Acculturation and apparel store loyalty among immigrants in Western countries

Abstract

Western countries have experienced a steady increase in the number of immigrants since 2000 and these immigrants appear to be a sizeable market segment for apparel retailers in Western host countries owing to their acculturation. This study investigates how acculturation of immigrants drives their loyalty to apparel stores in Western countries. Three hundred and sixty usable responses obtained from South Asian immigrants living in Australia were analysed using PLS-SEM, non-linear variance-based SEM, and fsQCA. The results showed that immigrants’ acculturation enhances their loyalty to Australian apparel stores, whereas immigrants’ ethnocentrism reduces their loyalty as well as mediates the impact of ethnic community participation on their store loyalty. Ethnic community participation further weakens the association between acculturation and store loyalty. This study contributes to consumer behaviour literature and retailing in the context of immigrants’ acculturation. It provides implications for retailers interested in creating a loyal customer base among immigrants in Western countries.