Journal of Consumer Marketing

Consumer ethnocentrism and willingness to buy domestic products in a developing country setting: testing
moderating effects
Cheng Lu Wang Zhen Xiong Chen
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Cheng Lu Wang Zhen Xiong Chen, (2004),"Consumer ethnocentrism and willingness to buy domestic products in a developing
country setting: testing moderating effects", Journal of Consumer Marketing, Vol. 21 Iss 6 pp. 391 - 400
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Consumer
ethnocentrism and
willingness to buy
domestic products in a
developing country
setting: testing
moderating effects
Cheng Lu Wang and
Zhen Xiong Chen
Downloaded by MULTIMEDIA UNIVERSITY At 00:56 15 July 2015 (PT)
The authors
Cheng Lu Wang is an Associate Professor based in the
Department of Marketing & International Business, University of
New Haven, West Haven, Connecticut, USA.
Zhen Xiong Chen is a Senior Lecturer based at the School of
Business and Government, University of Canberra, Canberra,
Australia.
Keywords
Consumers, Ethnocentrism, Product quality, China
Abstract
Previous studies conducted in developed countries have
demonstrated that ethnocentric consumers are more willing to
buy domestic products. This study investigates the moderating
roles of quality judgment of domestic products and conspicuous
consumption (CC) in the relationship between consumer
ethnocentrism and willingness to buy domestic products (WBD)
in the context of a developing country, namely the People’s
Republic of China. The results support the hypothesis that the
impact of ethnocentrism on consumer WBD tends to be weaker
when consumers judge them as being of lower quality, or when
consumers hold higher CC values. The conceptual and
managerial implications for developing countries, including
China, are discussed.
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The current issue and full text archive of this journal is
available at
www.emeraldinsight.com/0736-3761.htm
Journal of Consumer Marketing
Volume 21 · Number 6 · 2004 · pp. 391–400
q Emerald Group Publishing Limited · ISSN 0736-3761
DOI 10.1108/07363760410558663
391
An executive summary for managers and
executive readers can be found at the end of
this article.
Introduction
Globalization presents considerable challenges
and opportunities for international marketers.
The relaxation of trade policies has provided
consumers with more foreign product choices than
ever before. Consequently, their attitudes toward
products originating from foreign countries have
been of interest to international business and
consumer behavior researchers for decades.
Previous studies on the country-of-origin effect
(COE), most of which have been conducted in
developed countries, have found that consumers
have a general preference for domestic over foreign
merchandise, particularly when they lack
information about the product (Bilkey and Nes,
1982; Damanpour, 1993; Elliott and Camoron,
1994; Wall and Heslop, 1986, 1989). The reasons
for this preference range from a risk-reducing bias
toward merchandise made in developing countries
to a patriotic bias against foreign products (Bilkey
and Nes, 1982; Herche, 1992). The relationship
between country-of-origin and the quality image of
imported products is especially strong when
consumer ethnocentrism (CE) is involved
(Agbonifoh and Elimimian, 1999; Shimp and
Sharma, 1987).
The tendency of consumers to be ethnocentric
represents their beliefs about the appropriateness
and moral legitimacy of purchasing foreign
products (Shimp and Sharma, 1987).
Ethnocentric consumers prefer domestic goods
because they believe that products from their own
country are the best (Klein et al., 1998). Moreover,
a concern for morality leads consumers to
purchase domestic products even though the
quality is poorer than that of imports ( Wall and
Heslop, 1986). CE may play a significant role
when people believe that their personal or national
well-being is under threat from imports (Sharma
et al., 1995; Shimp and Sharma, 1987). The more
importance a consumer places on whether or not a
product is made in his/her home country, the
higher his/her ethnocentric tendency (Huddleston
et al., 2001). Research from the US and other
developed countries generally support the notion
that highly ethnocentric consumers overestimate
domestic products, underestimate imports, have a
preference for, and feel a moral obligation to buy,
domestic merchandise (Netemeyer et al., 1991;
Sharma et al., 1995; Shimp and Sharma, 1987).
