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Journal of International Consumer Marketing

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Consumer Ethnocentrism, Attitudes, and Purchase Behavior

Aviv Shoham & Maja Makovec Breni
a a b

Graduate School of Business , University of Haifa , Haifa, 31905, Israel

b

University of Ljubljana , Kardeljeva pl. 17, 1000, Ljubljana, Slovenia Published online: 08 Sep 2008. To cite this article: Aviv Shoham & Maja Makovec Breni (2003) Consumer Ethnocentrism, Attitudes, and Purchase Behavior, Journal of International Consumer Marketing, 15:4, 67-86 To link to this article: http://dx.doi.org/10.1300/J046v15n04_04

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Consumer Ethnocentrism, Attitudes, and Purchase Behavior: An Israeli Study

Aviv Shoham Maja Makovec Bren i

ABSTRACT. Consumer ethnocentrism (CE) is an important area of study in cross-cultural consumer research. Since the CETSCALE was published (Shimp and Sharma 1987), studies have used the scale in a variety of research contexts. The scales importance stems, in part, from its predictive properties. Specifically, CETSCALE scores have been shown to affect consumers beliefs, attitudes, and behavioral intentions toward foreign-made products (Netemeyer, Durvasula, and Lichtenstein 1991; Shimp and Sharma 1987). This paper builds on earlier contributions to propose a CE nomological model. Income, CE, and general product attitudes predict the proportion of locally produced and import products purchased by a sample of Israeli consumers. The findings suggest that the three antecedents, in different combinations, affect purchase behaviors for the products studied. [Article copies available for a fee from The
Haworth Document Delivery Service: 1-800-HAWORTH. E-mail address: <docdelivery@haworthpress.com> Website: <http://www.HaworthPress.com> 2003 by The Haworth Press, Inc. All rights reserved.]

KEYWORDS. Consumer ethnocentrism, Israel, CETSCALE, nomological model, foreign-made products

Aviv Shoham is affiliated with the Graduate School of Business, University of Haifa, Haifa 31905, Israel (E-mail: ashoham@research.haifa.ac.il). Maja Makovec Bren i is with the Faculty of Economics Ljubljana, University of Ljubljana, Kardeljeva pl. 17, 1000 Ljubljana, Slovenia (E-mail: maja.makovec@uni-lj.si). Journal of International Consumer Marketing, Vol. 15(4) 2003 http://www.haworthpress.com/store/product.asp?sku=J046 2003 by The Haworth Press, Inc. All rights reserved. 10.1300/J046v15n04_04

