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Consumer ethnocentrism and Consumer

ethnocentrism
attitudes toward domestic and and attitudes

foreign products
John J. Watson 1149
Department of Management, University of Canterbury, Christchurch, Received February 1999
New Zealand, and Revised June 1999
Katrina Wright
Alcatel, New Zealand
Keywords Consumer behaviour, Consumer marketing, Country of origin, National cultures
Abstract Investigates the relationship between consumer ethnocentrism and consumer
attitudes toward foreign manufactured products in product categories in which domestic
alternatives are not available. Such decision situations (i.e. product choice in categories with no
domestic alternative) are common for consumers in many smaller countries throughout Europe,
and thus important for marketing managers to understand. It was hypothesised that individuals
with high levels of consumer ethnocentrism would have more favourable attitudes toward
products from culturally similar countries in comparison to products from culturally dissimilar
countries. The values classification of culture proposed by Schwartz was used to establish cultural
similarity, and the attitudes of a representative sample of New Zealand consumers were assessed
using a nation-wide mail survey. Our results suggest that cultural similarity is an important
consideration for highly ethnocentric consumers in the evaluation of foreign products. A number
of theoretical and managerial implications are discussed.

Introduction
International trade activity is becoming a central part of the world economy,
and it is recognised that there is a greater necessity to gauge consumers'
attitudes toward both domestic and foreign products (Netemeyer et al., 1991).
Much of the research in this area has focused on what is called the country of
origin effect, investigating how consumers perceive products sourced from
particular countries (Roth and Romeo, 1992). Past studies which have examined
the country of origin effect have looked at product categories as diverse as
automobiles, shoes, VCRs, and jam for consumers in Australia, Canada, China,
France, Germany, Holland, Ireland, Japan, Mexico, New Zealand, and the USA,
among others (Ahmed and d'Astous, 1996; Elliott and Cameron, 1994; Garland
and Coy, 1993; Kaynak, 1989; Kaynak and Cavusgil, 1983; Lantz and Loeb,
1996; Lawrence et al., 1992; Nagashima, 1970; Netemeyer et al., 1991; Okechuku,
1994; Roth and Romeo, 1992; Wall et al., 1991). Within Europe, researchers have
examined the effect of country of origin on decision behaviour (Ettenson, 1993;
Liefeld et al., 1996), product image (Peris et al., 1993), consumer perceptions
This research was conducted while the second author was doing graduate work at the
European Journal of Marketing,
University of Canterbury and would not have been possible without the support of the Vol. 34 No. 9/10, 2000, pp. 1149-1166.
University of Canterbury, Grant D3251. # MCB University Press, 0309-0566
European (d'Astous and Ahmed, 1992; Strutton et al., 1995; Sweeney, 1993), and the
Journal of ``made in Europe'' concept (Schweiger et al., 1995).
Marketing For consumers in developed countries, research has consistently found that
there is a preference for products manufactured in the home country (Bilkey
34,9/10 and Nes, 1982; Rierson, 1967; Samiee, 1994). In addition, some studies suggest
that products from countries viewed as culturally similar to the home country,
1150 in comparison to products from countries that are viewed as culturally
dissimilar, are preferred (Crawford and Lamb, 1981; Heslop et al., 1998; Wang
and Lamb, 1983). One variable that may explain both of these relationships is
consumer ethnocentrism ± beliefs regarding the appropriateness of purchasing
foreign-made products (Lantz and Loeb, 1996; Sharma et al., 1995). In a study
that examined the relationship between consumer ethnocentrism and
evaluations of foreign sourced products, Lantz and Loeb (1996) found that
highly ethnocentric consumers have more favourable attitudes toward
products from culturally similar countries. Yet, this finding, as well as most, if
not all, of the research that has examined the country of origin effect, is only
applicable to decision situations in which a domestic alternative is available.
Regardless of the product category examined and the consumer population
studied, the decision situation has always included a domestic alternative
within the consideration set.
For many countries in the world, particularly the G7 countries, most product
categories have a domestically manufactured alternative; however, it is not
uncommon for consumers in Spain shopping for VCRs or consumers in Ireland
shopping for automobiles, for example, to only have foreign manufactured
products as alternatives. In such situations the importance/relevance of the
country of origin effect is completely unknown, despite the seriousness of its
implications for marketing practitioners. Consequently, this paper will focus on
decision situations in which the consumer is forced to chose from among
foreign alternatives. More specifically, the purpose of this research is to provide
an extension of the link between ethnocentrism and preferences for products
from culturally similar countries, established by Lantz and Loeb (1996), by
examining consumer attitudes toward foreign manufactured products in
product categories in which domestic alternatives are not available. The study
is conducted in New Zealand and consumer attitudes toward televisions and
cameras manufactured in Germany and the USA (culturally similar to New
Zealand) and Italy and Singapore (culturally dissimilar to New Zealand) are
assessed. A partial replication of the Lantz and Loeb (1996) study is also
provided by examining consumer attitudes toward refrigerators manufactured
in New Zealand, Germany, the USA, Italy, and Singapore. Schwartz's (1994)
ratings for the importance of seven cultural values was used to categorise and
select countries in the study which are culturally similar and culturally
dissimilar to New Zealand.
The paper begins with a review of the literature pertaining to the country of
origin effect and consumer ethnocentrism. A number of hypotheses are then
proposed. The methodology used to test the hypotheses, the results of the Consumer
study, and a discussion follow. The paper concludes with the implications of ethnocentrism
the research for both theory development and managerial practice. and attitudes
Literature review
The country of origin effect and consumer ethnocentrism
The country of origin effect, also known as the ``made in'' concept, has been 1151
broadly defined as the positive or negative influence that a product's country of
manufacture may have on consumers' decision processes or subsequent
