Ethnocentrism

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Ethnocentrism

  1. 1. Journal of Consumer BehaviourJ. Consumer Behav. 7: 436–447 (2008)Published online in Wiley InterScience(www.interscience.wiley.com) DOI: 10.1002/cb.262Who are ethnocentric?Examining consumerethnocentrism in Chinese societiesJane Lu Hsu* and Han-Peng NienDepartment of Marketing, National Chung Hsing University, 250 Kuo Kuang Road, Taichung40227, Taiwan This study examined consumer ethnocentrism in Chinese societies and further to reveal whether more ethnocentric consumers would have higher preferences of domestic products. Multi-item CETSCALE was applied in the study. Consumer surveys were administered in Taipei, Taiwan and in Shanghai, China, using stratified sampling method following the age and gender distributions of the populations between the ages of 15 and 64 in Taipei and in Shanghai. The differences in consumer ethnocentrism from respondents in Shanghai and in Taipei are that Shanghai respondents are more ethno- centric than Taipei respondents. Furthermore, ethnocentric consumers in Shanghai believe domestic brands of mobile phones are the best choices, while ethnocentric consumers in Taipei think domestic brands of mobile phones are the second best. Ethnocentrism has a strong influence on preferences of domestic brands. Ethnocentric consumers in both cities were relatively older, with lower educational levels, and had been travelling abroad fewer times in the past 3 years. Results of this study indicated that different patterns of consumer ethnocentrism existed in sub-cultural Chinese societies. Copyright # 2008 John Wiley Sons, Ltd.Introduction ism to cultural narrowness in explaining behavioural tendencies of accepting thoseA view to justify consumer bias towards with similar culture and rejecting others withproducts produced domestically is the concept dissimilar culture. LeVine and Campbell (1971)of consumer ethnocentrism. Sumner (1906) defined ethnocentrism to exaggerated prefer-proposed the idea of consumer ethnocentrism ences for individuals’ own groups and dislike-to distinguish sociological concepts of ness of different groups.ingroups and outgroups. Ingroups are the Shimp and Sharma (1987) used consumergroups accepted by certain individuals, while ethnocentrism to represent the beliefs ofoutgroups are those antithetical to the domestic consumers about the appropriate-ingroups. Levinson (1950) linked ethnocentr- ness and morality of purchasing foreign-made products. Consumer ethnocentrism is the*Correspondence to: Jane Lu Hsu, Department of Market- thoughts of identities, belongingness anding, National Chung Hsing University, 250 Kuo KuangRoad, Taichung 40227, Taiwan. understanding of acceptable and unacceptableE-mail: jlu@dragon.nchu.edu.tw behaviour of domestic consumers within theCopyright # 2008 John Wiley Sons, Ltd. Journal of Consumer Behaviour, December 2008 DOI: 10.1002/cb
  2. 2. Consumer ethnocentrism 437ingroups. Kucukemiroglu (1999) utilised inter- The opportunities to interact with peopleview data collected in Istanbul mentioned con- from other cultures reduce the prejudicesumers who were classified as non-ethnocentric against different cultures. Westernisationshowed more favourable beliefs, attitudes and reflects the acceptance of the cultural charac-intentions towards imported products than teristics of western countries that is notethnocentric consumers. Ethnocentric consu- indigenous to the Chinese culture. Sharmamers would believe that their personal or et al. (1994) indicated that the antecedents tonational well-being could be under threat from consumer ethnocentric tendencies includedimported products (Shimp and Sharma, 1987; openness to foreign culture and demographicSharma et al., 1994). Watson and Wright (2000) factors such as age, education and income.concluded consumers with relatively high levels Although consumer ethnocentrism has beenof ethnocentrism preferred imported products well studied in the literature, consumerfrom countries with similar culture. In evaluating ethnocentrism in Chinese cultures has notimported products for ethnocentric consumers, been examined exclusively using consumercultural similarity could be critical. survey data from different sub-cultural Klein et al. (1998) stated ethnocentric societies to reveal distinct patterns of ethno-consumers tended to purchase domestic centrism. The objective of this study is toproducts due to the belief that products made examine consumer ethnocentrism in Chinesein their own country were considered societies and further to reveal whether moresuperior. Wang and Chen (2004) argued that ethnocentric consumers would have higherin a developing country, influences of con- preferences of domestic products. The multi-sumer ethnocentrism on willingness to pur- item Consumers’ Ethnocentric Tendencieschase domestic products were weakened by Scale (CETSCALE) developed by Shimpjudgement of inferior product quality. Klein (1984) and Shimp and Sharma (1987) wasand Ettenson (1999) utilised a national repre- applied in the study to examine consumersentative survey of US citizens from National