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www.emeraldinsight.com/0265-1335.htm
IMR
23,2
146
Received January 2004
Revised September 2004
Accepted December 2004
International Marketing Review
Vol. 23 No. 2, 2006
pp. 146-172
q Emerald Group Publishing Limited
0265-1335
DOI 10.1108/02651330610660065
Consumer ethnocentrism: an
integrative review of its
antecedents and consequences
Mahesh N. Shankarmahesh
College of Business Administration, University of Missouri – St Louis,
St Louis, Missouri, USA
Abstract
Purpose – To provide an integrative review of the antecedents and consequences of consumer
ethnocentrism (CET).
Design/methodology/approach – A comprehensive review of works on CET to date is put
forward. An integrative framework and a detailed summary table are provided.
Findings – Four categories of antecedents, namely, socio-psychological, political, economic and
demographic are gathered from the literature. Direct consequences and indirect consequences through
relevant mediators and moderators are identified. Future research directions are offered.
Practical implications – The compendium of antecedents and consequences of CET can be used by
international marketing managers for their segmentation and target marketing strategies.
Originality/value – As new vistas emerge for furthering international trade in goods and services,
this paper provides a timely review and an integrative framework of existing research on CET, its
antecedents and consequences. This paper contributes to the marketing discipline both by integrating
a wide body of research on an important international marketing topic and by offering broad avenues
for further research.
Keywords Consumers, Ethnocentrism
Paper type Literature review
Introduction
Since, the fall of the Berlin Wall and the subsequent demise of the Soviet Union, there
has been a relative convergence of economic ideology throughout the world ushering in
an era of liberalization and globalization. These changes have added to the rate of
growth of world trade which “has been higher than that of world GNP since the mid
1950s” (Porter, 1986, p. 15). Even as tariff barriers have come down considerably in the
past decade or so, non-tariff barriers persist. Given the wide scope of non-tariff
barriers, some authors such as Jeannet and Hennesy (1995) have contended that any
barrier to international trade other than formal tariffs can be classified as a non-tariff
barrier. The focus of international trade negotiations has been increasingly shifting to
non-tariff barriers with countries and regional blocs attempting to achieve uniform
product-related regulations in a wide variety of industries. Even as substantial
progress has been made towards globalization of businesses through the elimination of
tariff and non-tariff barriers, Porter (1986, p. 3) foresaw the emergence of new forms of
protectionism to ward-off international competition that he labeled them
“cross-currents” of globalization. He articulated in the following manner:
 While the post-war trend toward free trade has brought tariffs down and spawned regional Consumer
trade pacts, the pressures and upheavals of the new international competition have taken
their toll in a new wave of protectionism. Protectionism is not only on the rise but is taking ethnocentrism
more and more subtle forms. . . (p. 4).
One of the most enduring forms of non-tariff barriers is that of “consumer
ethnocentrism (CET)” (due to Shimp and Sharma, 1987). CET indicates a general
proclivity of buyers to shun all imported products irrespective of price or quality 147
considerations due to nationalistic reasons. CET can be “institutionalized in the form of
an informal government procurement policy that unduly favors domestic companies”
(Kotabe and Helsen, 1998) or can be prevalent as “a general societal tendency” (Shimp
and Sharma, 1987).
The objective of the paper is to review the antecedents and consequences of CET by
providing an integrative framework and suggest directions for future research. The
rest of the paper is organized as follows. First, ethnocentrism and “consumer
ethnocentrism” (due to Shimp and Sharma, 1987) are defined and their properties are
discussed. Second, the environmental and demographic antecedents of CET are
explored. Third, the relationships between CET and its consequences are examined
along with the roles of relevant moderating and mediating variables. Finally,
concluding comments are made.

