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Consumer Ethnocentrism: an Integrative Review of its Antecedents and Consequences IBA 8010 Seminar in IB Presented by Shu-Jen Chen. Introduction. Introduction (Con’t). 1.Ethnocentrism & CET (Shimp and Sharma, 1987). The Rest of the Paper. 2.Environment & Demographic Antecedents of CET.
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Consumer Ethnocentrism: an Integrative Review of its Antecedents and Consequences IBA 8010 Seminar in IB Presented by Shu-Jen Chen February 11, 2008
Introduction (Con’t) 1.Ethnocentrism & CET (Shimp and Sharma, 1987) The Rest of the Paper 2.Environment & Demographic Antecedents of CET 3.Relationship b/w CET & its Consequences:Relevant Moderating & Mediating Variables 4. Concluding Comments
Ethnocentrism & CET • COO image: Country of origin Q: IS a US consumer positive to buy French wine? A: Nationalistic reasons • CET is more a “general tendency” to avoid buying foreign products.
Socio-Psychological Antecedents & CET Socio-psychological Antecedents CET • Cultural Openness • World Mindedness (-) • Patriotism (+) • Conservatism (+) • Collectivism • Animosity (+) • Materialism (+) • List of Values: External (+) • Internal (-) • Salience (+) • Dogmatism (+) (-) Consumer Ethnocentrism (+)
Economic Antecedents & CET 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) Consumer Ethnocentrism (-)
PoliticalAntecedents & CET 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) Consumer Ethnocentrism (+)
DemographicAntecedents & CET CET Demographic Antecedents • Age • Gender (Women Higher) • Income • Education (-) • Race (N/A ) • Social Class (-) • Opportunity of Segmenting • consumers to foreign products Consumer Ethnocentrism (+) (-)
CET, Mediators, Moderators & Outcomes Outcomes Mediators CET Consumer Ethnocentrism • Perceived Equity (-) • Empathy (+) • Perceived Cost (-) • Responsibility (+) • COO (-) • Product Evaluation (-) • Attitude Toward • Foreign Product • (-) • Purchase • Intention (-) • Support for • Foreign Product • (-) • Perceived Product Necessity (-) • Perceived Economic Threat (+) • Cultural Similarity (+) Moderators
AnIntegrated Graphic Framework of Antecedents & Consequences of CET Socio-psychological Antecedents Mediators Outcomes Economic Antecedents • Cultural Openness (-) • World Mindedness (-) • Patriotism (+) • Conservatism (+) • Collectivism (+) • Animosity (+) • Materialism (+) • List of Values: External (+) Internal (-) • Salience (+) • Dogmatism (+) CET • Perceived Equity (-) • Empathy (+) • Perceived Cost (-) • Responsibility (+) • COO (-) • Product Evaluation (-) • Attitude Toward • Foreign Product • (-) • Purchase • Intention (-) • Support for • Foreign Product • (-) Consumer Ethnocentr. • Capitalism (-) • Stage of Economic Develop. • Improving National Econ. • (-) • Improving Personal Fin. • (-) Demographic Antecedents Political Antecedents Moderators • Age (+) • Gender (Women Higher) • Income (-) • Education (-) • Race (N/A) • Social Class (-) • Perceived Product Necessity (-) • Perceived Economic Threat (+) • Cultural Similarity (+) • Propaganda (+) • History Oppression (+) • Outgroup Size, Proximity (+) • Leader Manipulation (+)
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 acquisitionare also good strategies to break through ethnocentrism in government procurement • Domestic enterprises can emphasize “native” image to promote products in domestic markets