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INTRODUCTION Consumer ethnocentrism (CE) is originally a sociological concept, developed to distinguish between in- and out-groups (Shimp and Sharma 1987). As used in sociology, ethnocentrism refers to the preference of individuals to view the world through the perspective of groups they belong to. Since the group is the center of the universe, individuals tend to interpret other social units from the perspective of their own group (Shimp and Sharma, p. 280). Symbols and objects (including consumed products) of a persons group are the bases for pride and symbols and objects of out-groups can become objects of ridicule (Levine and Campbell 1972). The development of the CETSCALE (Shimp and Sharma 1987) was important because it provided an instrument to measure CE. CETSCALE research can be classified as methodological or substantive. The original development of the scale falls into the former. Shimp and Sharma (1987) formulated the scale and tested its reliability and validity in four studies. Similarly, Durvasula, Andrews, and Netemeyer (1997) tested the scales properties in two countries (Russia and the US) and provided evidence for the cross-cultural validity and reliability of the CETSCALE. Nielsen and Spence (1997) tested the stability of the scale in their South Carolina study. Other contributions are substantive. For example, Hult, Keillor, and Lafferty (1999) assessed the impact of CETSCALE on social desirability bias in Japan, Sweden, and the US. Netemeyer, Durvasula, and Lichtenstein (1991) reported that CETSCALE affected consumption behavior in the US, France, Germany, and Japan. Most previous studies of CE have been conducted in developed, Western countries (e.g., the US and Germany). Only a few examinations of the CETSCALE were conducted in developing countries (RussiaDurvasula, Andrews, and Netemeyer [1997]) or in just-developed countries (SpainLuqueMartinez, Ibanez-Zapata, and Barrio-Garcia [2000]). Our study was designed to contribute to the growing body of research on CE. Specifically, we assess the impact of CE, attitudes towards foreign-imported and locally produced products, and actual purchases by Israeli consumers for a variety of products. Previous research has also stopped short of testing the behavioral consequences of CE. Shimp and Sharma (1987) assessed the relationship between CE and consumer attitudes and behavioral intentions. Similarly, Durvasula et al. (1997) tested the impact of CE on product and behavioral attitudes and Netemeyer, Durvasula, and Lichtenstein (1991) examined the impact of CE on beliefs about products from different countries. Nielsen and Spence (1997) provide an exception, but their study only assessed the impact of CE on the
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ownership of cars. In sum, relatively little is known about the impact of ethnocentrism on purchase behavior. Thus, this study has two purposes. First, it tests the impact of CE in Israel, a recently developed country. Second, it tests the impact of CE on actual purchases of a sample of Israeli consumers. THEORETICAL OVERVIEW AND RESEARCH HYPOTHESES ET, Product Attitudes, and Buying Locally Manufactured Products CE has been proposed as an important determinant of attitudes, behavioral intentions, and purchases (Luque-Martinez et al. 2000). CE represents a universal tendency to see ones group as a center of the universe. Such a tendency leads individuals to interpret phenomena from their in-groups perspective and to reject culturally different behaviors (Booth 1979; Forbes 1985). The strength of CE has led some scholars to view it as part of human nature (e.g., Rushton 1989). Building on Shimps seminal paper (1984), CE has been used in studies of consumer attitudes toward foreign and domestic products. According to Shimp (1984, p. 285, emphases added), CE is conceptualized as individuals belief in the superiority of locally manufactured products, rooted in normative and moral decision-making: . . . consumer ethnocentrism is intended to capture the notion that some consumers believe it is somehow wrong to purchase foreign-made products because it will hurt the domestic economy, cause the loss of jobs, and, in short, because, from their point of view, it is plainly unpatriotic. For the purpose of our research, and similar to Shimp and Sharma (1987, p. 280), we define consumer ethnocentrism as a belief held by consumers about the appropriateness, indeed morality, of purchasing foreign-made products. This definition implies an emphasis on exclusionary purchases; an ethnocentric consumer makes an effort to purchase locally produced products and to avoid purchasing imported products (Shimp and Sharma 1987). Regarding antecedents of consumer ethnocentrism, Shimp (1984) argued that consumer demographics determine ethnocentrism and documented that education, income, and social class affect it negatively. Additionally, liking ones country, patriotism, nationalism (Durvasula et al. 1997; Luque-Martinez et al. 2000), and dogmatism (Anderson and Cunningham 1972) increase CE. Moreover, a link has been established between country of origin and CE (Douglas and Boeckman 1987). While understanding the role these antecedents play in the development of CE is important, the purpose of the research re-

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ported here is on its consequences, which are managerially important. Below, we discuss the impact of CE, product attitudes, and income on actual product purchases. In their analysis of the CETSCALE, Netemeyer et al. (1991) and Shimp and Sharma (1987) argued that consumer ethnocentrism should affect the importance and attitudes of purchasing and general beliefs about local and imported products. Durvasula et al. (1997) argued that the higher the CE, the more positive the beliefs and attitudes about local products and the higher the importance of buying local products. A number of theoretical arguments have been made to justify the link between CE and attitudes toward local and imported products. First, Sharma, Shimp, and Shin (1995) argued that CE results from the love and concern for an individuals country. Such emotions result in a fear of losing control of the same individuals economic interests through buying imports. Second, CE contains an intention component directly opposed to buying foreign products. Specifically, the more CE the consumer the more buying imports becomes a moral issue and not just an economic one (Sharma et al. 1995). Third, CE also refers to a personal prejudice against goods and services manufactured in other nations (Moon 1996). Fourth, perhaps due to the three arguments already presented, CE might result in an overestimation of the quality of domestic products and an underestimation of the quality of imports. These would lower attitudes toward imports and enhance attitudes toward locally produced goods (Sharma et al. 1995; Watson and Wright 2000). Finally, Slovic, Fischoff, and Lichtenstein (1977) forward the view that decision-making in general includes a normative and a descriptive component. The former pertains to our discussion here. Normative decision-making refers to prescriptive courses of action that conform to the beliefs and values of a decision-maker (Pecotish and Rosenthal 2001, p. 34). Thus, it involves a what should I do as a consumer? tone. Specifically, and applied to our context, ethnocentric consumers should exhibit more positive product attitudes for domestic, compared to imported products in accordance with their patriotism and sense of duty to country (Hooley, Shipley, and Kreiger 1987). As these arguments suggest, the strongest test of the impact of CE should be at the actual purchase level. Below, we provide theoretical arguments to justify the holistic links among CE, attitudes, and purchase behavior. First, in line with the principle of cognitive consistency, consumers value harmony between thoughts, feelings, and actions and strive for consistency among them (Hawkins, Best, and Coney 1997). When inconsistencies occur, consumers will be motivated to change the inconsistent component to reduce the impact of cognitive dissonance (Festinger 1957). Applied to our context, CE consumers will be motivated to adapt their behavioral and attitudes accord-