Ethnocentrism and consumer ethnocentrism

Before addressing CET, the broader concept of ethnocentrism must be reviewed. This
is because, as mentioned earlier, the concept of “consumer ethnocentrism” was
construed by Shimp and Sharma (1987) as a domain-specific sub-set of ethnocentrism.
Also, previous studies that inquired into the antecedents of CET and those that made
international comparisons have all invariably borrowed heavily from the literature
pertaining to ethnocentrism (Sharma et al., 1995; Klein et al., 1998).
Sumner (1906) was the first to provide a formal definition of ethnocentrism (Shimp
and Sharma, 1987). He defined ethnocentrism as:
. . . the view of things in which one’s own group is the center of everything, and all others are
scaled and rated with reference to it. . . Each group nourishes its own pride and vanity, boasts
itself superior, exalts its own divinities and looks with contempt on outsiders (p. 13).
Murdock (1931) made the observation that ethnocentrism is not only applicable to
“tribes and nations” but “reveals itself in all kinds of social groups, developing into
family pride, sectionalism, religious prejudice, racial discrimination, and patriotism”
(Sharma et al., 1995, p. 27). The distinguishing feature of ethnocentrism lies not as
much in the development of an “in-group” pride as in its equal contempt for out-groups
and portrayal of “out-groups” as the “anti-thesis” (Levine and Campbell, 1972). Lewis
(1976) contended that ethnocentrism is “a universal phenomenon that is rooted deeply
in most areas of inter-group relations” (Sharma et al., 1995, p. 27). Some authors even
argued that ethnocentrism is a part of human nature (Lynn, 1976).
Shimp and Sharma (1987) formulated CET as “a domain specific concept for the
study of consumer behavior with marketing implications” (Sharma et al., 1995). CET
was regarded as a “unique economic form of ethnocentrism that captures the beliefs
held by consumers about the appropriateness and indeed morality of purchasing
foreign-made products” (Shimp and Sharma, 1987, p. 280). Again, CET denotes
IMR consumers’ tendencies to distinguish between products of the in-group (home country)
23,2 and out-groups (foreign countries) and to avoid buying foreign products due to
nationalistic reasons. Even as non-ethnocentric consumers evaluate products on their
own merits with respect to price, quality and other desired features, ethnocentric
consumers consider purchasing imported products to be incorrect due to perceptions of
losses to the domestic economy (Shimp and Sharma, 1987). It is noteworthy that even
148 before Shimp and Sharma (1987), there had been a stream research that measured
consumers’ general disposition towards buying foreign products. Examples of such
studies include but are not limited to Anderson and Cunningham (1972) and Dornoff
et al. (1974).
Shimp and Sharma (1987) elaborated on the specific properties of CET. First, it is a
general tendency “in toto” as opposed to a specific attitude. Second, it results from a
perceived concern for one’s own country and harmful effects that imports may bring to
oneself and countrymen. Third, it has an ethical dimension in that buying imported
goods is regarded as being unpatriotic and indifferent to the plight of fellow
countrymen put out of work. Fourth, it is inelastic with respect to price or other product
related attributes. Fifth, it is assumed to be socialized during early childhood like other
behavioral patterns (p. 288). Sixth, overall CET in a social system is considered to be an
aggregation of individual tendencies. This conceptualization of the authors is rather
simplistic keeping in mind that it ignores the aggregation at several intermediate levels
(such as in organizations and institutions) that occur for any social phenomena.
Finally, ethnocentrism is not just limited to consumer products, and preferences for
domestic goods is also present in industrial goods (Crawford and Lamb, 1981).
CET is often confused with “country-of-origin bias” although the two topics are
distinct and independent of each other. Herche (1992) explained the difference by
providing an example. A US consumer can have a positive country of origin (COO)
effect say for French wine due to its product-class attributes but decide not to buy it
due to nationalistic reasons. Thus, CET is more of a “general tendency” to avoid
buying foreign products as opposed to a specific “country of origin (COO)” image.
Moreover, COO represents the cognitive and affective aspects of consumer decision
making, whereas CET symbolizes the affective and normative aspects of buyer
behavior. Consumers tend to rely on COO cues when more information about the
product is lacking (Olsen et al., 1993). They may also be influenced by overall affective
responses that they may have towards particular countries (p. 308). CET, on the other
hand, is influenced not only by affective responses towards one’s own country, but also
by normative pressures that a consumer feels towards buying domestic products
(p. 308). This normative dimension is a unique aspect of CET.
Shimp and Sharma (1987) were the first to develop a comprehensive scale to
measure CET even though other instruments to measure “attitudes towards foreign
goods” existed at that time. Notable among these is the Reirson’s (1966) scale which
was widely used by early researchers such as Dornoff et al. (1974). The international
validity of the CETSCALE, originally developed in the US, was confirmed by several
studies such as Durvasula et al. (1997), Hult et al. (1999) and Luque-Martinez et al.
(2000). Even though the CETSCALE is the predominant scale used in marketing
research to measure ethnocentric tendencies among consumers in various nations, it is
not the only scale for the above-mentioned purpose. Stating that the CETSCALE was
only relevant to contemporary American society, Festervand and Sokoya (1994)
developed an attitudinal scale of ethnocentrism in the context of Nigeria measuring Consumer
among other things consumers’ disposition to the socio-political and religious ethnocentrism
philosophies of the exporting nation.

Antecedents of consumer ethnocentrism

This section summarizes the antecedents of CET mentioned and empirically tested in
previous research. There are four broad categories of antecedents, socio-psychological, 149
economic, political and demographic. The conflicting results of empirical studies that
measured the correlations between demographic variables and attitudes towards
imported products are also presented. Table I provides a summary of previous work on
the antecedents and consequences of CET. Figure 1 shows an integrated graphic
framework of the same.

Socio-psychological antecedents
Cultural openness. Cultural openness is determined by willingness to interact with
people from other cultures and experience some of their artifacts (Sharma et al., 1995).
Studies that found a negative relationship between cultural openness and CET (Shimp
and Sharma, 1987; Howard, 1989) seem to have relied heavily on conventional wisdom
that “cross-cultural interactions and travel opportunities can broaden one’s mind”
(Berkowitz, 1962). However, such studies fail to consider another adage namely that of
“familiarity breeds contempt” (Wirth, 1936) in the same vein. It is rather simplistic to
generalize that cross-cultural interactions and familiarity with other cultures will
mitigate ethnocentric tendencies in general and CET in specific. As a matter of fact,
Skinner (1959) observed that members of a group that have “the most contact with new
cultures such as border dwellers, travelers and diplomats tend to be extremely
ethnocentric or nationalistic” (Rosenblatt, 1964, p. 138). Thus, instead of simplistically
looking at correlations between “cultural openness” and CET, future research should
take into account both the effects of potential moderators such as the “self reference
criterion” and possible interaction effects with other antecedent variables such as
“worldmindedness.” Self-reference criterion (SRC) is defined in the “cross-cultural
management” literature as the tendency to judge other cultures using one’s own set of
values as the reference point (Jeannet and Hennesy, 1995). SRC has been found to be the
main reason behind several cross-cultural blunders (Jeannet and Hennesy, 1995). Thus,
including SRC as a moderator can provide additional insights into the relationship
between cultural openness and CET. One can also look at the interrelationships
between cultural openness and “worldmindedness,” another antecedent of CET. The
concept of “worldmindedness” is discussed next.
Worldmindedness. The concept of worldmindedness is distinct from that of
“cultural openness.” While cultural openness refers to opportunities to interact with
cultures other than one’s own, worldmindedness points to a “world-view of the
problems of humanity” (Sampson and Smith, 1957; Skinner, 1988). Thus, there is a
theoretical possibility that a person can be “worldminded” even without interacting
with other cultures. Worldmindedness, much like geocentrism, is a “state of mind” in
which “consumers use humankind as the primary reference group instead of respective
nationalities” (Rawwas et al., 1996, p. 22). Some of the characteristics of worldminded
consumers include interest in and knowledge of international affairs, regards for
“world spirit” and consensus development (Gomberg, 1994). Empirical support for the
 23,2
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150

