Professional Documents
Culture Documents
Qin Sun
College of Business, Trident University International, Cypress, California, USA
Abstract
Purpose The purpose of this paper is to examine how country of origin and consumer ethnocentrism pertain to first-generation immigrants, who
often identify with two or more countries.
Design/methodology/approach After a pretest to validate the modified consumer ethnocentrism scale, the main study used a series of scenariobased experiments and compiled data from 419 members of four distinct first-generation immigrant communities.
Findings Non-ethnocentric immigrants favor the products of economically advanced countries. Ethnocentric immigrants favor the products of their
home and host countries relative to foreign products, regardless of the economic standing of foreign countries. When home and host countries
represent significantly different degrees of economic advancement, both ethnocentric and non-ethnocentric immigrants favor the products of the more
advanced country.
Research limitations/implications Apart from the individual effects of country of origin and consumer ethnocentrism, the interplay between the
two effects can yield important insights. There are other ways to operationalize multicultural identity beyond studying first-generation immigrants.
Researchers should go beyond nationality and incorporate other forces of cultural diversity.
Practical implications For both ethnocentric and non-ethnocentric immigrants, the product that benefits from both effects is the most preferred,
and the product that benefits from neither of the two effects is the least preferred. Where the product benefits from one but not the other effect, the
two effects hold roughly equal power for ethnocentric consumers, but COO dominates CE for non-ethnocentric consumers.
Originality/value The paper presents a critical evaluation and extension of the respective literatures investigating familiar constructs in multicultural
settings.
Keywords Ethnocentrism, Country of origin, Multicultural, Empirical, Immigrant
Paper type Research paper
Introduction
A basic assumption underlying the extant research on
consumer ethnocentrism (CE) and country of origin (COO)
is that each consumer identifies with a single country
(Zolfagharian and Sun, 2010). Consequently, CE is
conceived as the bias toward the meanings and objects of
one country at the expense of all other countries; and COO
literature ignores the possibility of consumer identification
with both the country of origin and the country where the
product is sold. These assumptions are becoming increasingly
problematic as cultural diversity continues to grow
exponentially in more and more countries thanks to
immigration and inter-ethnic marriage as well as other social
and technological transformations that result in and from
globalization (Klein et al., 1998; Mihailovich, 2006). In fact,
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The fact that immigrants do regard the host nation as an ingroup is also supported by research on the mystery of
missing trade in international economics literature, which
suggests that both local and immigrant residents in a given
country would be positively biased toward the products and
services of that country (Trefler, 1995).
The distinction between in-groups and out-groups
suggested by the social identity theory is commensurate
with the notion of CE (Watson and Wright, 2000). CE is a
social psychological concept that distinguishes the groups
with which an individual identifies (in-groups) from those the
individual is neutral about or even dissociates from (outgroups; Forbes, 1985). CE has a significant influence on
consumer quality evaluation and purchase intention, with the
highly ethnocentric consumers in both developed and underdeveloped countries favoring their own domestic products
(Sharma et al., 1995; Watson and Wright, 2000). The
literature is replete with empirical support for varying degrees
of CE around the world (Acharya and Elliott, 2003; Hamin,
2006; Kinra, 2006). For example, Acharya and Elliott (2003)
contrast highly ethnocentric and non-ethnocentric consumers
and find that the former group exhibits a strong preference for
domestic products while the latter group is more interested in
high-quality products of economically advanced countries.
Moreover, Sharma et al. (1995) identify collectivistic
tendencies and patriotic/conservative attitudes as positive
correlates, and consider cultural openness, education and
income as negative correlates of CE.
Country of origin
Another pattern of consumer preference is known as COO.
The literature contains different definitions for COO such as
the country where the product is made (Nagashima, 1970),
the country of the firms corporate headquarters (Johansson
et al., 1985), the country of manufacture or assembly (Han
and Terpstra, 1988), the country of design, parts, and
assembly (Insch and McBride, 1998), and even the intangible
barriers that hinder new brands entry (Wang and Lamb,
1983). This study uses the country of manufacture that is,
the made in definition.
