Ethnocentrism

Journal of Consumer Behaviour
J. Consumer Behav. 7: 436–447 (2008)
Published online in Wiley InterScience
(www.interscience.wiley.com) DOI: 10.1002/cb.262

Who are ethnocentric?
Examining consumer
ethnocentrism in Chinese societies
Jane Lu Hsu* and Han-Peng Nien
Department of Marketing, National Chung Hsing University, 250 Kuo Kuang Road, Taichung
40227, 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 those
A view to justify consumer bias towards
with similar culture and rejecting others with
products 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 consumer
groups accepted by certain individuals, while
ethnocentrism to represent the beliefs of
outgroups 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 and
ing, National Chung Hsing University, 250 Kuo Kuang
Road, Taichung 40227, Taiwan. understanding of acceptable and unacceptable
E-mail: jlu@dragon.nchu.edu.tw behaviour of domestic consumers within the

Copyright # 2008 John Wiley Sons, Ltd. Journal of Consumer Behaviour, December 2008
DOI: 10.1002/cb

Consumer ethnocentrism 437

ingroups. Kucukemiroglu (1999) utilised inter- The opportunities to interact with people
view data collected in Istanbul mentioned con- from other cultures reduce the prejudice
sumers who were classified as non-ethnocentric against different cultures. Westernisation
showed more favourable beliefs, attitudes and reflects the acceptance of the cultural charac-
intentions towards imported products than teristics of western countries that is not
ethnocentric consumers. Ethnocentric consu- indigenous to the Chinese culture. Sharma
mers would believe that their personal or et al. (1994) indicated that the antecedents to
national well-being could be under threat from consumer ethnocentric tendencies included
imported products (Shimp and Sharma, 1987; openness to foreign culture and demographic
Sharma et al., 1994). Watson and Wright (2000) factors such as age, education and income.
concluded consumers with relatively high levels Although consumer ethnocentrism has been
of ethnocentrism preferred imported products well studied in the literature, consumer
from countries with similar culture. In evaluating ethnocentrism in Chinese cultures has not
imported products for ethnocentric consumers, been examined exclusively using consumer
cultural 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 to
products due to the belief that products made examine consumer ethnocentrism in Chinese
in their own country were considered societies and further to reveal whether more
superior. Wang and Chen (2004) argued that ethnocentric consumers would have higher
in a developing country, influences of con- preferences of domestic products. The multi-
sumer ethnocentrism on willingness to pur- item Consumers’ Ethnocentric Tendencies
chase domestic products were weakened by Scale (CETSCALE) developed by Shimp
judgement of inferior product quality. Klein (1984) and Shimp and Sharma (1987) was
and Ettenson (1999) utilised a national repre- applied in the study to examine consumer
sentative survey of US citizens from National ethnocentrism. The data were gathered by
Election Study to examine consumer animosity administering consumer surveys in Taipei and
and consumer ethnocentrism. Findings in their in Shanghai, two large cities in Taiwan and in
study revealed that females and consumers of China respectively, following age and gender
lower socioeconomic status were more ethno- distributions of the populations.
centric. Suh and Kwon (2002) examined The contributions of this study are: (1) to
effects of global openness on consumer provide new insights into ethnocentrism of
ethnocentrism and reluctance to purchase Chinese consumers using data representing
foreign-made products. They concluded con- the populations in Chinese societies; (2) to
sumer ethnocentrism was an important factor offer suggestions based on the findings of this
in determining the magnitude of reluctance in study for marketing managers to have an
the purchases of imported products. understanding of sub-cultural differences in
Moss and Vinten (2001) mentioned that consumer ethnocentrism; and (3) to fulfil a gap
even for geographical neighbours, cultural in the literature of ethnocentrism from the
performance could be different. Laroche aspect of sub-cultural differences in Chinese
et al. (2003) emphasised importance of societies and to form a baseline for future
analysing sub-cultural differences within cul- research. Although findings in the study of
turally affiliated countries. Pereira et al. (2002) Pereira et al. (2002) indicated that mainland
utilised student samples to examine consumer Chinese were more ethnocentric than Taiwa-
ethnocentrism in different cultures and con- nese, the student data collected from single
cluded that consumers of Chinese culture universities in Beijing and in central Taiwan
were more ethnocentric than those of Indian restricted applicability of findings and could
culture, and mainland Chinese were more not be representative to reveal sub-cultural
ethnocentric than Taiwanese. differences in Chinese societies. The uniqueness

