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Journal of International Consumer Marketing, 25:8093, 2013

c Taylor & Francis Group, LLC


Copyright 
ISSN: 0896-1530 print / 1528-7068 online
DOI: 10.1080/08961530.2013.759043

A Cross-Cultural Study of Consumer Ethnocentrism


between China and the U.S.
Wan-Hsiu (Sunny) Tsai
Wei-Na Lee
Young-A Song

ABSTRACT. As consumers ethnocentric tendencies heighten in intensity when a country is


threatened, this cross-cultural comparison study aims to understand how the recent global financial crisis
may have influenced the phenomenon of consumer ethnocentrism (CE). This study compares the levels
of CE in the U.S. and China and examines patriotism, nationalism, internationalism, and demographic
factors as antecedents of CE in order to understand how consumers ethnocentric tendencies vary across
cultures. Results indicate that American consumers are more ethnocentric than Chinese consumers,
while nationalism has the strongest impact on CE in both countries.

KEYWORDS. Consumer ethnocentrism, patriotism, nationalism, internationalism


With the escalating liberalization of global
trade, the consumer markets of both developed
Western countries and emerging markets in the
Asia-Pacific region and the Middle East are
saturated with products manufactured in foreign
countries (Kaynak and Kara 2002). Ger (1999,
65) observes that the differentiating impact of
globalization strengthens or reactivates national,
ethnic, and communal identities. Changes in the
global marketplace invariably exert a significant
impact on consumers sentiments toward their
country and, by extension, domestically manufactured products (Kosterman and Feshbach
1989). Such sentiments have been labeled
many things, such as patriotism, ethnocentrism,
nationalism, and even xenophobia. Research

shows that ethnocentrism and nationalism tend


to heighten in intensity when a country is
threatened or under attack (Sharma, Shimp,
and Shin 1995), influencing peoples views on
broader social issues (Granzin and Painter 2001)
as well as their consumption behaviors. Not
surprisingly, in the midst of the recent global
financial tsunami many nations have reportedly
turned to protectionism (Chan, Chan, and Leung
2010), and consumers have been encouraged
to purchase domestically manufactured products
(Hamin and Elliot 2006).
Since 1992 there has been a buy-American
movement in the United States led by the
American automobile industry, evidenced by patriotic advertising implying that vehicle choice

Wan-Hsiu (Sunny) Tsai, PhD, is Assistant Professor in the School of Communication at the University of
Miami, Coral Gables, Florida, USA. Wei-Na Lee, PhD, is Professor in and Young-A Song is affiliated with
the College of Communication at the University of Texas at Austin, Austin, Texas, USA.
Address correspondence to Wan-Hsiu (Sunny) Tsai, PhD, School of Communication, University of Miami,
P.O. Box 248127, Coral Gables, FL 33124-2105, USA. E-mail: wanhsiu@miami.edu
80

Tsai, Lee, and Song

is a manifestation of patriotism (Serafin 1992).


In the aftermath of September 11th, the notion of
patriotism through consumer activities was further reinforced not only by political invocation
of patriotic spending but also by marketers use
of patriotic advertising. For example, General
Motors Keep America Rolling campaign
instilled the idea that it is ones patriotic duty
to support American brands and contribute to
domestic economy. The patriotic fervor among
American consumers was also evidenced in a
2001 survey, which reported that 65% of consumers agreed that Made in America matters,
and firms should clearly identify Americanmade products (Whelan 2001). Not surprisingly, the patriotism theme has been incorporated into marketers long-term branding. For
instance, in 2006, Ford launched a patriotic campaign based on the belief that Americans really
do want to buy American brands (Sapsford
and Shirouzu 2006). Since 2008, in response
to the slowing economy following the financial
crisis, the trend of patriotic campaign has gained
steam (Elliott 2012), so much so that the
Belgian-owned Budweiser launched a special
promotion of American flag-styled cans in 2011,
reinforcing its longstanding, patriotism-infused
marketing messages (Schultz 2011). Another
highly publicized example is Chryslers 2011
Imported from Detroit Super Bowl ad, which
hailed the virtues of the Detroit-based auto company to restore Americans sense of nationalistic
pride in domestically produced goods (Condon
2011). In addition, sites like madeinusa.com
and howtobuyamerican.com have popped up
on the Web to educate American consumers
about patriotic spending. They call on consumers
to help create jobs, revitalize the local manufacturing industry, and rescue the economy
by purchasing domestic products. In 2011,
President Obama in his jobs speech reaffirmed
the importance of keeping manufacturing at
home and of being proud of Made in America
products.
Such advocacy for patriotic consumption is
not unique to the U.S. For example, as China
grapples with the economic turndown of its
Western export markets, its political leaders
are hoping to stimulate domestic consumption
to drive the national economy. In 2009, the