Although popular stereotypes consider one or more
countries to be the best sources of certain products
(e.g. German cars, Persian rugs, French wine, Japanese
electronics), generally speaking consumers tend to regard the
products of advanced economies as superior to those of less
advanced economies (Wang and Lamb, 1983). A metaanalytic study by Verlegh and Steenkamp (1999) concludes
that consumers do use COO as an important piece of
information, which exerts a significant impact on their
evaluation of product quality, attitude toward the product,
and purchase intention. COO factors into consumer decisionmaking as a surrogate or summary information about the
product. It functions as an explicit cue, much like a national
stereotype, influencing consumers quality evaluations and
behavioral intentions (Thakor and Lavack, 2003). A central
premise in COO research is that consumers generally prefer
the products of economically advanced countries over those of
developing or under-developed countries (Khachaturian and
Morganosky, 1990; Schooler, 1965). The more economically
developed the consumer perceives a country to be, the more
highly he or she will regard the products made in that country
(Han, 1990; Schooler, 1965). In fact, Tse and Gorn (1993)
find COO to be an equally salient and more enduring
Literature review
Consumer ethnocentrism
According to the social identity theory (Tajfel, 1982; Tajfel
and Turner, 1986), consumers identify and align with their
positively valued in-groups and, in so doing, utilize the
meanings and objects associated with in-groups to construct
and negotiate a positive self-identity. Thus, consumers tend to
favor the meanings and objects of in-groups over those of
other groups. In addition, the social identity theory suggests
that consumers have the tendency to view out-groups
unfavorably and distance themselves from the meanings and
objects associated with those groups. The pertinence of social
identity theory to immigrant consumers is curious. Whereas
local consumers belong to a single national in-group
comprising the mainstream populace in the host country,
immigrants face at least two in-groups including their ethnic
roots associated with the home country and the larger
mainstream group in the host country (Penaloza, 1994; Su
et al., 2010; Tai, 2009). For local consumers, cultural heritage
is often situated within one nation, which is also set apart as
the positively valued in-group by these consumers. To them,
other nations and their members constitute out-groups. The
in-group and out-group classification is relatively more
complex for immigrants, who not only bring with them a
preference for the nation in which they were born and raised,
but also gradually grow partiality toward the nation that
accepted them and served as their host (Esses et al., 2001). As
such, immigrants hold both home and host countries as
positively valued in-groups, seek association with both of
these cultures, and favor the meanings and objects associated
with them (Askegaard et al., 2005; Oswald, 1999; Penaloza,
stuner and Holt, 2007; Zolfagharian and Sun, 2010).
1994; U
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H2.
H3.
Instrumentation
A scenario-based survey method was used to collect data.
Since specific home, host and foreign countries vary across
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German American
Japanese
American . Mexican
& Chinese
American . Mexican
& Chinese
American . Chinese
& Mexican
German
& American . Japanese
American
& Mexican . Chinese
Mexican
& American . Chinese
Chinese
& Mexican . American
German
& American . Mexican
American
& German . Mexican
American
& German . Mexican
German
& American . Mexican
American
& Mexican . German
American
& Mexican . German
H3. Product
preference by all