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438 Jane Lu Hsu and Han-Peng Nien

of this study is to administer consumer surveys are more westernised tend to have lower
following 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 this
study may assist marketing managers in H2: Consumers who are more westernised
designing marketing strategies to enhance have lower preferences of domestic brands.
the effectiveness of marketing communication
in Chinese societies. Referred to the findings in the study of
Pereira et al. (2002) that mainland Chinese
were more ethnocentric than Taiwanese, this
Methodology study hypothesises that consumers in China
Research framework
are more ethnocentric than consumers in
Taiwan as follows:
In Chinese history, the most recent regional
separation 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 limited
interaction during the first few decades of
separation, and diversified sub-cultures were
Data collection
developed in these two regions.
China had closed its doors to the Western Questionnaires were designed based on the
world during the period of Cultural Revolu- literature related to consumer ethnocentrism,
tion. In Taiwan, cultural and social system had discussions of professionals and practitioners
been influenced by Japanese culture due to and suggestions from respondents participated
Japanese colonisation from 1895 to 1945. in trial surveys. Mobile phones were selected
Comparisons of consumer ethnocentrism in this study to examine influences of
using survey data obtained from diversified consumer ethnocentrism on preferences of
consumers 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 the
distinct 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 is
study hypothesises that consumers who are intense. Mobile phones from foreign countries
more ethnocentric have higher preferences of compete with those from other countries as
domestic 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 devoted
westernisation 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 intentions
Figure 1. Research framework. and demographics were included. In order to

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examine 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 was
surveys 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 the
Taipei, Taiwan, in December 2004. The trial total number of surveyed respondents), with
surveys were conducted in both cities prior to 336 samples in Taipei and 281 samples in
the formal surveys. Questionnaires used in Shanghai. The comparisons of age distributions
Taipei were printed in Traditional Chinese of valid samples with the latest censuses in
Characters. For the questionnaires used in both cities are listed in Table 1. Respondents
Shanghai, Simplified Chinese Characters were in Shanghai were about a year younger than
applied to lessen the difficulties of respondents respondents in Taipei. In general, survey data
in understanding the questions. The stratified obtained in Taipei and in Shanghai were
sampling method was used following the age composed of respondents from various age
and gender distributions of the populations ranges and should be representative in these
between the ages of 15 and 64 in Taipei and in age groups.
Shanghai. Trained surveyors personally inter- The survey data in Taipei consisted of 58.93
viewed 321 respondents in Shanghai and per cent married respondents, while it in
341 respondents in Taipei. The surveys were Shanghai of 63.12 per cent. Personal average
conducted at the public areas like memorial monthly income of respondents in Taipei was
parks, train stations and entrances of super- USD 1032.56 while in Shanghai was USD
markets where respondents were easily acces- 353.75. Educational level of respondents in
sible. 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 of
how respondents answered the questions junior high school or less was 6.85, of senior
during the survey. For any reason respondents high school was 24.40, of college was 59.23
decided to terminate the survey, the gifts were and of graduate school was 9.52. On the
not retrieved back and the questionnaires contrary, 17.02 per cent of respondents in
were discarded. Respondents needed around Shanghai had educational levels of junior high
20–30 minutes to finish the survey. For school of less, 38.65 per cent had senior high
respondents who did not wish to participate school education, 42.20 per cent had finished
or did not finish the questionnaires, the major college and 2.13 per cent had studied in

Table 1. Age distributions of samples and the censuses

Survey in 2003 Census Survey in 2000 Census
Taipei in Taipei Shanghai in Shanghai

Gender (% 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 Female
15–24 9.23 11.01 10.11 9.76 10.99 13.83 10.76 10.40
25–34 10.42 11.90 10.17 11.29 14.54 9.22 11.84 10.12
35–44 11.01 14.29 11.27 12.91 13.83 9.93 13.60 12.02
45–54 11.31 10.71 10.98 11.94 10.28 8.51 11.12 10.20
55–64 4.76 5.36 5.47 6.10 4.96 3.90 5.02 4.91

Source: The Census in Taipei was from the Ministry of the Interior (2004) and the Census in Shanghai was from the
Bureau of Statistics of Shanghai (2002).