81

Chinese government issued a buy China order


as part of its fiscal stimulus package (Rampell
2009). In addition, the Chinese government has
encouraged or required international businesses
to include local Chinese businesses and hire local
talents when entering the Chinese market. Strict
regulations and state support were designed to
help Chinese businesses in designated industries,
including technology and financial services, to
establish Chinese leadership (Schneider 2011).
However, there is little research addressing
the phenomenon of patriotic consumption in
transitional economies like China (Puzakova,
Kwak, and Andras 2010).
In recognition of the augmented competition in the global marketplace, research has
investigated the phenomenon of patriotic purchase through exploring the more encompassing
construct of consumer ethnocentrism (CE)a
general predisposition regarding the appropriateness of purchasing foreign-made products
(Shimp and Sharma 1987). As peoples dispositions toward their country ebb and flow with
changes in the broader economic and political
climate (Kosterman and Feshbach 1989), the
CE phenomenon is also subject to change.
Many aspects about CE remain unclear, particularly whether there are differences in consumers dispositions toward domestic versus
foreign products in both developed and developing countries in the current climate of
global economic slowdown. It is also unknown
what factors influence consumers patriotic purchase in different cultures (Pereira, Hsu, and
Kundu 2002).
This cross-cultural comparison study thus is
motivated to examine the phenomenon of CE
in the two dominant economies in the global
marketthe U.S. and China. Specifically, this
study compares the levels of and antecedents to
CE in the U.S. and China in order to understand
how consumers ethnocentric tendencies vary
across cultures. As CE and its antecedents
are likely to differ by culture, these aspects
are particularly relevant to global marketers.
An updated examination of the trends in CE
can provide valuable managerial implications
to facilitate the crafting of effective marketing
campaigns appropriate for the local culture and
economic environment.

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THEORETICAL FRAMEWORK
Ethnocentrism refers to the proclivity toward rejecting out-groups who are culturally
dissimilar while blindly accepting those who are
culturally alike (Sumner 1906). Consumer ethnocentrism is an application of the more general
concept of ethnocentrism in the economic context. It was defined by Shimp and Sharma (1987,
280) as the beliefs held by the consumers
about the appropriateness, indeed morality, of
purchasing foreign-made products. From the
perspective of an ethnocentric consumer, purchasing foreign products is detrimental to the
economic health of the home country and thus
is undesirable, unpatriotic, and even immoral
(Klein 2002). Highly ethnocentric consumers
favor domestic products over imports. For instance, Canadian consumers reported a willingness to purchase Canadian products that were
higher in price but equal in quality to comparable
imports (Wall and Heslop 1986). In contrast,
less ethnocentric consumers tend to evaluate
products based on merits and attributes without
focusing on the country of manufacture (Shimp
and Sharma 1987).
Shimp and Sharma (1987) also developed
the CETSCALE to assess consumers ethnocentric tendencies in purchase decisions. Since
the introduction of their original work, the
construct of CE and the measurement scale have
been tested and validated in various countries,
including the United States, Russia, China (e.g.,
Lee, Hong and Lee 2003; Oh and Zhang 2010;
Puzakova et al. 2010), suggesting the utility of
the CETSCALE in evaluating consumers purchase for homegrown versus foreign products.
Empirical studies thus far have identified that
in a specific purchase decision-making situation,
product involvement, perceived product necessity, and the extent to which imports constitute
an alarming threat to the consumers economic
welfare as potential moderators of ethnocentrism
(Sharma et al. 1995). In particular, CE tends to
intensify when a threat to domestic economy is
perceived (Crawford and Lamb 1981). Sharma
and colleagues (1995) explained that
When any country considers itself under
attack or threatened by competition from

outsiders, foreignness takes on negative


meanings, and nationalism and ethnocentrism increase. The fear of losing jobs
(either ones own or a related persons) may
influence consumers reactions to imports.
(p. 29)
Herche (1992) further asserted that for predicting consumers acquisition of imported
products, CE is superior to demographic and
marketing mix variables as a segmentation
concept. Given the recent worldwide economic
turmoil, it is timely to update our understanding
of CE in different cultural contexts and help
international advertisers to better communicate
with consumers in different countries.

Nationalism, Patriotism, and


Internationalism
Shankarmahesh (2006) identified four categories of antecedents to consumer ethnocentrism: sociopsychological, political, economic,
and demographic. To better elucidate the complicated feelings individuals hold toward his/her
home and foreign countries, Balabanis and
colleagues (2001) theorized and tested nationalism, patriotism, and internationalism as distinct constructs. Specifically, patriotism is a
commitmenta readiness to sacrifice for the
nationwhile nationalism is commitment plus
exclusion of others, a readiness to sacrifice
bolstered by hostility toward others (Druckman
1994, 4748). In other words, patriotism refers
to deep feelings of attachment and loyalty to
ones own country without hostility toward other
nations. In contrast, nationalism encompasses
beliefs in national superiority and dominance
and is associated with a biased deprecation of
other nations (Balabanis et al. 2001).
Internationalism is another distinct dimension that focuses on ones concern for the welfare
of other nations and empathy for the people
of other countries. Different from Sharma and
colleagues (1995) conceptualization of cultural
openness, which implies passive exposure to
or not rejecting foreign cultural influences,
internationalism entails a more active attitude
of embracing international sharing and welfare (Kosterman and Feshbach 1989, 271).

