Broad and Narrow Country-of-Origin Effects and the Domestic Country Bias

ABSTRACT

Across three studies and three countries, this research specifies the effect of consumer ethnocentrism on domestic country bias. Extending extant research, it distinguishes the moderating effects of broad (country image, country production image) and narrow (country product category image) country-of-origin effects, demonstrating that the latter mitigate domestic country bias more strongly than the former. Moreover, nationality emerges as an antecedent of consumer ethnocentrism and domestic country bias. The findings enable international marketers to predict domestic country bias in different country markets. Additionally, this research advocates using a finer-grained, narrow view of country-of-origin effects, instead of a broad perspective.     

Ethnocentrism and Its Effect on the Chinese Consumer: A Threat to Foreign Goods?

This study examines ethnocentric tendencies including consumer ethnocentrism, country of origin, product judgments, willingness to buy, and animosity toward foreign products among a sample of economically progressive Chinese college students in a coastal port city in northern China. Survey results suggest that these Chinese consumers held a rather positive view of, and little animosity toward, the United States. They also did not show high levels of ethnocentrism or country-of-origin effects. These results would suggest openness toward foreign products. While Chinese consumers report little animosity or ethnocentric tendencies toward U.S. products, animosity, country of origin, and ethnocentrism are significantly correlated with willingness to buy. This suggests managers need to carefully position foreign products with respect to Chinese consumer expectations. Impacts of traditional collectivist views of the Chinese culture are suggested as an avenue for future research with respect to ethnocentrism and willingness to buy foreign products.     

Measuring Consumer Ethnocentrism: An Assessment of Reliability,Validity and Dimensionality of the CETSCALE in a Developing Market

ABSTRACT

Based on 305 surveyed consumers in Zimbabwe’s two major cities (Harare and Bulawayo), the study sought mainly to measure consumer ethnocentrism and to test psychometric properties of the CETSCALE in Zimbabwe using structural equation modeling. It was established that the construct of consumer ethnocentrism comprises two dimensions, namely negative influence of foreign products, and preference for domestic products. Consumer ethnocentrism was found to be moderately high. The psychometric properties of the CETSCALE tested above the required thresholds. Consumer ethnocentrism was found to negatively influence consumer attitude towards imported poultry products. The study has implications for managers and future researchers.     

Antecedents of Taiwan Chinese Consumers’ Purchase Intentions Toward U.S.- and Japanese-Made Household Appliances

ABSTRACT

The purpose of this article is to understand the factors influencing Taiwan's Chinese consumers’ purchase intentions toward U.S. and Japanese household appliances. The authors attempt to develop and test a comprehensive model linking such purchase intentions to several constructs including Taiwan Chinese consumers’ openness to foreign cultures, consumer nationalism, product familiarity, traditional cultural values orientation, and product-country image. The result of analysis using structural equation modeling shows that consumer nationalism has a strong indirect effect on purchase intention via the product-country image construct. Taiwan Chinese consumers’ traditional cultural values orientation and openness to foreign cultures have direct effects on consumer nationalism and, hence, are important antecedents in explaining the purchase intentions toward foreign-made goods by Taiwan Chinese consumers. With the growing importance of the Chinese domestic market, this study provides international marketing managers with practical implications in important areas such as market segmentation, branding strategy, and market research and practices in the Chinese consumer market.     

The Relationship Between Consumer Ethnocentrism and Human Values

Abstract

The study explores the relationship between human values and consumer ethnocentrism. Schwartz's (1992) framework of human values is used as the basis of the study. Hypotheses linking values and consumer ethnocentrism are developed and tested in samples of consumers drawn from Turkey and the Czech Republic respectively. Findings indicated that the values relationship to consumer ethno-centrism varies across the two countries surveyed. The study also confirmed that “conservation” types of values are positively related to consumer ethnocentrism. However, some of the hypotheses put forward are not empirically supported but they provide new avenues for future re-search.     

Consumer processing of foreign advertisements: roles of country-of-origin perceptions,consumer ethnocentrism,and country attitude

This paper reports the findings of a study that examined the impact of consumers’ three cross-national individual difference variables — country-of-origin perceptions, consumer ethnocentrism, and country attitudes — on their responses and attitudes toward foreign advertisements and advertised products. A model of consumer processing of international advertising has been proposed that consolidates a dual-element thesis comprising research on consumer processing of advertising, and several streams of research on cross-national individual difference variables. Empirical analysis of the hypothetical model through structural equation modeling yields supportive results: positive effects of consumers’ country attitudes on their responses to the creative presentation of international advertising, and positive effects of consumers’ country-of-origin perceptions on their responses to the buying proposal of international advertising. However, the hypothesized negative effects of consumer ethnocentrism on their responses to international advertising was not confirmed. The study contributes to our understanding of cross-national individual difference variables that precede and determine consumers’ attitudes toward foreign advertisements. It has practical implications for standardization versus localization of international advertising strategy.     

