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The International Review


of Retail, Distribution
and Consumer Research
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Factors underlying
the phenomenon
of consumer
ethnocentricity:
evidence from four
central European
countries
Irena Vida & Ann Fairhurst
Published online: 15 Apr 2011.

To cite this article: Irena Vida & Ann Fairhurst (1999) Factors underlying
the phenomenon of consumer ethnocentricity: evidence from four central
European countries, The International Review of Retail, Distribution and
Consumer Research, 9:4, 321-337, DOI: 10.1080/095939699342444

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Int. Rev. of Retail, Distribution and Consumer Research 9:4 October 1999 321–337

Factors underlying the


phenomenon of consumer
ethnocentricity: evidence from
four central European
countries
Downloaded by [University of Stellenbosch] at 06:36 08 October 2014

Irena Vida and Ann Fairhurst

Abstract
It has been suggested that ethnic sentiment is becoming one of the strongest motiva-
tions in consumer purchasing behavior in the contemporary marketplace, particularly
in economies undergoing major reforms such as those in Central and Eastern Europe
(CEE). While the consequences of consumer ethnocentric tendencies have been well
acknowledged in empirical research, the sources of this phenomenon have yet to be
established. The present study inquired into cultural openness and demographic
variables as antecedents to consumer ethnocentricity. Theory based propositions were
investigated on samples of consumers in four CEE countries. The results revealed
relatively low ethnocentric tendencies, which differed signiŽ cantly across the countries.
Furthermore, brand awareness as an indicator of cultural openness, age and gender
were all found to be signiŽ cant determinants of this phenomenon. The paper con-
cludes by providing a platform for further discussion on the role of ethnocentrism
research.

Keywords

Consumer ethnocentrism, consumer purchasing behaviour, Central and Eastern


Europe.

Introduction

With the growing globalization of world markets and augmented competition in


the arena of international products and services, consumers are becoming more

Irena Vida, Assistant Professor, University of Wisconsin, SOE, Consumer Science,


1300 Linden Drive, Madison, WI 53706, USA. Tel: (608) 265–5954, Fax: (608)
262–5335, E-mail: ivida@facstaff.wisc.edu; Ann Fairhurst, Associate Professor,
University of Tennessee, Consumer and Industry Services, 230 Jessie Harris Building,
Knoxville, TN 37996–1900, USA.

The International Review of Retail, Distribution and Consumer Research


ISSN 0959-3969 print/ISSN 1466-4402 online © 1999 Taylor & Francis Ltd
322 The International Review of Retail, Distribution and Consumer Research

concerned with their cultural and ethnic identities. It has even been suggested
that ethnicity and nationalism are some of the strongest motivations in the
contemporary marketplace (Forbes 1985; Hult and Keillor 1994). This ethnic
sentiment is re ected in shoppers’ consumption behaviour, as in their prefer-
ences either for domestic products (ethnocentric purchase orientation) or for
imported products (polycentric purchase orientation).
Consumption behaviour research in recent years has focused on the phenom-
enon of ethnocentrism which, when applied to marketing situations, has sub-
stantial implications for import purchase behaviour. As an individual-level
construct, consumer ethnocentrism is aimed at a better understanding of country-
of-origin dynamics. CETSCALE, an instrument measuring consumer ethno-
centric tendencies, has been offered as a market segmentation and positioning
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tool superior to that of demographic measures (Herche 1992; Shimp and Sharma
1987). Moreover, Herche (1994) has suggested that ethnocentric tendencies,
relative to other marketing mix variables, play a substantial role in consumer
acquisition of imported products. Despite its strong theoretical underpinnings
and powerful implications for marketing practitioners, this research stream has
seen relatively little application, notably as compared to the numerous ‘country-
of-origin’ studies.
The bulk of earlier research on consumer ethnocentrism, which focused on
theory development, conceptualization, operationalization of measurements and
validation of the instrument, has been conducted in the US. However, more
recent empirical studies investigating the impact of ethnocentricity on purchase
behaviour indicate that this construct offers an excellent potential for inter-
national consumer research, particularly in those economies which have recently
been subjected to fundamental macroeconomic and political transformations
(Durvasula et al. 1997; Herche 1994; Mueller and Gajdusek 1996; Netemeyer
et al. 1991).
Focusing on supply rather than demand, the socialist economies of Central
and Eastern Europe (CEE) did not conduct research on consumer behaviour or
sociopsychological phenomena applicable to marketing prior to the opening
of their markets in 1989 (Nasierowski 1996; Shama 1992). Even today, almost a
decade since the collapse of communism, academic research and information
regarding consumer behaviour is still scarce. As has been pointed out by Mueller
and Mueller (1996), in the early years of the transition in CEE it was necessary
to engage in descriptive and ethnographic research to establish basic knowledge
about consumer behaviour. However, it is now time to proceed with more
rigorous methods of scientiŽ c inquiry. The intent of this study is to begin to
Ž ll the existing gap in consumer behaviour research in transitional economies
by conducting an empirical qualitative study and establishing a platform for
further theory-based investigations.