Table I.

consequences of CET
A summary of previous
work on antecedents and
Previous work Country Study type Product type Relationship to CET

Antecedents and definition

Socio-psychological antecedents
Cultural openness: Shimp and Sharma US Survey Autos, apparel and consumer L.A. less ethnocentric than
Willingness to interact (1987) goods vulnerable to foreign cultures Denver, Detroit and
with people from other competition ( ¼ Group I) Carolinas
cultures and experience
some of their artifacts
(Sharma et al., 1995)
Howard (1989) US Survey Autos, TV, clothing, food, West coast less ethnocentric
toys and home appliances than mid-west
( ¼ Group II)
Sharma et al. (1995) Korea Survey Four necessary (medicine, Negative
beef, kitchenware and PCs)
and six relatively unnecessary
products (golf clubs, liquor,
bananas, insurance, large
refrigerators and jewelry)
( ¼ Group III)
Suh and Kwon US Survey N/A Negative
(2002)
Worldmindedness: A Rawwas et al. Austria Survey Autos, PCs, clothing, office Negative
state of mind in which (1996) equipment, alcohol, fashion
consumers use clothing, stereo, durable
humankind as the consumer goods and
primary reference group mainframe computers
instead of respective ( ¼ Group IV)
nationalities (Rawwas
et al., 1996)
Balabanis et al. Turkey, Czech Survey N/A No relationship
(2001)
(continued)
 Previous work Country Study type Product type Relationship to CET

Patriotism: Love for or Bannister and Britain Interviews Durable goods No relationship
devotion to one’s country Saunders (1978)
(Sumner, 1906)
Han (1988) US Survey Autos, TV Positive
Sharma et al. (1995) Korea Survey Same as in Group III Positive
Klein and Ettenson US Survey N/A Positive
(1999)
Balabanis et al. Turkey, Czech Survey N/A Positive (partial support)
(2001)
Conservatism: A Anderson and US Survey Autos Positive
tendency to cherish Cunningham (1972)
traditions and social
institutions that have
survived the test of time,
and to introduce changes
only occasionally, Sharma et al. (1995) Korea Survey Same as in Group III Positive
reluctantly and Balabanis et al. Turkey, Czech Survey N/A Positive
gradually (Sharma et al., (2002)
1995)

Collectivism: A tendency Ettenson et al. US Experiment Apparel items Positive

to maximize group (1988)
welfare even if it means Nishina (1990) Japan Survey Food, clothing, furniture, Positive
that individual goals household goods, sports,
should be subordinate goods, cars, accessories
(Hofstede, 1984) ( ¼ Group V)
Strutton et al. (1994) US Survey Autos Positive
Sharma et al. (1995) Korea Survey Same as in Positive
Group III
(continued)
ethnocentrism
Consumer

151

Table I.
 23,2
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152

Table I.
Previous work Country Study type Product type Relationship to CET

Animosity: The Klein et al. (1998) China Mall TV, VCR, stereo, radio, N/A
remnants of antipathy intercepts camera and refrigerator
related to economic ( ¼ Group VI)
events that will affect
consumers’ purchase
behavior in the
international
marketplace (Klein et al.,
1998)
Materialism: A centrally Clarke et al. (2000) US, France, Survey N/A Positive
held belief about the Australia and
importance of Mexico
possessions in one’s life
(Belk, 1984)
List of values Clarke et al. (2000) US, France, Survey N/A No relationship between
Internal values denote Australia and internal values and CET
the importance of Mexico Positive relationship between
personal factors in value external values and CET
fulfilment whereas
external values indicate
the importance of
impersonal factors
(Kahle, 1983)
Salience: The extent to Olsen et al. (1993) US Survey N/A Positive relationship
which the need for help
is recognized as
important by the
potential helper (Olsen
et al., 1993)
(continued)
 Previous work Country Study type Product type Relationship to CET

Dogmatism: A Anderson and US Survey Autos Positive

personality Cunningham (1972)
characteristic that views
reality in black and
white (Caruana, 1996)
Shimp and Sharma US Survey Same as in Group I Positive
(1987)
Caruana (1996) Malta Survey N/A Positive
Economic antecedents
Variables related to the economic environment of the country involvedt
Capitalism Rosenblatt (1964) N/A N/A (theory N/A Negative relationship
piece)
Stage of economic Good and Poland, Russia Experiment Clothing Early stages of transition
development Huddleston (1995) from state controlled to
market economy and
developed economies have
negative relationship
Intermediate stage of
transition has a positive
relationship
Durvasula et al. Russia Survey N/A Negative relationship due to a
(1997) poor domestic economy and
an attraction toward Western
products
Improving national Klein and Ettenson US Survey N/A Negative
economy: Belief that the (1999)
national economic
situation improved in the
past year
(continued)
ethnocentrism
Consumer

153

Table I.
 23,2
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154

Table I.
Previous work Country Study type Product type Relationship to CET

Improving personal Klein and Ettenson US Survey N/A Negative

finances: Belief that (1999)
personal financial
situation improved in the
past year
Political antecedents
Variables related to the political environment of the country involved
Political propaganda Rosenblatt (1964) N/A N/A N/A Positive relationship
History of oppression Good and Poland Experiment Clothing Positive relationship
Huddleston (1995)
Proximity, size and Rosenblatt (1964) N/A N/A N/A Positive relationship
power of out-groups
Leader manipulation Rosenblatt (1964) N/A N/A N/A Positive relationship
Demographic antecedents
Age: Older vs younger Dornoff et al. (1974) US Survey Mechanical products, food Positive
consumers products, Fashion, Electronic
equipment ( ¼ Group VII)
Han (1988) US Survey Autos, TV Positive
Good and Poland Experiment Clothing Positive
Huddleston (1995)
Caruana (1996) Malta Survey N/A Positive
Klein and Ettenson US Survey N/A Positive
(1999)
Balabanis et al. Turkey Survey N/A Positive
(2001)
Festervand et al. US Survey Mechanical products, food No relationship
(1985) products, fashion, electronics
and leisure products
( ¼ Group VIII)
Sharma et al. (1995) Korea Survey Same as in Group III No relationship
Balabanis et al. Czech Survey N/A No relationship
(2001)
(continued)
 Previous work Country Study type Product type Relationship to CET