While CE may be regarded as a means by
which to differentiate between consumer groups
who prefer domestic to foreign products
 Consumer ethnocentrism and willingness to buy domestic products
Cheng Lu Wang and Zhen Xiong Chen
(Huddleston et al., 2001), its influence on
willingness to buy domestic products (WBD) is
likely to vary between technologically/
economically-developed and developing countries.
Research shows that consumers in developed
countries tend to perceive domestic products as
being of higher quality than imported products
(Damanpour, 1993; Dickerson, 1982; Eliott and
Cameron, 1994; Herche, 1992; Morganosky and
Lazarde, 1987) whereas the reverse is true for
consumers in developing countries (Agbonifoh
and Elimimian, 1999; Batra et al., 2000; Bow and
Ford, 1993; Sklair, 1994; Wang et al., 2000).
Given that consumers’ evaluation of the quality of
domestic/imported products will influence their
purchase preferences, the impact of ethnocentrism
on willingness to buy will be different between
developing and developed countries. This
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discrepancy will be more pronounced when the
import is related to conspicuous consumption
(CC), as consumers in developing countries often
regard foreign products as status symbols (Alden
et al., 1999; Batra et al., 2000; Ger et al., 1993;
Marcoux et al., 1997; Mason, 1981). In particular,
we believe that the negative effect of CE on
willingness to buy products imported from
developed countries will interact with the positive
effect of such imports’ brand image. In other
words, the functional (perceived product quality)
and symbolic (CC) benefits that consumers expect
from imported products will counteract the
influence of their ethnocentrism.
Due to the differences in levels of economic and
technological development, values and attitudes
toward consumption will also differ between
developed and developing countries. This means
that findings about CE and purchasing behavior in
the former may not be generalizable to the latter,
especially when considering the effects of
interaction with product judgement (PJ ) and/or
CC. Despite this, so far little research on this issue
has been conducted in developing countries.
There is a particular lack of research looking at the
variables which may moderate the relationship
between CE and WBD in developing countries
(Batra et al., 2000). This study attempts to
investigate the moderating effects of PJ and CC on
this relationship in the context of a developing
country.
We conducted the study in China because it is a
suitable environment to test our hypotheses. First
of all, like consumers in other developing countries,
Chinese people tend to perceive imported products
as superior to domestic (Wang et al., 2000).
Secondly, the emphasis on face in Chinese cultural
values makes the country an ideal setting to test the
effect of CC value on product choice behavior
(a more detailed discussion of this can be found in
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Journal of Consumer Marketing
Volume 21 · Number 6 · 2004 · 391–400
the following section). With income levels
increasing significantly and a growth in westernized
consumption values, a growing segment of Chinese
consumers is both willing and able to buy brand-
name imports. In addition, China is one of the
largest developing countries in the world. With a
population of 1.2 billion, it is a vast marketplace for
international business and as it enters the World
Trade Organization, more opportunities are
opening up for international marketers. As such,
managerial implications are significant.
For the purposes of this study, imports or foreign
products mean those imported from countries of
higher origin (i.e. technologically/economically-
advanced countries) to developing countries (such
as China). In the following sections, we will first
develop the concepts and set out our hypotheses
regarding the moderating roles of PJ and CC in the
relationship between ethnocentrism and WBD.
Secondly, we will report the results of a large-scale
consumer survey carried out with a Chinese
sample. Finally, we will discuss the implications for
theory and for management practice and set out
some future directions for research.
Quality judgment of domestic products
and ethnocentrism
Consumers’ intention to purchase domestic/
foreign products will be influenced by perceived
quality. In the literature, quality perception is
treated as a multi-dimensional concept including
appearance, color and design, durability, fashion,
functionality, prestige, reliability, technical
advancement, value for money, and workmanship
(Darling and Arnold, 1988; Darling and Wood,
1990; Klein et al., 1998; Scott et al., 1997; Watson
and Wright, 2000). As a product comprises many
different physical and symbolic attributes, the
country-of-origin is regarded as an extrinsic cue
often used by consumers in the process of
evaluation (Bilkey and Nes, 1982; Cordell, 1992;
Elliott and Camoron, 1994). Research also
suggests that a significant proportion of consumers
will be interested in country-of-origin information
before making a purchase (Hugstad and Duur,
1986). The country-of-origin cue helps consumers
to make inferences about quality, and affects their
beliefs about product attributes (Han, 1989).