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ingly. This will lead to more positive attitudes about domestic products and to more frequent purchases of such products. Second, according to self-perception dissonance-explaining theory (Bem 1972), individuals use their consumption patterns to infer their attitudes. Therefore, actual behavior will be used as a cue resulting in consistent attitudes. Hence, consumers, who tend to buy local products, will deduce that they also have more positive attitudes towards such products. Third, Solomons consistency-explaining theory is another type of congruity-creating mechanism (1999). He advocated a positive relationship between attitudinal components. Thus, high CE consumers will rate local products more positively and will purchase such products more frequently than low CE consumers will. In combination, these theories argue for a positive link between CE, attitudes about local products, and purchases of such products. Formally: H1: The higher the individuals CE, the more they buy local products. H2: The more positive the individuals attitudes about locally manufactured products, the more they buy such products. Income Notably, a richer measure of social class would include education and occupation. We excluded these measures because combining them into one scale is problematic (Hawkins, Best, and Coney 1995). The inclusion of income in our model is based on social class considerations (Solomon 1999). In his discussion about the impact of social class, determined in part by wealth, Solomon notes differences between high- and low-income consumers. The ones that pertain to the topic of this paper are the self-perceptions of richer versus poorer individuals and the desired self-perceptions of the former. Specifically, richer people want to be seen as smart and sophisticated shoppers (Town and Country 1994, cited in Solomon 1999). Rich consumers tend to avoid flaunting their possessions and are inclined to shop for high quality products. Therefore, imports should be their preferred products for everyday items because the consumption of such items is inconspicuous. Previous research has also shown that income and CE are related negatively. More affluent consumers tend to be less CE than less affluent consumers are. This should lead to purchases of imports, especially for the everyday products included in this study. In sum: H3: The higher the individuals income, the less they buy local products.

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The three research hypotheses (see Figure 1 for the model guiding this research) were tested in a study of Israeli consumers. Details about the study follow. METHODOLOGY Sample Data were gathered through a structured questionnaire. The questionnaire was distributed to 141 Israelis, of whom 137 provided sufficiently complete
FIGURE 1

Consumer Ethnocentrism

H1; +

General Attitudes Toward Local Products

H2; +

Purchases of Local Products

H3;