Objectives of this study

Recognizing the huge untapped market and unmet consumer needs in the post-
communist societies, Western marketers have been eager to capitalize on a
myriad of opportunities in these markets, particularly those related to shortages
in consumables and durables. Although the early 1990s presented a variety of
Vida and Fairhurst: Consumer ethnocentricity in CEE 323

enticing opportunities, international investors have since then faced challenges


such as economic crises due to transitional efforts, limited household purchasing
power, unreliable market data, unpredictable consumer behaviour and increasing
international competition (Bella 1993; Consumers in Eastern Europe 1994; Meller
1993; Michaels and Murray 1993; Shama 1992).
Lacking experience in operating in the competitive, open market conditions,
local industries have been strongly impacted by foreign entrants, leading to
unemployment and a decrease in discretionary income for some people, and yet
to new entrepreneurial opportunities for others. As a result, many CEE countries
are experiencing not only growing economic stratiŽ cation of the societies, but
also altered hierarchies of consumer values, standards and needs (Nasierowski
1996). As CEE consumers are searching for their own cultural and ethnic identi-
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ties in the face of the changing environment, marketers would do well to under-
stand ethnic and cultural aspects of marketing in these countries.
The purpose of this study was to investigate consumer ethnocentricity in four
CEE countries, and to examine potential sources of this phenomenon. More
speciŽ cally, the objective was to measure, compare and contrast the economic
form of ethnocentrism in the Czech Republic, Hungary, Poland and Estonia,
countries which have been rapidly advancing towards a market-oriented system.
The second, theory-based objective, was to examine the role of consumer cultural
openness and demographics as potential sources of consumer ethnocentrism.

Conceptual background and hypotheses

The core of the ethnocentrism phenomenon as applied to consumer marketing


lies in the fact that purchasing foreign-made products may carry emotional
implications, particularly when perceived personal (or domestic) economic threat
is at stake (Crawford and Lamb 1981; Shimp and Sharma 1987). Consumer
ethnocentricity is believed to be a personality trait affecting an individual’s
attitudes, intentions, preferences and purchase behaviour with respect to im-
ported vs. competing domestic products. In an effort to measure perceptions of
the appropriateness of importing foreign-made products,1 Shimp and Sharma
(1987) developed and psychometrically validated a scale called Consumer
Ethnocentric Tendencies Scale (CETSCALE). Since the introduction of their
original work, this scale has been tested in a number of cross-cultural settings,
including the US, various countries of Western Europe, Korea, Japan and Russia
(e.g. Durvasula et al. 1997; Netemeyer et al. 1991; Hult and Keillor 1994).
The outcomes of consumer ethnocentricity and its impact on consumer
import-purchase behaviour, i.e., the predictive validity of the instrument, appear
to have been Ž rmly established in empirical research. Some of the criterion
variables used in the empirical work include: attitudes towards various domestic
vs. imported products (Shimp and Sharma 1987; Sharma et al. 1995); purchase
intentions of clothing items (Good and Huddleston 1995); actual purchase
behaviour of various product categories (Herche 1992, 1994; Vida et al. 1996)
and preferences for domestic Polish vs. Western made products (Marcoux et al.
1997). Empirical studies have demonstrated a product-speciŽ c nature of ethno-
centrism effects, such as the level of product involvement, perceived product
necessity and the extent to which foreign-made products represent a perceived
324 The International Review of Retail, Distribution and Consumer Research

threat to the consumer’s personal or economic welfare (Herche 1992, 1994;


Kaynak and Cavusgil 1983; Lee and Ulgado 1996; Sharma et al. 1995). More-
over, the strength and signiŽ cance of the ethnocentrism effect are contingent
upon consumer perception of the country of origin of speciŽ c goods examined
(Herche 1994; Durvasula et al. 1997).
In contrast, the sources of consumer ethnocentric tendencies, which could in
fact advance our understanding of the phenomenon, have not been as thoroughly
investigated. In 1995, Sharma et al. extended the original work on the conceptual-
ization and measurement of consumer ethnocentrism, and proposed a model
which also examined why and under what conditions this phenomenon occurs. They
suggested that, along with consumer demographic and psychographic measures,
the following constructs may be factors underlying an individual’s ethnocentric
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tendencies: openness to foreign cultures, patriotism, collectivism-individualism and


conservatism.
Of the four antecedents of ethnocentrism proposed by Sharma et al., this
study focused on cultural openness as a determinant of consumer ethnocentric
tendencies. Sharma et al. (1995) suggested that opportunities to interact with
other cultures through either artefacts or people of other cultures may reduce
consumer cultural prejudice and thus the level of ethnocentricity. The authors
demonstrated this concept empirically on a large sample of Korean consumers.