Previous studies have suggested a positive
correlation between the evaluations of domestic
products and a country’s level of economic
development (Gaedeke, 1973; Toyne and Walters,
1989; Wang and Lamb, 1983). A consumer will
tend to purchase a product made in a
technologically-advanced country if he or she
judges its quality as better than that of
merchandise produced in a less-developed
 Consumer ethnocentrism and willingness to buy domestic products
Cheng Lu Wang and Zhen Xiong Chen
country. Moreover, a product’s country-of-origin
often serves as a cue activating a consumer’s
ethnocentric tendency (Huddleston et al., 2001).
As such, willingness to buy domestic/foreign
products is influenced by both ethnocentrism and
quality judgment.
Due to large differences in market structure and
consumer behavior, research on these topics
conducted in developed countries may not be
generalizable to less-developed countries
(Papadopoulos et al., 1990; Ralston et al., 1993).
The empirical work of Yagci (2001) indicates that
when CE and country-of-origin are taken together
to predict attitudes toward the product and
intention to purchase, the former becomes a
significant predictor only when the product has
been manufactured in a less-developed nation.
On the other hand, consumers will be less
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influenced by ethnocentrism when considering a
product imported from a higher origin country
because of the association between their judgment
of the merchandise and the positive image of the
country-of-origin.
In a developed country, consumers in general
tend to have a higher quality perception of
domestic than foreign products (Ahmed and
d’Astous, 2001; Bilkey and Nes, 1982; Dickerson,
1982; Morganosky and Lazarde, 1987; Samiee,
1994). This favorable perception would tend to
enhance the influence of ethnocentrism on both
the purchase of domestic and the rejection of
foreign products. The reverse has been observed,
however, in developing countries such as Nigeria
(Agbonifoh and Elimimian, 1999), Romania and
Turkey (Ger et al., 1993), India (Batra et al.,
2000), and China (Li et al., 1997; Sklair, 1994).
In these countries, consumers typically perceive
foreign products, particular those made in higher
origin countries, as being of higher quality than
domestic products. Even ethnocentric consumers
may positively evaluate the quality of imports to
some extent if they are perceived as being
associated with a country with a better
image (e.g. it is highly-industrialized or
economically-developed) (Yagci, 2001).
The observed relation between ethnocentrism and
PJ (Klein, 2002; Klein et al., 1998; Netemeyer
et al., 1991) will therefore be weaker in developing
than developed countries. In other words, in a
developing country, a consumer with strong
ethnocentric tendencies may not necessarily
perceive domestic products as being of higher
quality than imports, even though she/he rejects
foreign products on moral grounds. Consequently,
the negative perception of domestic-made
products coupled with an admiration of imported
products would mitigate the effect of
ethnocentrism on intention to purchase the
393
Journal of Consumer Marketing
Volume 21 · Number 6 · 2004 · 391–400
former. Therefore, we hypothesize that, in
developing countries, the quality perception of
domestic products will have a moderating effect on
the relationship between CE and WBD:
H1. In a developing country, such as China, the
relationship between consumer
ethnocentrism and willingness to buy
domestic products will be weaker for
consumers with a low quality judgment than
for those who make a high quality judgment
of domestic products.
Conspicuous consumption and
ethnocentrism
CC refers to consumers’ desire to provide
prominent visible evidence of their ability to afford
luxury goods (Piron, 2000). Motivated by a desire
to impress others with their ability to pay
particularly high prices for prestige products,
conspicuous consumers may be inspired by the
social rather than the economic or physiological
utility of merchandise (Mason, 1981). CC is not
confined to the leisure class but can be found in all
social and income groups from richest to poorest.
By advertising their wealth, people who engage in
CC thereby achieve greater social status
(Bagwell and Bernheim, 1996; Basmann et al.,
1988; Mason, 1981).
