Consumer ethnocentrism the relationship with domestic products

consumer ethnocentrism the relationship with domestic products

thus results in consumers selecting domestic products. The existing Relationship between Consumer Ethnocentrism and Domestic Brand Equity . () concluded that consumer ethnocentrism had a negative effect on the . Hence, the relationship between COS and home product country image among. nificant effect on consumers' purchase intentions of domestic products, while product attitude has exploring the relationship between consumer ethnocentrism.

Further, Altintas and Tokol [ 39 ] argued that unfavourable attitudes towards foreign brands and xenophobia are closely linked with conservative values and less cultural openness of customers. Thus further insights into the relationships of cultural openness and CET can be provided by taking into account effect of both the potential moderators such as SRC, attitudes towards foreign brands and possible interactions with other antecedents such as xenophobia, animosity and world mindedness.

Conservatism Conservatism is the tendency to maintain and preservation of the traditional order of the society that has survived the tests of the time. They further contended that Conservatism can manifest itself as insistence of strict rules and punishments, religious outlook and an anti-hedonic outlook in its extreme form. The outcome of studies is differing with respect to developing and developing countries.

Wang [ 40 ] contended that the conservatism attribute and favorable attitude towards international brands is having negative relationship in developed countries. However, Sharma et al. Whatever the justifications have been provided for conservatism as a potential antecedent of CET, the criticisms it faces is consumers may conceal their conservative belief while making a purchase decision and also conservatism has become obsolete with the advent of globalization.

Thus moderating effects of world mindedness, education and globalization should be given due weightage while studying the impact of conservatism on CET. World mindedness Sometimes used synonymously for internationalism, world minded persons give least importance to nationality or ethnic groups and consider human beings as primary reference groups [ 41 ], thereby encouraging people to share common values and maintain empathy towards other societies.

Worldminded consumers are interested in knowledge of international affairs, regards for national harmony and consensus developments [ 42 ]. Although negative relationship between the worldmindedness and Consumer ethnocentrism was empirically tested by the Rawwas et al. One can certainly argue that world mindedness can be studied as a potential moderator in assessing the relationship between Cultural openness and the CET. Collectivism It is the socio-psychological concept and is defined as the social orientation in terms of personal traits of human beings to peruse collectivist goals rather than individual goals.

Collectivism is a major element of individual cultural orientation [ 44 ], thus are obligated to favour domestic industries for their economic betterment. Also people scoring high on collectivism tend to reveal more extensive ethnocentric tendencies against individualistic goals [ 3 ].

The studies in developed countries [ 345 ] have shown consistent results of the positive relationship between CET and the Collectivism. The positive correlation between patriotism and CET supported by various studies such as Han [ 49 ], Sharma et al. Hence the above discussion calls for the need of exploring the moderating effects of world mindedness and education on the governing relationship between Patriotism and CET. Ethnicity significant any correlation between ethnicity and CET as against the studies of Wanninayake and Chovancova [ 55 ] and Vida et al.

The negative correlation between internationalism and consumer ethnocentrism have been empirically stated by authors such as Lee and Back [ 58 ] and Zhang et al. However, the positive correlation between buying preference between international brands and the worldmindedness, a construct similar to the internationalism is brought out in the studies of Crawford and Lamb [ 21 ] and Rawwas et al.

The judgement of consumers depends on brand image and the country from which the product originated 4.

consumer ethnocentrism the relationship with domestic products

The country of origin effect is crucial in establishing a connection between consumer ethnocentrism and brand image 35. In most of the developing nations, consumers prefer to purchase products that originate in developed nations and that have a higher brand image. Consumer ethnocentrism is critical in regard to decisions about what to buy, depending on the type of market that is in place 6 - 8.

Consumer ethnocentrism: the relationship with domestic products evaluation and buying preferences

Consumer ethnocentrism has an effect on foreign and domestic markets; however, its effect is greater in the domestic market. Ethnocentric consumers believe that purchasing imported products affects the internal economy within the country and can lead to a decrease in employment opportunities within a country. Ethnocentric consumers have different perceptions with regard to product purchasing judgements 9.