Hypotheses construction

The Ž rst objective was to assess and contrast the level of consumer ethnocentric
tendencies across the four countries under investigation. Given the lack of
previous empirical data on consumer behaviour in CEE, no speculations are
presented regarding the expected levels of consumer ethnocentricity as measured
by the CETSCALE. In this transitional period, consumers may exhibit various
levels of ethnocentric tendencies. With the initial in ow of Western brands
entering the market in the early 1990s, consumers enthusiastically embraced the
wider variety and better quality of products newly available in their markets,
even in spite of eroding disposable income levels (Bella 1993; Marcoux et al.
1997). On the other hand, it has also been reported that concerns were raised
regarding the negative effects of such consumption on domestic industries,
employment and foreign currency reserves (Mueller and Gajdusek 1996; Sweeney
1993). As Millar and Restall contend, as a result of their disillusionment with the
market changes in their countries, ‘some consumers are hostile towards the
Western goods and values’ (1992: 49).
Based on established theoretical linkages (Shimp and Sharma 1987) and the
existing knowledge of the situation in CEE, it is speculated that differences in
consumer ethnocentricity exist across the region. Contrary to the popular belief
of earlier marketers, who considered CEE as a relatively homogenous market, it
has now become clear that individual countries and their consumer cultures
differ substantially. While similarities in their geographical location and historical
social-political structures can be assumed, the timing of reformation attempts,
economic performance, languages, cultural afŽ nities and consumer expectations
have evolved quite dissimilarly over the last decade (Grapard 1997; Mueller and
Mueller 1996; Nasierowski 1996).
Vida and Fairhurst: Consumer ethnocentricity in CEE 325

Hypothesis 1: The respondents in the four countries under investigation will


exhibit signiŽ cantly different levels of consumer ethnocentric
tendencies.

The intent of this study was to examine cultural openness and demographic
characteristics as factors underlying ethnocentric tendencies of consumers in
four CEE countries. An individual’s awareness of or familiarity with inter-
national brands served as an indicator of the individual’s cultural openness.
Traditionally, the concept of brand familiarity has been utilized in advertising
research (e.g. Kent and Allen 1994; Snyder 1989; Tellis 1997) and in research
on determinants of consumer purchase behaviour such as consumer purchase-
intention formation (Laroch et al. 1996); product evaluations (Lee and Ulgado
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1996) and consumer price perceptions (Biswas 1992). As deŽ ned by Alba and
Hutchinson (1987), brand familiarity is a continuous variable re ecting a
consumer’s level of direct and indirect experiences with a product. In this study,
the construct has been borrowed to represent Sharma et al.’s (1995) construct of
the individual’s openness to other cultures. While some (though limited)
international branded products were available in CEE countries prior to the
economic transformation, other (unavailable) brands were known to CEE
consumers through international travel, interaction with people from other
countries and the media. A wave of new brands within various product categories
has been introduced in the reforming countries in past years (Becker and Baker
1994; Meller 1993). It has also been reported that brand awareness in CEE
countries has been soaring as a result of promotional campaigns of Western
producers entering the market, who experienced surging sales after product
launches (Michaels and Murray 1993).
Given the theoretical foundation for the concept of cultural openness, it was
expected that individuals possessing a greater brand awareness (implying greater
familiarity with artifacts of other cultures) would exhibit less ethnocentric
tendencies. Thus,

Hypotheses 2: Individuals possessing a greater brand awareness will exhibit


less ethnocentric tendencies. That is, a negative correlation is
expected between brand-name awareness and consumer ethno-
centrism.

A further aim of the study was to establish the role of demographic


characteristics in an individual’s level of ethnocentricity. The literature has
established the importance of demographic and socio-economic factors in
studies investigating cultural and ethnic aspects of consumer behaviour (Sheth
1977). Since the quality of life and economic welfare (e.g. employment) may be
more threatened by importation of foreign products for some individuals than
for others, consumer ethnocentrism tends to vary across population segments
with different demographic characteristics (Shimp and Sharma 1987).
It has been suggested that older individuals may have more conservative views
or attitudes which affect their import purchase behaviour (Han 1988; Wall et al.
1988; McLain and Sternquist 1991; Shimp and Sharma 1987). On the other
hand, the results of some empirical research regarding the role of age in ethno-
centric behaviour has not supported these ideas (Herche 1992; Good and
326 The International Review of Retail, Distribution and Consumer Research

Huddleston 1995; Shimp et al. 1995). Despite the controversy and ambiguities
in existing research, we do expect younger respondents to be less ethnocentric.
Younger consumers in CEE may be more optimistic in regard to prosperity under
competitive market conditions than older individuals, particularly in view of new
educational opportunities. Thus:

Hypothesis 3: The level of consumer ethnocentricity will vary with the age of
the respondent. Younger respondents will tend to be less
ethnocentric than older respondents.