In a developed country, CE and CC are
positively correlated in most situations since
domestic products, compared to imports from
developing countries, are associated with positive
brand image and status. Ethnocentric consumers
with CC values will, therefore, be more likely to
buy domestic products. However, in a developing
country, where imports generally carry symbolic
meanings of high fashion and social status, CC
may counteract the influence of ethnocentrism on
the purchase of domestic products. On the one
hand, ethnocentric consumers tend to believe that
purchasing imports is unacceptable and are proud
of their decision to buy domestic products, so are
more willing to do so. On the other hand,
conspicuous consumers tend to show off their
wealth by purchasing imports (Ger et al., 1993).
In the choice of domestic vs imported, then, a
consumer may be in a situation of conflict between
two consumption values: ethnocentrism vs CC.
Research on Polish consumers has shown that
demonstration of social status, as a dimension of
CC, is related to preference for Western products
whereas patriotism, a dimension of ethnocentrism,
is related to preference for Polish products
(Marcoux et al., 1997). As such, the tendency to
buy domestic and reject imports may be negated
by the fact that the latter are perceived as
important and salient symbols of social status.
 Consumer ethnocentrism and willingness to buy domestic products
Cheng Lu Wang and Zhen Xiong Chen
In the Chinese society, the concept of “face” is
extremely important in social life. “Face” means
prestige and social status that an individual wishes
to communicate to others (Wong and Ahuvia,
1998). It is highly related to CC and is regarded as
a key to many consumer behaviors (Redding and
Ng, 1983), since Chinese people place great
importance on the anticipated reactions of others
to their behavior (Yang, 1981). The possession of
publicly visible luxuries, including foreign brand
products, is important to a consumer’s “public
self.” As such, Chinese consumers whose CC
values are strong may have a stronger intention to
buy imports from developed countries, even
though they are also ethnocentric. Therefore, the
following hypothesis is proposed:
H2. In a developing country, such as China, the
relationship between consumer
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ethnocentrism and willingness to buy
domestic products will be weaker for
consumers with high than for those who
hold low CC values.
Method
Data collection
The sample for the study was drawn from
consumers in four major cities in the People’s
Republic of China; Beijing, Shanghai,
Guangzhou, and Chengdu. Beijing is the capital
city located in the north, Shanghai the largest
commercial center located in the eastern region,
Guangzhou the largest city in South China, which
has been greatly influenced by western lifestyle due
to its proximity to Hong Kong, and Chengdu the
largest city in south-western China, representing
the more traditional part of the country. These
four cities, therefore, represent regions with
different geographic, political, and commercial
backgrounds. The total sample size was 800
consumers, 200 from each city. In order to ensure
the sample was representative, a stratified
sampling plan was followed based on the
population distribution in the districts of each city.
The sample comprised 48 percent male and 52
percent female. In terms of age, 28.2 percent were
under 30, 24.8 percent between 30 and 39, 31
percent from 40 to 49, and 16 percent aged 50 or
above. As far as educational level was concerned,
28.4 percent of the respondents had received a
junior high education or below, 40.4 percent had
graduated from senior high school, and 31 percent
from university.
Personal interviews were conducted at
consumers’ homes by university students recruited
from the four cities. All interviewers completed a
training program in interviewing skills before they
began work. After going through the program,
394
Journal of Consumer Marketing
Volume 21 · Number 6 · 2004 · 391–400
each interviewer was asked to do an initial
interview, after which the researchers contacted
the interviewees to check the answers. The results
of this process showed that the quality of the initial
interviews was satisfactory. Each respondent
answered a questionnaire including four scales
which measured the variables in question and
which also collected demographic variables to be
used as controls in the analysis.
Measures
We adopted previously validated measures with
additional testing of reliability in this study. The
instrument was in Chinese but had been initially
constructed in English and then translated into
Chinese by one of the bilingual researchers.
To validate the Chinese version, another bilingual
researcher back-translated the survey instrument
into English. This procedure helped ensure an
accurate prose translation that was decentered
from a literal English language translation (Brislin
1980; Werner and Campbell, 1970).
All variables were measured by 7-point scales
ranging from 1 (Strongly Disagree) to 7 (Strongly
Agree) except for CC, which was measured by a
5-point scale ranging from 1 (Strongly Disagree)
to 5 (Strongly Agree). CE was measured by a
17-item CETSCALE (Shimp and Sharma, 1987),
which has been found to be inversely related to
willingness to buy foreign products (Klein et al.,
1998; Netemeyer et al., 1991; Sharma et al., 1995).
