of ethnic identity with the ethnic group Development of ethnic identity Ethnic identity, consumer behaviour and the ethnic group Summary References CHAPTER 3: ACCULTURATION, THE ETHNIC GROUP AND ETHNIC CONSUMER BEHAVIOUR What is Acculturation? Acculturation Phases Indicators of Acculturation Acculturation Forces Choice of Acculturation Path Individual Acculturation Inter-generational differences Acculturation and ethnic identity Acculturation and consumer behaviour Acculturation and Ethnic Group dynamics The Acculturation Process in a Culturally Diverse Country Summary References CHAPTER 4: RATIONALE FOR ETHNIC MARKETING FOCUS ON AGGREGATES OF MINORITY ETHNIC GROUPS General requirements for effective market segmentation Pan-ethnicity What is panethnicity? Marketing reasons for aggregating ethnic groups Homophily and ethnic group formation Homophily and the choice of suppliers to the ethnic community An EMIC approach to creating panethnic segments When ethnic groups can be aggregated A Framework for Assessing Panethnic Segments The framework Summary References CHAPTER 5: PERSPECTIVES ON ETHNIC LOYALTY Interactions between ethnic consumers, groups and businesses Dealing with intra-group heterogeneity Loyalty drivers Developing loyalty Cultural affinity / shared ethnicity and switching costs Switch motivations Summary References CHAPTER 6: articulatinG ethnic marketing with ethnic entrepreneurship From immigrant to ethnic minority consumer From ethnic minority consumer to ethnic entrepreneur Socialisation and entrepreneurship Recognition of ethnic minority business by ethnic communities From ethnic marketing to marketing by ethnic minority businesses References CHAPTER 7: UNDERSTANDinG ethnic entrepreneurship Conceptualising ethnic entrepreneurship Drivers and impediments in the creation of ethnic minority business The ethnic enclave theory The middleman minority model The disadvantage theory The cultural theory Ethnic minority business’ creation and consolidation Business opportunity structures Group characteristics Ethnic strategies and the typical ethnic minority businesses Ethnic groups as natural incubators for ethnic businesses References CHAPTER 8: ethnic minority business growth, demise and failure Interactive model Social embeddedness theory One model doesn’t fit all Mixed embeddedness theory Mixed embeddedness: the norm and a potential barrier to growth Considering growth capabilities and the role of the co-ethnic minority group Ethnic minority business and the acculturation process Growth and demise Summary References CHAPTER 9: ethnic NETWORKS AND THE ADOPTION OF RELATIONAL STRATEGIES Preferred suppliers, ethnic networks and minority ethnic markets Ethnic networks as relational drivers Networks imply relational imperatives Decision to adopt a relational marketing approach Relationship between consumers and preferred suppliers Loyalty to preferred suppliers Switching preferred suppliers Relationships, networks and competitive advantage Implications for consumer groups not bound by ethnicity Conclusion References CHAPTER 10: ETHNIC ENTREPRENEURSHIP AND THE MARKETING MIX Theory, practice, strategy and the segmentation dilemma A view of the gap between theory and practice Business opportunities and ethnic minority business Objectives, strategies, and tactics Ethnic minority business’ objectives, strategies and tactics Outgrowth threshold Ethnic minority business customer portfolio Why adopting an ethnic sensitive relational marketing strategy? Relational embedding of ethnic sensitive tactical activities Summary References Vignette: An alternative view of ethnic minority business CHAPTER 11 : product, price, place, physical evidence and process The product element: Considering tangibility and perceived risk. Approach to the discussion of the tactical ethnic marketing mix. Product. Price. Place. Physical evidence. Conspicuous commitment for the long-term. Process. References CHAPTER 12: PROMOTION AND PERSONALISATION The promotional element Serving anyone that comes through the door Marketing communications and minority co-ethnic groups The challenges of a dynamic environment Understanding communication as information processing activity The value proposition Typical tactical activities Language Media Message Effective ethnic communication - more than just language Intra-ethnic group segmentation: communicating in ‘portinhol’ Communicating to reduce perceived risk Word-of-mouth Grassroots / Viral marketing Relational communications for ethnic loyalty Co-ethnic business to business cooperation The personalisation element Simultaneity / inseparability as vehicle for responsiveness and personalization Conclusion References CHAPTER 13: PEOPLE, ETHICS AND SOCIAL RESPONSIBILITY Ethnocentrism within national boundaries Dealing with cultural distance Cultural distance is not all about language Language preference matters Typical tactical activities deployed by ethnic minority businesses The choice of people to employ Employing family members Employing co-ethnic staff (other than family members) Employing staff that share their ethnicity with the target market Using ethnic networks for recruiting consumers and suppliers Ethnic sensitivity skills training Management training and skills acquisition People tactics for competitive advantage Ethnic minority business: Ethics and social responsibility Statement of Ethics, AMA Disadvantage, vulnerability and poor business practices Exposure to ICT based structural change Flexibility and evolutionary dynamism Summary References CHAPTER 14: ENVIRONMENTAL FORCES, ethnic MARKETING AND ETHNIC ENTREPRENEURSHIP The Political Environment Ethnicity, migration and the future of ethnic marketing Implications from differences in immigration policies and acculturation Longstanding countries of immigration Australian Migration Policy Sketch Current Policy towards Permanent Immigration Australian Multicultural Policy Canada, New Zealand and the USA USA Past Major Emigration Countries Germa German policies facilitating/hindering multiculturalism France United Kingdom The potential for ethnic marketing in other environments South Africa Conclusion References
Guilherme D. Pires, PhD, is an Associate Professor at the Newcastle Business School, Faculty of Business & Law at University of Newcastle, Australia. He is a Trustee for the Business & Economics Society International and serves on the editorial board of various scholarly journals. John Stanton, PhD, is an Adjunct Associate Professor (Marketing) in the School of Business, Western Sydney University, Australia.