Past studies focusing on country-of-origin issues, patriotism, ethnocentrism


and evaluation of domestic vs. foreign-made products have shown differences
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between male and female respondents (Bilkey and Ness 1982; Han 1988; Sharma
et al. 1995; Wall et al. 1988). Women tended to be more patriotic, exhibiting
more favourable attitudes toward domestic products and higher ethnocentric
tendencies. They are believed to be more articulate regarding what is morally
right or wrong, and more conservative.
As for the situation in transitional CEE countries, the role of gender in
cognitive or emotional constructs such as ethnocentrism is not yet clear. The
Marxist doctrine promoted equality among members not only regardless of the
social strata, but also between men and women, holding that women’s emancipa-
tion is contingent on their participation in socialized labour. This was evidenced
by the high female participation in the workforce as well as in technical, ‘male-
oriented’ Ž elds of study and employment, including high-ranking managerial
positions (Consumers of Eastern Europe 1994). Hence, the role of gender in CEE
may differ from the observed patterns in the West.
In view of the inconsistent evidence presented above, we propose a non-
directional hypothesis based on the aforementioned theoretical taxonomy:

Hypothesis 4: There will be signiŽ cant differences in ethnocentric tendencies


between male and female respondents.

Research methodology

Selection of countries and data collection

The countries under investigation in this study, i.e. the Czech Republic, Estonia,
Hungary and Poland, were selected on the basis that they have experi-
enced rapid progress towards market-oriented economies, and have attracted a
relatively high level of foreign direct investments as well as the interest of
international marketers of branded products (Liuhto 1996; Nasierowski 1996;
Rahman and Carpano 1996). This implies not only a longer existence and higher
visibility of imported products and international brands as compared to some
other economies in the Eastern European region, but also a greater impact
of international competition on the lives of consumers and their purchase
behaviour.
For this study’s focus on consumer ethnocentricity and cultural openness as
its potential source, the countries selected appear more appropriate than some
Vida and Fairhurst: Consumer ethnocentricity in CEE 327

other nations within CEE. For instance, in their investigations of patterns of


consumer buying behaviour in various former Soviet republics, Leonidas and
Katsikeas (1996) found an extremely low foreign-brand availability, awareness
and usage. As a result, they found an insigniŽ cant impact of branding and
country-of-origin information in consumer purchase decision making. On the
other hand, a study of consumer import-purchase behaviour in Slovenia, another
advanced country in transition, identiŽ ed a relatively high awareness of inter-
national branded products (Vida et al. 1996).
The research propositions were investigated by studying young urban con-
sumers in the four countries, i.e. university students in Prague (the Czech
Republic), Tallinn (Estonia), Budapest (Hungary) and Krakow (Poland). The
data were collected with the assistance of our international colleagues at their
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respective universities. All the research assistants held graduate degrees, had
spent considerable periods of time in the US (for educational purposes) and
were culturally as well as professionally  uent in English. After thorough though
unbiased instructions (oral and in writing) on how to respond to instrument scales
and items in the questionnaire, students were asked to provide their sincere
opinions to all questions. They were assured anonymity.
Concerns have been raised regarding the use of students in marketing research.
Although university students cannot be seen as a representative population
across countries, in each country or even within the region, they do consti-
tute comparable populations, which is a major concern in cross-national research
(Chao 1988; Douglas and Craig 1983; Parameswaran and Yaprak 1987). Con-
sidering that the objective of the study was to examine theory-based propositions
in a new context, and that bivariate relationships rather than univariate means
were the primary focus of the study, homogeneous subjects (e.g. students or
housewives) were beneŽ cial and desirable (Calder et al. 1981; ELMAR-AMA
1998). Samples drawn from students majoring in economics can be valuable in
view of the fact that their attitudes and opinions are likely to be signiŽ cant in
their consumption patterns as young adults as well as in their role in shaping
their countries’ future economic development (Evans and Birch 1994). More-
over, as pointed out in Woodruff and Drake’s (1998) analysis, Central Europe’s
youth (or ‘teen angels’ as authors term this segment) as well as the young
professionals represent a signiŽ cant new target for international marketers of
branded products.

Research instrument and measures

With the exception of the Estonian sample where students responded to the
research instrument in English (the language of instruction at Concordia Inter-
national University), the questionnaire was translated into the native languages
(Polish, Czech and Hungarian) and back-translated into English independently
by bilingual natives. The back-translated instrument was then evaluated by the
authors and our research assistants in the individual countries for meaning
compatibility. The scale was pre-tested on convenience samples of consumers for
its comprehensibility, clarity of instructions and length, after which changes
were incorporated. Following guidelines for conducting international consumer
research (Douglas and Craig 1983), the intention is that the scale should
328 The International Review of Retail, Distribution and Consumer Research