In our Chinese version, the term American in the
original scale was changed into Chinese, given the
origins of the sample group. The Cronbach a
obtained from this study was 0.90. Quality
judgment of domestic products or PJ was
measured by a scale adopted from Klein et al.
(1998). The scale includes the following
attributes: workmanship, technological
advancement, quality, reliability, design, and value
for the money. The Cronbach a for this scale was
0.76. CC was measured by an 18-item scale
adopted from the work of Marcoux et al. (1997) on
Polish consumers. This scale measures attitudes
towards the meaning of CC associated with
consumer products. The Cronbach a for this scale
was 0.95. WBD was measured by a 5-item scale
adapted from Klein et al. (1998). The Cronbach a
for this scale was 0.73. Overall, the Cronbach as
obtained from this study indicate good reliability
for all the scales used.
Analysis and results
Confirmatory factor analyses
To examine the distinctiveness of the measures for
the variables studied, i.e. ethnocentric consumers,
 Consumer ethnocentrism and willingness to buy domestic products Journal of Consumer Marketing
Cheng Lu Wang and Zhen Xiong Chen Volume 21 · Number 6 · 2004 · 391–400

willing to buy domestic products, quality judgment
of domestic products, and CC, we conducted
confirmatory factor analysis (CFA) using LISREL
8 (Jöreskog and Sörbom, 1993). We compared a
four-factor model and a one-factor model.
To assess model fit, we used the overall model
chi– square (x2), the Tucker –Lewis Index (TLI,
Tucker and Lewis, 1973), the comparative fit
index and the root mean square error of
approximation (RMSEA, Browne and
Cudeck, 1993).
The results of our CFA provided support for the
four-factor model indicating the distinctiveness of
the constructs studied. The chi-square value for
the four-factor model (x2 ¼ 296:16; df ¼ 48;
p , 0:01) was significantly lower (Dx2 ¼ 1585:38;
Ddf ¼ 6; p , 0:01) than that for the one-factor
model (x2 ¼ 1881:54; df ¼ 54; p , 0:01).
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examining the change in R 2 attributable to the
interaction terms added at the final stage: if they
produced a significant R 2change in the criterion
variable (WBD), the moderating effect was
significant (Jaccard et al., 1990). The results of the
analysis are reported in Table II.
H1 stated that PJ would moderate the
relationship between CE and WBD. The results of
the regression indicate that, after controlling for
city and demographic variables, the main effects of
three independent variables, and the interaction
term of CE £ CC, PJ did moderate the relationship
between CE and WBD (b ¼ 0:90; p , 0:01;
DR 2 ¼ 0:02; p , 0:01). Thus, H1 was supported.
Figure 1 illustrates the interaction pattern,
showing how the relationship between CE and
WBD changed across PJ levels in the direction
predicted by the hypothesis.

Further, all fit indexes showed a better fit for the
four-factor model (TLI ¼ 0:90; CFI ¼ 0:93;
RMSEA ¼ 0:08) than the one-factor model
(TLI ¼ 0:40; CFI ¼ 0:51; RMSEA ¼ 0:22).
Findings
The means, standard deviations, reliabilities, and
intercorrelations of all variables studied are
reported in Table I. As we anticipated, WBD was
positively correlated with consumer ethnocentric
tendency (r ¼ 0:62; p , 0:01) and quality
judgment of domestic products (r ¼ 0:36;
p , 0:01) while being negatively correlated with
CC (r ¼ 20:30; p , 0:01).
We used the technique of hierarchical
moderated regression (Aiken and West, 1991;
Dooley and Fryxell, 1999) to test the two
hypotheses simultaneously. In the regression
analysis, three demographic variables (gender, age,
and education level) as well as city of origin were
entered as control variables in the first step.