ethnocentrism. The data were gathered byElection Study to examine consumer animosity administering consumer surveys in Taipei andand consumer ethnocentrism. Findings in their in Shanghai, two large cities in Taiwan and instudy revealed that females and consumers of China respectively, following age and genderlower socioeconomic status were more ethno- distributions of the populations.centric. Suh and Kwon (2002) examined The contributions of this study are: (1) toeffects of global openness on consumer provide new insights into ethnocentrism ofethnocentrism and reluctance to purchase Chinese consumers using data representingforeign-made products. They concluded con- the populations in Chinese societies; (2) tosumer ethnocentrism was an important factor offer suggestions based on the findings of thisin determining the magnitude of reluctance in study for marketing managers to have anthe purchases of imported products. understanding of sub-cultural differences in Moss and Vinten (2001) mentioned that consumer ethnocentrism; and (3) to fulfil a gapeven for geographical neighbours, cultural in the literature of ethnocentrism from theperformance could be different. Laroche aspect of sub-cultural differences in Chineseet al. (2003) emphasised importance of societies and to form a baseline for futureanalysing sub-cultural differences within cul- research. Although findings in the study ofturally affiliated countries. Pereira et al. (2002) Pereira et al. (2002) indicated that mainlandutilised student samples to examine consumer Chinese were more ethnocentric than Taiwa-ethnocentrism in different cultures and con- nese, the student data collected from singlecluded that consumers of Chinese culture universities in Beijing and in central Taiwanwere more ethnocentric than those of Indian restricted applicability of findings and couldculture, and mainland Chinese were more not be representative to reveal sub-culturalethnocentric than Taiwanese. differences in Chinese societies. The uniquenessCopyright # 2008 John Wiley Sons, Ltd. Journal of Consumer Behaviour, December 2008 DOI: 10.1002/cb
  3. 3. 438 Jane Lu Hsu and Han-Peng Nienof this study is to administer consumer surveys are more westernised tend to have lowerfollowing age and gender distributions of the preferences of domestic brands. The hypoth-populations to ensure representativeness of esis H2 is as follows:the findings. Furthermore, the results of thisstudy may assist marketing managers in H2: Consumers who are more westerniseddesigning marketing strategies to enhance have lower preferences of domestic brands.the effectiveness of marketing communicationin Chinese societies. Referred to the findings in the study of Pereira et al. (2002) that mainland Chinese were more ethnocentric than Taiwanese, thisMethodology study hypothesises that consumers in ChinaResearch framework are more ethnocentric than consumers in Taiwan as follows:In Chinese history, the most recent regionalseparation from the Greater China was Taiwan H3: Consumers in China are more ethno-in 1949 resulting from the Chinese Civil War. centric than consumers in Taiwan.People in Taiwan and in China had limitedinteraction during the first few decades ofseparation, and diversified sub-cultures were Data collectiondeveloped in these two regions. China had closed its doors to the Western Questionnaires were designed based on theworld during the period of Cultural Revolu- literature related to consumer ethnocentrism,tion. In Taiwan, cultural and social system had discussions of professionals and practitionersbeen influenced by Japanese culture due to and suggestions from respondents participatedJapanese colonisation from 1895 to 1945. in trial surveys. Mobile phones were selectedComparisons of consumer ethnocentrism in this study to examine influences ofusing survey data obtained from diversified consumer ethnocentrism on preferences ofconsumers living in populous cities in China domestic or imported brands due to abun-and in Taiwan could reflect sub-cultural dance of mobile phone brands available in thedistinct patterns of consumer ethnocentrism. marketplace. In Taiwan, the brand compe- Based on the findings in the literature, this tition in the market of mobile phones isstudy hypothesises that consumers who are intense. Mobile phones from foreign countriesmore ethnocentric have higher preferences of compete with those from other countries asdomestic brands. The hypothesis H1 is as well as the local brands in Taiwan.follows (Figure 1): China, an emerging market with a popu- lation of 1.3 billion, has rapid economic H1: Consumers who are more ethnocentric development and people in large cities along have higher preferences of domestic brands. the coastline become relatively wealthy. Mobile phones are popular and affordable. Furthermore, this study hypothesises that Foreign brands of mobile phones have devotedwesternisation affects preferences of domestic a huge amount of money in marketing,brands. Consumers in Chinese societies who especially in large cities in China. Mobile phones manufactured in China compete with foreign brands in the local market. In the questionnaire, questions related to consumption patterns of mobile phones, attitudes towards domestic and imported brands, westernisation, purchasing intentionsFigure 1. Research framework. and demographics were included. In order toCopyright # 2008 John Wiley Sons, Ltd. Journal of Consumer Behaviour, December 2008 DOI: 10.1002/cb