adequately represent the original scale, but should be worded so as to re ect
differences in marketing and consumer culture.
The instrument consisted of the CETSCALE combined with scales measuring
brand awareness and demographic information. The previously cross-culturally
validated consumer ethnocentric tendency scale – CETSCALE (Durvasula et al.
1997; Netemeyer et al. 1991; Sharma et al. 1995) was utilized to measure
respondents’ ethnocentric tendencies. This scale, which consists of seventeen
general statements regarding the importation of foreign-made goods, has been
validated and/or applied in transitional economies in previous research (e.g.
Durvasula et al. 1997; Good and Huddleston 1995; Kaynak and Ali 1996;
Marcoux et al. 1997). Respondents were asked to indicate their level of agree-
ment or disagreement with statements on a 7-point Likert scale ranging from
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1 5 ‘absolutely disagree’ to 7 5 ‘absolutely agree’. Given the unidimensional


nature of the CETSCALE, the scale items are summed into a single total score
and used as a measure of ethnocentricity.
The brand-name familiarity scale consisted of twenty-six internationally well-
known brand names. As presented by Tellis (1997), familiarity (with products,
brands, etc.) can be measured by a number of indicators such as consumer’s
knowledge of, experience with, or even loyalty to the brand, and is a function of
the brand’s market share, newness or order of entry into the market. In this
study, respondents’ brand awareness served as an indicator of their familiarity
with and exposure to artifacts of foreign cultures. Hence, brand awareness was,
as in Kent and Allen (1994), measured with two scales consisting of twenty-
six identical brand names on a 5-point numeric format: familiar/unfamiliar
and experienced/inexperienced. The summated scores of both interval scales
(familiarity and experience) for all brand names were used as an assessment of a
respondent’s brand awareness.
Prior to the selection of brand names to be included in the scales, pre-tests
were conducted with student populations in two countries, using unaided brand-
recall measures. The students were asked to recall brand names for various
product categories within a speciŽ ed time frame. The number and selection
of brand names to be included in the scales was based on qualitative and
quantitative evaluation of the pre-test responses, along with the judgement of
researchers and their assistants on overall brand familiarity across countries.
A further criterion for selection was that a wide variety of product brands
(consumables and durables), services and/or institutions (e.g. retail store names)
brand categories were included, regardless of whether or not the brand was
actually available in the market. While differences in brand awareness were
clearly expected across countries, it was agreed that the same brand-name sets be
used in all four countries since this study sought the familiarity level relative to
ethnocentricity rather than an absolute measure of brand awareness.

Findings and discussion

The demographic characteristics and mean responses to the key measures for a
total of 558 usable2 questionnaires and for individual countries are presented in
Table 1. The sample included 131, 179, 76 and 172 respondents from the Czech
Republic, Estonia, Hungary and Poland, respectively.
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Table 1 Sample characteristics and mean responses to key measures

Statistics by country Czech Republic Estonia Hungary Poland Total sample


Sample size 131 179 76 172 558
Male 49 (37%) 75 (42%) 40 (53%) 62 (36%) 226 (40.4%)
Female 82 (62%) 104 (58%) 36 (37%) 110 (64%) 332 (59.6%)
Age (years) Mean 5 20.76 Mean 5 20.61 Mean 5 22.57 Mean 5 22.44 Mean 5 21.48
SD 5 1.71 SD 5 3.32 SD 5 1.38 SD 5 2.79 SD 5 2.77
a
Total ethnocentrism score – CETSCA L E Mean 5 45.17 Mean 5 53.59 Mean 5 43.30 Mean 5 50.61 Mean 5 49.30
SD 5 11.97 SD 5 13.79 SD 5 13.76 SD 5 14.33 SD 5 14.08
Average agreement with CETSCA LE itemsb Mean 5 2.66 Mean 5 3.15 Mean 5 2.55 Mean 5 2.98 Mean 5 2.90
SD 5 0.70 SD 5 0.81 SD 5 0.81 SD 5 0.84 SD 5 0.83
Total brand awareness scoresc Mean 5 127.82 Mean 5 148.80 Mean 5 159.56 Mean 5 142.48 Mean 5 143.30
SD 5 20.32 SD 5 24.29 SD 5 25.03 SD 5 21.52 SD 5 27.12
a Scale range 5 17–119: higher scores 5 . greater ethnocentric tendencies
b Likert Scale: absolutely disagree 5 1; absolutely agree 5 7
c Summated scores of scales measuring familiarity and experience with 26 brand name items
Vida and Fairhurst: Consumer ethnocentricity in CEE
329
330 The International Review of Retail, Distribution and Consumer Research

The total sample consisted of 226 males (40.4 per cent) and 332 females
(59.6 per cent). The distribution of gender varied across the countries with all
but Hungary having a slightly larger proportion of females. The average age of
the sample was over 21 years, with larger age group variations in the Polish and
Estonian sample, indicating a larger number of non-traditional (older) students.
Although the average monthly household income was also requested in the
surveys conducted, the Ž gures cannot be reported here due to data which were
missing, inconsistent or difŽ cult to compare.3
Cronbach’s alpha of 0.86 was computed for the seventeen items in the
CETSCALE, indicating a relatively good internal consistency for the scale.
However, this reliability of the scale is somewhat lower than the reliability
estimates found in previous research with single-country samples (e.g. Good and
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Huddleston 1995; Shimp and Sharma 1987).