behaviour (Elliott and Cameron, 1994). Within the realm of consumer decision
making, country of origin has been defined as an extrinsic cue that acts as a
risk mitigant or quality cue for consumers (Cordell, 1992). Such extrinsic cues
(others include price, brand name, warranties) serve as intangible product traits
that contrast with intrinsic cues (e.g., taste, design), which are tangible aspects
or physical characteristics of the product itself (Bilkey and Nes, 1982).
Although some studies have questioned the importance of country of origin for
much consumer decision making (Elliott and Cameron, 1994; Hugstad and
Durr, 1986; Mitchell and Greatorex, 1990; Schooler and Wildt, 1968), recent
research has demonstrated that the country of origin has a substantial effect on
attitudes toward products and the likelihood of purchasing these products,
often demonstrating effects that are as strong or stronger than those of brand
name, price, or quality (Ahmed and d'Astous, 1996; Lantz and Loeb, 1996;
Okechuku, 1994).
Recent research has linked the country of origin effect to levels of consumer
ethnocentrism. Consumer ethnocentrism focuses on the responsibility and
morality of purchasing foreign-made products and the loyalty of consumers to
products manufactured in their home country (Shimp and Sharma, 1987).
Sharma et al. (1995) note that consumer ethnocentrism may result in an
overestimation of the attributes and overall quality of domestic products and
an underestimation of the quality of foreign products. The measurement of
consumer ethnocentrism was made possible with the development of the
CETSCALE (Consumer Ethnocentric Tendencies Scale) by Shimp and Sharma
(1987). The CETSCALE consists of 17 items which measure the tendency of
consumers to act consistently towards foreign and domestic products. Such
tendencies may precede attitudes, but they are not the equivalent of attitudes,
which tend to be object specific.
The relationship between country similarity and the country of origin effect
has been researched widely (Johansson et al., 1985; Lantz and Loeb, 1996;
Shimp and Sharma, 1987). Wang and Lamb (1983) found a positive bias
towards products from countries regarded as culturally similar to the USA (i.e.,
some European countries, Australia, and New Zealand), and Crawford and
Lamb (1981) found a greater willingness to purchase products from source
nations that are politically and economically similar to the home country (see
also Kaynak and Cavusgil, 1983).
European With regard to consumer ethnocentrism, Sharma et al. (1995) suggest that
Journal of cultural similarity between countries is one factor that may influence the effect
Marketing of consumer ethnocentric tendencies on attitudes toward foreign products. In
an article that examined the relationship between consumer ethnocentrism and
34,9/10
evaluation of foreign products, Lantz and Loeb (1996) examined the value
consumers in Canada and the USA place on a product (computer mousepads)
1152 being from their own or another country. In support of their hypotheses, Lantz
and Loeb (1996) found that highly ethnocentric consumers, in comparison to
individuals with low levels of consumer ethnocentrism, have more favourable
attitudes toward products from culturally similar countries.
While the study by Lantz and Loeb (1996) makes an important contribution
by investigating the impact of ethnocentrism on consumers' attitudes toward
foreign products, its significance is perhaps limited through its use of
undergraduate students as subjects. Demographic differences with regard to
age and educational level for ethnocentrism have been found previously (Shimp
and Sharma, 1987); thus, there is the potential for bias in the establishment of
ethnocentrism levels. Another potential limitation of the study conducted by
Lantz and Loeb (1996), and perhaps a limitation of other research examining
the country of origin effect, concerns the lack of precision as to the definitions
of similar and dissimilar countries. For Lantz and Loeb (1996), Canada was
regarded as having a shared identity with the USA ``due to a considerable
history of trade and social relations,'' while Mexico was deemed to be culturally
dissimilar, seemingly because it lacked this historical connection. Many
previous studies have also relied on perceptions of cultural similarity and
dissimilarity that are only loosely grounded in theory (Kaynak and Cavusgil,
1983). Individual perceptions of cultures as similar or dissimilar may vary
considerably, but for the purposes of academic research, a theoretical rationale
for the classification of cultures seems advisable. To overcome this limitation,
our research utilises the objective values classification of culture proposed by
Schwartz (1994), who identified seven value types that can be used to explain
differences between cultures and provided a listing of these differences for over
30 countries. A more thorough discussion of Schwartz's (1994) work is
provided in the Appendix, and an explanation of the countries used in this
study is provided in the methodology section.
Our study focuses on the New Zealand consumer. By using the Schwartz
(1994) cultural-level value theory, it is possible to categorise countries as
culturally similar and culturally dissimilar to New Zealand in a rigorous
manner, so that the relationship between consumer ethnocentrism and
attitudes toward foreign manufactured products may be examined. Based on
the literature discussed above, it is hypothesised that:
H1a: Individuals with high levels of consumer ethnocentrism will have
more favourable attitudes toward products imported from culturally
similar countries than products from culturally dissimilar countries.
 H1b: Individuals with high levels of consumer ethnocentrism will be more Consumer
willing to purchase products imported from culturally similar ethnocentrism
countries than from culturally dissimilar countries. and attitudes
In contrast to ethnocentric consumers, non-ethnocentric consumers have been
found to place less emphasis on the origin of the product, but rather evaluate
foreign products on their own merits. Non-ethnocentric consumers may even 1153
evaluate foreign products more favourably because they are not sourced
domestically (McIntyre and Meric, 1994). Therefore, it is difficult, if not
impossible, theoretically to support hypotheses regarding the relationship
between individuals with low levels of consumer ethnocentrism and their
attitudes toward foreign products. Consequently, the hypotheses tested in this
paper concern the attitudes of highly ethnocentric consumers only. However,
analyses for individuals with low levels of consumer ethnocentrism have been
conducted and are reported later in the paper.