Income

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questionnaires (in all analyses, we used the maximally available data, resulting in effective sample sizes varying between 123 and 137). Experienced student teams, instructed thoroughly in research methodology, collected data in community and shopping centers and a small high-tech firm. The teams were instructed to collect data in centers located in mid-class neighborhoods in a Northern Israeli city and in a small firm to enrich the database. The sample included 80 males (58.4) and 57 females (41.6%). The sample was young, and varied in age between 19-56 (mean = 29.5; s. d. = 10.4). We attribute the low mean age to the fact that data were collected in a school break, when many young families visit these community and shopping centers. Consistent with the age distribution, income (coded at three levels: below average, average, and above average, but with actual income ranges specified as was the case in Israel at the time of the study) was skewed to the lower level (62.5%, 25.7%, and 11.8%, respectively). Finally, 25.2% were high-school graduates, 34.3% had some college or an undergraduate degree, and 40.0% had post-graduate studies. Questionnaire The questionnaire included previously used and validated scales. It included the 17-item version of the CETSCALE (Shimp and Sharma 1987). Then, it included five semantic differential items to measure consumer attitudes toward local products. These items were selected from a larger set of items included in the relevant section of the Marketing Scales Handbook (1992). Third, it included percentages of purchases of local products over the last ten purchase occasions. Demographic items concluded the questionnaire. Since the original scales were in English, one bilingual individual translated them into Hebrew. Then, a second bilingual individual, blind to the originals, back-translated the items into English. Then, a third bilingual individual, consulting with the other translators, assessed the accuracy of the translation. Inconsistencies were resolved through a consultation of the three individuals (see Appendix for a complete list of items). Independent Measures CETSCALE. Shimp and Sharma (1987) developed the 7-point (1 = strongly disagree to 7 = strongly agree), 17-item CETSCALE to measure consumers CE. They assessed the scales validity and reliability in a number of studies. Later, Durvasula et al. (1997) and Nielsen and Spence (1997) have established the scales cross-cultural reliability and validity.

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The scale was reliable in our study as well. Cronbachs alpha was 0.94, corrected item-to-total correlation coefficients exceeded 0.56, and the deletion of any item would have weakened the scales reliability. We created an average CETSCALE score. The samples mean was 2.81 (s. d. = 1.25) suggesting that, on average, our sample was less CE than the middle point on the scale (4.0). Attitudes Toward Domestic Products. Five 7-point items measured consumer attitudes toward local products. The five semantic differential items are a subset of items from the Marketing Scales Handbook (1992). For example, respondents rated: Israeli manufactured products are [good][bad]. The scale exhibited a high level of reliability ( = 0.95). We averaged the five items to create an attitudinal scale that captures consumers general attitudes about Israeli products. The scale averaged 3.87 (s. d. = 1.29), suggesting that, on average, respondents rated Israeli products more positively than negatively. Income. Income was measured with one item with three options: below average, average, and above average. For each, we included the relevant official statistics. Thus, average was shown in the questionnaire as varying between IS 4500-7000 (1100-1700$; the mid-point, IS 5750 [1400$], corresponds to the national average at the time of the study). Since income was measured with a single item, we could not assess its reliability using coefficient alpha. Therefore, we assessed its reliability by its correlation coefficient with age, a related item in the questionnaire. In support of the items reliability, the correlation coefficient between age and income was positive, high, and significant (r = 0.59; p < 0.01). Dependent Measures The dependent measures were purchase ratios for ten products, selected such that for each, local and import products were widely available. Additionally, they were staple items purchased frequently, to allow consumers to recall the percentage of purchases made over ten buying occasions. Thus, we included beer, cereal, small electrical kitchen appliances, ice cream, shoes, clothes, shampoo, perfume/aftershave, chocolate, and wine. For each product, consumers were asked: Over the last 10 purchase occasions, what percentage of your purchases was allocated to products manufactured in Israel? Respondents could record these percentages in 10% increments. The means are provided in Table 1. The lowest mean was for perfume/aftershave (15.31%; s. d. = 30.30%), reflecting the dominance of imports in this category in the Israeli market. The highest mean was for chocolate (71.54%; s. d. = 30.98%), attesting to the high quality of Israeli chocolate.

Aviv Shoham and Maja Makovec Bren i TABLE 1. Descriptive Statistics

Variable Mean 2.81 3.13 Under 1100$ Income
1

75

Standard Deviation 1.25 1.29 62.5% 25.7% 11.8%

0.94 0.95

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Consumer Ethnocentrism Attitudes Toward Local Products

1100-1700$ 1700$+

NA

Local Purchases Beer Cereal Small Kitchen Appliances Ice Cream Shoes Clothes Shampoo Perfume/Aftershave Chocolate Wine
1

29.50 36.85 53.26 72.54 30.74 53.78 52.07 15.31 71.54 66.59

40.11 40.97 30.66 32.46 36.45 33.45 38.69 30.30 30.98 36.02

NA NA NA NA NA NA NA NA NA NA

Income frequencies reported.