Ethnocentric tendencies of Indian consumers: impact on preference for domestic versus foreign products

India is witnessing a plethora of foreign and domestic products competing against each other in its retail market. In order to understand how ethnocentrism among Indian consumers leads to attitudes toward foreign/domestic products, this study aims to understand the antecedents (socio-psychological and demographic) of consumer ethnocentric tendencies (CET) among Indian consumers, the impact of ethnocentrism on attitude toward domestic versus foreign product and service, and the impact of a moderator (perceived economic threat) on the relationship between ethnocentrism and attitudes. Using a sample of 800 Indian consumers, the relationships among variables were analyzed by means of structural equation modeling (SEM) using one product (soap) and one service (mobile phone service) category. The findings suggest that Indian consumers who are ethnocentric prefer domestic product/service to foreign product/service. Ethnocentrism of Indian consumers is influenced by education, income, cultural openness, and collectivism. The relationship between ethnocentrism and attitudes was moderated by perceived economic threat. Implications are provided for both Indian and foreign marketers to successfully promote their products to Indian consumers.     

Managing Opportunism in China: The Roles of Guanxi,Environmental Uncertainty,and Management Culture

ABSTRACT

This cross-cultural comparison aims to understand whether the influence of consumer ethnocentrism (CE) on consumer preference for domestic versus foreign products is product category and country-of-origin dependent. Three countries with dissimilar cultural orientation and economic status—China, South Korea, and the United States—were examined. American consumers were found to be more ethnocentric than Chinese and South Korean consumers. CE was found to significantly and positively predict American and Korean consumers’ preference for domestic products across product categories, while Chinese consumers’ CE did not translate into their preference for Chinese products. In addition, the relationship between CE and purchase preference varied across product categories as well as countries of origin.     

Toward understanding the young consumer's brand associations and ethnocentrism in the lion's port

This study examines consumer brand associations, focusing on the differences in price perceptions, self‐image, and brand–image congruency held for Western and Eastern brands of fashion clothing by young Singaporeans. The study also examines consumer ethnocentric tendencies (CET), finding very low levels of ethnocentrism among respondents, and that ethnocentrism had no effect on brand preference or purchase intention for brands from different origins. © 2002 Wiley Periodicals, Inc.     

A meta-analysis of consumer ethnocentrism across 57 countries

The concept of consumer ethnocentrism was introduced more than 30 years ago, and since then it has received keen interest among academic researchers. However, empirical evidence in published studies has been inconclusive and many macro-drivers of consumer ethnocentrism received cursory attention. This study meta-analyses 240 studies from 57 countries and tries to understand the key drivers of consumer ethnocentrism. The results indicate that consumer ethnocentrism is a universal phenomenon and is driven by culture and the interaction of economic and ethnic diversity variables. Challenging popular beliefs, the findings suggest that neither globalization nor economic threats are unconditional drivers of consumer ethnocentrism. Their effects are conditional on cultural values and economic situation. Results provide evidence that multi-ethnic societies tend to be more consumer ethnocentric when the culture of a country is not strong in egalitarianism. Finally, the paper presents evidence that consumer ethnocentrism affects the imports of consumer goods in a country.     

Consumer Perception of Country-of-Origin Effect and Brand Effect

Abstract

Both brand information and country-of-origin information are often used by consumers to reduce the complexity of task involved in information processing. This paper investigates both effects on hi-tech products. I find that, overall, both country-of-origin effect and brand effect are statistically significant. However, the brand name product with an unfavorable country-of-origin image does not lose its advantage compared to the brand name product with a favorable country-of-origin image. The no-name product with a favorable country-of-origin image can offset the disadvantage of not being the brand name product.     

An investigation into the perceptions of Chinese consumers towards the country‐of‐origin of dairy products

The dairy incident in 2008 influenced Chinese residents’ attitudes towards domestic and foreign brands in the market. This paper highlights the strong consumer perceptions existing in the Chinese dairy market towards the country of origin of dairy products. Chinese residents generally believe dairy products from foreign countries are superior than those from China. A new theoretical framework is developed to explore the driving factors of country‐of‐effects and its corresponding impacts. Consumers’ image of different countries and national stereotypes, consumer ethnocentrism and animosity, product familiarity and experience, product involvement and some cultural value differences were found to drive country‐of‐origin effects. These effects directly impact on consumer's perceived quality, brand awareness, brand association and loyalty towards the related goods in the market, then influence the brand equity of products from different countries. This study provides a better understanding of country‐of‐origin effects on consumer behaviour, and will help relevant domestic and foreign firms improve their business strategies in China.     