Tsai, Lee, and Song

Internationalists are more likely to consider


the purchase of imported products as a means
of supporting international welfare and aiding
the workers of other nations. Kosterman and
Feshbach (1989) reported that individuals who
exhibit a high level of internationalism do not
necessarily score low on nationalism, lending
support to the necessity of examining patriotism,
nationalism, and internationalism as discrete
dimensions.
Empirical evidence further indicates that the
influence of patriotism, nationalism, and internationalism on CE tends to be culture specific.
For instance, patriotism stemming from loyalty
and commitment to their country was found
to be the most important predictor for ethnocentrism among Turkish consumers (Balabanis
et al. 2001), while American and Czech consumers ethnocentric tendencies generally result
from nationalistic perceptions of the countrys
supremacy and power (Lee et al. 2003).

Consumer Ethnocentrism in China


and the United States
China has recently emerged as the worlds
second-largest economy and is predicted to
surpass the U.S. in the near future (Shadbolt
2011). Prior studies reported a low level of
ethnocentrism among Chinese consumers, probably due to local consumers curiosity for
foreign goods during the initial stage of a
liberalized economy (Oh and Zhang 2010).
However, as the country rising to power and in
need of international recognition, the Chinese
government has actively promoted nationalism
through such spectacular world events as the
2008 Olympic Games and the 2009 World Expo,
as well as various grand state-led projects. In
contrast, patriotism was advocated in the U.S. in
a different social atmosphere. A recent report
from the International Monetary Fund (IMF)
suggests that the age of American economic
superiority may be coming to an end (Shadbolt
2011). While numerous countries have suffered
setbacks due to the global financial crisis, it
has been argued that the U.S. was the most
impacted (Kennedy 2009). The decreasing value
of the American dollar, the countrys substantial
trade deficit, and the 2011 downgrade of the

83

American governments credit rating have led to


speculations that the American dominance is on
the wane. Contemporary discourse on American
patriotism has therefore focused on consumer
patriotism (i.e., buying American). A 2010
Gallup poll showed that 36% of prospective
car buyers said they would only consider U.S.
car brands (Saad 2010). While China and the
U.S. are competing for leadership in the world
economy, they remain deeply intertwined in
a complicated and codependent relationship.
The U.S. is Chinas primary trading partner
and market for exports. In addition, the U.S.
is Chinas fourth-largest import supplier, and
China is the biggest purchaser of U.S. Treasury
securities (CBS News 2011).
Lee and colleagues (2003) reported that
nationalism is the dominant factor driving
American consumers ethnocentric tendencies.
The prominence of nationalism may be a
reflection of American-made products having
historically served as the reference against
which American consumers evaluated imported
commodities, which were often considered
inferior and undesirable (Shimp and Sharma
1987). However, a recent qualitative study exploring consumers interpretations of patriotic
consumption revealed a potential shift toward
patriotism in American consumers ethnocentric
tendencies (Tsai 2010). The study participants
predominantly explained their purchase of domestic products as a way to assist vulnerable
American workers whose employment is endangered by imports and corporate outsourcing
instead of arguing for the superior quality of, and
by extension nationalistic pride in, Americanmade products.
Indeed, political commentaries and media
coverage (e.g., World News with Diane Sawyer
Made in America segment; http://abcnews.
go.com/WN/MadeInAmerica/) on corporate
outsourcing and trade deficit constantly remind
American consumers of their responsibility to
choose domestically made goods. This resurgence of the buy-domestic invocation can
further be observed in President Obamas Buy
American provision in the economic stimulus
bill and in a Michigan mayors decision to
request city officials to buy American cars to
support the citys most important industry and,

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in turn, benefit taxpayers (Ransom 2008). Therefore, it appears that the recent buy-American
discourse emphasizes the patriotic duty to assist
American workers and industries instead of
reaffirming the superior quality of domestic
products. Americans ethnocentric tendencies
may also be impacted by the dramatic changes
in the domestic marketplace as a result of the
acquisition of several classic American brands
by foreign companies. For instance, Lenovo
from China acquired IBMs PC division in
1995, the giant Belgian brewer InBev took
over Anheuser-Busch in 2008, and GM sold
HUMMER to a Chinese company in 2009.
American consumers awareness of such corporate takeovers may create a sense of economic
vulnerability. These sentiments may have been
magnified during the recent economic turmoil.
Consequently, a reexamination of the influence
of nationalism, based on national pride and
superiority, and patriotism, based on loyalty and
attachment, on American consumers dispositions toward domestic versus foreign products
at this juncture is particularly valuable.
While the construct of CE has been applied
in the Asian context (e.g., Klein, Ettenson,
and Krishnan 2006; Phau and Chan 2003),
its antecedents have not been investigated indepth. A noted exception is Ishiis (2009) study,
which investigated the influence of patriotism,
exclusionism (or xenophobic nationalism), and
internationalism on CE in China during a
time of strong animosity against Japan and
Japanese products. Ishii reported that patriotism
was positively related to Chinese CE while
exclusionism was not. On the other hand, it is
important to note that brand nationalism has
recently emerged in China (Crocker and Tay
2004). After more than a decade of craving
for Western commodities, there is a resurrection of pride in the Chinese culture. Chinese
consumers are beginning to develop trust and
pride in products made in China (Prasso 2007).
In addition, with the increasing number of
Chinese enterprises that have acquired foreign
firms (e.g., Lenovo) or have become international brands (e.g., Haier) (Parker, Haytki, and
Hermans 2011), nationalistic pride may become
an important reason for Chinese consumers to favor domestic products. Indeed, domestic brands

in China are becoming more competitive and


gaining market share (Ewing et al. 2002). Since
China is going through ideological transition as
a consequence of market liberalization and rapid
economic growth, it is imperative to monitor the
phenomenon of CE in China and understand its
driving forces.