Domestic alternative not available

The above hypotheses provide a replication of previous country of origin
research by examining the influence of consumer ethnocentrism in decision
situations where a domestic product may be available. However, if a
domestically manufactured product is not available, the ethnocentric consumer
will have no choice but to purchase imported goods. In countries such as New
Zealand, the loyalty of consumers to domestic goods cannot encompass all
product categories, because domestic industry does not manufacture all types
of products (Garland and Coy, 1993; Herche, 1992). Moon (1996) noted that even
highly ethnocentric consumers can have a favourable attitude towards a
foreign culture but the question remains as to which countries will be the
preferred choice of ethnocentric consumers when purchasing goods not
manufactured domestically.
Sharma et al. (1995) provide some insight into this area. They suggest that
ethnocentric consumers may distinguish countries based on their similarity to
the home country as either in-group or out-group. Ethnocentric consumers are
expected to exhibit a greater preference for products from these in-group
countries over products from the out-group countries because of their in-group
status. Therefore, it could be hypothesised that in a decision situation where
domestically manufactured goods are unavailable, ethnocentric consumers will
exhibit a preference for products from culturally similar countries over those
from culturally dissimilar countries. Once again, the following hypotheses
concern the attitudes of ethnocentric consumers only.
H2a: In decision situations in which there is no domestic alternative,
individuals with high levels of consumer ethnocentrism will have
more favourable attitudes toward products imported from culturally
similar countries than products from culturally dissimilar countries.
European H2b: In decision situations in which there is no domestic alternative,
Journal of individuals with high levels of consumer ethnocentrism will be more
Marketing willing to purchase products imported from culturally similar
countries than from culturally dissimilar countries.
34,9/10
Methodology
1154 Data collection
To test the previously stated hypotheses, data were collected by mail surveys
administered in New Zealand. Fundamental principles from the Dillman (1978,
1984) ``total design method'' for telephone and mail surveys were applied. The
sampling frame consisted of 1,000 individuals systematically drawn from the
New Zealand electoral roll. Over 90 per cent of the New Zealand population
over the age of 18 are registered voters, and all New Zealanders registered to
vote had an equal opportunity of selection. Usable questionnaires were
completed and returned by 42 per cent of those sampled (n = 421).