This study examined the country in which a product is manufactured, its brand image, the product evaluation and consumer ethnocentrism. A comparison among the factors was made and the effectiveness of each factor was analyzed. A model was established that elaborates the relationships between the factors. The term "Country of origin" refers to the country of manufacture, production, or growth from which a product originates The buying decision with regard to a given product and its competitive advantage is affected by its place of manufacture.

Regardless of the strong relationship that exists between the brand image of a product and its country of origin, most of the effects are negative. However, consumer perceptions about a product must be in line with the country of origin to avoid consumer negativity with regard to a product. Most consumers prefer products that they are comfortable buying and they take the specific place of manufacture into consideration.

Brand image and country of origin are related depending on the perceptions of the consumers in the market. A country of origin that is strongly positively perceived by customers has a competitive advantage in terms of its products. Different studies have been conducted on the effects of product origin, product quality and the consumer's familiarity with products from specific nations.

From the different studies that have been conducted, it has been established there is a relationship between the origin country of a product and its brand image in that country with regard to certain products. A country with a positive brand image has a higher competitive advantage and therefore its products are used as enhancers of brand positioning in the market 3.

The risk that is associated with the acquisition and consumption of those products is minimal. Therefore, they are considered to be safe. However, several studies have established a negative relationship between brand image and country of origin 34 From the multidimensional approaches that have been used in most studies, the economic, political, socio-cultural and technological factors within a country are evaluated with the aim of determining how the country of origin of a product affects the brand positioning of the product in the market.

Usually, there is a positive prejudice between products that are produced in urbanized countries than products that are produced in developing nations. However, technological advancement, lifestyle changes and marketing techniques can affect consumer perception over a period of time. The country where a product is manufactured relates to various aspects, including the cultures within that country, the political climate of that country, the landscape, the languages that are used in that country, the economic and technological development of that country, the people and the religions that are found in that country 5.

All these factors affect the brand positioning of a product in the internal markets. The image of that country is viewed as an operational concept. Prior research has suggested that there must be a match between the place where a product is manufactured and the image that is portrayed by the brand to avoid negative spill overs in the economy 15. Therefore, products that are associated with a specific country tend to create a positive image of the brand.

A good example is French companies that are associated with a reputable brand image, especially in perfumes, the textile industry and the production of wines.

The same country has a negative brand image in regard to the production of cars and technology equipment. The brand images of the different nations vary a great deal and therefore they are relevant to products that have a high competitive advantage and the brand images of different nations are important for consumers in terms of consumption 6.

Many countries have strong product images; however, brand images are perceived to be weak, which is an aspect that causes low consumption.

Therefore, a product in the market becomes significant to customers when the brand positioning is strong and there is a unique brand association with other products. Brand equity is the main aim that drives marketers to market a certain product. The positioning of product elements in the market differs according to personal characteristics, desired objectives and customer values 467. However, external factors affect brand positioning in the market. These factors include competition, social issues and cultural issues in the economy International positioning raises different challenges in the market.

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  • Consumer Ethnocentrism in 21st Century: A Review and Research Agenda

Most consumers in a market use the brand country of origin in their evaluation of new products in the market. When new products are introduced in the market, the consumer attitudes towards purchasing that product depend on the place of manufacture and the brand positioning of that product. In this case, brand image does not play an important role in determining consumer preference. Consumers consider the country of origin in making their ultimate decisions. The images of the products can be negatively affected when new products are introduced into the market.

This occurs before customers become familiar with a brand name. This affects the reliability of the products, the safety of using the products and the performance of the products. If the products and the personalities of the consumers are similar, then the consumers will develop a tendency to consume more of the products.

When there is a high negative bias towards the country of origin of a certain product, then the consumption will be low because consumers avoid the consumption of such products. The decisions of consumers in the consumption of certain products either negatively or positively affect brand image This demonstrates that there is a relationship between brand image and the country of origin. Therefore, the following proposition emerges. There is a significant country of origin effect on customer brand image.

Country of origin and customer product evaluation: Customer product evaluation refers to "The safety and the suitability precautions checks taken by the consumers before making a buying decision 19 ". The existence of the effects of the country of origin on products and the evaluation of products has been confirmed; however, the magnitude of the effects has been a subject of research as well as the variables, which can be used to moderate the effects. Consumers use a contingency approach in determining how the origin of a product affects their foreign evaluation.