ANALYSIS Regression models were used to test the hypothesized relationships. Ten models were run for each of the ten products. CE, general attitudes about Israeli products, and income served as independent variables, which affect purchase percentages for Israeli goods for the ten products. Table 2 provides standardized coefficients in the regression models. All models were significant (F-values between 3.60 and 9.45; 3 degrees of freedom; p-values < 0.02) and accounted for 8-18% of the purchase variance. Ethnocentrism. For the most part, CE was a significant predictor of purchasing Israeli products. High ethnocentrism consumers were significantly (p < 0.05) more likely to buy Israeli products for six products (cereal, kitchen small appliances, shoes, clothes, shampoo, and perfume/aftershave) and marginally significantly (p < 0.08) more likely to buy another (ice cream). CE was insignificant for purchases of local beer, chocolate, and wine. Thus, the data mostly support H1.

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(p <)
1

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Product Beer Cereal Small Kitchen Appliances Ice Cream Shoes Clothes Shampoo Perfume/Aftershave Chocolate Wine

F; p < 3.74; 0.01 4.95; 0.01 4.40; 0.01 6.07; 0.01 3.69; 0.02 8.70; 0.01 9.34; 0.01 9.45; 0.01 4.68; 0.01 4.20; 0.01

Consumer Ethnocentrism 0.07 (0.43) 0.25 (0.01) 0.26 (0.01) 0.15 (0.08) 0.25 (0.01) 0.17 (0.04) 0.23 (0.01) 0.42 (0.01) 0.13 (0.14) 0.04 (0.67)

Attitude Toward Local Products 2.39 (0.02) 2.18 (0.04) 1.13 (0.27) 2.52 (0.02) 0.09 (0.30) 0.17 (0.05) 0.14 (0.08) 0.12 (0.15) 0.24 (0.01) 0.16 (0.07)

Income 1.82 (0.07) 0.80 (0.43) 1.89 (0.06) 0.20 (0.02) 0.03 (0.75) 0.30 (0.01) 0.29 (0.01) 0.09 (0.26) 0.12 (0.16) 0.25 (0.01)

0.09 0.10 0.10 0.12 0.08 0.17 0.18 0.18 0.10 0.09

Significant coefficients (p < 0.05) are marked in bold. Marginally significant coefficients (p < 0.10) are underlined.

General Attitudes About Israeli Products. The findings provide a high level of support to H2. In general, positive general attitudes led to higher purchase percentages of local products by Israeli consumers. The relationship was positive and significant (p < 0.05) for five products (beer, cereal, ice cream, clothes, and chocolate) and marginally significant for two (shampoo and wine). General attitudes were insignificant predictors of purchase behavior for only three products (small kitchen appliances, shoes, and perfume/aftershave). Income. Consumers income played a role opposite our expectations in H3. Higher income was associated with significantly (p < 0.05) higher purchases of Israeli goods for four products (ice cream, clothes, shampoo, and wine) and marginally significant (p < 0.08) for another (beer). Only purchases of small Israeli kitchen appliances were related negatively and marginally significantly (p < 0.07) with income, as hypothesized. The impact for cereal, shoes, perfume/aftershave, and chocolate was not significant (p > 0.10). In sum, the data provided strong support to H1 and H2, but disconfirmed H3. Below, we discuss this pattern of relationships and explain the findings.