consumers
German American
American . Mexican
American . Mexican
Chinese Mexican
German American
American . Mexican
American . Mexican
Note: aIn the two-word labels that signify respondent groups (i.e. immigrant communities), the first and second words indicate the home and host countries,
respectively
Main study
Data was collected from first-generations of four immigrant
populations, i.e. GAs and MAs living in the USA, and AMs
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Results
Factor analysis and validation
All of the multi-item scales used in this study were subjected
to exploratory factor analysis (EFA), using the principal
components technique and pooling all of the data, to observe
the underlying structure and identify and remove problematic
items. As expected, Petroshius and Monroes (1987) product
n
M
Minimum
Maximum
Majority
Age
GAs
Gender
Income
Age
MAs
Gender
Income
Age
AMs
Gender
Income
Age
CMs
Gender
Income
90
40.27
24
57
42
90
1.54
1
2
2
90
2.87
1
5
2.87
150
38.26
19
56
35
150
1.52
1
2
2
150
2.42
2
5
2
150
38
19
57
35
150
1.46
1
2
1
150
2.88
1
5
2
60
37.33
20
56
40
60
1.50
1
2
2
60
3.06
1
5
4
Notes: Gender: 1, female, 2, male; income: 1, below $40k, 2, $40k-$79k, 3, $80k-$119k, 4, $120k-$159k, 5, $160k and above
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EFAa
CFAb
0.88
0.87
0.83
0.72
0.84
0.87
0.82
0.81
0.78
0.75
0.74
0.70
0.80
0.75
0.78
0.73
0.92
0.88
0.86
0.83
0.87
0.85
0.83
0.80
0.85
0.84
0.82
0.80
0.77
0.75
0.73
0.73
0.71
0.71
0.70
0.84
0.80
0.79
0.78
0.77
0.75
0.72
0.71
0.70
0.69
0.68
0.93
0.91
0.89
0.88
0.85
0.83
0.91
0.90
0.89
0.86
0.83
0.82
0.94
0.93
0.92
0.90
0.90
0.89
0.87
0.87
0.84
0.78
0.75
0.87
0.86
0.85
0.79
0.76
0.66
0.79
0.77
0.71
Notes: aPrincipal components analysis, Varimax rotation; bCFA standardized regression weights of the first-order measurement model, all paths significant at
p , 0:001; ccountries in these items differed across immigrant populations those presented here pertain to the survey completed by a Mexican Americans
group
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Hypothesis testing
All hypotheses were tested using the t statistic. Test results
using product quality and purchase intention ratings appear in
Tables IV and V, respectively. H1(a) posits that nonethnocentric immigrants hold significantly more favorable
quality evaluations of the products of economically advanced
countries relative to those of economically developing
countries. Non-ethnocentric GAs reported comparable
quality ratings of the German (M 3:64), American
(M 3:73) and Japanese (M 3:81) products, but
significantly lower quality ratings of the Mexican product
(M 2:52) relative to the German (M 4:10; p , 0:001)
and American (M 4:00; p , 0:001) products. Nonethnocentric AMs gave the American product (M 3:56)
significantly higher quality ratings than the Mexican
(M 2:94; p 0:046) and Chinese (M 2:51; p , 0:001)
products; they further assigned significantly lower quality
ratings to the Mexican product (M 2:42) than the
American (M 3:76; p , 0:001) and German (M 3:10;
p 0:021) products. Non-ethnocentric MAs felt that the
American product (M 3:58) had significantly higher quality
than the Mexican (M 2:86; p 0:038) and Chinese
(M 2:65; p 0:005) products; they further rated the
Mexican product (M 2:74) significantly lower than the
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German Americans
Foreign product: Japanese
Home 5 Host 5 Foreign
n 30
German 3:64 (0.92)
American 3:73 (0.87)
Japanese 3:81 (1.03)
S
No significant contrast
n 29
German 4:03 (0.89)
American 3:83 (1.00)
Japanese 2:72 (1.28)
S
German . Japanese (p , 0:001)
American . Japanese ( p 0.024)
n 59
German 3:83 (0.96)
American 3:78 (1.07)
S
German American (p 0:812)
German Americans
Foreign product: Mexican
Home 5 Host > Foreign
n 30