Research Question and Hypotheses


The intensity of CE is related to various
factors. Research suggests that the level of CE
tends to be higher in developed countries such as
the U.S. than in emerging economies like Russia
and China (Durvasula, Andrews, and Neteeyer
1997). Shankarmahesh (2006) indicates that
during the lower stages of development or
the early stage of transitioning from a statecontrolled economy to a market economy, the
level of CE tends to be lower because foreign
products may be preferred due to better quality
and novelty (Puzakova et al. 2010). However, as
a country transitions to the intermediate stage
of economic development, nationalistic motives
may become dominant (Puzakova et al. 2010),
which is particularly relevant to the phenomenon
of CE in China. Furthermore, CE tends to
amplify when consumers perceive an economic
threat posed by imported goods and corporate
outsourcing activities (Durvasula and Lysonski
2009). As the American economy weakens
with declining consumer confidence and Chinas
economy grows with an expanding consumer
market, we posit that the level of CE should
differ between U.S. and China. Specifically, we
hypothesize the following:
H1: American consumers are more ethnocentric than Chinese consumers.
In addition to psychological factors such
as patriotism, nationalism, and internationalism
(Balabanis et al. 2001), demographic variables
may also affect consumer ethnocentric tendencies (Sharma et al. 1995). Prior studies have
suggested that income and social class are
determinants of CE. In particular, consumers
with lower income and education were found
to be more ethnocentric (Balabanis 2001).
With regard to age and gender, scholars have

Tsai, Lee, and Song

suggested that older and female consumers


are more likely to be ethnocentric because
they are believed to be more conservative and
uren 2008). However,
patriotic (Guneren and Ozt
contradictory empirical evidence suggests that
the influence of demographic variables may be
culture specific. For instance, Upadhyay and
Singh (2006) reported that Indian consumers
ethnocentrism is not related to their age, gender,
or educational level. Therefore, demographic
variables should be included as antecedents of
consumer ethnocentrism in a cross-cultural comparison. Based on the literature, the following
hypothesis is proposed:
H2: Nationalism, patriotism, and internationalism, gender, age, income, and education
level affect consumer ethnocentrism.
Specifically, the following hypotheses will be
tested:
H2a: Patriotism positively affects consumer
ethnocentrism.
H2b: Nationalism positively affects consumer
ethnocentrism.
H2c: Internationalism negatively affects consumer ethnocentrism.
H2d: Females are more ethnocentric than
males.
H2e: Age positively affects consumer ethnocentrism.
H2f: Income level negatively affects consumer ethnocentrism.
H2g: Level of education negatively affects
consumer ethnocentrism
In addition, to understand the antecedents of
CE in different cultures, we seek to the answer
the following research question:
RQ: What are the relative roles of antecedents
(patriotism, nationalism, internationalism,
age, gender, income, education) in determining the level of consumer ethnocentrism in each country?

85

METHODOLOGY
To test the hypotheses, Web-based surveys
were conducted using nonstudent adults drawn
from online consumer panels in the U.S. and in
China between April and June, 2011. Considering that the purpose of the study is to take a
snapshot of consumers ethnocentric tendencies,
the wide reach and quick distribution of a
Web-based survey was deemed appropriate (Lee
et al. 2003). The consumer panels consisted
of Web users of diverse demographic characteristics and were an opt-in, informed-consent,
privacy-protected pool of consumers recruited
by an international marketing research firm
(Survey Sampling, Inc.). The panelists agreed
to participate in studies at regular intervals over
a period of time and were compensated with
various rewards.
The study questionnaire was developed in
English and translated into Simplified Chinese
by bilingual native Chinese speakers. Later,
a different group of bilingual native Chinese
speakers translated the questionnaire back into
English without seeing the original version.
The translated version and the source version
were carefully compared to check for equivalent
meaning. This process was repeated several
times until equivalence in English and Chinese
questionnaires was achieved.