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graduate schools. Average family sizes were respondents with similar characteristics into
4.22 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 clustering
wealthier with higher educational levels and method, K-Means Approach, is applied in this
living in larger households. study. The classification process is iterated to
reduce the possibilities of assigning obser-
vations into a segment that cannot best
Analytical methods describe the characteristics of observations.
Descriptive statistics, factor analysis, probit
models and cluster analysis were applied in
Results
this study to examine the differences of
consumer ethnocentrism in two Chinese In order to compare the cultural differences
societies and further to reveal influences of between two sub-cultures in two populated
consumer ethnocentrism on preferences of Chinese cities in terms of westernisation, a
domestic products. In this study, the maximum number of questions related to westernised
likelihood 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 be
probit model was applied in this study to further used in probit models to reveal
reveal how variables affect the possibilities of influences of westernisation on preferences
selecting brands of mobile phones produced of domestic brands. Table 2 lists the results of
domestically. The probit model examines the factor analysis for datasets of Taipei and
choice behaviour of individuals when two Shanghai. Based on the scree plots and
alternatives 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 unique
segment respondents of different levels of patterns of westernisation of respondents
consumer ethnocentrism and to reveal pre- in Taipei and in Shanghai. For respondents
ferences of mobile phones in terms of country in Taipei, westernisation could be described in
of origin. Cluster analysis is capable to classify dimensions of experience, fashion, global view

Table 2. Factors of westernisation of respondents in Taipei and in Shanghai

Factors of respondents’ westernisation in Taipei

Factor 1 (experience) Factor 2 (fashion) Factor 3 (global view) Factor 4 (event)

Travel overseas Prefer western clothing styles Accept other cultures Watch foreign sports games
Watch foreign movies Purchase imported brands Prefer western education Attend parties of foreigners
Interact with foreigners
Taste foreign foods

Factors of respondents’ westernisation in Shanghai

Factor 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 games
Prefer western clothing styles Travel overseas Interact with foreigners Watch foreign movies
Prefer western education
Accept other cultures

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and event. Total variance explained in these Rotated factor loadings of the CETSCALE are
four dimensions in the dataset of Taipei was listed in Table 3. The results revealed that
70.80 per cent. For respondents in Shanghai, consumer ethnocentrism had distinct patterns
westernisation could be explained in factors of of respondents in Taipei and in Shanghai. For
foreign superiority, experience, interaction respondents in Taipei, the first dimension of
and media contact. These four factors consumer ethnocentrism included protecting
accounted for 70.02 per cent of total variance. and supporting domestic business, and not to
The items included in factors were not further cause unemployment. The first factor
identical 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 domestic
westernisation. Shanghai is considered the product purchases. The implication was that
most westernised city in China, but analysed only in a situation that certain products were
results revealed that they had travelled abroad unavailable in the home country, the imported
0.52 times on average in the past 3 years. products would be considered. The second
Respondents 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 first
were 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 factor
in 1949 and consequent limited interaction included statements of behavioural appropri-
between these two regions could explain why ateness of purchasing domestic products. The
dimensions of westernisation of respondents first factor of CETSCALE in Shanghai was
in Shanghai were different from it of respon- termed Conservative Patriotism, while the
dents in Taipei. These results further revealed second was Defensive Patriotism. The total
that sub-cultural differences would be devel- variance explained was 66.27 per cent of
oped in Chinese societies due to certain CETSCALE in Taipei and 56.94 per cent in
political situations or government regulations. Shanghai.
Ten-item CETSCALE was utilised in the Probit model was utilised in this study to
questionnaire 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. Four
relatively higher scores of CETSCALE, 35.39, factors of westernisation, two factors of
compared with scores of 33.05 of respondents consumer ethnocentrism, attitudes towards
in Taipei. With the difference between characteristic of domestic and foreign mobile
CETSCALE scores of Shanghai and of Taipei phone brands, numbers of different brands
statistically significant at 5 per cent signifi- used before, whether currently using domestic
cance level, this result indicated that Shanghai brands of mobile phones, whether respon-
consumers were more ethnocentric than dents were heavy users of mobile phones, and
consumers in Taipei. Hypothesis H3 in this demographic variables were included as
study was supported and the results coincided explanatory variables in probit models. The
with findings in Pereira et al. (2002) that results are listed in Table 4. Positive parameter
consumers in China were more ethnocentric estimates indicated increased tendencies to
than 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 emphasised
restricted applicability of their research find- importance of foreign cultural experiences and
ings. In this study, real consumer data obtained preferred western fashion styles had strong
from various gender and age groups generated tendencies to purchase imported brands of
results that could reflect sub-cultural differ- mobile phones. This could be explained that
ences in consumer ethnocentrism in Chinese respondents of Taipei travelled 2.21 times to
societies. overseas on average in the past 3 years prior to