Schooler (1971) US Interviews Utilitarian product, Negative

mechanical product and
fashion product ( ¼ Group IX)
Bannister and Britain Interviews Durable goods Negative
Saunders (1978)
Gender: Men vs women Eagly (1978) US Literature N/A Women more ethnocentric
review
Festervand et al. US Survey Same as in Group VIII Women more ethnocentric
Wall and Heslop Canada Survey Cars, wine, home Women more ethnocentric
(1986) entertainment, children’s
clothing, women’s clothing,
men’s clothing, women’s
shoes and men’s shoes
( ¼ Group X)
Han (1988) US Survey Autos, TV Women more ethnocentric
Howard (1989) US Survey Same as in Group II Women more ethnocentric
Sharma et al. (1995) Korea Survey Same as in Group III Women more ethnocentric
Good and Poland Experiment Clothing Women more ethnocentric
Huddleston (1995)
Bruning (1997) Canada Experiment Commercial air travel Women more ethnocentric
and survey
Klein and Ettenson US Survey N/A Partial support for women
(1999) more ethnocentric
Balabanis et al. Turkey Survey N/A Women more ethnocentric
(2001)
Dornoff et al. (1974) US Survey Same as in Group VII No relationship
Good and Russia Experiment Clothing No relationship
Huddleston (1995)
Caruana (1996) Malta Survey N/A No relationship
Balabanis et al. Czech Survey N/A No relationship
(2001)
(continued)
ethnocentrism
Consumer

155

Table I.
 23,2
IMR

156

Table I.
Previous work Country Study type Product type Relationship to CET

Bannister and Britain Interviews Durable goods Men more ethnocentric

Saunders (1978)
Education: Differences in Dornoff et al. (1974) US Survey Same as in Group VII Negative
formal educational levels
Festervand et al. US Survey Same as in Group VIII Negative
(1985)
Nishina (1990) Japan Survey Same as in Group V Negative
Good and Poland, Russia Experiment Clothing Negative
Huddleston (1995)
Caruana (1996) Malta Survey N/A Negative
Klein and Ettenson US Survey N/A Negative
(1999)
Balabanis et al. Turkey Survey N/A Negative
(2001)
Han (1988) US Survey Autos, TV No relationship
Balabanis et al. Czech Survey N/A No relationship
(2001)
Income: Differences in Sharma et al. (1995) Korea Survey Same as in Group III Negative
income levels
Caruana (1996) Malta Survey N/A No relationship
Klein and Ettenson US Survey N/A Negative
(1999)
Balabanis et al. Turkey Survey N/A Negative
(2001)
Balabanis et al. Czech Survey N/A Positive
(2001)
Good and Poland Experiment Clothing Negative
Huddleston (1995)
Bruning (1997) Canada Experiment Commercial air travel Negative
and survey
(continued)
 Previous work Country Study type Product type Relationship to CET

Han (1988) US Survey Autos, TV No relationship

Tan and Farley Singapore Experiment Face cream, women’s clothing Positive
(1987) and men’s clothing
Race/ethnic group: Klein and Ettenson US Survey N/A No relationship
Ethnic differences in (1999)
multicultural nations
Piron (2002) Singapore Survey Super market patronage No differences among the
island’s three major ethnic
groups
Zarkada-Fraser and Australia Survey Super market patronage Minorities identifying with a
Fraser (2002) unique cultural group less
ethnocentric
Social class: Standing in Han (1988) US Survey Autos, TV Blue-collar more ethnocentric
society (education, than white-collar
income occupation,
residency)
Caruana (1996) Malta Survey N/A Residence type has no
relationship to CET
Klein and Ettenson US Survey N/A Working class more
(1999) ethnocentric than
middle-class
Klein and Ettenson US Survey N/A Union members more
(1999) ethnocentric than
non-members
Consequences and definition
Direct
Attitude toward buying Zarkada-Fraser and Australia Survey Super market patronage Negative
foreign products Fraser (2002)
General impression
toward foreign product
(Kim and Pysarchik,
2000)
(continued)
ethnocentrism
Consumer

157

Table I.
 23,2
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158

Table I.
Previous work Country Study type Product type Relationship to CET

Sharma et al. (1995) Korea Survey Same as in Group III Negative

Purchase intention Han (1988) US Survey Autos, TV Positive
Intention to buy
domestic products and
services
Herche (1992) US Survey Autos, PCs Positive
Olsen et al. (1993) US Survey N/A Positive
Bruning (1997) Canada Experiment Commercial air travel Higher CET does not
and survey necessarily translate to
purchase intention
Price is more important
Klein et al. (1998) China Mall Same as in Group VI Positive
intercepts
Suh and Kwon US Survey N/A Positive
(2002)
Support for foreign Zarkada-Fraser and Australia Survey Super market patronage Negative relationship
product Fraser (2002) between CET and support for
Activism regarding foreign store
foreign product
(Zarkada-Fraser and
Fraser, 2002)
Through mediators
Perceived equity: Olsen et al. (1993) US Survey N/A Negative
Perceived fairness of
foreign competition
(Olsen et al., 1993)
Empathy: Feelings for Olsen et al. (1993) US Survey N/A Positive
the in-group (Olsen et al.,
1993)
(continued)
 Previous work Country Study type Product type Relationship to CET