Measurements
Four key constructs were examined in this
studypatriotism, nationalism, internationalism, and consumer ethnocentrism. Patriotism,
nationalism, and internationalism were operationalized and measured using the scales developed by Kosterman and Feshbach (1989).
All items for each of the three scales used the
5-point Likert-type opinion statements ranging
from 5 (strongly agree) to 1 (strongly disagree).
Specifically, patriotism was measured using a
12-item scale, including items such as I love my
country and I am emotionally attached to my
country and emotionally affected by its actions.
Nationalism was measured on an eight-item
scale, including such statements as In view of
Americas moral and material superiority, it
is only right that we should have the biggest

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say in deciding United Nations policy and


Foreign nations have done some very fine things,
but it takes America to do things in a big
way. The scale for internationalism consisted
of nine items, such as America should be more
willing to share its wealth with other suffering
nations, even if it doesnt necessarily coincide
with our political interests. The CETSCALE
developed by Shimp and Sharma (1987) and
validated in various countries was employed to
measure consumer ethnocentric tendencies. The
CETSCALE consists of 17 items, and all items
were measured on a 5-point Likert-type scale.
The English survey and the translated Chinese
survey were pretested on a sample between
50 to 60 respondents recruited from the aforementioned consumer panels in each country
in order to correct potential problems with
the questionnaires. No major problems were
detected.

TABLE 1. American Respondent Profiles


(n = 506)
Characteristics
Gender
Age

Ethnicity

Race

Income

RESULTS
Sample Characteristics
In total, 506 American and 564 Chinese consumers were surveyed. Among the American respondents, the female-to-male ratio (46.4:53.6)
was close to that of the general population
(50.8:49.2; U.S. Census 2011). When compared
to the general population, American respondents were relatively young (1845 years old),
predominantly white (91.7%), and from nearly
every income segment and education level (see
table 1). For the Chinese sample, 57.1% of the
respondents surveyed were women, which is
higher than the actual percentage (48.37%) in
the Chinese population (Wang 2011). As can
be seen in table 2, the respondents were also
younger and better educated than the general
population in China, with more than half having
earned a bachelors degree or higher.

Preliminary Data Analysis


Table 3 provides the internal reliability for
all four major constructs in both countries.
All measures met the reliability requirement
of 0.70, an improvement from Balabanis and
colleagues (2001) original study on Turkish and

Education

Categories
Female
Male
25 and younger
2635
3645
4655
56 and over
Hispanic or Latino
Not Hispanic or Latino
Not specified
American Indian
Asian
Black or African
American
Native Hawaiian or Other
Pacific Islander
White
Less than $10,000
$10,000$19,999
$20,000$29,999
$30,000$39,999
$40,000$49,999
$50,000$59,999
$60,000$69,999
$70,000$79,999
$80,000$89,999
$90,000$99,999
$100,000$14,999
$150,000 or more
Not specified
Less than high school
High school/GED
Some college
2-year college degree
(Associate)
4-year college degree
(BA/BS)
Masters degree
Doctoral degree
Professional degree
(MD/JD)

Frequency (%)
235 (46.4%)
271 (53.6%)
159 (31.4%)
138 (27.3%)
209 (41.3%)

61 (12.1%)
443 (87.5%)
2 (0.4%)
11 (2.2%)
12 (2.4%)
43 (8.5%)

464 (91.7%)
33 (6.5%)
66 (13.0%)
53 (10.5%)
54 (10.7%)
66 (11.7%)
42 (8.3%)
42 (8.3%)
26 (5.1%)
17 (3.4%)
14 (2.8%)
28 (5.5%)
19 (3.8%)
42 (8.3%)
16 (3.2%)
136 (26.9%)
151 (29.8%)
55 (10.9%)
113 (22.3%)
31 (6.1%)

4 (.8%)

Czech consumers in which only the scales for


patriotism and CE met this requirement.
A descriptive analysis was conducted to
obtain a cursory comparison of the mean score
of the key constructs between the two countries.
Table 4 shows that, on average, American consumers reported higher scores on consumer ethnocentrism (CE), patriotism, and internationalism than their Chinese counterparts. In contrast,

Tsai, Lee, and Song

TABLE 2. Chinese Respondent Profiles


(n = 564)

Characteristics
Gender
Age

Income
(Chinese
RMB)

Education

Categories
Female
Male
25 and younger
2635
3645
4655
56 and over
Less than RMB 29,999
RMB 30,00059,999
RMB 60,00089,999
RMB 90,000119,999
RMB 120,000149,999
RMB 150,000179,999
RMB 180,000209,999
More than RMB 210,000
Less than high school
High school
Vocational/trade school
4-year college degree
Masters degree
Doctoral degree

Frequencies
(%)
322 (57.1%)
242 (42.9%)
300 (53.2%)
131 (23.2%)
44 (7.8%)
80 (14.2%)
9 (1.6%)
40 (7.1%)
106 (18.8%)
100 (17.7%)
89 (15.8%)
83 (14.7%)
43 (7.6%)
47 (8.3%)
56 (9.9%)
11 (2.0%)
47 (8.3%)
142 (25.2%)
292 (51.8%)
66 (11.7%)
6 (1.1%)

The average cost of living in China is around US$1000 per month


(www.educations.com 2012).