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Table 3. Factor loadings of consumer ethnocentrism dimensions
Taipei 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 imported
10. We should buy from foreign countries only those products that 0.4233 0.6256
we cannot obtain within our own country
Cronbach’s alpha 0.90 0.80
Variance 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 0.8097
10. Purchasing foreign-made products is non-Chinese 0.1140 0.7892
Cronbach’s alpha 0.84 0.82
Variance explained 45.03% 11.91%
Note: Ten-item CETSCALE is adopted in questionnaire.

participating in the survey, compared to preferences of domestic brands was partially
0.52 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 influenced
cultural experiences significantly influenced the possibilities of selecting imported brands,
preferences of imported brands of mobile which indicated that consumers in Taipei who
phones. Hence, hypothesis H2 that more believed products that were not produced
westernised consumers would have lower domestically should be imported were prone

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Table 4. Results of the probit models

Variables Parameter estimates Standard errors

Taipei
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 0.2584

Shanghai
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 0.3143

Note: 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 positive
phones. Hypothesis H1 that consumers with attitudes towards domestic brands preferred
stronger ethnocentric beliefs tend to have purchasing domestic brands of mobile phones.
higher preferences of domestic brands was Respondents in Taipei who were married were
supported. Respondents who had positive less likely to purchase imported brands, but those
attitudes towards imported brands had rela- with higher educational levels had tendencies to
tively high tendencies to purchase imported purchase imported brands. Respondents in

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Taipei who currently used domestic brands of The implications of the findings in consumer
mobile phones were less likely to purchase ethnocentrism of respondents in Shanghai are
imported 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 and
that income levels do not have a significant consumer ethnocentrism have impacts on
impact on preferences of imported brands of preferences of foreign brands.
mobile phones. Personal experiences of foreign This study further utilised cluster analysis to
cultures and intensity of ethnocentric beliefs segment respondents into ethnocentric and
are 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 used
indicated that respondents who emphasised in the clustering procedure to reveal whether
foreign superiority were more likely to pur- consumers could be segmented into different
chase imported brands of mobile phones. levels of ethnocentrism. Results are listed in
Hypothesis H2 that more westernised con- Table 5. About 60 per cent of respondents in
sumers have lower preferences of domestic Taipei were classified into non-ethnocentric
brands was partially supported. In the factors segment, while less than 50 per cent of
extracted from the CETSCALE, Conservative respondents in Shanghai were considered
Patriotism negatively influenced possibilities non-ethnocentric. In both cities, respondents
of purchasing imported brands. Hypothesis H3 who were ethnocentric were more likely to be
that more ethnocentric consumers have higher older consumers. Ethnocentric consumers in
preferences of domestic brands was supported Taipei were the ones with higher personal
in this study. For respondents in Shanghai who income, but in Shanghai were with lower
had positive attitudes towards imported income. As revealed in the results of the probit
brands had higher tendencies to purchase models, income levels did not have significant
foreign brands of mobile phones, while for influences of preferences of foreign brands.
those who had positive attitudes towards Certain latent factors would have influences on
domestic brands were less likely to buy levels of ethnocentrism through income, while
imported brands. Older consumers in Shanghai income alone should not be considered as an
did not prefer imported brands as much as influential variable on ethnocentrism. Non-
young consumers did. Respondents in Shang- ethnocentric consumers had been overseas
hai who were married were more likely to more than ethnocentric consumers had in the
choose imported brands, which was different past 3 years. This result implied that less
from preferences of married respondents in ethnocentric consumers were the ones with
Taipei. Higher educated consumers in Shang- more experiences with foreign cultures.
hai liked imported brands of mobile phones, Respondents who were more likely to be
especially those who had finished college level ethnocentric were the ones with relatively
of education. Those who had graduate school lower levels of education. The scores of the
training in Shanghai did not have significant CETSCALE of ethnocentric consumers were
preferences of imported mobile phones. This higher than the scores of non-ethnocentric
could 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 cent
educational levels of graduate schools and their possibilities to purchase imported brands of
preferences were not significantly revealed by mobile phones. On the contrary, ethnocentric
the probit model in this study. Respondents in consumers in Taipei had about 20 per cent
Shanghai who currently used domestic brands chances to choose imported brands, while
were prone to purchase domestic brands for those who were classified as ethnocentric
the next purchases. consumers in Shanghai had less than 40 per cent