German 4:10 (0.85)
American 4:00 (1.02)
Mexican 2:52 (0.96)
S
German . Mexican (p , 0:001)
American . Mexican ( p , 0.001)
n 30
German 4:54 (0.90)
American 4:29 (1.03)
Mexican 2:12 (0.88)
S
German . Mexican (p , 0:001)
American . Mexican (p , 0:001)
n 59
German 4:32 (0.98)
American 4:15 (1.14)
S
German American (p 0:528)
Mexican Americans
Foreign product: Chinese
Host > Home 5 Foreign
n 33
Mexican 2:86 (1.05)
American 3:58 (1.02)
Chinese 2:65 (1.24)
S
American . Mexican (p 0:038)
American . Chinese ( p 0.005)
n 27
Mexican 3:28 (1.12)
American 4:28 (0.73)
Chinese 2:51 (1.10)
S
Mexican . Chinese (p 0:023)
American . Chinese ( p , 0.001)
n 60
Mexican 3:05 (1.21)
American 3:90 (1.18)
S
American . Mexican (p 0:011)
Mexican Americans
Foreign product: German
Host 5 Foreign > Home
n 33
Mexican 2:74 (1.01)
American 4:07 (0.83)
German 3:38 (0.88)
S
American . Mexican (p , 0:001)
German . Mexican ( p 0.021)
n 27
Mexican 3:03 (0.97)
American 3:72 (0.70)
German 2:98 (0.98)
PS
Mexican . German (p 0:980)
American . German ( p 0.013)
n 60
Mexican 2:87 (1.09)
American 3:91 (0.96)
S
American . Mexican (p , 0:001)
American Mexicans
Foreign product: Chinese
Home > Host 5 Foreign
n 34
American 3:56 (1.07)
Mexican 2:94 (1.07)
Chinese 2:51 (1.12)
S
American . Mexican (p 0:046)
American . Chinese ( p , 0.001)
n 26
American 4:33 (0.68)
Mexican 3:62 (1.09)
Chinese 2:54 (1.10)
S
American . Chinese (p , 0:001)
Mexican . Chinese ( p , 0.001)
n 60
American 3:79 (0.99)
Mexican 3:32 (1.13)
NS
American . Mexican (p 0:417)
American Mexicans
Foreign product: German
Home 5 Foreign > Host
n 32
American 3:76 (0.87)
Mexican 2:42 (1.07)
German 3:10 (0.91)
S
American . Mexican (p , 0:001)
German . Mexican ( p 0.021)
n 28
American 3:96 (0.89)
Mexican 2:72 (1.18)
German 3:16 (1.24)
PS
American . German (p 0:032)
Mexican . German ( p 0.354)
n 60
American 3:82 (0.96)
Mexican 2:56 (1.07)
S
American . Mexican (p , 0:001)
Chinese Mexicans
Foreign product: American
Foreign > Home 5 Host
n 33
Chinese 3:12 (0.71)
Mexican 2:83 (1.15)
American 3:72 (0.77)
S
American . Chinese (p 0:028)
American . Mexican ( p , 0.001)
n 27
Chinese 3:06 (1.12)
Mexican 3:25 (0.92)
American 3:40 (1.18)
NS
Chinese . American (p 0:530)
Mexican . American ( p 0.891)
n 60
Chinese 3:09 (0.99)
Mexican 3:02 (1.18)
S
Chinese Mexican (p 0:816)
Notes: Each cell contains mean (standard deviation) of product ratings as well as the p value of the specified t tests; n, subsample size; S, supported; PS, partially
supported; NS, not supported
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Mohammadali Zolfagharian
German Americans
Foreign product: Japanese
Home 5 Host 5 Foreign
n 30
German 3:33 (0.94)
American 3:29 (1.06)
Japanese 3:51 (1.01)
S
No significant contrast
n 29
German 3:82 (0.96)
American 3:55 (0.92)
Japanese 2:02 (1.09)
S
German . Japanese (p , 0:001)
American . Japanese ( p , 0.001)
n 59
German 3:56 (0.88)
American 3:61 (1.00)
S
German American (p 0:786)
German Americans
Foreign product: Mexican
Home 5 Host > Foreign
n 30
German 3:82 (0.91)
American 3:53 (0.91)
Mexican 2:17 (0.87)
S
German . Mexican (p , 0:001)
American . Mexican ( p , 0.001)
n 30
German 4:18 (0.95)
American 4:01 (1.13)
Mexican 2:19 (0.79)
S
German . Mexican (p , 0:001)
American . Mexican ( p , 0.001)
n 59
German 3:96 (0.96)
American 3:84 (1.03)
S
German American (p 0:498)
Mexican Americans
Foreign product: Chinese
Host > Home 5 Foreign
n 33
Mexican 2:68 (0.96)
American 3:41 (0.99)
Chinese 2:12 (1.04)
S
American . Mexican (p 0:028)
American . Chinese ( p , 0.001)
n 27
Mexican 3:15 (0.93)
American 3:86 (0.93)
Chinese 2:30 (1.04)
S
Mexican . Chinese (p 0:008)
American . Chinese (p , 0:001)
n 60
Mexican 2:82 (0.87)
American 3:81 (1.01)
S
American . Mexican (p , 0:012)
Mexican Americans
Foreign product: German
Host 5 Foreign > Home
n 33
