Table of Contents
Socio-Psychological antecedents to consumer ethics
Economic Ancestors
Political Ancestors
Demographic Covariates & Ethnocentrism
Consequences Consumer Ethnocentrism
Conclusion and Results
Works cited
Ethniccentrism, as a generalized concept, stems from ethnocentrism in consumers. Ethnocentric individuals consider their group superior to all other groups. They view others from their perspective and choose to accept or reject other groups. Ethnocentrism refers to consumers’ ethnocentric views towards products from other countries, the out-group. It may be perceived as inappropriate or even embarrassing by consumers to purchase products from countries other than their own.
Consumer ethnocentrism helps consumers understand what is acceptable in-group purchases, and gives them a sense of belonging and identity. Non-ethnocentric products are judged on their merits and may be even more positive for being from a foreign country. Glen Brodowsky examined consumer ethnocentrism of U.S. car purchasers in 1998. Glen Brodowsky found strong correlations in automobile evaluations between high ethnocentrism, country-base bias, and high ethnocentrism. Low ethnocentrism consumers tended to judge cars based on their actual merits, rather than the country of origin. Brodowsky suggests it is important to understand consumer ethnocentrism in order to understand the effects country of birth. Subhash Sharma & Terence A. Shimp established a scale that measures ethno-centric consumer tendencies. CETSCALE was initially developed with 225 questions. These were then reduced to 100 to make it more manageable for survey groups. Through repeated purifications, the number reached 17 questions. Repeated studies by Shimp & Sharma validated the U.S.CETSCALE. The full version, which includes 10 items, was also developed. Both the 17-item version and the 10-item version were tested. Both versions were reliable in their reliability across cultures. These results validated the CETSCALE’s ethnocentricity as a measure of consumers. Since then, many studies have used the CETSCALE in many countries and different cultures. While much of consumer ethnocentric tendencies research takes place in developed countries most of it is not being done in developing countries. However, there has been an effort to review the literature and make some further investigations. CET is a combination of socio-psychological, political, demographic and economic factors that have been empirically tested in different research groups. This is also known as customer openness to foreign cultures. Shankarmahesh defined Cultural Openness as: “The willingness and possibility of people in one cultural to interact with people, values and artifacts other cultures”. CET has a negative correlation with cultural openness as stated by Sharma and Shimp. These two likely believed that cultural openness is negatively correlated with CET. However, these studies failed to consider the maxims of “familiarity breeding contempt” (SRC), and the notion that one can judge another culture using one’s cultural reference point. The relationship between cultural openness (CET) and SRC can be further explored by looking at the potential moderators, attitudes towards foreign brands, and possible interactions and antecedents like xenophobia. Conservatism can be defined as the effort to preserve the old order of society that has lasted the test. One form of conservatism is a rigidity on punishments and religious views, as well as a strict view on rules and punishments. These studies did not include data on developing countries. The studies show that there are different results for developing countries. CET’s impact on conservatism must be considered alongside the moderating influences of education, globalization, and world mindset. People who are world-minded give less weight to ethnicity and nationality and instead consider humans as their primary reference group. This encourages people to have common values and to feel connected to other cultures. A person who is not interculturally connected can theoretically be world-minded. World-minded consumers care about international affairs and are open to collaborating with others. You can argue that the CET and Cultural Openness have a relationship. World mindedness is a possible moderator. Collectivism refers to the perception of collectivist goals over individual goals. Hofstede described it as “collectivist individuals who are born into strong, cohesive groups that, throughout their lives, continue to protect them in return for unquestionable loyalty.” The promotion of domestic industry growth is an important element of collectivism. Individuals who have high scores in collectivism are more likely to be ethnocentric and oppose individualistic goals. CET has been shown to have a positive correlation with collectivism in countries that have developed. Many researchers define patriotism in many ways. They include “senses or national loyalty”, “a love and devotion to national symbols”, and “senses or national loyalty”. Liberalizing federal government trade policies in the WTO can never make it appear that these governments are ‘unpatriotic or hostile to their nation. This discussion highlights the need to examine the moderating effects that global mentality, education and the relationship between Patriotism & CET. CET is strongly predicted by ethnicity. The concept difference between internationalism or world mindedness can be described as positive feelings about foreign countries. This is an expression of empathy for other people and demonstrates international solidarity and welfare. Lee, Back, Zhang et.al. The negative correlation between internationalism, consumer ethnocentrism, and developed country consumption has been empirically established by Zhang et al. The Crawford, Lamb, Rawwas and Rawwas studies however show a positive correlation in buying preferences between international brands as well as the global mindset. Ethnocentrism’s moral dimension emphasizes that the reason it occurs is because nationals of a country buy products from foreign countries. This causes them to lose their workers and leave behind a well-off nation. Salience can be defined as the perceived threat to domestic worker and the positive relationship perception that ethnocentrism is in danger. Shimp, Sharma, and others support the positive correlation between salience to the CET. It was included in the conceptual model because it is a moderator. Both views are valid. Dogmatism refers to a personality trait for black and blue viewing of the universe. Different studies also show a strong positive