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Table 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 53.55
Gender (% male) 47.50 45.59 51.15 57.62
Marriage (% married) 49.50 72.79 57.25 68.21
Average age (years) 33.87 41.32 34.00 37.26
Monthly income (USD) 979.23 1110.34 390.00 321.00
Experience of going abroad (times in 2.29 2.10 0.72 0.34
the 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 1.34
CETSCALE scores 28.51 39.87 31.71 38.77
Purchasing imported brand intention (%) 94.50 21.37 96.95 38.10

Country 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 5

Note: 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 consumers
Respondents in Taipei ranked Japanese brands in these two cities did not like brands from
the highest among six listed country of origins. each other.
Ethnocentric respondents in Taipei ranked In sum, ethnocentrism is a belief that could
domestic brands the second choice, followed influence consumer preferences of domestic
by US brands. Non-ethnocentric respondents brands. Consumers who have more contact
in Taipei ranked brands from EU the second with foreign cultures or are more westernised
highest, also followed by brands from US. The seem to be less ethnocentric. Using consumer
respondents in Taipei ranked the brands from survey data obtained from Shanghai and Taipei
China the lowest no matter that they were in this study reflects certain similarities in
more ethnocentric or not. For ethnocentric ethnocentric consumers in these two cities
respondents in Shanghai, domestic brands that they are likely to be older, with lower
were the first choices, followed by Korean levels of education, and are less likely to
brands. Brands from Korea were ranked high- purchase imported brands. The differences in
est for those respondents who were classified consumer ethnocentrism from respondents in
as non-ethnocentric in Shanghai. Brands from Shanghai and in Taipei are that Shanghai
US were ranked next to Korean brands for respondents are more ethnocentric than Taipei
either ethnocentric or non-ethnocentric con- respondents. Furthermore, ethnocentric consu-
sumers in Shanghai. Brands from Taiwan were mers in Shanghai believe domestic brands of
ranked the lowest for Shanghai respondents. mobile phones are the best choices, while

DOI: 10.1002/cb


ethnocentric 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 consider
development could lead to unique patterns of consumers in Shanghai and in Taipei are
consumer 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 for
This study examined differences of consumer consumers in purchasing decisions of
ethnocentrism of two Chinese societies and foreign brands. In Taipei, foreign cultural
how consumer ethnocentrism influences pre- experiences dominate other dimensions of
ferences of domestic brands of mobile phones. westernisation in purchasing decisions of
The multi-item CETSCALE was applied in the foreign brands. Income levels do not have
study. Consumer surveys were administered in significant influences on decisions, implying
Taipei, Taiwan and in Shanghai, China. that not necessarily wealthier consumers
Stratified sampling was used in both surveys purchase foreign brands. Less ethnocentric
following 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 281
in Shanghai and 336 in Taipei. The results of Limitations of the study and
this study indicated consumers in Shanghai
suggestions for future studies
were more ethnocentric than consumers in
Taipei in general. In both cities, ethnocentric Limitations of this study include using mobile
consumers were the ones with less foreign phones as research objects. Although foreign
cultural experiences and would have higher and domestic brands of mobile phones are
preferences of domestic brands. available in the markets of Shanghai and Taipei,
Results of this study revealed that ethno- the competition among different mobile
centrism had a strong influence on preferences phones may be affected by country-of-origin
of domestic brands. Ethnocentric consumers effects, which are not examined in a great
in both cities were relatively older, with lower extent in this study.
educational levels, and had been travelling Cultural dimensions and variables measuring
abroad fewer times in the past 3 years. economical development were not included in
Ethnocentric Shanghai respondents were loyal the study. Future studies may need to consider
to domestic brands. Ethnocentric Taipei cultural influences and include certain macro
respondents ranked domestic brands as one type of variables in the analyses to capture the
of 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 Chinese
societies.
Acknowledgements
Marketing strategies based on the results of
this 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-

DOI: 10.1002/cb


sity in Taiwan. Her doctorate is in agricultural ality, Adorno TW, Frenkel-Brunswik E, Levinson
economics from Kansas State University in US. DJ, Sanford RN (eds). Harper Brothers: New
Her 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.
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DOI: 10.1002/cb

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