Perceived costs: Personal Olsen et al. (1993) US Survey N/A Negative

economic costs of buying
domestic products (Olsen
et al., 1993)
Responsibility: Olsen et al. (1993) US Survey N/A Positive
Obligation to help the
in-group (Olsen et al.,
1993)
Country of origin: A Han (1988) US Survey Autos, TV Positive; relationship
product’s source country moderated by product
image importance
Brodowsky (1998) US Experiment Autos Consumers with low CET use
COO cues for objective
evaluation of pro product
quality
Product evaluation: Klein et al. (1998) China Mall Same as in Group VI Negative relationship
Making overall intercepts
judgments of quality of
foreign products
Klein (2002) US Survey Autos Negative relationship
Kim and Pysarchik US Experiment Three branded products No relationship (in case of
(2000) (camera, TV, sweater) Korean product to positive
relationship in case of Japan).
Brand familiarty (Nikon)
could moderate the effect of
CET on product evaluation
Moon and Jain US Survey Advertisements Negative
(2001)
(continued)
ethnocentrism
Consumer

159

Table I.
 23,2
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160

Table I.
Previous work Country Study type Product type Relationship to CET

Huddleston et al. Poland Experiment Meat, cereal, fruit and shoes Negative
(2001) (necessary)
Auto, radio, TV and watch
(not necessary)
Supphellen and Poland Survey Gas station brands Positive perceptions of
Rittenburg (2001) domestic brands even when
foreign brands are clearly
superior
Yu and Albaum Hong Kong Survey Woman’s suit, furniture, Negative. CET is related to
(2002) porcelain, man’s shirt, PC, toy, purchase behavior through
sterling silver jewelry, shoes, product preferences
leather briefcase
Through moderators
Perceived product Sharma et al. (1995) Korea Survey Same as in Group III CET influenced negative
necessity attitudes more toward
“unnecessary” foreign
products
Perceived economic Sharma et al. (1995) Korea Survey Same as in Group III Negative attitudes more for
threat products perceived as threats
to home econ
Cultural similarity Watson and Wright New Zealand Survey Refrigerators, TVs and Consumers with high CET
Perceived similarity of (2000) cameras use cultural similarity of
cultures based on values source country for product
of exporting and evaluations and product
importing country attitudes
(Watson and Wright,
2000)
 Socio-pscyhological Consumer
Antecedents
Cultural Openness (–)
ethnocentrism
World Mindedness (–)
Patriotism (+)
Conservatism (+)
Collectivism (+)
Animosity (+)
CET
Materialism (+)
List of values 161
- External(+) Mediators Outcomes
- Internal (–)
Salience (+) Perceived Attitude toward
Dogmatism (+) equity (–) foreign product
Empathy (+) (–)
Perceived cost
(–) Purchase
Economic Antecedents Consumer Responsibility Intention (–)
Capitalism (–) Ethno Centrism (+)
COO (–) Support for
Stage of econ. Develop. foreign product
Improving national econ. (–) Product
evaluation (–) (–)
Improving personal fin. (–)

Political Antecedents
Propaganda (+)
Historyof oppression (+)
Outgroup size, proximity (+)
Leader manipulation (+)

Demographic
Antecedents Moderators
Age (+) Perceived product
Gender necessity (–)
Income (–) Perceived Figure 1.
Education (–) economic threat
Race (+) CET, its antecedents and
Social class (–) Cultural
similarity (–)
consequences

negative relationship between worldmindedness and CET is provided by Rawwas et al.