The statistical significance of the results demonstrated that the relationship between these two variables was related to a specific class of products.

consumer ethnocentrism the relationship with domestic products

The prior research suggested that the country of origin and the quality of products have a positive relationship Some countries are stronger in the production of specific types of products than others. Therefore, they are more competitive than others are in terms of the production of those commodities. In the case of utility-driven objects, the attitude towards the consumption of these products is high.

The USA is multifaceted in terms of producing different products and therefore the consumer perceives that the products that originate from that country are ethical and safe to consume. Other countries are good at producing specific products; however, due to negative product evaluations by the consumers, the consumption of those products is low.

Some consumers consume more products depending on the satisfaction that they intend to obtain from them Further, prior research evaluated the relationship between product image and country of origin image based on different dimensions 22 The four dimensions that they used in their research are related to the innovativeness of the products, the prestige of the products, their design and the workmanship that is used in making the products functional.

From the evaluation of the willingness of consumers to buy different products, they found that the willingness to buy a specific commodity will be higher when the image of the country is high in terms of producing specific commodities For some specific classes of commodities, where a product is manufactured highly affects the buying decision of consumers in the market and thus creates a relationship between the two.

Further, it was found that the particular dimension that is used by a consumer in product evaluation is rated according to different product classes 24 The different classes of products depend on consumer consumption preferences. Consumer evaluation depends on the familiarity of the consumer with the products that exist in a country. If the consumers have no knowledge about the different products that are produced within the borders of certain countries, then it becomes difficult for the consumer to evaluate products.

In that case, the consumers will purchase a product without considering the country of origin.

consumer ethnocentrism the relationship with domestic products

In the evaluation process of the various products that are consumed within an economy, consumers may have an indirect effect on the overall process. When there is a positive review of a product by consumers, it means that they consider the product to be safe for consumption; however, a negative signal shows that there is a threat in the consumption of certain commodities. Consumers who experience the positive effects of product evaluation are stereotypical in regard to decision making and consumers who make negative purchase decisions are cautious with regard to using such products.

Consumers consider the consumption of commodities for which the country of origin is known and they pay attention to reviews of products and information about the country of origin. A positive consumer review with regard to the consumption of a specific brand of commodities shows that the consumer has studied the products from that country for some time. Building a high perception about the products that are produced within a given country helps consumers to make solid purchase decisions.

Country-of-origin and Consumer Ethnocentrism: Effect on Brand Image and Product Evaluation

Country of origin plays an important role with regard to product evaluation by consumers The country of origin affects how much consumers are willing to spend when they buy a product.

Consumer intention and consumer perceptions of different advertisements are also influenced by the country of origin.

consumer ethnocentrism the relationship with domestic products

Most managers understand the value of the country from which information originates in relation to the evaluation of products by consumers; that is why they state that product labelling is essential and required by law.

Many consumers seek the country of origin information before they make a purchase decision because the brands from that country are important in buying decisions.

In contrast, various changes in country of origin traditions have caused problems in the research. Today, many countries prefer to produce specific products in other countries where labour and tax costs are low in the overall economy 7. Multinational products have thus presented challenges in the evaluation of such products and their brand image and many consumers have been affected by such challenges. Thus, consumers and managers find it difficult to identify products that are effective for their customers based on the country of origin.

The multidimensional nature of products has made most consumer decisions in the evaluation of products to be low Researchers have evaluated the importance of evaluating a product in terms of its origin country, in terms of where it was designed and assembled and the place of its manufacture.

Most countries differ in their manufacturing and production and thus consumers must be cautious in their evaluation process to make their ultimate decision. Depending on the capabilities of the different countries that are involved in a supply chain, production is located in different countries to enable products to be better in the long run. An evaluation will be more negative if a superior brand is manufactured in a developing nation than when it is made in a developed nation.

This shows that the consumers are cautious and choose products depending on the country of origin. Prior research has suggested that US consumers prefer Japanese cars that are produced in the US rather than the cars that are manufactured in Mexico. This is because they consider Mexico to have a lower manufacturing capability that may affect the quality of the vehicles that are manufactured in that nation 9.