The main effects of the three independent
variables (CE, PJ, and CC) were entered in the
second step and finally, the interaction terms of
CE £ PJ and CE £ CC were loaded into the
equation. We tested the moderating effects by
H2 stated that CC would moderate the
relationship between CE and WBD. The results of
the regression indicate that, after controlling for
city and demographic variables, the main effects of
three independent variables, and the interaction
term of CE £ PJ, CC did moderate the relationship
between CE and WBD (b ¼ 20:70; p , 0:01;
DR 2 ¼ 0:02; p , 0:01). Thus, H2 was also
supported. Figure 2 shows the interaction pattern,
illustrating the change across CC levels in the
relationship between CE and WBD in the
hypothesized direction.
Discussions and managerial implications
The main effects of CE on attitudes towards
foreign products and willingness to buy domestic
merchandise have been extensively examined in
previous studies (Herche, 1992; Huddleston et al.,
2001; Netemeyer et al., 1991; Shimp and Sharma,
1987; Sharma et al., 1995). However, little
research has investigated the moderating variables
that will interact with it in predicting intention to
buy domestic products (Sharma et al., 1995), and
even less such research has been conducted in
developing countries (Batra et al., 2000;

Table I Mean, standard deviation and inter-correlations

Mean SD City Sex Age Education CE PJ CC WBD
City – –
Sex 1.52 0.50 0.01
Age 4.66 2.13 0.01 0.08*
Education 2.95 0.98 20.07* 0.01 2 0.03
CE 4.38 0.92 0.13** 0.13** 0.22** 20.07* (a ¼ 0.94)
PJ 4.49 0.90 0.16** 0.14** 0.10* 20.05 0.44** (a ¼ 0.76)
CC 2.24 0.96 0.07* 20.08* 2 0.04 0.05 20.08* 20.07* (a ¼ 0.95)
WBD 4.31 0.99 0.14** 0.11** 0.17** 20.07* 0.62** 0.36** 20.30*** (a ¼ 0.73)
Notes: CE ¼ Consumer ethnocentrism; PJ ¼ PJ or Quality judgment of domestic products; CC ¼ Conspicuous consumption; WBD ¼ Willingness to buy
domestic products; *p , 0.05; **p , 0.01

395
 Consumer ethnocentrism and willingness to buy domestic products Journal of Consumer Marketing
Cheng Lu Wang and Zhen Xiong Chen Volume 21 · Number 6 · 2004 · 391–400

Table II Moderating regression analysis predicting and explaining consumer attitudes and
Willingness to buy domestic behavioral intentions to buy foreign vs domestic
Variables products beta products in developing countries.
Some researchers have suggested that if all other
Control variables attributes are more or less the same, imports
City 0.14**
should be priced slightly lower than domestic
Sex 0.10**
products (Lantz and Loeb, 1996; Mitchell and
Age 0.16**
Greatorex, 1990). This would be true for
Education 20.05
R 2 change 0.06**
developed countries, where CE and country-of-
origin jointly have an impact on preference for
Main effects
domestic products. However, in developing
Consumer ethnocentrism (CE) 0.55**
countries, since the impact of ethnocentrism is
Product judgment (PJ) 0.09*
mitigated by quality perception and CC values, the
Conspicuous consumption (CC) 20.26**
famous brand name and fashionable image
R 2 change 0.40**
associated with imports would be a major selling
Moderating effects point for international marketers enabling them to
CE3PJ 0.90**
charge premium or prestigious prices. This foreign
R2change 0.02**
brand positioning strategy (Alden et al., 1999) will
CE3CC 20.70**
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offset CE, given the moderating effect of quality

R 2 change 0.02**
Overall R 2 0.51
Overall F 79.45**
Notes: *p , 0.05; **p , 0.01
Marcoux et al., 1997). To extend our knowledge of
the relationship between CE and the intention to
buy domestic products in a developing country,
the present study investigated two moderators,
namely quality judgment of domestic products and
CC, and their effects on such a relationship. The
results supported our hypotheses, indicating that
for Chinese consumers, both moderators affect the
relationship between CE and WBD. These
findings will contribute to the literature on
perception and CC as set out in this research.