Selection of countries
Cultural similarity was determined through Schwartz's (1994) listing of
countries. Schwartz (1994) provides ratings for the importance of seven cultural
values for 32 different countries, and absolute differences between New
Zealand and the other countries were calculated for each of the seven value
types. The seven absolute differences were then averaged to obtain a mean
difference score between New Zealand and each country. Countries which were
deemed to be culturally similar to New Zealand had very low mean difference
scores, while countries which were culturally dissimilar had high mean
difference scores.
The countries chosen for the study and their mean difference scores are
listed in Table I. The USA and Germany were categorized as being culturally
similar to New Zealand, and Italy and Singapore were categorized as being
culturally dissimilar to New Zealand. Given that the geographic division
between East and West Germany no longer exists, the two countries were

Countrya Mean difference from New Zealand

Similar
USAb 0.19
Germany (combined)b 0.20
Germany (East) 0.16
Germany (West) 0.24
Dissimilar
Italyb 0.49
Table I. Singaporeb 0.51
Mean difference scores
between New Zealand Notes: a Countries similar to New Zealand in terms of their cultural values have lower
and selected countries scores. b Countries included in the current study
combined for the purpose of this research. Both scored similarly on the Consumer
majority of Schwartz's (1994) value types, and their individual difference scores ethnocentrism
as well as their combined score are listed in Table I. and attitudes
There were a number of countries which were culturally dissimilar to New
Zealand. However, several of these countries were unsuitable for the purposes
of this research (e.g., Slovenia, Estonia), because New Zealand consumers were
unfamiliar with them. In addition, it has been suggested that biases against 1155
developing countries exist (Cordell, 1991; Elliott and Cameron, 1994). A pilot
study indicated that New Zealand consumers have a strong preference against
products from China, thus hinting at a potential bias. Consequently, it was
deemed more appropriate to use Italy and Singapore as the two dissimilar
countries in the final study.

Selection of products
The research required that we examine a product category in which a domestic
alternative was available (allowing us to test H1), as well as product categories
in which a domestic alternative was not available. Refrigerators were chosen as
the product category with a New Zealand alternative, and televisions and
cameras were chosen as the product categories in which a domestic alternative
was not available. All three of these product categories have been used in
previous country-of-origin research (Andaleeb, 1995; Han and Terpstra, 1988;
Kaynak and Cavusgil, 1983; Okechuku, 1994; Parameswaran and Yaprak,
1987) and are durable goods. The product categories are also considered similar
in terms of the financial risk, technological complexity, complexity of the
purchase task, and the personal involvement of the consumer in the purchase
task (Ahmed and d'Astous, 1996).

Measures
Product perceptions. Product perceptions were measured with a six-item, seven-
point, semantic differential scale. Respondents were asked to rate the technical
advancement, prestige, workmanship, price, reliability, and value of the
products from each country. These dimensions were based on those identified
by Han and Terpstra (1988) (see also Han et al., 1994), which were derived from
earlier measures used by Nagashima (1970, 1977). The six items were
aggregated to create a total product attribute rating for each product from each
country. For example, total ``attribute ratings'' were obtained for USA
refrigerators, German refrigerators, Italian cameras, etc. The term attribute
ratings follows the terminology of Han et al. (1994).
Similar to Hung (1989), respondents were asked not to think of particular
brands but rather to rely on their overall perception of the product from the
country in question. Although respondents may not have been familiar with a
particular product from a specific country, it is common in country image
research to investigate a country's image for an unfamiliar product (Han et al.,
European 1994; Parameswaran and Yaprak, 1987). It has been noted that consumers have
Journal of impressions about products irrespective of whether or not they have direct
Marketing experience with them (Andaleeb, 1995).
Reliabilities for the product attribute ratings were calculated. Cronbach's
34,9/10 alpha coefficients were all greater than 0.82, indicating a high degree of internal
consistency for all measures.
1156 Willingness to buy. A seven-point, semantic differential item was used to
measure willingness to buy for each product from each country. Consistent
with Lumpkin et al. (1985), the wording of ``willingness to buy'' was used
instead of ``intention to purchase'' because not all products were available from
every country.
CETSCALE. The 17-item CETSCALE designed by Shimp and Sharma
(1987) was modified to fit the New Zealand context. Respondents rated the
items on a seven-point, Likert-type scale, yielding a potential minimum score of
17 and a maximum score of 119 for each individual. The 17 items were
aggregated to form a total ethnocentrism score for each respondent. The mean
ethnocentrism score for the sample was 62.21, with a standard deviation of
25.79. Cronbach's alpha co-efficient for this measure was 0.96. These results are
comparable to previous findings (e.g., Shimp and Sharma, 1987).
Demographic questions. Demographic questions related to gender, age,
ethnicity, education, and income were included at the end of the questionnaire.

Analyses and results

The sample
Demographic characteristics of the final sample are provided in Table II. These
figures are comparable to the figures for the New Zealand population; however,
males, older people, and those individuals from higher income groups were
slightly over-represented. The quality of the sample is largely due to the fact
that the sampling frame consisted of 1,000 individuals who were systematically
drawn from a nearly comprehensive database of all New Zealanders over the
age of 18.

