An international investigation of cultural and demographic effects on domestic retail loyalty

Noting the lack of research on cultural effects on retailing, the present study uses the cultural framework developed by Hofstede as the foundation for an investigation of loyalty to domestic retailers. A multi‐country survey of consumer attitudes about domestic versus international retailers explored the effects of two cultural variables (individualism and uncertainty avoidance), two individual‐level demographic variables (age and sex), and one country‐level demographic variable (the ratio of imports to GDP). Results indicated that cultural individualism is negatively correlated with loyalty to domestic retailers, uncertainty avoidance is positively related to loyalty to domestic retailers, the ratio of foreign imports to GDP is negatively correlated to loyalty to domestic retailers, and men exhibit greater loyalty to domestic retailers than women do. Age was not a significant predictor. A procedure is presented for extending these findings to more than 45 additional countries. Implications of these findings for international strategic planning by retailers and directions for future academic exploration are discussed.