Chinese consumers scored higher on nationalism


than did American consumers. Although direct
comparisons between this study and Lee and
colleagues (2003) study cannot be made due
to differences in sampling and data collection
methods, it is worth noting that the mean CE
score of our American sample (3.14) was higher
than the score reported in Lee and colleagues
2003 study (2.53).
Next, a hierarchical regression procedure
was employed to test the combined impact of
patriotism, nationalism, and internationalism on

TABLE 3. Cronbachs Alpha for Major


Constructs
Description
Patriotism
Nationalism
Internationalism
Ethnocentrism

U.S. (n = 506)

China (n = 564)

.871
.825
.783
.955

.827
.764
.713
.947

87

TABLE 4. Descriptive Statistics for Major


Constructs
U.S. (n = 506)

China (n = 564)

Description

Mean

SD

Mean

SD

Patriotism
Nationalism
Internationalism
Ethnocentrism

4.11
3.08
3.07
3.14

.57
.69
.65
.80

3.91
3.37
2.93
2.58

.52
.59
.57
.74

consumer ethnocentrism above that accounted


for by demographic variables such as gender,
age, income, and education. In this procedure,
predictor variables were entered in two blocks,
with demographics entered first to provide a
baseline model. Patriotism, nationalism, and
internationalism were then added in as a second
block.
As shown in table 5, the first model considered
only demographic variables as predictors of
CE. In the U.S. sample, the first model was
statistically significant, (F = 5.581, df = 4,
p < .001), indicating that the aggregate influence
of demographic variables, including gender,
age, income, and education, explained 4.6%
of the total variance in American consumers
ethnocentric tendencies. The model was not significant, (F = 1.132, df = 4, ns), for the Chinese
sample. However, when patriotism, nationalism,
and internationalism were incorporated into the
model, the coefficient of multiple determinations
increased significantly by 23% in the U.S.
sample, (F = 187.983, df = 7, p < .001), and
17% in the Chinese sample, (F = 17.08, df =
7, p < .001). These increases indicate that more
than 23% and 17% of the variance in CE for the
U.S. and Chinese samples, respectively, can be
explained by demographic variables, patriotism,
nationalism, and internationalism.

Hypothesis Testing
In order to test H1, which postulated that
American consumers are more ethnocentric
than Chinese consumers, the mean scores of
CE between the U.S. and China were compared. Analysis of covariance was conducted to
determine whether true differences existed when

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TABLE 5. Hierarchical Regression Results


U.S. (n = 526)
Step
1
2

R2

R2

.046
.226

.214

Predictor set
Demographics
Demographics: Pat., Nat., Int.

China (n = 564)
R2

R2
.008
.177

.167

p < .001.

the impact of demographics was controlled


for. We found significant support for H1, with
consumer ethnocentrism levels being different
between the U.S. and China, (F = 31.995, df =
5, p < .001). Specifically, American respondents reported a higher consumer ethnocentric
tendency, (M = 3.14, SD = 0.81), than their
Chinese counterparts, (M = 2.58, SD = 0.74).

Factors Influencing Consumer


Ethnocentrism
In order to answer H2, the impact of gender,
age, income, education, patriotism, nationalism,
and internationalism (independent variables) on
consumer ethnocentrism (dependent variable)
was determined using a linear regression model.
The results are reported in table 6.
Based on the results, H2, which predicted
the influence of psychological variables of
nationalism, patriotism, and internationalism as
well as demographic variables of gender, age,
income, and education level on consumer ethnocentrism, was partially supported. Specifically,

H2a, which postulated a positive relationship


between patriotism and CE, was not supported
in either country. In fact, a negative relationship
between patriotism and CE was found in China,
(b = 0.217, t = 3.688, p .001). However,
H2b, which predicted a positive relationship
between nationalism and CE, was supported in
both countries, (USA b = 0.445, t = 8.407, p
.001; China b = 0.555, t = 10.672, p .001).
Unexpectedly, H2c, which predicted a negative
relationship between internationalism and CE,
was not supported in either country. Contrary to
the hypothesis, a significant positive relationship
between internationalism and CE was found in
the U.S., (b = 0.126, t = 2.278, p .05).
Regarding the demographic variables, only
gender and income were found to be significant
determinants for CE. Specifically, males tended
to be more ethnocentric than females in the
U.S., (b = 0.212, t = 2.277, p .05), whereas
this is not the case in the Chinese sample, thus
failing to support H2d. In terms of income level,
significant negative relationships with CE were
found in the U.S., (b = 0.024, t = 2.028,
p .05), and in Chinese samples, (b = 0.034,

TABLE 6. Regression Analysis of Consumer Ethnocentrism


U.S. (n = 506)
Description
Patriotism
Nationalism
Internationalism
Gender (1 = male)
Age
Income
Education
Constant

p .05; p .01; p .001.

China (n = 564)

.030
.449
.126
.212
.058
.024
.046
1.086

.022
.381
.099
.131
.062
.091
.080

.217
.555
.034
.049
.006
.034
.011
1.555

.152
.441
.026
.033
.009
.097
.013

Tsai, Lee, and Song

t = 2.268, p .05), supporting H2f. Neither


H2e, which postulated a positive relationship
between age and CE, nor H2g, which predicted
a negative relationship between education and
CE, were supported in either sample.

