1. February 11, 2008 Consumer Ethnocentrism: an Integrative Review of its Antecedents and Consequences IBA 8010 Seminar in IB Presented by Shu-Jen Chen

2. Introduction To suggest directions for future research To review the antecedents and consequences of CET by providing an integrative framework Objective

3. 4. Concluding Comments Introduction (Con’t) 1.Ethnocentrism & CET (Shimp and Sharma, 1987) 1.Ethnocentrism & CET (Shimp and Sharma, 1987) 2.Environment & Demographic Antecedents of CET 2.Environment & Demographic Antecedents of CET 3.Relationship b/w CET & its Consequences:Relevant Moderating & Mediating Variables 3.Relationship b/w CET & its Consequences:Relevant Moderating & Mediating Variables The Rest of the Paper

4. Ethnocentrism & CET   COO image: Country of origin Q: IS a US consumer positive to buy French wine? A: Nationalistic reasons CET is more a “general tendency” to avoid buying foreign products.

5. Socio-Psychological Antecedents & CET Socio-psychological Antecedents Cultural Openness World Mindedness ( － ) Patriotism ( ＋ ) Conservatism ( ＋ ) Collectivism Animosity ( ＋ ) Materialism ( ＋ ) List of Values: External ( ＋ ) Internal ( － ) Salience ( ＋ ) Dogmatism ( ＋ ) CET Consumer Ethnocentrism (－)(－) (＋)(＋)

6. Economic Antecedents & CET Economic Antecedents Capitalism ( － ) Stage of Economic Develop. Improving National Econ. ( － ) Improving Personal Fin. Ex: 1.Poland & Russia (Good & Huddleston, 1995) 2.US (Klein & Ettenson, 1999) CET Consumer Ethnocentrism (－)(－)

7. Political Antecedents & CET Political Antecedents Propaganda ( ＋ ) History Oppression Outgroup Size, Proximity ( ＋ ) Leader Manipulation ( ＋ ) Ex:Higher CET scores in Poland compared to Russia with history oppression (Good & Huddleston, 1995) CET Consumer Ethnocentrism (＋)(＋)

8. Demographic Antecedents & CET Demographic Antecedents Age Gender (Women Higher) Income Education ( － ) Race (N/A ) Social Class ( － ) Opportunity of Segmenting consumers to foreign products CET Consumer Ethnocentrism (＋)(＋) (－)(－)

9. CET, Mediators, Moderators & Outcomes CET Consumer Ethnocentrism Mediators Attitude Toward Foreign Product ( － ) Purchase Intention ( － ) Support for Foreign Product ( － ) Outcomes Perceived Equity ( － ) Empathy ( ＋ ) Perceived Cost ( － ) Responsibility ( ＋ ) COO ( － ) Product Evaluation ( － ) Perceived Product Necessity ( － ) Perceived Economic Threat ( ＋ ) Cultural Similarity ( ＋ ) Moderators

10. An Integrated Graphic Framework of Antecedents & Consequences of CET CET Consumer Ethnocentr. Mediators Attitude Toward Foreign Product ( － ) Purchase Intention ( － ) Support for Foreign Product ( － ) Outcomes Perceived Equity ( － ) Empathy ( ＋ ) Perceived Cost ( － ) Responsibility ( ＋ ) COO ( － ) Product Evaluation ( － ) Perceived Product Necessity ( － ) Perceived Economic Threat ( ＋ ) Cultural Similarity ( ＋ ) Moderators Socio-psychological Antecedents Cultural Openness ( － ) World Mindedness ( － ) Patriotism ( ＋ ) Conservatism ( ＋ ) Collectivism ( ＋ ) Animosity ( ＋ ) Materialism ( ＋ ) List of Values: External ( ＋ ) Internal ( － ) Salience ( ＋ ) Dogmatism ( ＋ ) Economic Antecedents Capitalism ( － ) Stage of Economic Develop. Improving National Econ. ( － ) Improving Personal Fin. ( － ) Political Antecedents Propaganda ( ＋ ) History Oppression ( ＋ ) Outgroup Size, Proximity ( ＋ ) Leader Manipulation ( ＋ ) Demographic Antecedents Age ( ＋ ) Gender (Women Higher) Income ( － ) Education ( － ) Race (N/A) Social Class ( － )

11. Conclusion   A dearth of studies to measure CET in services   Cost of effectiveness of JV and FDI as approaches to overcome ethnocentrism in government purchase policy “buy local”   Taking advantage of prevalent ethnocentric tendencies by promoting the “native” image in domestic markets

12. Suggestion   Further research to measure CET in services (Intangible Products)   Besides JV and FDI, alliance or acquisition are also good strategies to break through ethnocentrism in government procurement   Domestic enterprises can emphasize “native” image to promote products in domestic markets