International outshopping and ethnocentrism

Retail leakages caused by an increasing number of outshopping to other countries has become a growing concern among retailers in border areas. This research seeks to examine the shopping behaviour and attitudes of Singaporeans in neighboring Malaysia and, specifically, the influence of demographic and retail characteristics on outshopping. The importance of various types of secondary costs of outshopping and the impact of consumer ethnocentrism on attitudes toward outshopping are also explored. Findings reveal that food, beverage and grocery products are the most commonly outshopped items. Competitive prices and ample parking space are major reasons for outshopping frequently. Frequent outshoppers perceive fewer secondary costs than infrequent outshoppers and, as a whole, they do not feel unwelcome or guilty when outshopping. In short, this research suggests that, as consumers engage in outshopping primarily for economic reasons, they do not experience a lack of national pride or low consumer ethnocentrism.