(1996). However, Balabanis et al. (2001) did not find any significant relationship
between internationalism, a construct similar to worldmindedness, and CET. Besides
positing a negative relationship between worldmindedness and CET, one can also
investigate the possible interaction between worldmindedness and cultural openness
and the potential role of worldmindedness as a moderator between cultural openness
and CET.
Patriotism. Sharma et al. (1995) put forward the argument that patriotism, defined
as love for or devotion to one’s country, is positively related to CET. Their logic was
imported from earlier studies that dealt with ethnocentrism in general. For example,
several authors contended that patriotism is not only related to ethnocentrism, but also
acts as a defense mechanism for the in-group (Sumner, 1906; Adorno et al., 1950;
Mihalyi, 1984). Empirical support for a positive relationship between patriotism and
CET is provided by studies such as Han (1988), Sharma et al. (1995) and Klein and
Ettenson (1999). However, there is empirical evidence to the contrary. For example,
Bannister and Saunders (1978, p. 565) concluded that “the patriotism of British
respondents does not extend, with any degree of conviction, into consumer goods
markets.” Even as different national governments around the world are pushing
through trade liberalization reforms on the lines suggested by the World Trade
Organization, it would be preposterous to conclude that these national governments
are “unpatriotic” or acting against the interests of their respective countries.
IMR As students of international economics know quite well, free trade is not a zero sum
23,2 game but a positive one that benefits both the participants in the long run.
Furthermore, one can be both patriotic and worldminded at the same time (Rawwas
et al., 1996). In summary, the above discussion calls into question whether it is
patriotism or “misplaced patriotism” that acts as one of the antecedents of CET. Hence,
instead of simplistically looking at the correlations between patriotism and CET, future
162 research should explore the moderating effects of education (as a proxy for
understanding trade theory!) and worldmindedness.
Conservatism. Conservative persons are those that “show a tendency to cherish
traditions and social institutions that have survived the test of time, and to introduce
changes only occasionally, reluctantly and gradually” (Sharma et al., 1995, p. 28). In its
extreme form, conservatism can manifest itself as religious intolerance, insistence on
strict rules and punishments and an anti-hedonic outlook (Wilson and Patterson, 1968
in Sharma et al., 1995). Studies such as Sharma et al. (1995) and Balabanis et al. (2002)
found a positive relationship between conservatism and CET. It is noteworthy that all
the three criticisms against the use of patriotism as an antecedent of CET also apply to
the use of conservatism. First, consumers may not extend their conservative beliefs
towards purchase of foreign products. Second, in many countries such as the US and
the UK, conservative political parties have clamored for the promotion of free trade.
Third, conservatism is not mutually exclusive of worldmindedness. Thus, the
influence of conservatism on CET should be studied in tandem with the moderating
effects of education and worldmindedness.
Collectivism-individualism. As collectivists consider the effect of their actions on the
larger group or the society, people with collectivistic goals “tend to reveal more
intensive ethnocentric tendencies than those with individualistic goals” (Sharma et al.,
1995, p. 28). Empirical support for positive correlation between collectivism and CET
can be found in studies such as Nishina (1990) and Sharma et al. (1995). Strutton et al.
(1994, p. 65) argued that individualism predisposed Americans towards substantial
“open-mindedness and self-autonomy” leading them to engage in honest and critical
self-reflection with respect to domestically produced goods. This is consistent with
Ettenson et al.’s (1988, p. 96) report that the “Made in the USA” promotional blitz
involving millions of dollars and “over one billion advertising impressions” had little
effect on most Americans who preferred to go by product merits.
Animosity. Klein et al. (1998, p. 90) defined animosity as “the remnants of antipathy
related to previous or ongoing military, political or economic events that will affect
consumers’ purchase behavior in the international marketplace.” The authors
contended that animosity, like CET, affects consumer buying decisions irrespective of
product judgments. However, animosity is different from CET in that it is displayed
against specific countries rather than all foreign countries intoto. Even as the authors
acknowledged that animosity and CET can be interrelated (p. 91), they did not posit
any relationship between the two. It is quite possible that consumers can generalize
animosity towards a few foreign countries to all foreign countries. Thus, future
research should investigate the merit of animosity as an antecedent of CET.
Materialism. Materialists tend to rely on material possessions as substitutes for
their lack of satisfying inter-personal relationships (Rindfleisch et al., 1997) and also to
enhance their sense of belonging. Belk (1984) mentioned possessiveness,
non-generosity and envy as the three dimensions of materialism. Much like
materialism, CET is also associated with envy, possessiveness, need to identify with a Consumer
larger group and need to defend one’s ego (Rosenblatt, 1964). Empirical support for a ethnocentrism
positive relationship between materialism and CET is provided by Clarke et al. (2000).
List of values. The term “value” is defined as a “specific end state of existence or
specific mode of conduct that is preferred to an opposite end state or mode of conduct
for living one’s life” (Kahle, 1983). Values can be categorized as internal and external
values. Internal values are measured by items such as “self-respect” and 163
“self-fulfillment” whereas external values are measured by items such as “Fun and
enjoyment in life,” and “Being well respected.” Clarke et al. (2000) found a positive
relationship between external values and CET. This may be because an individual
seeking fun and enjoyment in life is essentially a hedonist that is outward oriented and
materialistic in nature (Micken, 1993). As discussed earlier, materialism is positively
associated with CET.
Salience. One of the essential facets of CET is its perceived moral dimension. That
is, ethnocentric consumers hold buyers of foreign products to be morally responsible
for the plight of domestic workers that lose their jobs due to international competition.
Olsen et al. (1993) viewed consumers’ cooperation in buying domestic products as a
form of “helping behavior.” Salience, as defined by these authors, signifies the
perceived threat to domestic workers or industries. In fact, Rosenblatt (1964) mentioned
that perception of threat to the in-group is positively related to ethnocentrism. Olsen
et al. (1993) found empirical support for a positive relationship between salience and
CET. Sharma et al. (1995) included the “perceived threat” variable not as an antecedent
but as a moderator in their conceptual model. The authors explained in the following
way:
When any country considers itself under attack or threatened by competition from outsiders,
“foreignness” takes on negative meanings, and nationalism and ethnocentrism increase. The
fear of losing jobs (either one’s own or a related person’s) may influence consumers’ reactions
to imports (p. 29).
The authors found strong empirical support for the moderating role of “perceived
threat” or “salience” in the relationship between CET and attitudes towards imported
products. Whether salience is an antecedent of CET or a moderator between CET and
attitudes or willingness to buy foreign products is a debatable issue even as there is
sufficient merit for both viewpoints.
Dogmatism. Dogmatism is defined as a personality characteristic to see the world in
black and white (Caruana, 1996). Anderson and Cunningham (1972) found less
dogmatic consumers to have more favorable attitude toward foreign products than
their more dogmatic counterparts. Shimp and Sharma (1987) and Caruana (1996) also
reported a significant positive relationship between dogmatism and CET.

Economic environment
Several studies have underscored the need to look at the economic environment as an
influencing factor of CET. Rosenblatt (1964) suggested that capitalism would be
negatively related to ethnocentrism. Schuh (1994) provided a framework that sought to
link the different stages of economic development to consumers’ preferences for foreign
products. According to the framework, during the early stages of transition from a
state controlled economy to a market economy, foreign products (Western products in
particular) will be preferred because of good quality and novelty, status and curiosity
IMR motives. However, as an economy moves to the intermediate stage of transition,
23,2 nationalistic motives behind purchasing become dominant. When an economy is in a
developed state characterized by a large presence of MNCs, ethnocentric purchasing
behavior tends to wane again. Good and Huddleston (1995) found support for the above
framework in the context of Poland and Russia. Durvasula et al. (1997) also concluded
that lower CET scores for Russia was influenced by a simultaneous attraction toward
164 foreign products and a bleak domestic economy. Klein and Ettenson (1999) found a
negative relationship between beliefs of improving national economy and CET in the
context of the US. Another finding was that belief that personal financial situation
improved in the past year resulted in reduced levels of CET.

