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Factors Underlying
Factors Underlying
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
www.tandfonline.com/page/terms-and-conditions
Int. Rev. of Retail, Distribution and Consumer Research 9:4 October 1999 321–337
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 signi cantly across the countries.
Furthermore, brand awareness as an indicator of cultural openness, age and gender
were all found to be signi cant determinants of this phenomenon. The paper con-
cludes by providing a platform for further discussion on the role of ethnocentrism
research.
Keywords
Introduction
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 scienti c inquiry. The intent of this study is to begin to
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.
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
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
speci 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.
Hypotheses construction
The 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 af 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
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 de 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,
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.
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’ 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:
Research methodology
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
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 bene 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 signi 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 signi cant new target for international marketers of
branded products.
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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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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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 gures cannot be reported here due to data which were
missing, inconsistent or dif 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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was understandably higher (80.6) than the mean brand experience score
(52.23).
Pearson’s correlation coef 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
signi 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
signi 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 signi 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 signi 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 signi 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 signi cant at the 0.05 level, con rming the hypothesized
relationships.
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
The aim of this study was twofold. The 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
The empirical results presented in this study con 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 signi cantly less ethnocentric than their counter-
parts with a lesser knowledge of foreign culture artifacts examined in this study.
While this 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 coef 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 signi 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 nd it more dif cult to 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 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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Conclusions
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
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