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DISCUSSION We begin this section of the paper by a discussion of the two confirmed hypotheses. Then, we elaborate on possible reasons for the counter-intuitive findings for H3. The arguments leading to H1-H2 were based on attitudinal-behavioral consistency and congruence (Hawkins, Best, and Coney 1997; Solomon 1999) and on self-perception theory (Bem 1972). In combination, these theories suggested a high level of agreement among components of attitude and behaviors to reduce the impact of cognitive dissonance (Festinger 1957). Taken as a whole, we find a high level of support for these hypotheses. As expected, CE had a significant impact on purchases of local products. The higher their CE, the more inclined were consumers to buy local products. In this respect, our findings parallel those reported in country-of-origin (COO) studies of consumer behavior (for a review, see Samiee 1994). Olsen, Granzin, and Biswas (1994) argued that individuals might buy domestic goods to favor the local economy and express their support to their country. As Lantz and Loeb (1996) noted, COO effects should be separated into two components. One involves the image of the producing country and the second involves a home-market bias. Ethnocentrism is the term which has often been applied to the home buying portion of the COO effect (Lantz and Loeb 1996, p. 375; Shimp and Sharma 1987). Focusing on national social identity, Lantz and Loeb (1996) argued that CETSCALE is an appropriate operationalization of such identity. While they tested the impact of national social identity on purchase intentions and not on actual purchase behavior, their findings are noteworthy because they establish the potential impact of CE on intentions for everyday products, similar to the products used in our research. Shimp and Sharmas theorizing (1987) suggested that CE consumers will be inclined to emphasize the advantages of domestic products and will de-emphasize the advantages of imports. Along these lines, Netemeyer, Durvasula, and Lichtenstein (1991) suggested a similar pattern of relationships as found in our research. They reported that CE affects consumer general beliefs about the quality of imports negatively. It stands to reason, then, that CE will be related positively to general beliefs about the quality of local products and that both will affect purchases of domestic products. Moreover, Herche (1992) found that CE is related negatively with actual ownership of foreign cars and computers. While cars and computers are big-ticket durables, unlike our everyday products, the findings are similar, suggesting that Herches findings can be generalized to products not included in his study. H3 was disconfirmed in our study. We expected high-income consumers to favor imports over domestic products. When significant, the impact was oppoDownloaded by [INASP - Pakistan (PERI)] at 20:57 31 March 2014

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site this expectation. In explaining this surprising result, we draw on Baughn and Yaprak (1993). In a review of the extant literature, they summarized previous research on the impact of demographics on foreign product acceptance. Whereas the impacts of age (negative) and education (positive) on such acceptance were consistent, the impact of income varied across the reviewed studies. For example, Wall and Heslop (1986) and Wall, Hofstra, and Heslop (1990) reported a positive relationship between income and positive import attitudes. Extended to domestic products, such findings would imply a negative relationship between income and local product attitudes, opposite the ones we found. On the other hand, Johansson, Douglas, and Nonaka (1985) and Schooler, Wildt, and Jones (1987) failed to find a relationship. Such an inconsistency in previous research notwithstanding, no previous research has reported a positive relationship between income and domestic attitudes nor a negative relationship between income and import attitudes, as found in our research. One possible explanation for our findings is that previous research has centered solely on imports. To the extent that previous findings cannot be extended to the context of domestic products, ours is the first assessment of the latter. Alternatively, comparative prices of domestic and import products might also explain our results. If domestic products cost much more and are of higher quality than imports, higher income will induce consumers to purchase locally manufactured products, rather than imports, as was found here. This explanation requires testing in future research. Ideally, such research will duplicate our methodology, but will also assess relative prices and quality of domestic and import products. Finally, excluding other demographics from our analyses may have confounded our results. Importantly, our study did not include constructs that might provide additional insights about the ethnocentrism-purchase behavior link. For example, Granzin and Painter (2001) argued that CE, in combination with nationalism, affects the saliency of the buy local argument and social norms that support helping. Both also directly affect local purchases. Saliency and social norms then affect local buying directly and indirectly, through the costs of local products and the perceived ability of consumers to help local producers. Our findings support their empirical results in that CE affected local purchases. However, the impact of income documented here runs counter to its implied role in Granzin and Painters study. While they did not include income in their model, they did report that consumers perceived ability to afford the additional costs of buying locally affected actual purchase behavior. This issue was addressed previously in our discussion section.