For the total sample, the mean consumer ethnocentrism tendencies score
obtained with the instrument was 49.30, with a standard deviation of 14.08. The
average agreement with an individual 7-point scale item was 2.90 (Table 1). In
individual countries, the total CETSCALE score obtained varied from 43.30
(Hungary) to 53.59 (Estonia), with comparable variations across the four groups.
Overall, the mean ethnocentrism scores of our segments of population were on
the low end of the scale. This indicates that the consumer segment with demo-
graphic characteristics as in our sample (predominantly young respondents,
all attaining university education) may not be concerned with the effects of
importation of international products or may even perceive imports as better
because they are not produced domestically, as suggested earlier (Herche 1994;
Sweeney 1993).
Our ethnocentrism scores are comparable to the CETSCALE score of 51.68
obtained for Russian consumers but lower than scores reported for Poles (69.19)
in the study by Good and Huddleston (1995), yet much higher than in the study
of Russian consumers by Durvasula et al. (1997). On the other hand, differences
in the demographics of the sample respondents (e.g. age, education levels) and
the timing of data collection may prevent meaningful comparisons of ethno-
centrism scores across studies. As a culturally speciŽ c construct, ethnocentricity
is contingent on environmental dynamics (McCracken 1986), which have been
shown to be particularly volatile in transitional economies of CEE (Mueller and
Gajdusek 1996; Nowak 1996).
A statistical test of the differences among the four groups, i.e. analysis of
variance, revealed signiŽ cant differences in the mean ethnocentrism scores
(F 5 15.522, p , 0.001), thereby providing support for our hypothesis 1. Sub-
sequent post hoc tests, i.e. Sheffe and Bonferroni, indicated signiŽ cant differ-
ences (at the 0.05 level) between Hungary and both Poland and Estonia and
between the Czech Republic and both Poland and Estonia. Consumer ethno-
centricity scores did not differ between Hungary and the Czech Republic, or
between Estonia and Poland.
Also found in Table 1 are the total brand awareness summated scores (the sum
of the two scales measuring brand familiarity and experience with the brand).
For the total sample, the mean brand awareness score was 143.20 (SD of 27.12),
ranging from the lowest brand awareness in the Czech sample (127.82 with SD
of 20.32) to the highest in Hungary (159.56 with SD of 25.03). Given our choice
of brands in these scales, the mean brand familiarity score for the total sample
Vida and Fairhurst: Consumer ethnocentricity in CEE 331

was understandably higher (80.6) than the mean brand experience score
(52.23).
Pearson’s correlation coefŽ cients, analysis of variance and multiple regression
analysis were used to test our hypotheses 2 through 4. Hypothesis 2, testing
the relationship between respondents’ brand awareness and their ethnocentric
tendencies, was supported. The correlation between the two constructs was
signiŽ cant and predictably negative (r 5 2 0.124, p 5 0.003). This indicates that
individuals possessing a broader knowledge of artifacts of other cultures (brands,
in this case) tend to be less ethnocentric.
Hypothesis 3, testing the relationship between respondents’ age and their
ethnocentric tendencies, was also supported. The correlation was positive and
signiŽ cant (r 5 0.155, p 5 0.000), concurring with results of some previous
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research (e.g. McLain and Sternquist 1991) showing that as consumers age they
tend to become more concerned about the consequences of product importation
into their countries.
In support of hypothesis 4, the results of an analysis of variance revealed
a signiŽ cant impact of gender on variation in ethnocentricity (F 5 6.264, p 5
0.013). In our sample, female respondents (mean ethnocentrism score of 50.6)
were signiŽ cantly more ethnocentric than male respondents (mean ethnocentrism
score of 47.6).
In order to further examine the impact of all antecedent relationships to ethno-
centrism, a linear regression procedure was utilized with the ethnocentrism
score as the criterion variable. The model shown in Table 2 was signiŽ cant
(F-statistic 5 9.702; p 5 0.000), indicating that the factors, i.e. brand familiarity,
age and gender, are meaningful in explaining variation in consumer ethnocen-
tricity. As shown in Table 2, parameter estimates for all variables, brand
awareness (t 5 2 2.961; p 5 0.003), age (t 5 3.909, p 5 0.000) and gender (t 5
2.115, p 5 0.035) were signiŽ cant at the 0.05 level, conŽ rming the hypothesized
relationships.