Defining ethnocentrism groups

Respondents were categorised as having high levels of ethnocentrism if they
scored in the top half of the Shimp and Sharma (1987) CETSCALE or as having
low levels of ethnocentrism if they scored in the bottom half of the scale.
The demographic characteristics of the two groups were compared to assess
equality on those variables and are shown in Table II. Respondents with high
levels of consumer ethnocentrism were more likely to be female (2 = 8.10, df =
1, p = 0.01), older (2 = 12.05, df = 4, p = 0.02), less educated (2 = 16.20, df = 3,
p = 0.001), and less wealthy (2 = 19.59, df = 3, p = 0.001) than respondents
with low levels of consumer ethnocentrism. These findings are not inconsistent
with past research (Good and Huddleston, 1995; Shimp and Sharma, 1987;
Sharma et al., 1995).
 Total High Low Consumer
Characteristic sample CETSCALE CETSCALE 2 df Significance ethnocentrism
and attitudes
Sex
Male 198 (52) 82 (44) 116 (59) 8.10 1 0.01
Female 184 (48) 103 (56) 81 (41)
Age 1157
18-24 36 (10) 20 (11) 16 (8) 12.05 4 0.02
25-34 77 (21) 37 (20) 40 (21)
35-44 102 (27) 37 (20) 65 (34)
45-60 104 (28) 54 (29) 50 (26)
61 and older 59 (16) 37 (20) 22 (11)
Education
High school 170 (45) 94 (52) 76 (39) 16.20 3 0.001
Technical/trade school 99 (26) 49 (27) 50 (26)
Some college 40 (11) 20 (11) 20 (10)
Graduate college 65 (17) 17 (9) 48 (25)
Ethnicity
NZ European 302 (79) 146 (78) 156 (79) 0.55 3 0.90
European 37 (10) 17 (9) 20 (10)
NZ Maori 25 (7) 13 (7) 12 (6)
Other 20 (5) 11 (6) 9 (5)
Income
Less than $20,000 121 (32) 74 (41) 47 (24) 19.59 3 0.001
$20,000-$39,999 142 (38) 70 (39) 72 (37)
£40,000-$74,999 81 (22) 29 (15) 52 (27)
$75,000 or more 32 (9) 9 (5) 23 (12)
Table II.
Notes: CETSCALE is a 17-item measure of consumer ethnocentrism designed by Shinp and Summary statistics for
Sharma (1987). A medium split was used to distinguish between people with high and sample and
people with low levels of consumer ethnocentrism. Figures in parentheses are percentages CETSCALE groups

H1a and H1b: attitudes toward foreign products (domestic alternative

available)
H1a and H2b asserted that ethnocentric consumers will have more favourable
attitudes toward, and be more willing to buy, products from culturally similar
countries, in comparison to products from culturally dissimilar countries. The
product category, refrigerators, used to test these hypotheses is representative
of a decision situation in which a domestic alternative to the foreign good is
available. Only data from individuals with high levels of consumer
ethnocentrism (those scoring in the top half of the CETSCALE measure) were
used to test H1a and H1b.
Paired sample t-tests between each of the countries for both attribute ratings
and the willingness to buy measure were examined. Table III provides the
means and standard deviations for the attribute ratings and the willingness to
buy measure for ethnocentric consumers. The pattern of results is similar for
both measures. Ethnocentric consumers most favoured the New Zealand
refrigerators, followed in order by the German, US, Italian, and Singaporean
European products for both measures. When the mean scores for refrigerators from the
Journal of two culturally similar countries were compared to the mean scores for the two
Marketing culturally dissimilar countries, it was found that respondents evaluated the
culturally similar countries (German and US refrigerators) more favourably
34,9/10 than the culturally dissimilar countries (Singaporean and Italian refrigerators)
in all instances. Individual t-tests between all combinations revealed significant
1158 differences in all of the tests (see Table IV). These results provide strong
support for H1a and H1b.

H2a and H2b: domestic alternative not available

H2a and H2b focused on decision situations in which domestically
manufactured goods were unavailable. In such situations, it was hypothesised
that individuals with high levels of consumer ethnocentrism would have more
favourable attitudes toward and be more willing to purchase products
imported from culturally similar countries than products from culturally
dissimilar countries. The product categories used to test these hypotheses were
televisions and cameras, neither of which is manufactured by New Zealand
companies.
Televisions. Table V provides the means and standard deviations for the
attribute ratings and the willingness to buy measure of televisions for highly
ethnocentric consumers. These respondents had the highest attribute ratings
for US televisions, followed by German, Singaporean, and Italian sets.
However, ethnocentric consumers indicated that they were most willing to buy
German televisions and least willing to buy Italian televisions.