Political environment
Rosenblatt (1964) posited political propaganda as one of the antecedents of
ethnocentrism. He argued that leaders can increase group ethnocentrism by raising
the bogey of threat by out-groups. To what extent such propaganda influences CET in
a society is an empirical question. It might be fruitful to look into the moderating role of
“political freedom” or “democracy” in the relationship between political propaganda
and CET. In other words, the issue is whether consumers belonging to democratic
countries are less likely to be swayed by political propaganda than those living in
authoritarian environments.
Besides government propaganda, political histories of different countries also
determine the level of CET in a society. Good and Huddleston (1995) explained higher
CET scores in Poland compared to Russia by arguing that consumers belonging to
countries with a long history of oppression (such as Poland) tend to be more
ethnocentric than those belonging to countries that were conquerors (such as Russia).
However, it can be argued that consumers of conquering nations will tend to view the
“in-group” products as more superior and preferable compared to those of conquered
nations that will crave for “out-group” products. In summary, the direction of influence
of both political propaganda and political history are both empirical questions that
deserve additional investigation. Rather than using these explanations to justify
country differences, future research should hypothesize a priori and seek out to test
these hypotheses in multi-country situations. Two other political variables worth
exploring empirically are perceived proximity, size and power of “out-groups” and
leader manipulation (due to Rosenblatt, 1964).

Demographic antecedents
Both import purchasing behavior and CET related studies have looked at the
demographics of the respondents as a separate set of antecedents. The advantage of
using demographic antecedents lies in the opportunities of segmenting consumers
according to their favorable and unfavorable disposition to foreign products.
Hypotheses pertaining to six such antecedents, namely, age, gender, education, income,
ethnicity and class are discussed below.
Age. The argument for a positive relationship between age and CET is based on
increased cosmopolitanism in recent years and its socio-cultural influence on the belief
patterns of the youth. Even though the empirical evidence is mixed, there seems to be
more empirical support for the argument that younger people will have lower CET
scores than older people (Klein and Ettenson, 1999; Caruana, 1996). It must also be
mentioned that some studies did not find any statistically significant relationship Consumer
between age and CET (Sharma et al., 1995; Festervand et al., 1985) and other older ethnocentrism
studies in fact found a positive relationship between age and favorable foreign product
evaluation (Schooler, 1971; Bannister and Saunders, 1978).
Gender. An overwhelming body of evidence supports the proposition that women
have higher ethnocentric scores than men (Bruning, 1997; Sharma et al., 1995). The
underlying logic is that women are more conservative, conformist (Eagly, 1978; Han, 165
1988) and collectivistic concerned about maintaining social harmony and positive
feelings among group members (Triandis et al., 1985). However, there are some studies
that found no significant gender differences (Caruana, 1996) and other studies that
found men to be more ethnocentric than women (Bannister and Saunders, 1978).
Education. But for a few exceptions, the findings on the relationship between
education levels and CET have almost been consistent pointing to a negative
relationship (Klein and Ettenson, 1999; Caruana, 1996). The underlying rationale is that
more educated people are less likely to have ethnic prejudices (Watson and Johnson,
1972) and tend to be less conservative (Ray, 1990). However, studies such as Han (1988)
did not find education to be a significant factor in explaining consumer patriotism.
Income. A majority of studies (Sharma et al., 1995; Bruning, 1997) point to a negative
correlation between income levels and CET. Increased income levels provide more
opportunities for travel and purchase of foreign products thus resulting in more
cosmopolitan views (Sharma et al., 1995). However, some studies (Han, 1988) found no
income effects and other studies (Tan and Farley, 1987) reported a positive relationship
between income and CET.
Race/ethnic group. In multi-cultural nations, research questions have been raised
regarding inter-ethnic group differences in CET, especially between the dominant
majority culture and the different non-dominant minority sub-cultures. The empirical
evidence is mixed. Studies such as Piron (2002) and Klein and Ettenson (1999) did not
find race as a significant predictor of CET. However, studies such as Cottingham and
Morris (1991) and Zarkada-Fraser and Fraser (2002) found minorities to be more
favorable to foreign products than the majority ethnic group.
Social class. To the extent social class is correlated with income, one can extend the
conclusions regarding income and CET to social class. That is, one can hypothesize
that ethnocentric tendencies tend to fall as consumers move up the social ladder.
Studies such as Han (1988) and Klein and Ettenson (1999) found support for the above
hypothesis. However, studies such as Caruana (1996) did not find any class differences
in CET scores.

Consequences of consumer ethnocentrism

The primary outcome of interest is whether CET leads to the purchase of domestic
products as opposed to foreign products. Researchers have used different constructs
such as “purchase intention” (Han, 1988), “attitudes towards buying foreign products”
(Sharma et al., 1995), “willingness to buy domestic products” (Olsen et al., 1993) and
“willingness to buy foreign products” (Klein et al., 1998). In this section, the
relationships between CET and outcome variables (both attitude and intention) are
examined along with the effects of relevant moderator and mediator variables.
IMR Direct consequences
23,2 CET resulted in negative attitudes against foreign products in studies such as
Sharma et al. (1995) and Zarkada-Fraser and Fraser (2002). Empirical support for a
positive relationship between CET and purchase intention of domestic products is
found in studies such as Han (1988) and Herche (1992). Studies such as Klein et al.
(1998) and Suh and Kwon (2002) also found strong statistical evidence for the direct
166 negative link between CET and willingness to buy foreign products. Zarkada-Fraser
and Fraser (2002) also found a negative relationship between CET and support for
foreign retail outlets. However, Bruning (1997) found that buying domestic ranked
second to price considerations even among Canadian air travelers with higher
ethnocentric scores.

