Ethnic consumers in culturally diverse markets: Challenges and opportunities for services marketing

This paper reviews the services marketing literature in order to identify the types of unique problems non-mainstream ethnic consumers are likely to encounter in selecting and purchasing services in a culturally diverse market. It is found that these problems are likely to be endemic to minority ethnic groups residing in a culturally diverse nation. In addressing these problems, word of mouth communication is argued to play a potentially crucial role, given apparent limitations in the accessibility to alternative mainstream sources of information. Constrained information fosters the development of close relationships by ethnic consumers with their reference group and that group's preferred suppliers of services. Identified potential outcomes include an increased dependence on the reference group and the service suppliers. This is supported by switching constraints and may result in increased loyalty. This potential for consumer loyalty can be developed by service providers as a source of sustainable competitive advantage.