New Zealand Germany USA Singapore Italy

Table III. Dimensions Mean () Mean () Mean () Mean () Mean ()
Highly ethnocentric
consumers' attitudes Attribute ratings 27.97 (4.51) 25.39 (6.05) 23.66 (5.98) 19.23 (6.25) 21.22 (6.03)
toward refrigerators Willingness to buy 6.13 (1.16) 3.55 (1.86) 3.29 (1.84) 2.71 (1.67) 2.87 (1.64)

t-score df Significance Mean difference

Attribute ratings
Dissimilar countries
USA vs. Singapore 9.14 154 0.001 4.43
USA vs. Italy 5.11 154 0.001 2.45
Germany vs. Singapore 12.34 146 0.001 6.16
Germany vs. Italy 8.39 146 0.001 4.18
Willingness to buy
Table IV. Dissimilar countries
County comparisons USA vs. Singapore 4.05 164 0.001 0.58
for attibute ratings and USA vs. Italy 2.94 164 0.001 0.42
willingness to buy: Germany vs. Singapore 6.42 163 0.001 0.84
refrigerators Germany vs. Italy 5.16 155 0.001 0.68
When mean scores for televisions from the two culturally similar countries Consumer
were compared to the mean scores for the two culturally dissimilar countries, it ethnocentrism
was again found that respondents evaluated culturally similar countries and attitudes
(German and US televisions) more favourably than culturally dissimilar
countries (Singaporean and Italian televisions); significant differences were
found for all but one of the tests (see Table VI). In that instance, individuals
with high levels of consumer ethnocentrism indicated that they were no more 1159
willing to buy US televisions over Singaporean televisions. For the seven other
comparisons, significant differences were found, supporting H2a and H2b.
Cameras. The results of the analyses for the product category ``cameras'' are
provided in Table VII and Table VIII. As shown in Table VII, highly
ethnocentric respondents most favoured the German cameras, followed by the
US, Singaporean, and Italian cameras, respectively. When the mean scores
from the two culturally similar countries were compared to the mean scores for
the two culturally dissimilar countries, it was found that respondents evaluated

Germany USA Singapore Italy

Dimension Mean () Mean () Mean () Mean () Table V.
Highly ethnocentric
Attribute ratings 23.95 (6.86) 24.40 (6.45) 21.70 (5.98) 19.95 (5.76) consumers' attitudes
Willingness to buy 3.53 (1.84) 3.44 (1.84) 3.20 (1.83) 2.58 (1.42) toward televisions

t-score df Significance Mean difference

Attribute ratings
Dissimilar countries
USA vs. Singapore 5.13 149 0.001 2.70
USA vs. Italy 8.45 149 0.001 4.45
Germany vs. Singapore 4.59 147 0.001 2.25
Germany vs. Italy 8.39 145 0.001 4.00
Willingness to buy
Dissimilar countries Table VI.
USA vs. Singapore 1.65 155 0.10 0.24 Country comparisons
USA vs. Italy 5.86 155 0.001 0.86 for attibute ratings and
Germany vs. Singapore 2.25 157 0.03 0.33 willingness to buy:
Germany vs. Italy 8.33 154 0.001 0.95 televisions

Germany USA Singapore Italy

Dimension Mean () Mean () Mean () Mean () Table VII.
Highly ethnocentric
Attribute ratings 26.07 (6.38) 24.76 (5.97) 22.32 (6.33) 21.71 (5.94) consumers' attitudes
Willingness to buy 4.16 (1.81) 3.98 (1.82) 3.52 (1.86) 3.15 (1.59) toward cameras
European t-score df Significance Mean difference
Journal of
Marketing Attribute ratings
Dissimilar countries
34,9/10 USA vs. Singapore 5.06 152 0.001 2.44
USA vs. Italy 6.33 152 0.001 3.05
1160 Germany vs. Singapore
Germany vs. Italy
7.35
9.09
153
153
0.001
0.001
3.75
4.36
Willingness to buy
Table VIII. Dissimilar countries
Country comparisons USA vs. Singapore 3.21 159 0.002 0.46
for attitbute ratings USA vs. Italy 5.78 159 0.001 0.83
and willingness to buy: Germany vs. Singapore 4.39 160 0.001 0.64
cameras Germany vs. Italy 8.03 159 0.001 1.01

the culturally similar countries (German and US cameras) more favourably

than the culturally dissimilar countries (Singaporean and Italian cameras) in all
instances. These results again provide strong support for H2a and H2b.