The observed interaction effects will have
important managerial implications for
multinational marketers entering developing
countries. For example, consumer purchase of
apparel is more related to CC and imports are
more likely to be associated with high quality and
prestigious image (Batra et al., 2000). Therefore,
consumers’ choice of domestic vs imported brands
often involves a dilemma between ethnocentrism,
quality/image judgments of domestic brands, and
CC. For example, China is a major exporter of low
cost textiles and clothing and also has a big market
for upscale, branded, imported apparel, especially
that coming from technologically- and
economically-advanced countries. China has

Figure 1 CE and WBD relationship by PJ Figure 2 CE and WBD relationship by CC

396
 Consumer ethnocentrism and willingness to buy domestic products
Cheng Lu Wang and Zhen Xiong Chen
become one of world’s largest imported clothing
markets, averaging 10 percent annual growth rate
through the 1990s due to increasing purchasing
power amongst consumers as well as a government
import tariff reduction imposed as a step towards
entering the World Trade Organization (Hong
Kong Trade Development Council Research
Centre, 2000). Although the competition in the
apparel market is intense, the middle- and high-
end segments have room to grow in urban cities
where there is an increasing population of young
professionals. This gives an opportunity for
imported clothing to target China’s growing
middle-to-upscale markets. The same implication
may be applied to other relatively expensive and
publicly visible consumer products, such as
cosmetics and automobiles. For these types of
products, consumers in developing countries
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typically prefer imports due to their brand image,
which is associated with high quality and CC. This
may explain the fact that the sales of imported
cosmetics perform better than domestic ones in
developing countries, even though the former are
far more expensive.
Although the interaction effect between PJ and
CE would also be expected in developed countries,
it will be more pronounced in developing
countries, where consumers’ unfavorable
evaluation of domestic products and the values of
CC tend to negate the impact of ethnocentrism.
Further research is required to investigate the
difference in magnitude of such interaction effects
across nations with different levels of economic
and/or technological development. Cross-national
research comparing several countries at different
stages should generate more insightful results.
While the present study investigated
relationships between CE, product quality
judgments, and CC in a general sense, it may also
give rise to further research that is more product-
and country-specific. For example, imported
products from different countries will be rated
differently in terms of quality and brand image
(Li et al., 1997; Zhang, 1996). Such a moderating
effect may be expected to be stronger when there is
a match between country image and product
category. This will be the case for high-tech
products from Japan or fashion apparel and
cosmetics from Western Europe, for example,
because the brand image is meaningfully
associated with both quality and CC. Conversely,
in situations where there is a mismatch, a foreign
brand may be associated with lower quality
(e.g. US watch) or be less conspicuous
(e.g. Japanese apparel), and the observed
interaction will tend to be mitigated. Research has
also found that the impact of ethnocentrism on
Chinese consumers’ attitudes toward imported
397
Journal of Consumer Marketing
Volume 21 · Number 6 · 2004 · 391–400
products will differ between those from Western
countries and those from Japan, where there is
some animosity involved (Klein et al., 1998).
One issue that was not investigated in the
present study but is worthy of further research in
developing countries is the impact of
ethnocentrism on consumers’ willingness to
purchase products made in a joint venture ( JV)
comprising firms from both industrialized and
home (developing) countries. It can be reasoned
that consumers’ quality perception/product image
decisions about a product from a JV would be
different from those made about either partner
acting alone. Because the reduced identification of
foreign products tends to reduce the level of
ethnocentrism (Batra et al., 2000), JV products are
also likely to reduce the image appeal associated
with foreign brands. The findings of such research
will shed further light on international market
entry strategies such as international sourcing,
plant location or international strategic alliances
such as the JV.
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Executive summary and implications for
managers and executives
This summary has been provided to allow managers
and executives a rapid appreciation of the content of
this article. Those with a particular interest in the topic
covered may then read the article in toto to take
advantage of the more comprehensive description of the
research undertaken and its results to get the full
benefits of the material present.
Patriotism versus flash foreign brands – the
development of Chinese consumerism
The exhortation to buy products made in our own
country is a common theme and sometimes the
subject of general campaigns. These campaigns
draw on the essence of patriotism – my country
right or wrong – and on the supposed consequences
of not buying domestic manufactures. The spectre
of closed factories and redundant workers is a
common theme exploited by those who would
oppose free trade since it goes to the heart of our
empathy with our own countrymen.
