A lack definitional clarity in the conceptualization of ethnicity, ethnic identity and ethnic group inhibits the development of a coherent investigation and discussion of the relevance of ethnicity as the focus of a marketing strategy. The strong tendency is to categorize individuals into “ethnic groups” based on characteristics defining an ethnic group, regardless of an individual”s felt affinity with that group. This equates to a social group with shared values and interactions, unable to explain/predict marketing relevant behaviour. It is the sense and strength of shared ethnic identity that sets the relevance of ethnicity and the ethnic group to marketers. As a social construct the ethnic group lends itself to a network interpretation that highlights the social capital available to its members, strengthening its importance in influencing individual behaviours. The ethnic group will consist of individuals with varying strengths of ethnic identity and varying strength of ties to other group members and those external to the group. It is concluded that understanding how one’s ethnicity influences consumer decision-making requires understanding how ethnic identity forms and changes over time.