Disentangling country-of-origin effects: the interplay of product ethnicity,national identity,and consumer ethnocentrism

The country-of-origin (COO) of products has been shown to affect consumer choice, especially in situations where the origin has a stereotypical association with particular products and depending on certain consumer traits (e.g., national identity, consumer ethnocentrism). However, little is known about how these phenomena are related. Two controlled experiments conducted in two different countries and product categories reveal that product ethnicity moderates the impact of national identity but not of consumer ethnocentrism. National identity is found to influence consumer preference only if the foreign product ethnicity is higher but not lower than that of comparable domestic products. Furthermore, while consumers with a low national identity are positively affected by a high product ethnicity of foreign products, this effect vanishes with increasing levels of national identity. This research has implications for academics and practitioners alike, as it examines important boundary conditions of country-of-origin effects that have been undiscovered so far.     

Being Arab and American: Understanding Ethnocentric Tendencies for Arab American Consumers

ABSTRACT

Scant research exists on Arab Americans' ethnocentric tendencies towards purchasing American-made products. This study explores the nexus among consumer ethnocentrism, empathy towards local workers, and ethnic identification. We examined ethnic identification, patriotism, dogmatism, and internationalism as potential influences on Arab Americans' ethnocentric tendencies towards purchasing products made in the US. Data were collected from 165 Arab Americans living in Michigan. We found that when Arab consumers felt empathic towards local workers, they were more ethnocentric towards purchasing local products. Arab Americans' ethnic identification neither influenced their ethnocentric tendencies towards American-made products nor their empathic feelings towards American workers. Our study provides key contributions related to minorities' preferences for locally made products.     

Revisiting Country Image – Examining the Determinants towards Consumers' Purchase Intention of High Technological Products

ABSTRACT

The purpose of this study is to investigate consumers' perceptions towards a developed country image (e.g. USA) and a developing country image (e.g. China) in relation to evaluating and buying high technological products, more specifically, smartphones. In addition, the research also examines the effects of consumer aspirations and product knowledge as consumption traits towards buying behavior. A self-administered questionnaire was employed for this study using established scales with the questions formulated around two countries, USA and China. It was administered through a mall intercept method and a particular focus will be associated to the comparison of China and USA. The stark contrast between the two countries in terms of their image and stature presents an insightful inquiry into the relevancy of country image and country of origin image importance in modern day context. The results show that country image as an evaluation cue is still pertinent in a generation where globalization is present. Results further highlights that although possessing a positive country image leads to a positive evaluation of the product country image, it however does not ensure a successful purchasing intent. Additionally, it is beneficial to note that the results for both USA/IPhone and China/Xiaomi showed a significantly greater path coefficient as compared to other causal paths. Potential moderating factors such as product involvement or pricing can also be explored. Future research should attempt to account for socio economic or demographic factors such as important controls for education, social status and income that are bound to impact on the relationships at the heart of the proposed research hypotheses.     

中国背景下的全球品牌:洞察中国消费者的决策(英文)

本文探究了与全球十大品牌相关的中国消费者决策。通过四个层面(品牌熟悉度、品牌喜爱度、品牌信任度以及知晓一个品牌的原产国)来预测中国消费者样本的品牌购买意向,同时分析指出,中国消费者对世界主义、民族优越感、全球—本地身份的认识以及与全球消费者文化的区别也可能会影响其全球品牌购买意向。本文为全球十大品牌建立了回归模型,并有提供最有力证据的层级模型。品牌熟悉度、信任度和喜爱度基本上在很大程度上解释了差异的存在。     

A COOL Effect: The Direct and Indirect Impact of Country-of-Origin Disclosures on Purchase Intentions for Retail Food Products

Retailers recently became required to provide specific country-of-origin information for muscle cuts of beef, chicken, pork, lamb, and goat. Drawing from the consumer inference and activation theory literatures, hypotheses are offered regarding how consumers use country-of-origin labeling (COOL) to draw inferences related to specific product attributes and how these inferences, in turn, lead to differences in mediation effects for purchase intentions. Results from a pilot study and two experiments reveal that consumers are more likely to purchase meat when it is identified as a U.S. product. Furthermore, the relative strength of the mediating effects of perceived food safety, taste, and freshness differs as expected. The authors show how the direct and indirect effects of the country-of-origin disclosure are attenuated by the presentation of objective information about the meat processing systems of competing countries. Given the recently mandated COOL disclosures, results have important implications for food retailers, members of the supply chain, and consumers.     

