February 11, 2008

Consumer Ethnocentrism: an Integrative Review of its

Antecedents and Consequences

IBA 8010 Seminar in IB

Presented by Shu-Jen Chen

Introduction

4. Concluding Comments

Introduction (Con’t)

1.Ethnocentrism & CET (Shimp and Sharma, 1987)

2.Environment & Demographic Antecedents of CET

3.Relationship b/w CET & its Consequences:Relevant Moderating

& Mediating Variables

The Rest of the Paper

Ethnocentrism & CET

COO image: Country of origin

Q: IS a US consumer positive to buy

French wine?

A: Nationalistic reasonsCET is more a “general tendency” to

avoid buying foreign products.

Socio-Psychological Antecedents & CET

Socio-psychological Antecedents

• Cultural Openness• World Mindedness ( － )• Patriotism ( ＋ )• Conservatism ( ＋ )• Collectivism • Animosity ( ＋ )• Materialism ( ＋ )• List of Values: External ( ＋ )

Internal ( － )• Salience ( ＋ )• Dogmatism ( ＋ )

CET

Consumer

Ethnocentrism

( －)

( ＋ )

Economic Antecedents & CET

Economic Antecedents

• Capitalism ( － )

• Stage of Economic Develop.

Improving National Econ. ( － )

Improving Personal Fin.

Ex: 1.Poland & Russia (Good & Huddleston, 1995) 2.US (Klein & Ettenson, 1999)

CET

Consumer

Ethnocentrism( －)

Political Antecedents & CET

Political Antecedents

• Propaganda ( ＋ )

• History Oppression

• Outgroup Size, Proximity ( ＋ )

• Leader Manipulation ( ＋ )

Ex:Higher CET scores in Poland compared to Russia with history oppression (Good & Huddleston, 1995)

CET

Consumer

Ethnocentrism

( ＋ )

Demographic Antecedents & CET

Demographic Antecedents

• Age • Gender (Women Higher)• Income • Education ( － )• Race (N/A )• Social Class ( － )Opportunity of Segmenting

consumers to foreign products

CET

Consumer

Ethnocentrism

( ＋)

( － )

CET, Mediators, Moderators & Outcomes

CET

Consumer

Ethnocentrism

Mediators

• Attitude Toward

Foreign Product

( － )• Purchase

Intention ( － )• Support for

Foreign Product

( － )

Outcomes

• Perceived Equity ( － )• Empathy ( ＋ )• Perceived Cost ( － )• Responsibility ( ＋ )• COO ( － )

• Product Evaluation ( － )

• Perceived Product Necessity ( － )• Perceived Economic Threat ( ＋ )• Cultural Similarity ( ＋ )

Moderators

An Integrated Graphic Framework of Antecedents & Consequences of CET

CET

Consumer

Ethnocentr.

Mediators

• Attitude Toward

Foreign Product

( － )• Purchase

Intention ( － )• Support for

Foreign Product

( － )

Outcomes

• Perceived Equity ( － )• Empathy ( ＋ )• Perceived Cost ( － )• Responsibility ( ＋ )• COO ( － )• Product Evaluation ( － )

• Perceived Product Necessity ( － )• Perceived Economic Threat ( ＋ )• Cultural Similarity ( ＋ )

Moderators

Socio-psychological

Antecedents

• Cultural

Openness ( － )• World

Mindedness ( － )• Patriotism ( ＋ )• Conservatism

( ＋ )• Collectivism ( ＋ )• Animosity ( ＋ )• Materialism ( ＋ )• List of Values:

External ( ＋ )

Internal ( － )• Salience ( ＋ )• Dogmatism ( ＋ )

Economic Antecedents

• Capitalism ( － )• Stage of Economic Develop. Improving National Econ.

( － ) Improving Personal Fin.

( － )

Political Antecedents

• Propaganda ( ＋ )• History Oppression ( ＋ )• Outgroup Size, Proximity ( ＋ )• Leader Manipulation ( ＋ )

Demographic Antecedents

• Age ( ＋ )• Gender (Women Higher)

• Income ( － )• Education ( － )• Race (N/A)• Social Class ( － )

Conclusion

A dearth of studies to measure CET in services

Cost of effectiveness of JV and FDI as approaches to overcome ethnocentrism in government purchase policy “buy local”

Taking advantage of prevalent ethnocentric tendencies by promoting the “native” image in domestic markets

Suggestion

Further research to measure CET in services (Intangible Products)

Besides JV and FDI, alliance or acquisition are also good strategies to break through ethnocentrism in government procurement

Domestic enterprises can emphasize “native” image to promote products in domestic markets