  4. 4. Consumer ethnocentrism 439examine the differences of consumer ethno- concern was due to the time constraint.centrism in two sub-Chinese cultures, two Sample selection bias in both surveys wassurveys were administered separately in minimal and should not be of major concern.Shanghai, China, in November 2004 and in The total valid samples were 617 (93% of theTaipei, Taiwan, in December 2004. The trial total number of surveyed respondents), withsurveys were conducted in both cities prior to 336 samples in Taipei and 281 samples inthe formal surveys. Questionnaires used in Shanghai. The comparisons of age distributionsTaipei were printed in Traditional Chinese of valid samples with the latest censuses inCharacters. For the questionnaires used in both cities are listed in Table 1. RespondentsShanghai, Simplified Chinese Characters were in Shanghai were about a year younger thanapplied to lessen the difficulties of respondents respondents in Taipei. In general, survey datain understanding the questions. The stratified obtained in Taipei and in Shanghai weresampling method was used following the age composed of respondents from various ageand gender distributions of the populations ranges and should be representative in thesebetween the ages of 15 and 64 in Taipei and in age groups.Shanghai. Trained surveyors personally inter- The survey data in Taipei consisted of 58.93viewed 321 respondents in Shanghai and per cent married respondents, while it in341 respondents in Taipei. The surveys were Shanghai of 63.12 per cent. Personal averageconducted at the public areas like memorial monthly income of respondents in Taipei wasparks, train stations and entrances of super- USD 1032.56 while in Shanghai was USDmarkets where respondents were easily acces- 353.75. Educational level of respondents insible. A gift worth about 1 US dollar was Taipei was relatively higher than it of respon-provided to each respondent before the survey dents in Shanghai. The percentage of respon-started. Surveyors were not to interfere with dents in Taipei having educational levels ofhow respondents answered the questions junior high school or less was 6.85, of seniorduring the survey. For any reason respondents high school was 24.40, of college was 59.23decided to terminate the survey, the gifts were and of graduate school was 9.52. On thenot retrieved back and the questionnaires contrary, 17.02 per cent of respondents inwere discarded. Respondents needed around Shanghai had educational levels of junior high20–30 minutes to finish the survey. For school of less, 38.65 per cent had senior highrespondents who did not wish to participate school education, 42.20 per cent had finishedor did not finish the questionnaires, the major college and 2.13 per cent had studied inTable 1. Age distributions of samples and the censuses Survey in 2003 Census Survey in 2000 Census Taipei in Taipei Shanghai in ShanghaiGender (% Male) 46.73 48.00 (age 15–64) 54.61 52.35 (age 15–64)Average age (years) 36.88 — 35.74 —Age ranges (%) Male Female Male Female Male Female Male Female15–24 9.23 11.01 10.11 9.76 10.99 13.83 10.76 10.4025–34 10.42 11.90 10.17 11.29 14.54 9.22 11.84 10.1235–44 11.01 14.29 11.27 12.91 13.83 9.93 13.60 12.0245–54 11.31 10.71 10.98 11.94 10.28 8.51 11.12 10.2055–64 4.76 5.36 5.47 6.10 4.96 3.90 5.02 4.91Source: The Census in Taipei was from the Ministry of the Interior (2004) and the Census in Shanghai was from theBureau of Statistics of Shanghai (2002).Copyright # 2008 John Wiley Sons, Ltd. Journal of Consumer Behaviour, December 2008 DOI: 10.1002/cb
  5. 5. 440 Jane Lu Hsu and Han-Peng Niengraduate schools. Average family sizes were respondents with similar characteristics into4.22 persons in Taipei and 3.47 in Shanghai. In the same segment, while separating respon-sum, compared with respondents in Shanghai, dents with distinct characteristics into differ-the respondents in Taipei were relatively ent segments. The non-hierarchical clusteringwealthier with higher educational levels and method, K-Means Approach, is applied in thisliving in larger households. study. The classification process is iterated to reduce the possibilities of assigning obser- vations into a segment that cannot bestAnalytical methods describe the characteristics of observations.Descriptive statistics, factor analysis, probitmodels and cluster analysis were applied in Resultsthis study to examine the differences ofconsumer ethnocentrism in two Chinese In order to compare the cultural differencessocieties and further to reveal influences of between two sub-cultures in two populatedconsumer ethnocentrism on preferences of Chinese cities in terms of westernisation, adomestic products. In this study, the maximum number of questions related to westernisedlikelihood method was applied with the