Individuals with low levels of consumer ethnocentrism

Although no hypotheses regarding the attitudes of consumers with low levels
of consumer ethnocentrism were offered, analyses were conducted so that a
comparison of the pattern of results for this group of respondents could be
compared with the results found for the respondents with high levels of
consumer ethnocentrism. One of the more striking (and surprising) differences
between the two groups related to the evaluation of the New Zealand
refrigerator by respondents with low levels of consumer ethnocentrism. They
indicated that although they viewed the attributes of the German refrigerator to
be superior to the attributes of the New Zealand refrigerator (t = 2.76; df = 183;
p < 0.01), they were more willing to buy the New Zealand refrigerator (t = 9.91;
df = 183; p < 0.001). Such a finding is clearly consistent with the idea of
consumer ethnocentrism ± willingness to purchase an admittedly inferior
product because it is manufactured domestically ± but not entirely expected
since these people did not demonstrate ethnocentric attitudes in general.
Analysis of the two other product categories also provided interesting
findings. First, for the product category cameras, respondents with low levels
of consumer ethnocentrism had slightly more favourable attitudes toward
Singaporean cameras than respondents who have high levels of consumer
ethnocentrism (F = 3.10; p = 0.08). In addition, they were much more willing to
buy Singaporean cameras (F = 10.09; p = 0.002). These results suggest that
cultural similarity may not serve as a significant variable when individuals
with low levels of consumer ethnocentrism evaluate products.
Respondents with low levels of consumer ethnocentrism also had a better
image of German products than respondents with high levels of consumer
ethnocentrism for refrigerators (F = 7.89; p < 0.01), televisions (F = 9.82;
p < 0.01), and cameras (F = 5.76; p < 0.02). Although the reasons for these Consumer
differences could only be based on conjecture, the fact remains that the two ethnocentrism
groups of people seem to use somewhat different criteria when evaluating these and attitudes
products.

Discussion and implications

The purpose of this paper was to provide an extension of the link between 1161
ethnocentrism and preferences for products from culturally similar countries
by examining consumer attitudes toward foreign manufactured products in
product categories in which domestic alternatives are not available. For our
research, it was expected (and found) that ethnocentrism is highly related the
evaluation of foreign products, as illustrated by a preference for products from
culturally similar countries over those from culturally dissimilar countries.
This effect was demonstrated in two product categories in which a domestic
alternative is not available ± televisions and cameras ± and one product
category in which a domestic alternative is available ± refrigerators. These
findings have several implications for domestic manufacturers as well as
foreign importers concerning the influence of country of origin in the product
evaluations of consumers.
The most obvious implication concerns decision situations in which a
domestic alternative to the foreign product is unavailable. In such situations,
the use of country of origin information may be strategically advantageous for
foreign importers from countries classified as culturally similar, in this instance
to New Zealand. Consequently, the emphasis of country of origin for products
imported from culturally similar countries in the least will not be harmful, and
may in fact be beneficial to sales.
In contrast, foreign importers from culturally dissimilar countries should
reduce their emphasis on the country of origin of the product. In our study,
ethnocentric consumers demonstrated less favourable attitudes toward
products from such countries (i.e., Italy and Singapore); therefore, foreign
importers from culturally dissimilar countries may want to downplay their
products' country of origin. It may be better to promote other attributes and
benefits of the product. In addition, strategic benefits may also be gained by
establishing alliances with domestic distributors. In such instances, the image
of the origin country's products may be improved through associations with
reputable retailers operating in the country of interest.
In addition to examining decision situations in which a domestic alternative
was not available, our study also provided a partial replication of past country
of origin and consumer ethnocentrism research. Consistent with previous work,
it was found that ethnocentric consumers exhibit a greater preference for
domestic products in decision situations in which a domestic alternative is
available (i.e., refrigerators). For the foreign importer of goods into countries
such as New Zealand, this means that a greater degree of competition can be
expected if a domestic alternative to the product is available.
European Much has been written about strategies that can be used to combat negative
Journal of country of origin effects when competing in product categories in which a
Marketing domestic alternative is available (Andaleeb, 1995; Mitchell and Greatorex,
1990). In such situations, the emphasis of the country of origin may prove to
34,9/10 have little impact on the decisions of many consumers. Instead, other aspects
and benefits of the product might be emphasised. Although not tested in this
1162 research, the findings of Mitchell and Greatorex (1990) and Lantz and Loeb
(1996) suggest that foreign products should be priced slightly lower than
domestic products, if all other product attributes are similar, to capture the less
ethnocentric segment of the market.
Another solution that may overcome ethnocentrism biases is to assemble or
conduct some of the manufacturing process in the country of sales. Depending
on local content regulations, this may allow the labelling of the foreign product
to mention this domestic link, something that is likely to improve product
evaluations, particularly among ethnocentric consumers. The formation of a
strategic alliance with a domestic company would reap similar benefits and
also requires less capital investment. Further options include localisation of the
brand name (Han and Terpstra, 1988), possibly by adopting the brand names of
channel members further down the value chain (Andaleeb, 1995).
As with any research undertaken, this study has its strengths and
weaknesses. One of its principle strengths is the use of the values classification
of culture proposed by Schwartz (1994). Our use of this classification scheme
makes this study one of the few to utilise an objective categorisation of cultural
similarity and dissimilarity. While previous research has frequently relied on
subjective perceptions of cultural similarity and dissimilarity, future studies
should continue to embrace objective and reliable classification schemes which
will only enhance the rigor and quality of their work. The use of a mail survey
that provided a reasonably representative sample of New Zealand consumers
also produced a substantial improvement over the non-representative, non-
random samples frequently used in past research. The nation-wide mail survey
also improved the external validity of the results obtained in this study,
allowing the generalisation of findings to the New Zealand population.
With respect to the limitations of the study, the findings can only be
generalised to the product categories assessed. Although results are likely to be
similar across all durable products, findings may differ in other product
categories. Therefore, the implications are probably of interest to all domestic
manufacturers and foreign importers, but they may not be applicable in all
industries. Consequently, future research should investigate the influence of
ethnocentrism on evaluations in other product categories, both durables and
non-durables. In addition, the generalisability of the results is somewhat
limited to the country in which the study was conducted. Although the use of a
random and representative sample of New Zealand consumers significantly
improves the external validity of results, they are only generalisable within
New Zealand. As such, replication of this work in other countries is
recommended.
 One final limitation to the study relates to the fact that the investigation of Consumer
attitudes toward foreign products in the research focused primarily on the ethnocentrism
preferences of ethnocentric consumers. Results suggest that cultural similarity and attitudes
is an important consideration for highly ethnocentric consumers in the
evaluation of foreign products, in particular in the decision situation where a
domestic alternative is not available. However, this research did not reveal the
importance of specific attributes in the decision situation. The focus of the 1163
research on the preferences of ethnocentric consumers also revealed little about
the importance of different attributes for non-ethnocentric consumers in the
decision situation. Little is known as to what will influence the attitudes and
purchase preferences of non-ethnocentric consumers, making them difficult to
predict. The next stage of this research should be to determine the relative
importance of individual attributes in the consumer decision process, both in
the decision situation where a domestic alternative is available and the decision
situation where a domestic alternative is not available. As companies become
more global, it is imperative that they have a thorough understanding of
consumers in their local markets. This is true, because for many decisions,
what is known about consumers in one part of the world is not applicable to
consumers in another part of the world. Therefore we, as researchers, must
make sure to examine consumer decision-making processes in detail ± across
different settings, locations, people, and time.
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Appendix. The values classification of culture