correlation between consumer ethnocentrism and dogmatism. Xenophobia is an attitude or fear that is negative toward or towards individuals or groups that are different (real or imaginary) from oneself. Xenophobia is an emotion that consumers develop out of fear and distrust. It also reinforces ethnocentric tendencies. The empirical evidence supports xenophobia as well as consumer ethnocentrism in a strong way. Materialistic possessions are a major reason for the lack of satisfaction in interpersonal relationships. Materialism is defined by possessiveness, envy, and non-generosity. Consumer ethnocentrism has been associated with envy, possessiveness and a need to protect oneself and to identify in a larger group like materialism. A positive correlation was established between materialism and consumer-ethnocentrism. Socio-Psychological Anecedents of Consumer Ethnocentrism. This review covers the main socio-psychological constructs, but other perspectives and researchers have also included other antecedents. Individual social responsibility and inheritance are just a couple of examples. Although it was suggested that negative attitudes toward foreigners could be pre-existing CET, most researchers see them as a result of higher levels of CET. Consumer affinity is also a positive determinant for consumer ethnocentrism. Consumer ethnocentrism is interrelated. There are conceptual differences in how to define social identity theory-based in and out-groups. Economic AntecedentsEthnocentrism is regarded as a sociological concept, but the holistic term of consumer ethnocentrism has a great deal to do with the economic aspects of nations as a whole. Different researchers have done studies to determine the economic relationship between a nation and its moderators. The results for developed and developing countries are quite divergent, but they do show some consistency when you consider the similarity of people from different countries. It refers to how a country manages its economic activities like socialism, capitalism, and mixed economies. The country’s current economic system has a direct impact on the nationalist and ethnocentric feelings of citizens. Capitalism which encourages people to own their property is negatively associated to the CET. Citizens’ research in four postcommunist nations has further supported this conclusion. Socio-economic economies, on the other hand, are more conservative and tend to have more ethnocentric tendencies. An unique CE model was found in a study that examined 13 transitional European economies. The authors concluded that domestic products are preferred by consumers because of the weak relationship between CET and cosmopolitanism in these countries. Unfortunately, the literature on CET and economic backgrounds in developing countries is scarce. The country’s development stage is an important factor in influencing consumers’ ethnocentric tendencies. This framework identifies the various stages of economic growth and consumer preferences for domestic goods. According to the framework, foreign products are preferred in the first stages of transition (from state control and market control). In the intermediate phase of transition, however, it is possible to observe the dominance by nationalist motives. This tendency will be reversed when the country reaches a developed status. Klein and Ettenson argue that consumers are purchasing more imported goods as a result of an increase in disposable income. They also believe there is a negative correlation between economic development and CET. Comparative studies in the United States, Slovenia, Kazakhstan and Kazakhstan have confirmed this association. In advanced countries such as the U.S., we have seen a negative association between consumer ethnocentrism in relation to national economy improvement beliefs. Authors also suggested that CET may be reduced when people have a better financial life. It was primarily because of the relationship between consumer income and foreign brand preferences that the positive correlation was discovered. People who believe that their national economies are improving over the last few years show less ethnocentrism. Consumers in developed countries tend to prefer domestic brands, while people from developing nations are more likely to prefer products made from the developed world. Political AncestorsPolitical propaganda refers to informal government mentoring of their nationals to improve their attitudes towards local brands. These campaigns may also be promoted by non-profit organisations in certain countries. Rosenblatt’s propaganda was originally presented as a precedent for the CET in 1964. Rosenblatt argued that leaders could increase ethnocentrism by making out-groups more fearful, which would be a empirical question. It is worth noting the role played by ‘political direction’ in regulating the relationship between political propagandism and the CET. However, it is also important to note that political freedom can reduce the impact of propaganda. Most governments’ campaigns to “buy local” are not well-received in diasporas. Further, it was claimed that campaigns promoting ‘buy locally’ in developing countries like Indonesia have enough ethnocentric influence. It is worthwhile to examine the impact of the’made In India’ campaign on Indian consumers’ perceptions of ethnocentrism. CET levels vary greatly depending on the country’s political history. The argument was that countries with a long history oppression have higher levels of CET. They also feel more strongly about rejecting the out-group values and encouraging group cohesiveness. One argument is that people who have been conquered will perceive the ‘in-group products’ as being superior to those of conquered ones. Because India is under Western control for so long, it is expected that consumers will be moderate in their purchasing decisions. A leader can manipulate the beliefs of a group, according to some. Leaders who conduct programs that foster homogeneity among their members are a clear incentive for customers of the nation to increase ethnocentric feelings. Jean Bodin in 16th century introduced the concept sovereignty, which emphasized the country’s fundamental right to be free from outside influences. Most political theories agree on sovereignty as a situation where the supremacy and authority of the territory legislature is decided by the population. Ethnocentrism and colonialism are also linked to sovereignty, it was argued. Demographic Covariates, Ethnocentrism. Researchers report comprehensively the demographic antecedents for the CET. This only benefits consumers by segmenting