lifestyles were included in the questionnaires.Varimax rotation method for generating fac- Factor analysis was applied to extract under-tors with meaningful interpretations. The lying factors of westernisation that could beprobit model was applied in this study to further used in probit models to revealreveal how variables affect the possibilities of influences of westernisation on preferencesselecting brands of mobile phones produced of domestic brands. Table 2 lists the results ofdomestically. The probit model examines the factor analysis for datasets of Taipei andchoice behaviour of individuals when two Shanghai. Based on the scree plots andalternatives are available and one has to be eigenvalues resulted from the principal com-chosen (Judge et al., 1988). ponents analysis, four factors were considered Cluster analysis was applied in this study to to be appropriate to explain the uniquesegment respondents of different levels of patterns of westernisation of respondentsconsumer ethnocentrism and to reveal pre- in Taipei and in Shanghai. For respondentsferences of mobile phones in terms of country in Taipei, westernisation could be described inof origin. Cluster analysis is capable to classify dimensions of experience, fashion, global viewTable 2. Factors of westernisation of respondents in Taipei and in Shanghai Factors of respondents’ westernisation in TaipeiFactor 1 (experience) Factor 2 (fashion) Factor 3 (global view) Factor 4 (event)Travel overseas Prefer western clothing styles Accept other cultures Watch foreign sports gamesWatch foreign movies Purchase imported brands Prefer western education Attend parties of foreignersInteract with foreignersTaste foreign foods Factors of respondents’ westernisation in ShanghaiFactor 1 (foreign superiority) Factor 2 (experience) Factor 3 (interaction) Factor 4 (media contact)Purchase imported brands Taste foreign foods Attend parties of foreigners Watch foreign sports gamesPrefer western clothing styles Travel overseas Interact with foreigners Watch foreign moviesPrefer western educationAccept other culturesCopyright # 2008 John Wiley Sons, Ltd. Journal of Consumer Behaviour, December 2008 DOI: 10.1002/cb
  6. 6. Consumer ethnocentrism 441and event. Total variance explained in these Rotated factor loadings of the CETSCALE arefour dimensions in the dataset of Taipei was listed in Table 3. The results revealed that70.80 per cent. For respondents in Shanghai, consumer ethnocentrism had distinct patternswesternisation could be explained in factors of of respondents in Taipei and in Shanghai. Forforeign superiority, experience, interaction respondents in Taipei, the first dimension ofand media contact. These four factors consumer ethnocentrism included protectingaccounted for 70.02 per cent of total variance. and supporting domestic business, and not toThe items included in factors were not further cause unemployment. The first factoridentical in the two datasets since respondents of CETSCALE in Taipei was termed Protection-were in the environment of different levels of ism. The second factor was related to domesticwesternisation. Shanghai is considered the product purchases. The implication was thatmost westernised city in China, but analysed only in a situation that certain products wereresults revealed that they had travelled abroad unavailable in the home country, the imported0.52 times on average in the past 3 years. products would be considered. The secondRespondents in Taipei were relatively weal- factor of CETSCALE in Taipei was named Self-thier, and the average times to travel overseas reliance. For the dataset of Shanghai, the firstwere 2.21 in the past 3 years. Regional factor of CETSCALE indicated relatively mod-separation of Taiwan from the Greater China erate patriotism while the second factorin 1949 and consequent limited interaction included statements of behavioural appropri-between these two regions could explain why ateness of purchasing domestic products. Thedimensions of westernisation of respondents first factor of CETSCALE in Shanghai wasin Shanghai were different from it of respon- termed Conservative Patriotism, while thedents in Taipei. These results further revealed second was Defensive Patriotism. The totalthat sub-cultural differences would be devel- variance explained was 66.27 per cent ofoped in Chinese societies due to certain CETSCALE in Taipei and 56.94 per cent inpolitical situations or government regulations. Shanghai. Ten-item CETSCALE was utilised in the Probit model was utilised in this study toquestionnaire to examine consumer ethno- analyse influences of westernisation and con-centrism of respondents in Taipei and in sumer ethnocentrism on possibilities of select-Shanghai. Respondents in Shanghai indicated ing foreign brands of mobile phones. Fourrelatively higher scores of CETSCALE, 35.39, factors of westernisation, two factors ofcompared with scores of 33.05 of respondents consumer ethnocentrism, attitudes towardsin Taipei. With the difference between characteristic of domestic and foreign mobileCETSCALE scores of Shanghai and of Taipei phone brands, numbers of different brandsstatistically