Mexican 2:41 (0.92)
American 3:88 (0.96)
German 3:37 (0.89)
S
American . Mexican (p , 0:001)
German . Mexican (p 0:033)
n 27
Mexican 2:84 (0.89)
American 3:53 (0.83)
German 2.68 (0.91)
PS
Mexican . German (p 0:733)
American . German ( p 0.009)
n 60
Mexican 2:78 (1.12)
American 3:70 (0.93)
S
American . Mexican (p , 0:001)
American Mexicans
Foreign product: Chinese
Home > Host 5 Foreign
n 34
American 3:41 (0.98)
Mexican 2:29 (0.87)
Chinese 2:03 (1.04)
S
American . Mexican (p , 0:001)
American . Chinese ( p , 0.001)
n 26
American 3:99 (0.81)
Mexican 3:08 (1.01)
Chinese 2:22 (0.97)
S
American . Chinese (p , 0:001)
Mexican . Chinese ( p , 0.001)
n 60
American 3:42 (0.88)
Mexican 2:84 (1.08)
S
American . Mexican
(p 0:039)
American Mexicans
Foreign product: German
Home 5 Foreign > Host
n 32
American 3:39 (0.93)
Mexican 2:06 (0.92)
German 2:85 (1.09)
S
American . Mexican (p , 0:001)
German . Mexican ( p 0.018)
n 28
American 3:63 (0.72)
Mexican 2:40 (0.86)
German 2:87 (1.01)
PS
American . German
(p 0:038)
Mexican . German ( p 0.370)
n 60
American 3:46 (0.98)
Mexican 2:21 (1.16)
S
American . Mexican (p , 0:001)
Chinese Mexicans
Foreign product: American
Foreign > Home 5 Host
n 33
Chinese 3:03 (0.85)
Mexican 2:65 (1.02)
American 3:51 (0.92)
S
American . Chinese (p 0:046)
American . Mexican ( p , 0.001)
n 27
Chinese 2:89 (1.01)
Mexican 3:04 (0.96)
American 3:27 (1.10)
NS
Chinese . American (p 0:618)
Mexican . American ( p 0.905)
n 60
Chinese 2:77 (1.02)
Mexican 2:81 (1.04)
S
Chinese Mexican (p 0:902)
Notes: Each cell contains mean (standard deviation) of product ratings as well as the p value of the specified t-tests; n, subsample size; S, supported; PS,
partially supported; NS, not supported
77
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Figure 2 Ancillary analyses: plots of main and interaction effects using product quality
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Discussion
The exponential growth in cultural diversity around the world
necessitates a more nuanced understanding of familiar
constructs in marketing and consumer research (Klein et al.,
1998; Maheswaran and Shavitt, 2000; Mihailovich, 2006).
For example, consumer researchers have revealed the
shortcomings of traditional ethnic categorizations as poor
indicators and begun to address the competitive yet
productive cultural forces of home, host and other cultures
(Askegaard et al., 2005; Miller, 1997; Penaloza, 1994,
1995).The present study takes a step in that direction by
extending the extant understanding of the CE and COO
effects.
Traditionally, researchers have defined CE as the bias
toward the meanings and objects of only one country, and
ignored the possibility of consumer identification with both
the country of origin and the country where the product is
sold. However, recent research has provided evidence for a
counterargument: when consumers are associate with two or
more countries, their preferences are subject to a more
nuanced interplay between the CE and COO effects
(Zolfagharian and Sun, 2010). Our study extends this
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References
Acharya, C. and Elliott, G. (2003), Consumer
ethnocentrism, perceived product quality and choice: an
empirical investigation, Journal of International Consumer
Marketing, Vol. 15 No. 4, pp. 87-115.
Askegaard, S., Arnould, E.J. and Kjeldgaard, D. (2005),
Postassimilationist
ethnic
consumer
research:
qualifications and extensions, Journal of Consumer
Research, Vol. 32 No. 6, pp. 160-170.
81
Mohammadali Zolfagharian
Further Reading
Brodowsky, G.H. (1998), The effects of country of origin
and country of assembly on evaluative beliefs about
automobiles and attitudes toward buying them: a
comparison between low and high ethnocentric
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