them based their willingness to buy foreign products. Previous research has indicated that marketers should understand the relationship between demographic variables (and consumer ethnocentrism) in order to determine domestic buyers’ tolerance for foreign brands. Research has shown that younger customers are more ethnocentric than older ones. This is due to their socio-cultural influences. There is mixed evidence supporting the argument that younger people tend to be less ethnocentric. However, some studies do not support this claim. Researchers find a positive correlation between age and favorable product evaluations. Researchers aren’t unanimous about the importance of gender in analysing the customer’s behavior. Many studies have shown that women are more ethnocentric in evaluating foreign products than men. This could be due to their more traditional and conformist natures or their higher tendency to maintain social harmony. However, there were some studies that found no gender differences in CET. In contrast, women were less ethnocentric to men. Education is generally viewed as a tool to broaden the mind and reduce conservatism. Researchers have found that CET and customer education are negatively related. In general, those with more education are less likely be prejudiced against ethnicity. Income is a significant factor in customer decision making. While most studies conclude that income is a key factor in customer ethnocentrism, there are some fluctuations. Higher income levels allow for greater travel opportunities and experience beyond borders. This eventually leads to a more cosmopolitan outlook. Social classes refer to social groups that are relatively homogeneous in society and have a consistent pattern in their consumer buying decisions. The correlation between income and CET can be extended according to social class, CET, or other factors. One could speculate that consumers’ ethnocentric tendencies fall with the rise in social status. The negative correlation between social class and CET is not consistent. This suggests that consumers in the upper classes are more ethnocentric than those from the lower and middle classes. CET and social classes are therefore correlated in a remote way. There are many opinions on whether minorities prefer foreign or domestic countries. Different results have been obtained from different research on consumer ethnocentrism. Research has shown that foreign brands are more attractive to minorities than they are to majority ethnic groups. Consequences Consumer Ethnocentrism. The primary outcome of our research is to determine if ethnocentrism matters to the nation’s customers. Previous research has provided several operational definitions of CET’s possible consequences. Previous research has revealed that there are several operational definitions for possible CET consequences. What factors influence consumers’ ethnocentrism? This is an important question that needs to be answered. International marketers can have a profound influence on the ethnocentric tendencies of foreign clients. They identified three types of effects on consumer ethnocentrism based on previous research. It refers directly to consumers beliefs about foreign brands and their quality, including the qualities and price of imported products. Second, it refers generally to consumers attitudes towards foreign advertising and products. Third, it refers solely to consumer purchasing intentions. ‘
The argument that consumer ethnocentrism and domestic product evaluation are positively related is a common concept. All of the studies to date, with a few exceptions, support this argument. Empirically, it is clear that CET has a positive effect on domestic product buying intention. Many researchers have identified a number of mediators and their impact on consumers’ ethnocentrism. Researchers carried out their research in the U.S. They suggested empathy and perceived equity as mediators between CETs and willingness for imports. The empathy of others is influenced by the ethnocentrism of the consumer. CET has been shown not to impact perceived equity because ethnocentric consumer believe that international competition can be destructive for domestic industries. This will cause them to opt for domestic products. Ethnic consumers tend to disregard personal economic costs when purchasing domestic goods, proving CET’s price instability nature. According to the authors, consumers are more responsible when there is less perceived equity. This makes it easier to choose domestically made products over foreign ones. Another variable that influences consumer patriotism is the ‘Country of Origin (COO). Although patriotism was found to have an effect on the image of a country in developed countries, the relationship between them and the importance the product had a moderate effect. The empirical data regarding the relationship between image and intention to purchase are inconsistent. CET, an affective or normative construct, can lead to a country of origin effect. This is essentially cognitive construct. The empirically supported mediating variables that can be used to evaluate foreign products include ‘product evaluation’. CET has not been shown to have a significant effect on the evaluation of foreign products’ quality. Some Japanese products show positive correlations. Two variables could be moderators, namely. There were two moderating variables, namely ‘perceived Product Necessity’ and perceived Economic Threat’. The first refers to how consumers feel that an external product is indispensable because it is absolutely essential. CET perceived foreign products as more dangerous than they actually were. Perceived threat to economic stability is similar to salience, a socio-psychological concept. CET was primarily associated with products that were perceived as a threat for the entire home economy, according to the authors. Watson and Wright conducted a study of New Zealand consumers and found that consumers who have high CET used source country cultural similarity to evaluate product attitudes and product quality. Conclusions and ResultsThe goal of the research project is to give a complete review of consumer ethnocentrism’s history and its consequences. The subject is examined in detail for each possible antecedent as well as its consequences. These studies can help to better understand the consumer markets of different countries at different stages of economic development. This project will expand the knowledge base on marketing in transitional markets and enhance consumer behavior. Works Cite
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