Purchase behavior in favor of domestic products in the West Balkans

Despite the long tradition of research on country-of-origin and consumer ethnocentrism, many of the issues remain unresolved in the literature, most notably the relationship between cognitive, affective and normative mechanisms in consumer choice behavior, and generalizability of existing research findings to non-traditional emerging and/or small country markets. This study responds to the current gaps in knowledge in that it examines behavioral manifestations of consumers’ choice of domestic vs. foreign products in four transitioning post-war markets in the West Balkans. Data were collected via personal interviews with 1954 adult urban consumers. The model of domestic purchase behavior was tested using SEM analysis. The results for all four country samples indicate that consumer ethnocentrism has affected domestic purchase behavior both directly and indirectly through domestic product appraisal. Moreover, we found consumer worldliness, a controversial construct in previous studies, to be uniformly negatively related to ethnocentrism. On the other hand, the findings related to the role of national identification as an antecedent to consumer ethnocentrism and domestic product appraisal were inconsistent across the samples. The implications of these findings for the validity and generalizability of existing models of consumer behavior in a new cultural context are considered, and implications for marketers interested in exploiting opportunities in the region are discussed.     

Profiling Peruvian Consumers' Lifestyles,Market Segmentation,and Ethnocentrism

ABSTRACT

Exploring consumer lifestyles and ethnocentrism is one way of investigating buyer behavior and market segmentation. This article studies consumer market segments existing among Peruvian consumers by using lifestyle patterns and ethnocentrism. Data for the study was collected through self-survey in two major cities located in Peru, South America. The results point out that there are nine style dimensions among Peruvian consumers that influence their ethnocentric tendencies. These findings have implications for marketers who currently operate in or are planning to enter the Peruvian market in the near future.

RESUMEN. Los estilos de vida de los consumidores y el etnocentrismo pueden explorarse a través de la investigación del comportamiento de los compradores y la segmentación del mercado. Este estudio analiza los segmentos existentes en los diferentes segmentos de mercado peruanos, utilizando patrones sobre su estilo de vida y etnocentrismo. Los datos utilizados en este estudio se colectaron a través de una encuesta realizada en dos importantes ciudades situadas en Perú, América del Sur. Los resultados señalan que existen nueve dimensiones sobre el estilo de vida entre los consumidores peruanos, que ejercen influencia sobre sus tendencias etnocéntricas. Estos hallazgos tienen sus propias implicancias para los operadores de mercado que operan actualmente en o tienen la intención de entrar en el mercado peruano en un futuro cercano.

RESUMO. Explorar os estilos de vida e o etnocentrismo dos consumidores constitui uma forma de investigar o comportamento dos compradores e a segmentação do mercado. Este estudo aborda os segmentos de mercado existentes entre os consumidores peruanos, usando padrões de estilo de vida e o etnocentrismo. Os dados do estudo foram coletados através de uma autopesquisa em duas grandes cidades localizadas no Peru. Os resultados indicam que nove dimensões de estilo entre os consumidores peruanos exercem influência sobre suas tendências etnocêntricas. Essas constatações têm implicações para comerciantes que atualmente operam no mercado peruano ou que planejam ingressar nele no futuro próximo.     

Mitigating consumer ethnocentrism via advertising and media consumption in a transitional market

Consumer ethnocentrism is considered an important barrier to consumption in the global marketplace. Although the concept of consumer ethnocentrism has been investigated over many years in developed markets, there is little research addressing the mitigation of consumer ethnocentrism in transitional economies, which are becoming increasingly important in the global marketplace. One such market, Russia, represents a major potential investment opportunity for global marketers. In this study, we undertake an exploratory study investigating consumer ethnocentrism’s negative influence on Russians’ attitudes towards foreign products and their frequency of purchase of foreign products. We also demonstrate that the influence of consumer ethnocentrism on the frequency of purchase of foreign products is moderated by consumers’ exposure to mass communication (i.e. exposure to television, exposure to foreign movies) and by marketing communication efforts (i.e. exposure to foreign product advertising, involvement with foreign product advertising). In addition to extending theoretical research to a transitional, non-Western context, the empirical results also provide implications for international advertising practitioners.