significant at 5 per cent signifi- used before, whether currently using domesticcance level, this result indicated that Shanghai brands of mobile phones, whether respon-consumers were more ethnocentric than dents were heavy users of mobile phones, andconsumers in Taipei. Hypothesis H3 in this demographic variables were included asstudy was supported and the results coincided explanatory variables in probit models. Thewith findings in Pereira et al. (2002) that results are listed in Table 4. Positive parameterconsumers in China were more ethnocentric estimates indicated increased tendencies tothan Taiwanese consumers. Student survey select imported brands of mobile phones.data used in the study of Pereira et al. (2002) Those respondents in Taipei who emphasisedrestricted applicability of their research find- importance of foreign cultural experiences andings. In this study, real consumer data obtained preferred western fashion styles had strongfrom various gender and age groups generated tendencies to purchase imported brands ofresults that could reflect sub-cultural differ- mobile phones. This could be explained thatences in consumer ethnocentrism in Chinese respondents of Taipei travelled 2.21 times tosocieties. overseas on average in the past 3 years prior toCopyright # 2008 John Wiley Sons, Ltd. Journal of Consumer Behaviour, December 2008 DOI: 10.1002/cb
  7. 7. 442 Jane Lu Hsu and Han-Peng NienTable 3. Factor loadings of consumer ethnocentrism dimensionsTaipei Factor1 Factor2 (protectionism) (self-reliance) 1. Taiwanese should not buy foreign products, because this hurts 0.8442 0.2636 Taiwanese business and causes unemployment 2. We should purchase products manufactured in Taiwan instead 0.7389 0.2963 of letting other countries get rich off us 3. Taiwanese consumers who purchase products made in other 0.7016 0.2257 countries are responsible for putting their fellow Taiwanese out of work 4. It is not right to purchase foreign products 0.6803 0.3710 5. A real Taiwanese should always buy Taiwanese-made products 0.6106 0.3635 6. It may cost me in the long-run but I prefer to support Taiwanese 0.5927 0.4499 products 7. Purchasing foreign-made products is non-Taiwanese 0.5504 0.2052 8. Taiwanese products first, last and foremost 0.3604 0.7730 9. Only those products that are unavailable in Taiwan should 0.1687 0.7048 be imported10. We should buy from foreign countries only those products that 0.4233 0.6256 we cannot obtain within our own countryCronbach’s alpha 0.90 0.80Variance explained 55.30% 10.97%Shanghai Factor1 Factor2 (conservative (defensive patriotism) patriotism) 1. We should buy from foreign countries only those products that 0.6974 0.0198 we cannot obtain within our own country 2. Chinese should not buy foreign products, because this hurts 0.6234 0.3997 Chinese business and causes unemployment 3. We should purchase products manufactured in China instead of 0.6098 0.2557 letting other countries get rich off us 4. It may cost me in the long-run but I prefer to support Chinese 0.5909 0.1523 products 5. Chinese consumers who purchase products made in other 0.5813 0.3731 countries are responsible for putting their fellow Chinese out of work 6. A real Chinese should always buy Chinese-made products 0.4973 0.3972 7. Only those products that are unavailable in China should 0.4932 0.2736 be imported 8. Chinese products first, last and foremost 0.4454 0.3298 9. It is not right to purchase foreign products 0.3388 0.809710. Purchasing foreign-made products is non-Chinese 0.1140 0.7892Cronbach’s alpha 0.84 0.82Variance explained 45.03% 11.91%Note: Ten-item CETSCALE is adopted in questionnaire.participating in the survey, compared to preferences of domestic brands was partially0.52 times on average during the same time supported in this study. The dimension of Self-period for respondents in Shanghai. Foreign reliance of CETSCALE negatively influencedcultural experiences significantly influenced the possibilities of selecting imported brands,preferences of imported brands of mobile which indicated that consumers in Taipei whophones. Hence, hypothesis H2 that more believed products that were not producedwesternised consumers would have lower domestically should be imported were proneCopyright # 2008 John Wiley Sons, Ltd. Journal of Consumer Behaviour, December 2008 DOI: 10.1002/cb
  8. 8. Consumer ethnocentrism 443Table 4. Results of the probit modelsVariables Parameter estimates Standard errorsTaipei Intercept 0.3683 0.8440 Experience 2.3692b 1.0026 Fashion 1.8721a 1.0425 Global view À0.7138 0.8119 Event À1.4139a 0.8551 Protectionism À1.4389 4.1399 Self-reliance À16.0792b 4.2614 Attitude towards imported brands 0.0628b 0.0129 Attitude towards domestic brands À0.0714b 0.0132 Gender À0.2504 0.2234 Age À0.0012 0.0125 Marriage À0.5053a 0.2979 Income 0.0001 0.0002 Senior High School 0.8606a 0.5017 College 0.6586 0.4922 Graduate School 1.1402a 0.5836 Heavy user 0.1044 0.2680 Numbers of brands being used 0.1569 0.0972 Currently using domestic brands À0.4411a 0.2584Shanghai Intercept 1.2176 0.8818 Foreign superiority 3.2586b 1.3854 Experience 0.2095 1.2704 Interaction 