Table 2 Regression analysis of the sources of ethnocentricity

Parameter Standardized
Variable estimate estimate T-stat. Prob . F
Intercept 40.718 0.000 7.090 0.000
Brand awareness 2 0.071 2 0.125 2 2.961 0.003
Age 0.825 0.163 3.909 0.000
Gender 2.552 0.089241 2.115 0.035
N5 558

Implications and future research

The aim of this study was twofold. The Ž rst intent was to assess and contrast the
level of consumer ethnocentricity in four CEE countries believed to be rapidly
implementing the principles of market-based economies. The second purpose
was to examine sources of this phenomenon based on the theoretical taxonomy
proposed by Shimp et al. (1995).
332 The International Review of Retail, Distribution and Consumer Research

Consumer ethnocentricity across countries

Using a relatively homogeneous sample of young urban consumers, our respond-


ents demonstrated polycentric rather than ethnocentric attitudes. As in another
study of Polish consumers (Marcoux et al. 1997), our participants demonstrated
a low interest in ‘economic nationalism’. The ethnocentrism scores differed
signiŽ cantly across the four countries. While no signiŽ cant differences were
found between Hungary and the Czech Republic (the Southern CEE), and
between Poland and Estonia (the Northern CEE), respondents in the two
regions (Northern and Southern CEE) demonstrated signiŽ cantly different
ethnocentric tendencies. The results of our examination of consumer value
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structures in terms of the appropriateness of importation of foreign-made goods


coincide with the Ž ndings of previous studies. Not all post-communist econo-
mies are identical, as people’s values, belief systems and ethnic identities have
been shaped by distinct environmental conditions (Lascu et al. 1996; Mueller
and Mueller 1996).
Understanding and periodical examination of the intensity and trends in
consumer ethnocentric tendencies should facilitate market segmentation and
positioning strategies of international and local marketers. Clearly, a highly
non-ethnocentric (polycentric) consumer will require a substantially different
marketing-mix approach than an ethnocentric one, who will be more inclined to
apply patriotic feelings towards domestic product purchases. Particularly strong
implications seem to exist in culturally more sensitive aspects of the marketing
mix, such as consumer communication and promotion (Herche 1994; Shimp and
Sharma 1987).
In this transitional time, when international competition is growing and the
abrupt mass awakening to Western brands is tapering off, consumers are
becoming more sophisticated. Although consumers in the fast-paced transitional
economies are still searching for their ethnic identities, they are also adjusting to
new economic conditions, with a new breed of consumer emerging (Nasierowski
1996; Leonidas and Katsikeas 1996). The growing consumer sophistication can
be attributed to a longer exposure to international branded products, greater
freedom and more opportunities to travel to other countries and enhanced
exposure to international media and information sources unavailable to con-
sumers in pre-reformation times. In their discussion of Central Europe’s fast-
rising consumer class, Woodruff and Drake state: ‘In the region’s leading
economies – the Czech Republic, Hungary and Poland – the new class of buyers
is growing not only in numbers but also in sophistication’ (1998: 104).
Consequently, business success will increasingly depend on managers’ cog-
nizance of consumer values, norms and needs in the CEE. The Ž ndings of studies
such as this one could have important implications for international as well as
domestic brand managers. While the focus of our study was on antecedents
rather than outcomes of consumer ethnocentrism, future studies could include
an investigation of the impact of consumer ethnocentric tendencies relative to
other extrinsic and intrinsic cues in consumer purchase behaviour (Han and
Terpstra 1988). For instance, Herche (1994) found in his US study of computer
users that ethnocentric tendencies, relative to other marketing-mix variables (e.g.
Vida and Fairhurst: Consumer ethnocentricity in CEE 333

price, brand prestige), were signiŽ cant in consumer acquisition of imported


products.
As domestic industries seek to survive against their more sophisticated
Western competitors in CEE, the ethnocentrism concept should assist local
marketers and government ofŽ cials in creating effective public campaigns aimed
at the promotion of high-quality domestic products that are competitive with
foreign goods. For instance, such an initiative involving promotion of the Czech-
made products was initiated by the Czech government in 1993 (Mueller and
Gajdusek 1996). As a result of a growing consumer conŽ dence and the size of
the middle class, CEE marketers are realizing that the competition between local
and international products is not based solely on price factors. Consequently,
local marketers are increasingly using patriotic pitches in their promotions aimed
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at winning back domestic customers (Woodruff and Drake 1998).