The Relative Impacts of the Antecedents


on Consumer Ethnocentrism
In terms of the relative importance of the
antecedents on CE for China and the U.S.,
nationalism was found to be the most important
determinant of CE in the U.S., followed by
gender and income. Internationalism was also
found to be important, but, contrary to our
initial prediction, was positively correlated. In
the Chinese sample, nationalism again had the
strongest impact on CE, followed by patriotism
and income. However, the direction of the
correlations between CE and patriotism in China
was opposite to that hypothesized.

DISCUSSION AND CONCLUSION


The purpose of this cross-cultural comparison
study was to understand how the recent global
economic development and financial crisis may
have influenced consumer ethnocentrism in
the U.S. and in China. Both countries are
leading export and import countries, but they
are economically and culturally distinct and
are currently experiencing a shift of economic
power. We examined the influence of patriotism,
nationalism, and internationalism on consumer
ethnocentric tendencies in the two countries.
The impact of demographic variables, including
gender, age, income, and education, on consumer ethnocentrism was also included in this
examination.
The overall results from this study support the
theoretical speculation that the influence of patriotism, nationalism, internationalism, as well
as demographics, on consumer ethnocentrism
is country specific. Not only do the patterns
of how the antecedents of patriotism, nationalism, and internationalism relate to consumer
ethnocentrism differ from Balabanis and colleagues (2001) findings on Turkish and Czech

89

consumers, but these correlates of CE also vary


between the two countries investigated.
Our results indicate that American consumers
are more ethnocentric than Chinese consumers,
which is consistent with extant speculation that
consumers in economically developed countries
tend to be more ethnocentric than consumers in
developing countries (Yagci 2001). Reflecting
on the current economic crisis in the U.S., rising
CE may also be due to American consumers
heightened sense of economic vulnerability,
evidenced by declining consumer confidence
(Cooper 2011). Past research suggests that an
economic threat could increase the level of CE
(Durvasula and Lysonski 2009). Although both
countries have suffered from consequences of
the global economic tsunami, recent Gallup
surveys report that Chinese consumers are
struggling less than Americans, due to Chinas
still vibrant economic growth (Srinivasan and
Ott 2011). Therefore, the level of perceived
economic hardship and threat might be higher
among American consumers, contributing to a
higher level of CE. The perceived economic
difficulty of the domestic economy could be a
key factor in understanding CE independent of a
countrys level of economic development. This
might help explain prior studies contradictory
findings regarding the level of CE in relation to a
countrys stage of economic development (e.g.,
Saffu and Walker 2005; Upadhyay and Singh
2006).
Furthermore, the strong ethnocentric sentiments in the U.S. might be further induced
by the rampant political and media evocations
of buy American. Future studies are needed
to empirically test the effects of patriotic and
nationalistic appeals in media messages on
consumers ethnocentric tendencies. In terms
of antecedents of American CE, nationalism
was found to be a significant driver of CE,
while patriotism was not. The more nationalistic
American consumers are, the less favorable
they feel positive toward purchasing foreignmanufactured products. In other words, when
American consumers exhibit an ethnocentric
tendency, their motivations are primarily based
on a perception of national superiority and
an orientation toward national dominance (nationalism). This finding is consistent with Lee

90

JOURNAL OF INTERNATIONAL CONSUMER MARKETING

and colleagues (2003) results. Despite deep


frustrations with the current economy, it is
likely that Americans remain convinced that the
fundamental structure of their country, its market
system, and domestic-made products are sound
and can be the best again. For instance, the
buzz surrounding the 2011 Chryslers Imported
from Detroit commercial that paid homage
to the greatness of Detroit and the country
suggests consumers strong resonance toward
the message appealing to nationalistic pride.
A recent poll also reports that about 9 out 10
Americans believe the U.S. either stands above
all other countries in the world or is one of the
greatest along with some others (Pew Research
Center 2011). In other words, the view that the
U.S. is a great nation is still widely held by
American citizens, and such nationalistic pride
remains to be a dominant force driving American
consumers ethnocentric tendencies.
Similar to Lee and colleagues (2003) results,
a positive relationship between patriotism and
CE was not detected in the American sample.
However, their study reported a negative correlation between internationalism and CE, while
we found a positive correlation. Based on our
findings, it appears that the more internationalistic individuals are, the more favorable they feel
toward purchasing domestically manufactured
products. A possible explanation could be that
consumers who scored high on internationalism
are more likely to consume international news
and be knowledgeable on the current state of
world politics and economy. Therefore, these
consumers may be acutely aware of the fact
that as the American economy wanes, the power
of the nation weakens. As prior studies have
suggested, individuals who express empathy for
other nations are not necessarily less nationalistic (Kosterman and Feshbach 1989). Their
concern for the nations economic power, informed by their internationalistic views, may in
effect amplify their favoritism toward American
products, as the U.S. is now the country to
be pulled up. Regarding demographic factors,
gender and income showed a significant impact
on American CE. While the hypothesis of a
negative link between income and CE was supported, we found that male consumers, instead of
females as suggested by prior studies, were more

likely to exhibit high ethnocentric tendencies.