1.2579 1.1946 Media contact 0.3333 1.5001 Conservative patriotism À9.8204b 2.8548 Defensive patriotism À4.7334 2.9360 Attitude towards imported brands 0.0331b 0.0097 Attitude towards domestic brands À0.0206b 0.0099 Gender À0.1688 0.2675 Age À0.0595b 0.0175 Marriage 0.9771b 0.4339 Income 0.0007 0.0005 Senior High School 0.4078 0.3814 College 0.8927b 0.3899 Graduate School 0.3338 0.9700 Heavy user 0.2852 0.2981 Numbers of brands being used À0.1446 0.1213 Currently using domestic brands À0.8544b 0.3143Note: McFadden’s R2 ¼ 0.49 (Taipei), 0.62 (Shanghai).a Indicates significance at 0.10 level.b Indicates significance at 0.05 level.to purchase domestic brands of mobile brands, while respondents with positivephones. Hypothesis H1 that consumers with attitudes towards domestic brands preferredstronger ethnocentric beliefs tend to have purchasing domestic brands of mobile phones.higher preferences of domestic brands was Respondents in Taipei who were married weresupported. Respondents who had positive less likely to purchase imported brands, but thoseattitudes towards imported brands had rela- with higher educational levels had tendencies totively high tendencies to purchase imported purchase imported brands. Respondents inCopyright # 2008 John Wiley Sons, Ltd. Journal of Consumer Behaviour, December 2008 DOI: 10.1002/cb
  9. 9. 444 Jane Lu Hsu and Han-Peng NienTaipei who currently used domestic brands of The implications of the findings in consumermobile phones were less likely to purchase ethnocentrism of respondents in Shanghai areimported brands for the next purchases. that income levels do not have significant The implications of the findings in consumer influences on preferences of foreign brands.ethnocentrism of respondents in Taipei are Certain dimensions of westernisation andthat income levels do not have a significant consumer ethnocentrism have impacts onimpact on preferences of imported brands of preferences of foreign brands.mobile phones. Personal experiences of foreign This study further utilised cluster analysis tocultures and intensity of ethnocentric beliefs segment respondents into ethnocentric andare more influential than attitudes towards non-ethnocentric groups for each dataset.domestic brands or effects of demographics. Factors of westernisation and CETSCALE, Results of the probit model of Shanghai and domestic/imported preferences were usedindicated that respondents who emphasised in the clustering procedure to reveal whetherforeign superiority were more likely to pur- consumers could be segmented into differentchase imported brands of mobile phones. levels of ethnocentrism. Results are listed inHypothesis H2 that more westernised con- Table 5. About 60 per cent of respondents insumers have lower preferences of domestic Taipei were classified into non-ethnocentricbrands was partially supported. In the factors segment, while less than 50 per cent ofextracted from the CETSCALE, Conservative respondents in Shanghai were consideredPatriotism negatively influenced possibilities non-ethnocentric. In both cities, respondentsof purchasing imported brands. Hypothesis H3 who were ethnocentric were more likely to bethat more ethnocentric consumers have higher older consumers. Ethnocentric consumers inpreferences of domestic brands was supported Taipei were the ones with higher personalin this study. For respondents in Shanghai who income, but in Shanghai were with lowerhad positive attitudes towards imported income. As revealed in the results of the probitbrands had higher tendencies to purchase models, income levels did not have significantforeign brands of mobile phones, while for influences of preferences of foreign brands.those who had positive attitudes towards Certain latent factors would have influences ondomestic brands were less likely to buy levels of ethnocentrism through income, whileimported brands. Older consumers in Shanghai income alone should not be considered as andid not prefer imported brands as much as influential variable on ethnocentrism. Non-young consumers did. Respondents in Shang- ethnocentric consumers had been overseashai who were married were more likely to more than ethnocentric consumers had in thechoose imported brands, which was different past 3 years. This result implied that lessfrom preferences of married respondents in ethnocentric consumers were the ones withTaipei. Higher educated consumers in Shang- more experiences with foreign cultures.hai liked imported brands of mobile phones, Respondents who were more likely to beespecially those who had finished college level ethnocentric were the ones with relativelyof education. Those who had graduate school lower levels of education. The scores of thetraining in Shanghai did not have significant CETSCALE of ethnocentric consumers werepreferences of imported mobile phones. This higher than the scores of non-ethnocentriccould be explained that about 2 per cent of consumers. Respondents in the cluster of non-respondents in the dataset of Shanghai had ethnocentric had more than 90 per centeducational levels of graduate schools and their possibilities to purchase imported brands ofpreferences were not significantly revealed by mobile phones. On the contrary, ethnocentricthe probit model in this study. Respondents in consumers in Taipei had about 20 per centShanghai who currently used domestic brands chances to choose imported brands, whilewere prone to purchase domestic brands for those who were classified as ethnocentricthe next purchases. consumers in Shanghai had less than 40 per centCopyright # 2008 John Wiley Sons, Ltd. Journal of Consumer Behaviour, December 2008 DOI: 10.1002/cb