Schwartz (1994) derived a set of theoretically grounded and empirically sound dimensions of
cultural values that can be used to categorise and compare countries. Schwartz (1994) defines
values as ``desirable goals, varying in importance, that serve as guiding principles in people's
lives'' (p. 88). He gathered comprehensive data from 86 samples drawn from over 17,000
European individuals from 41 cultural groups in 38 nations. Respondents were asked to rate the
importance of 56 single values as a ``guiding principle'' in their lives, using a scale ranging from 1
Journal of (opposed to my values) to 7 (of supreme importance).
Marketing Seven cultural level value types derived from the 56 single values were identified. These
34,9/10 seven value types are defined below:
(1) Conservatism emphasises consideration of the group over the individual, maintenance of
the status quo, and avoidance of conduct which disturbs traditional order. Specific
1166 values that fall into this value type include ``security'', ``social order,'' and ``obedient.''
(2) Intellectual autonomy stresses the importance of pursuing individual interests and
desires. Specifically, it emphasises self-direction and encompasses the values ``curious,''
``broadminded,'' and ``creativity.''
(3) Affective autonomy also stresses the importance of pursuing individual interests and
desires, but it emphasises stimulation and hedonism and includes values such as
``pleasure'' and ``exciting life.''
(4) Hierarchy focuses on the legitimacy of hierarchical role and resource allocation, and
encompasses such values as ``social power,'' ``wealth,'' and ``authority.''
(5) Mastery emphasises mastery of the social environment through self-assertion, and
includes such values as ``ambitious,'' ``successful,'' and ``independent.''
(6) Egalitarian commitment involves a commitment to promoting the welfare of other
people and, consequently, surpasses selfish interests. Values in this type include
``equality,'' ``loyal,'' and ``responsible.''
(7) Harmony focuses on peace and social justice, and encompasses such values as ``unity
with nature'' and ``protecting the environment.''
Mean importance scores were calculated for each country on each of these seven value types. The
countries were subsequently listed, from the lowest to highest means, on each of the value types.
This relative positioning allows the similarity and dissimilarity of the countries to be gauged.