This suggests that as a country experiences
an economic crisis, factors contributing to CE
might be reconfigured.
Chinese consumers were found to be less
ethnocentric when compared to their American
counterparts. Confidence in the countrys economic growth and the knowledge that China is
a leading export country, second only to the
European Union, with most consumer goods
being manufactured in China, Chinese consumers may not consider it a necessity to
purchase domestic products for the sake of
aiding local workers or keeping jobs at home.
Similar to findings from the U.S., CE in
China was predominantly driven by nationalism.
Scholars argue that nationalism has been a
crucial element in defining Chinas society and
economy (Zhao 2008). Chinas long history of
opposing Western capitalism and social values
has evolved into a strong sense of nationalism,
which is evidenced by incidents of nationalist
protests and boycotts targeting Western companies for advertisements that insulted Chinese
national sentiments (Li and Shooshtari 2006).
Furthermore, Zhao (2008) argued that since
the 1990s, as a response to an increasingly
liberated and unstable market economy, the
Chinese government has conducted an extensive
propaganda campaign. Through it, nationalism
was strategically pushed by the government
to compensate for the decline of communism
(Zhao 2008, 50). The political discourse may
have enhanced Chinese consumers ethnocentric
tendencies. As the country progresses rapidly
with extraordinary economic growth, Chinese
consumers also may have gained trust and pride
in locally owned and produced goods. These
products may be considered more authentic and
culturally befitting to their needs and sensitivities (Oh and Zhang 2010).
Ishiis study in 2009 reported that patriotism
was positively related to Chinese CE, while
xenophobic nationalism was not. We found
different results in this study. It should be
noted that Ishiis study was conducted at a
time of strong animosity against Japan and
Japanese products. Given the perceived rivalry,
Chinese consumers were likely to be motivated
by patriotic sentiments of loyalty instead of

Tsai, Lee, and Song

nationalism. In contrast, our findings indicate


that patriotism is negatively related to Chinese
CE. In other words, the more patriotic consumers
are, the less ethnocentric they are likely to be.
The strong impact of nationalism observed in
the current study indicates that Chinese consumers consumption behaviors may be more
affected by nationalism than conventionally
expected.
In summary, these results confirm that it is
necessary to consider the impact of patriotism,
nationalism, and internationalism as distinct
constructs (Balabanis et al. 2001; Kosterman
and Feshbach 1989). Not only do the constructs
impact CE differently in different countries, but
their influence on CE might vary across different
time periods, as suggested by our findings
opposite to those found in prior studies. Our
findings point to the dynamic nature of consumer
ethnocentrism, which is constantly influenced by
the broader political and economic environment.
Thus, longitudinal studies that monitor the ebb
and flow of CE and its antecedents involving
countries of different cultural orientations and
at different stages of economic development are
necessary.
The findings presented herein provide important guidelines for international marketers
to craft marketing campaigns reflecting the
changing social and economic context. Prior
studies suggest that ad messages reflecting local
cultural values are essential for the success of
global campaigns (e.g., De Mooij 2003; Zhou
and Belk 2004). Beyond traditional cultural
orientations, however, local consumers shifting
attitudes toward domestic and foreign brands in
relation to their view on nationalism, patriotism,
and internationalism should also be considered
(Chao, Wuhrer, and Werani 2005). For example, for foreign advertisers communicating
with ethnocentric consumers, deemphasizing
the products foreign origin may help deflect
consumers ethnocentric feelings.
In particular, advertisers communication
with American consumers should take into account that CE may have increased, and the consideration of whether a product is manufactured
locally is becoming an important factor in their
purchase decisions. In response to American
consumers heightened ethnocentric concerns,
international advertisers may accentuate their

91

integration into the American economic system,


especially when the company has adopted collaborative strategies of licensing, joint ventures,
or strategic alliances and have made products on
American soil. Moreover, since nationalism is
the underlying motivation for consumers preference for domestic products in both countries,
marketers should convey to local consumers that
they recognize the nations superiority and thus
strive to provide the best products and services
to its citizens. Meanwhile, domestic marketers
may incorporate symbols of national pride and
highlighting claims of the leadership position
alongside other product attributes.
As with all research endeavors, several limitations should be considered when attempting
to generalize the results from this study. The
lack of representativeness due to samples of Web
consumer panels must be recognized. However,
a recent study on Chinese income (Credit Suisse
2010) maintained that Chinese income has been
underestimated. Based on the actual income
level stated in the report (RMB 32,000 instead
of the officially reported RMB 19,000), the
income level in our Chinese sample in fact
approximates that of the general population.
Despite the concerns of using online consumer
panels, the benefits of using nonstudent samples
should outweigh the limitations (Peterson 2001;
Sung, Gregorio, and Jung 2009).
The focus of the current study was to understand CE and its antecedents in two culturally
distinct countries. Therefore we did not evaluate
the effects of CE. Future studies should test the
impact of CE on consumers purchase behavior,
which may be moderated by various factors such
as product categories, consumers exposure to
and experience with foreign cultures, and their
consumption of foreign media. Similarly, this
study should be replicated in other culturally
distinct markets. With the increasing pace of
globalization, where products and services transcend geographical boundaries, the applicability
of these constructs requires further consideration
(Oh and Zhang 2010).

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