Consequences through mediators

Olsen et al. (1993) offered perceived equity, empathy, costs and responsibility as
possible mediators between CET and willingness to buy imported products. Consumer
ethnonationalism was posited to negatively influence perceived equity. The logic was
that ethnocentric consumers will perceive international competition as being unfair to
domestic industries. This decrease in perceived equity will then influence consumers to
buy domestic products as opposed to foreign products. Empathy is defined as “the
ability to understand how a situation appears to another person and how that person is
reacting cognitively and emotionally to the situation” (p. 310). Consumer
ethnonationalism was posited to positively influence empathic feelings for other
persons that are perceived to be similar to the consumer. This relationship is similar to
Rosenblatt’s (1964) hypothesis that increased ethnocentrism will increase in-group
solidarity. This increased empathy to the in-group will then increase the willingness to
buy domestic products. Olsen et al. (1993) also proposed that greater ethnonational
identity would decrease the perceived costs of helping the in-group. In other words,
ethnocentric consumers will tend to disregard the personal economic costs of buying a
domestic product. This reasoning is consistent with one of the important properties of
CET, namely, its price-inelastic nature. Responsibility is defined as the “acceptance of
an obligation to alleviate the distressful situation” (p. 310). Olsen et al. (1993) explained
that as perceived equity decreases, consumers’ perceived responsibility increases
leading them to exhibit willingness to buy domestic products. The authors’ empirical
study using a large American sample broadly supported the roles of the
above-described mediating variables.
Besides Olsen et al.’s (1993) list of mediators, there is another important mediator
namely that of “Country of Origin (COO)” effect. Han (1988) included country image as
a mediator between consumer patriotism and purchase intention. On the basis of an
empirical study involving US consumers, he concluded that consumer patriotism
affected country image but the relationship was moderated by the importance of the
product. Specifically, the relationship bolstered in the case of automobiles but
weakened in the case of televisions. In his comprehensive literature review of “Country
of Origin effects (COO),” Samiee (1994) included CET as one of the antecedents of COO
along with several other antecedents such as a country’s level of economic
development and product class attributes. Brodowsky (1998) found evidence for CET
to be an antecedent of COO. The author found that low ethnocentric consumers used
COO cues for objective evaluation of product features. However, the empirical results
regarding the relationship between country image and purchase intention itself have Consumer
been inconsistent at large. Some studies have found no effect of COO on purchase ethnocentrism
intention (Han, 1988) while others have found strong effects (Bannister and Saunders,
1978). Thus, CET which is basically an affective and normative construct may in turn
lead to COO evaluation which is essentially a cognitive construct.
Shimp and Sharma (1987) contended that CET is associated with adverse
judgments of foreign product quality. Empirical support for the mediating effect of 167
adverse foreign product evaluation can be found in studies such as Klein et al. (1998),
Klein (2002) and Yu and Albaum (2002). However, studying US consumers, Kim and
Pysarchik (2000) did not find any relationship between CET and evaluations of foreign
product quality with respect to Korean products. The authors in fact found a positive
relationship between CET and product judgment with respect to Japanese cameras.
The authors explained that this could be because of the high brand familiarity of
Japanese cameras and suggested a moderating role for brand familiarity in the
relationship between CET and product judgments.

Consequences through moderators

Sharma et al. (1995) posited two moderating factors between CET and consumer
attitudes towards foreign products. These are perceived product necessity and
perceived economic threat. Perceived product necessity is the extent to which
consumers think that a foreign product is indispensable due to its absolute necessity
(p. 29). The authors hypothesized that the effect of CET on attitudes towards foreign
products should be relatively stronger (in the negative direction) for products perceived
as unnecessary. The above hypothesis was also supported in their Korean sample. The
concept of perceived economic threat is the same as “salience” discussed earlier except
that it was used as a moderator by Sharma et al. The authors also found significant
support for the moderating effects of perceived threat. In other words, CET influenced
attitudes mainly for products that were perceived to be a threat to the individual or the
domestic economy. Watson and Wright (2000) examined the moderating effect of
cultural similarity on the relationship between CET and product evaluations and found
significant support in the context of New Zealand consumers.

Conclusions
In this paper, a thorough review of the antecedents and consequences of CET was
provided along with an integrative framework. Several suggestions for future research
were also provided along the way during the discussion of individual antecedents and
consequences. Academics can also draw broad research directions from the integrative
review and framework. First, there is a dearth of studies when it comes to measuring
CET in services. Services trade is increasing by leaps and bounds due to proliferation
of broad band technology and the internet. It would be interesting to measure CET in
the context of outsourced call centers and customer service centers.
Second, more research has to be done about ethnocentrism in government
procurement of goods and services and how it could be overcome. It is noteworthy that
CET can be institutionalized in the form of a “buy local” government purchase policy.
For example, for years before the formation of European Union, European nations had
local procurement policies and government contracts were almost always awarded to
local firms. Research is needed on the cost effectiveness of joint ventures and foreign
IMR direct investment as approaches to overcome ethnocentrism in government
23,2 procurement.
Third, more research is called for regarding overcoming CET and the liability of
foreignness. Shimp and Sharma (1987) and Olsen et al. (1993) suggested that domestic
marketing managers should take advantage of prevalent ethnocentric tendencies by
promoting the “native” image so that international competitors can be held at bay.
168 Even as small domestic companies can adopt this strategy, large domestic
multinationals will have a problem. Pitching for nationalism in the home base and
simultaneously fighting nationalism in foreign country segments can create
inconsistencies in large domestic multinationals. Such tactics may not work
intoday’s age of intensive communication between countries. More research is
needed to explore the effectiveness or lack thereof of these strategies. Academics need
to also examine whether communicating the international interdependence aspects at
the micro-level is more effective in reducing CET than attempting to completely
integrate the foreign company with the host country by presenting one’s products as
“native.” As new vistas emerge for furthering international trade in goods and services,
this paper provides a timely review and an integrative framework of existing research
on CET, its antecedents and consequences. This paper contributes to the marketing
discipline both by integrating a wide body of research on an important international
marketing topic and by offering broad avenues for further research.

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Corresponding author
Mahesh N. Shankarmahesh can be contacted at: mahesh@umsl.edu

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