Antecedents of consumer ethnocentricity

The empirical results presented in this study conŽ rm our theoretical proposi-
tions regarding the role of cultural openness and demographic variables, i.e. age
and gender, as factors underlying consumer ethnocentrism. Indeed, respondents
demonstrating greater awareness of international brands (products, branded
services and institutions) were signiŽ cantly less ethnocentric than their counter-
parts with a lesser knowledge of foreign culture artifacts examined in this study.
While this Ž nding might not be conclusive due to other factors not accounted
for in this study, the implications for communication strategies seem apparent.
Considering a relatively low coefŽ cient of determination of our regression model
(r-square of 0.05), future research should attempt to simultaneously examine
additional antecedents in the model proposed by Sharma et al. (1995), i.e. the
role of patriotism, conservatism and individualism, along with additional
psycho-demographic factors.
Despite the relatively homogeneous sample of traditional and non-traditional
university students, and the resulting low variability in age (ranged between 17
and 37 years), the age factor was signiŽ cant in predicting an individual’s level of
ethnocentricity in this study, signalling another important message for marketers.
Older respondents in our study demonstrated greater ethnocentric tendencies
as compared to the younger respondents, indicating more conservative views,
which may consequently affect their purchase decisions. While senior citizens
were clearly not represented in our sample, they may be particularly concerned
over losing jobs due to foreign competition, since, lacking appropriate education,
they may Ž nd it more difŽ cult to Ž nd new jobs (Consumers of Eastern Europe
1994; Nasierowski 1996). On the other hand, young people in the transitional
economies may be more open to new ideas, and can better adjust to new
economic conditions than can senior members of these societies.
Future studies should explore the role of demographic variables on a more
diverse sample of respondents, and include factors such as occupational status
and income levels. It has been previously suggested that people working in more
displaceable jobs may exhibit greater ethnocentric tendencies, which consequently
in uence their purchase behaviour (Shimp and Sharma 1987). Socioeconomic
status and income level could further impact on how consumers feel about the
334 The International Review of Retail, Distribution and Consumer Research

importation of foreign-made products; that is, the jobs of lower income con-
sumers may be less secure than those of higher income earners.
As for the role of gender in consumer ethnocentric tendencies, we demon-
strated empirically that women in this sample tended to be more concerned with
the appropriateness of the imported products in ux. While this Ž nding is
consistent with results of empirical research in mature market economies, it is
somewhat surprising given the emphasis on gender equality in the pre-
transitional ‘democracies’ of CEE. In a discussion of the impact of transitional
socialist regimes on the division of gender, Grapard (1997) posits that having
held two full-time jobs (at work and in the household) the emancipation that the
women were told they had achieved under socialism was  awed. The author even
goes so far as to suggest that women, as a group, appear the biggest losers in the
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new political and economic environments, indicating a ‘feminization of poverty’


(1997: 675).
In their comparison study of young women’s attitudes and values, Millar and
Restall (1992) also observed that Eastern European women shared less stereo-
typed gender roles at work and exhibited greater ‘practical equality’ of gender
than their Western European counterparts. Considering that our sample con-
sisted of a relatively homogeneous group of young urban consumers, future
studies need to re-examine the role of gender in cognitive and emotional
constructs such as ethnocentrism, particularly as gender differences might be
more subtle in younger populations.

Conclusions

Overall, the results of this four-country study seem encouraging in advancing


our knowledge of the consumer attitudes in advanced transitional economies.
Although the countries and the constructs under investigation were carefully
selected, and although respondents from a student population do offer a valid
basis for comparison and examination of theory-based propositions, the Ž ndings
of this study should nevertheless be considered speculative.
Clearly, the use of students as respondents represents a major limitation in
this study. While the use of students as respondents reduced the sample
heterogeneity in this cross-country study and while students are indeed citizens
as well as consumers, their views may not be generalizable to other, particularly
more senior, segments of the population with different experiences related to
consumption under the previous socio-economic regime. In order to be able to
generalize Ž ndings across different demographic segments and other countries,
further conŽ rmatory studies on psycho-demographically diverse samples are
needed.
With the strong consumer emphasis in contemporary business, i.e. the market
orientation paradigm, advances in consumer behaviour knowledge and its
dynamics will continue to be crucial for both market researchers/theorists and
practitioners (Kaynak 1996; Nowak 1996). Given the aforementioned historical
and environmental factors, research opportunities in CEE countries seem
abundant.
Vida and Fairhurst: Consumer ethnocentricity in CEE 335

Acknowledgements

The authors wish to thank their international colleagues from the Academy of Economics
in Krakow, the Czech University of Agriculture in Prague, the Concordia International
University in Tallinn, the Budapest University of Economic Sciences in Budapest for
their assistance in data collection and instrument preparation.

Notes

1 Ethnocentric tendencies can be viewed as a continuum, ranging from highly ethno-


centric to non-ethnocentric. A highly ethnocentric consumer believes that purchasing
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foreign-made products is morally wrong, so that foreign-made products may become


objects of contempt. On the other end of the continuum, highly non-ethnocentric
consumers may evaluate imported products based on their attributes or even see them
as better because they are not produced in the consumer’s own country.
2 Forty-one surveys collected in Estonia were omitted. The University in Tallinn has a
multinational enrolment, including students from the neighbouring countries, e.g.
Latvia, Lithuania, Ukraine and Russia. Due to the wording of the CETSCALE, the
surveys collected from students of other nationalities (21 Lithuanian, 12 Russian and
8 Latvian) could not be included in the analysis.
3 DifŽ culties in income-data generation and cross-country comparison in transitional
economies have also been reported by other researchers, some of whom suggested that
the problems lie in the existence of the so called ‘gray economies’ and people carrying
more than a single job (Good and Huddleston 1995; Rose and Haerpher 1993). The
problem in this study was exacerbated by the fact that we were dealing with student
populations. Only a small proportion of the sample were non-traditional students
earning their own incomes and actually living in a household structure.

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