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LIMITATIONS This research has several limitations, which point out issues for future research. First, our study was based on a convenience sample of Israeli consumers. Consequently, as was explained earlier, our sample tends to be more educated and younger that the universe of Israeli consumers, from which it was drawn. Thus, generalizing from our sample, especially for older and less educated consumers, should be done cautiously. Second, our measure of income was based on three categories (above average, average, and below average). This decision was motivated by our desire to minimize item non-response, which could have resulted from the use of an open-ended item. While we provided respondents with guidelines for each of the three categories, our one-item measure may have not created sufficient variance to allow us to fully test its impact. Future research may well benefit from the use of a more elaborate measure. Third, our dependent measures required respondents to record their purchases of domestic products over the last ten purchase occasions. This may have been difficult for some respondents, especially given that many of these products are low-involvement. Future research is needed with diary-based measures. Fourth, our models explain 8-18% of the variance in domestic purchases. While all models were significant, future research is needed with additional explanatory variables, such as additional demographics, alluded to earlier. Finally, our study was conducted in Israel. To what extent, if any, can we generalize from our findings to other nations? In answering this question, as noted in the introduction to this paper, we draw on Israels nature as a justdeveloped country. As anecdotal evidence in the popular press suggests, Israel has undergone a process of opening up the local market to imports over the last decade. The entry of many multi-national firms into the market attests to this process, with the country dotted by retail outlets of multi-nationals, such as Ikea, Burger King, and Office Depot. Thus, we believe that our findings can be generalized to similar nations, such as Hungary, Mexico, and Slovenia. However, future research in such countries is needed to increase confidence in the generalizability of our findings. MANAGERIAL IMPLICATION We find that CE can affect consumer purchases. Thus, it can be fruitfully incorporated into firms marketing strategy. The CETSCALE provides managers with an instrument to create a database for marketing strategy development. UnDownloaded by [INASP - Pakistan (PERI)] at 20:57 31 March 2014

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derstanding the roles CE and COO play in influencing consumers provides useful decision frameworks for segmentation, design of communications, and target market selection within different markets for firms operating globally. By using consumers attitudes towards local products, CE, and COO, more insightful segmentation guidelines could be developed for both local producers and exporters. Naturally, a question arises as to how these results should be used differentially by companies entering Israel (e.g., multinationals) compared to local producers when designing communications, segmentation, and other strategic decisions. Exporters should account for CE tendencies and the ability of Israeli consumers to recognize and interpret COO information when entering Israel. Taking CE as an advantage of local producers, foreign entrants should set their marketing strategy based on product advantages, taking into account behavior and demographic variables when segmenting. Since income did not affect CE attitudes of Israeli consumers, there is a potential for foreign entrants to develop a niche approach in high-income segments by offering luxury products (e.g., perfume/after-shave products). Given that Israel has only recently opened for foreign firms, a question arises about how long can we expect the identified attitudes and beliefs of Israeli consumers to hold. Longitudinal measurements and cross-national comparisons with countries facing similar situations would help to clarify these issues. Earlier, we discussed the interplay between COO and CE. Recently, Yagci (2001) tested the impact of these constructs on attitudes and behavioral intentions (though not actual purchases) and found that brand image was the sole predictor of attitudes and behavioral intentions when the product was from a high COO or domestic. In contrast, when the product was from a low COO, CE also predicted attitudes and behavioral intentions. Yagcis findings, in combination with ours, can provide additional managerial implications. Specifically, CE is important and should be accounted for when the product is from a low COO. In such cases, the impact of brand image is more important than that of CE, but the latter still affects attitudes and behavioral intentions. Moreover, CE plays a role regardless of COO when brand image is low. These findings provide a menu of strategies for COO, brand image, and CE in combination. To illustrate, marketing low COO products for which brand image is low requires measurement of CE. CE-based segmentation in such a case is extremely important. Advertising can be used to enhance (or combat) the impact of CE on purchase behavior. For local producers, it might emphasize the negative implications of buying exports on local workers, who are part of ones reference group. Importers may build on the same theme, applied to their context. They