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Volume 21 · Number 6 · 2004 · 391–400
The question raised by Wang and Chen is
important to our understanding of marketing
behaviour since it recognises that the preference
for domestic manufactures does not operate in
isolation and other factors influencing consumer
behaviour may moderate what the authors call
“consumer ethnocentrism”.
Developing countries and ethnocentrism
We have to start our assessment of consumer
behaviour in developing countries by asking
whether there is the same level of patriotism and
ethnocentric preference that we know exists in the
developed nations? Any examination demonstrates
that these emerging nations are not without
patriotic fervour and there must be the same
pressure to opt for domestic products as we see
elsewhere.
Straying a little from the main thrust of this
work, it is worth noting that the “import
substitution” theory that dominated much of
development economics (and the economic
policies of many developing nations) operates
on the core premise of replacing imported
goods – and especially high value manufactured
goods – with domestic manufactures.
Much of this approach centred on the use of
import barriers but the encouragement of
consumers to buy domestic products also
played its part. Subsequent experience has
shown that nations focused towards trade have
seen more rapid growth and development but
this does not remove the emotional appeal
of import substitution (which even the
US Government seems to be attracted by in
areas like steel making).
Nationalism, patriotism and ethnocentrism are
real and strong in developing nations but the
moderating factors are also strong in these places.
Wang and Chen focus especially on an important
factor – the preference for branded goods made in
developed countries. This preference results from
beliefs about quality and from the fact that being
able to afford expensive foreign brands
demonstrates economic power and status. In the
case of China, Wang and Chen argue that the idea
of “face” accentuates this preference for imported
brands.
Chinese consumers are no less patriotic than US
consumers but they face a dilemma in that they
“know” that foreign brands are “better” and this
moderates ethnocentrism by their choice to place
personal status (or its manifestation through
consumption) ahead of “national pride”. This
presents a significant opportunity from developed
world brands even in sectors where there is a
considerable domestic manufacturing base in
China.
 Consumer ethnocentrism and willingness to buy domestic products
Cheng Lu Wang and Zhen Xiong Chen
Targeting the status conscious consumer
The main opportunity for western firms seeking to
respond to the weakened ethnocentricity of
Chinese consumers lies with “up market”
products. In clothing and footwear markets the
existence of a massive Chinese manufacturing base
should not blind us to the opportunity presented
by promoting luxury branded clothing and
footwear in China. Wang and Chen’s work
suggests that the better of Chinese consumer’s
desire to demonstrate success and status opens up
these types of markets.
The decision of China to join the international
trading system through the World Trade
Organisation (WTO) presents a further set of
opportunities as western branded goods will secure
a more east entry into China than in times past.
The restrictions on direct foreign imports that
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occurred in the past are being gradually removed
to the benefit of the Chinese consumer and
exporters from other nations and, as China’s
economy seems set to continue its rapid growth the
numbers of better off consumers will increase
expanding the opportunity further.
Is there an end to thinking foreign is best?
One interesting speculation is to observe that there
is a point when Chinese consumers no longer think
400
Journal of Consumer Marketing
Volume 21 · Number 6 · 2004 · 391–400
so badly of their own manufactures making
ethnocentrism a more powerful force. For western
nations (on the whole) the “my country is best”
belief extends to include goods and services. And
for many the domestic origin of a given product is
an important factor in the purchase decision.
We can anticipate that this change will take place
gradually over the coming years and requires
exporters to develop strategies to protect carefully
developed markets from erosion by emerging
domestic brands. It is not enough to say “whoopee”
and pile in with our up-market branded goods. We
have to develop a strategy that links these goods to
domestic sensitivities. In doing this we should
consider how to minimise the impact of country-of-
origin effects on the image of our brand.
At the beginning of a campaign in China, the
brand origin is central to success but this need
mitigation if economic development is not to
substitute this strength with a weakness – not
being made in China will become a disadvantage at
some point. Marketers should plan for and try to
anticipate when this might happen.
(A précis of the article “Consumer ethnocentrism and
willingness to buy domestic products in a developing
country setting: testing moderating effects”. Supplied
by Marketing Consultants for Emerald.)
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