  10. 10. Consumer ethnocentrism 445Table 5. Segmentation of respondents by ethnocentrism Taipei Shanghai Segment 1 Segment 2 Segment 1 Segment 2 (non-ethnocentric) (ethnocentric) (non-ethnocentric) (ethnocentric)Percentage of respondents 59.52 40.48 46.45 53.55Gender (% male) 47.50 45.59 51.15 57.62Marriage (% married) 49.50 72.79 57.25 68.21Average age (years) 33.87 41.32 34.00 37.26Monthly income (USD) 979.23 1110.34 390.00 321.00Experience of going abroad (times in 2.29 2.10 0.72 0.34the past 3 years)Educational level (%) Junior high school or less 1.50 14.71 13.74 18.79 Senior high school 24.00 25.00 36.64 40.94 College 63.00 53.68 46.56 38.93 Graduate school 11.50 6.62 3.05 1.34CETSCALE scores 28.51 39.87 31.71 38.77Purchasing imported brand intention (%) 94.50 21.37 96.95 38.10Country of origin ranking (mobile phones) China 6 6 5 1 Taiwan 5 2 6 6 Korea 4 5 1 2 Japan 1 1 3 4 USA 3 3 2 3 EU 2 4 4 5Note: Cubic clustering criterion (CCC) is 27.81 for Taipei and 21.18 for Shanghai.possibilities to purchase imported brands. This could be interesting result that consumersRespondents in Taipei ranked Japanese brands in these two cities did not like brands fromthe highest among six listed country of origins. each other.Ethnocentric respondents in Taipei ranked In sum, ethnocentrism is a belief that coulddomestic brands the second choice, followed influence consumer preferences of domesticby US brands. Non-ethnocentric respondents brands. Consumers who have more contactin Taipei ranked brands from EU the second with foreign cultures or are more westernisedhighest, also followed by brands from US. The seem to be less ethnocentric. Using consumerrespondents in Taipei ranked the brands from survey data obtained from Shanghai and TaipeiChina the lowest no matter that they were in this study reflects certain similarities inmore ethnocentric or not. For ethnocentric ethnocentric consumers in these two citiesrespondents in Shanghai, domestic brands that they are likely to be older, with lowerwere the first choices, followed by Korean levels of education, and are less likely tobrands. Brands from Korea were ranked high- purchase imported brands. The differences inest for those respondents who were classified consumer ethnocentrism from respondents inas non-ethnocentric in Shanghai. Brands from Shanghai and in Taipei are that ShanghaiUS were ranked next to Korean brands for respondents are more ethnocentric than Taipeieither ethnocentric or non-ethnocentric con- respondents. Furthermore, ethnocentric consu-sumers in Shanghai. Brands from Taiwan were mers in Shanghai believe domestic brands ofranked the lowest for Shanghai respondents. mobile phones are the best choices, whileCopyright # 2008 John Wiley Sons, Ltd. Journal of Consumer Behaviour, December 2008 DOI: 10.1002/cb
  11. 11. 446 Jane Lu Hsu and Han-Peng Nienethnocentric consumers in Taipei think to be the target customers. Less ethno-domestic brands of mobile phones are the centric consumers are more likely to pur-second best. Results of this study revealed that chase imported brands of mobile phones.separation of Taiwan from China and regional 2. Marketing managers should not considerdevelopment could lead to unique patterns of consumers in Shanghai and in Taipei areconsumer ethnocentrism. homogeneous. Localisation may be a way for strategic marketing in sub-cultural diver- sified Chinese societies. In Shanghai,Conclusion foreign superiority is a key dimension forThis study examined differences of consumer consumers in purchasing decisions ofethnocentrism of two Chinese societies and foreign brands. In Taipei, foreign culturalhow consumer ethnocentrism influences pre- experiences dominate other dimensions offerences of domestic brands of mobile phones. westernisation in purchasing decisions ofThe multi-item CETSCALE was applied in the foreign brands. Income levels do not havestudy. Consumer surveys were administered in significant influences on decisions, implyingTaipei, Taiwan and in Shanghai, China. that not necessarily wealthier consumersStratified sampling was used in both surveys purchase foreign brands. Less ethnocentricfollowing distributions of the populations consumers have higher possibilities purchas-between the ages of 15 and 64 in Taipei and ing foreign brands of mobile phones.in Shanghai. The total valid samples were 281in Shanghai and 336 in Taipei. The results of Limitations of the study andthis study indicated consumers in Shanghai suggestions for future studieswere more ethnocentric than consumers inTaipei in general. In both cities, ethnocentric Limitations of this study include using mobileconsumers