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might stress the benefits to local workers (e.g., those employed by the importer) from selling imports in their advertising. Another possible use of the findings reported here is in the context of the choice to standardize or adapt international marketing strategies (Baalbaki and Malhotra 1993, 1995; Craig, Douglas, and Grein 1992; Jain 1989; Shoham 1995, 1996, 1999). The results of this study indicate that marketers should consider CE-based segments worldwide. Managers should examine such crossnational groups before designing marketing campaigns. Counter-intuitively, our findings suggest that adaptation might be the preferred route to success for practitioners. Although CE may be prevalent in many countries, in each one it implies an emphasis on local products. Thus, while the underlying philosophy may be standardized (local products), the result will be a different product in every market. Finally, our findings could be generalized to transitional economies, which have enjoyed tremendous growth (Arnold and Quelch 1998; Luo and Peng 1999). Although such economies suffer from low income, economic instability, and old infrastructure, they present large and growing untapped markets (Griffith, Zebek, and OBrien 2001). Thus, international firms in search of new markets should consider a geographical expansion into such markets. In so doing, they could (and should) target low CE consumers, which constitute a prime segment with no pre-conceived preferences for locally manufactured products. REFERENCES
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Town and Country (1994), Wealth in America: A Study of Values and Attitudes Among the Wealthy Today, Cited in Solomon [1999, p. 425]. Wall, Marjorie and Louis A. Heslop (1986), Consumer Attitudes Toward Canadian-Made versus Imported Products, Journal of the Academy of Marketing Science, 14(2), 27-36. ______, G. Hofstra, and Louise A. Heslop (1990), Imported vs. Domestic Car Owners: Demographic Characteristics and Attitudes, paper presented at the conference of the Administrative Sciences Association of Canada (whistler, B. C.), cited in Baughn and Yaprak [1993]. Watson, John J. and Katrina Wright (2000), Consumer Ethnocentrism and Attitudes toward Domestic and Foreign Products, European Journal of Marketing, 34(9/10), 1149-66. Witkowski, Terrence H. (1998), Consumer Ethnocentrism in Two Emerging Markets: Determinants and Predictive Validity, in Joseph W. Alba and J. Wesley Hutchinson (Eds.), Advances in Consumer Research, 25, Provo, UT: Association for Consumer Research, 258-63. Yagci, Mehmet I. (2001), Evaluating the Effects of Country-of-Origin and Consumer Ethnocentrism: A Case of a Transplant Product, Journal of International Consumer Marketing, 13(3), 63-85.

SUBMITTED: April 2002 FIRST REVISION: September 2002 SECOND REVISION: November 2002 ACCEPTED: December 2002

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APPENDIX MEASURES
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1. Consumer Ethnocentrism (7-point scales; 1 = strongly disagree to 7 = strongly agree): a. Israeli people should always buy Israeli-made products instead of imports. b. Only those products that are unavailable in Israel should be imported. c. Buy Israeli-made products. Keep Israel working. d. Israeli products, first, last and foremost. e. Purchasing foreign-made products is un-Israeli. f. It is not right to buy foreign products. g. A real Israeli should always buy Israeli-made products. h. We should purchase products manufactured in Israel instead of letting other countries get rich off us. i. It is always best to purchase Israeli products. j. There should be very little trading or purchasing of goods from other countries unless out of necessity. k. Israelis should not buy foreign products, because this hurts Israeli business and causes unemployment. l. Curbs should be put on all imports. m. It may cost me more in the long run but I prefer to support Israeli products. n. Foreigners should not be allowed to put their products on our markets. o. Foreign products should be taxed heavily to reduce their entry into Israel. p. We should buy from foreign countries only those products that we cannot obtain within our own country. q. Israeli consumers who purchase products made in other countries are responsible for putting their fellow Israelis out of work. 2. General Attitudes Toward Israeli Products (7-point scales; for example, 1 = strongly dislike to 7 = strongly like) Israeli products: a. I [likedislike] Israeli products very much. b. Israeli products are [goodbad]. c. Israeli products are [agreeabledisagreeable]. d. Israeli products are [satisfactoryunsatisfactory]. e. Israeli products are [pleasingannoying]. 3. Purchases of Israeli Products. For each of the following products, please indicate the percentages of your purchases of Israeli products over the last ten purchase occasions: a. Beer. b. Cereal. c. Small kitchen appliances.

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d. Ice cream. e. Shoes. f. Clothes. g. Shampoo. h. Perfume/Aftershave. i. Chocolate. j. Wine. 4. Income. What is your monthly income? a. Under IS 4500 (under approximately $1100). b. IS 4500-7000 (approximately $1100-1700). c. Over IS 7000 (over approximately $1700).