were the ones with less foreign phones as research objects. Although foreigncultural experiences and would have higher and domestic brands of mobile phones arepreferences of domestic brands. available in the markets of Shanghai and Taipei, Results of this study revealed that ethno- the competition among different mobilecentrism had a strong influence on preferences phones may be affected by country-of-originof domestic brands. Ethnocentric consumers effects, which are not examined in a greatin both cities were relatively older, with lower extent in this study.educational levels, and had been travelling Cultural dimensions and variables measuringabroad fewer times in the past 3 years. economical development were not included inEthnocentric Shanghai respondents were loyal the study. Future studies may need to considerto domestic brands. Ethnocentric Taipei cultural influences and include certain macrorespondents ranked domestic brands as one type of variables in the analyses to capture theof the top choices. Results of this study effects of economical development on prefer-indicated that different patterns of consumer ences of foreign brands.ethnocentrism existed in sub-cultural Chinesesocieties. Acknowledgements Marketing strategies based on the results ofthis study are suggested as follows: This research is supported by Grant (NSC 93- 2416-H-005-006) from National Science Coun-1. For marketing managers who intend to cil in Taiwan. introduce imported brands of mobile phones into Shanghai or Taipei, the seg- Biographical notes ment of consumers who are more wester- nised, younger, with higher educational Jane Lu Hsu is a professor in the Department levels, and less ethnocentric are more likely of Marketing at National Chung Hsing Univer-Copyright # 2008 John Wiley Sons, Ltd. Journal of Consumer Behaviour, December 2008 DOI: 10.1002/cb
  12. 12. Consumer ethnocentrism 447sity in Taiwan. Her doctorate is in agricultural ality, Adorno TW, Frenkel-Brunswik E, Levinsoneconomics from Kansas State University in US. DJ, Sanford RN (eds). Harper Brothers: NewHer research interests include market segmen- York, pp. 102–150.tation and consumer studies. Ministry of the Interior, 2004. Republic of China, Han-Peng Nien was a former Graduate [Online], http://www.ris.gov.tw.Research Assistant in the Department of Mar- Moss G, Vinten G. 2001. Choices and preferences:keting at National Chung Hsing University in testing the effect of nationality. Journal of Con-Taiwan. His primary research interests were sumer Behaviour 1(2): 198–207.product marketing and consumer decision process. Pereira A, Hsu CC, Kundu S. 2002. A cross-cultural analysis of ethnocentrism in China, India, and Taiwan. Journal of International Consumer Marketing 15(1): 77–90.References Sharma S, Shimp TA, Shin J. 1994. Consumer eth-Bureau of Statistics of Shanghai. 2002. Shanghai nocentrism: a test of antecedents and modera- Statistical Yearbook. tors. Journal of the Academy of MarketingJudge GG, Hill RC, Griffiths WE, Lutkepohl H, Lee ¨ Science 23(1): 26–37. T-C. 1988. Introduction to the Theory and Prac- Shimp TA. 1984. Consumer ethnocentrism: the tice of Econometrics (2nd edn). John Wiley concept and a preliminary empirical test. In Sons: New York. Advances in Consumer Research, Vol. 11,Klein JG, Ettenson R. 1999. Consumer animosity Kinnear TC (ed.). Association for Consumer and consumer ethnocentrism: an analysis of Research: Utah; 285–290. unique antecedents. Journal of International Shimp TA, Sharma S. 1987. Consumer ethnocentr- Consumer Marketing 11(4): 5–24. ism: construction and validation of the CETS-Klein JG, Ettenson R, Morris MD. 1998. The ani- CALE. Journal of Marketing Research 24(3): mosity model of foreign product purchase: an 280–289. empirical test in the People’s Republic of China. Suh T, Kwon IWG. 2002. Globalization and reluc- Journal of Marketing 62(1): 89–100. tant buyers. International Marketing ReviewKucukemiroglu O. 1999. Market segmentation by 19(6): 663–680. using consumer lifestyle dimensions and ethno- Sumner WG. 1906. Folkways: The Sociological centrism: an empirical study. European Journal Importance of Usages, Manners, Customs, of Marketing 33(5/6): 470–487. Mores, and Morals. Ginn Co.: Boston.Laroche M, Papadopoulos N, Heslop L, Bergeron J. Wang CL, Chen ZX. 2004. Consumer ethnocentr- 2003. Effects of subcultural differences on ism and willingness to buy domestic products in country and product evaluations. Journal of a developing country setting: testing moderating Consumer Behaviour 2(3): 232–247. effects. Journal of Consumer Marketing 21(6):LeVine RA, Campbell DT. 1971. Ethnocentrism: 391–400. Theory of Conflict, Ethnic Attitudes, and Group Watson JJ, Wright K. 2000. Consumer ethnocentr- Behavior. John Wiley Sons: New York. ism and attitudes toward domestic and foreignLevinson DJ. 1950. Chapter 4. The study of ethno- products. European Journal of Marketing 34(9/ centric ideology. In The Authoritarian Person- 10): 1149–1166.Copyright # 2008 John Wiley Sons, Ltd. Journal of Consumer Behaviour, December 2008 DOI: 10.1002/cb

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