does consumer ethnocentrism impact on australian food...

Journal of New Business Ideas and Trends 2003 1(2), pp.21-43 _________________________________________________________________________________________________________________

PHILP & BROWN 21

Does Consumer Ethnocentrism Impact On Australian Food Buying Behaviour? by Kit Philp, Queensland Trade and Investment Office

& Les Brown, University of Southern Queensland ____________________

Whilst there is extensive research about country of origin attributes and consumer ethnocentrism in consumers’ evaluations of products, research into their impact on low-involvement, non-durable products, particularly in an Australian context, has been limited, as has research comparing consumer evaluations of products from both culturally similar and dissimilar countries. This research, addresses both these deficiencies by researching country-of-origin effects (COE) on consumer behaviour in an Australian context, by investigating the impact of consumer ethnocentrism on purchase decision-making. This is an enhanced replication of a New Zealand study into high-involvement purchases, but this research focuses on low-involvement, non-durable products. Unlike many prior studies, it investigates purchase situations involving both Australian and imported alternatives and incorporates the role of cultural similarity and dissimilarity in consumers’ evaluations of imported products, because although Australian shoppers can choose from a global range of products, and generally have access to both domestically and foreign produced alternatives, sometimes they choose from imported products only. Understanding how country of origin information impacts on consumers’ evaluations of products and the role that ethnocentrism plays can be useful to marketers of both domestic and foreign produced products. Survey results revealed that, unsurprisingly, consumers with high levels of consumer ethnocentrism have favourable attitudes towards domestically produced products and vice versa. However, and importantly, where no domestically produced alternative existed, consumers with both high and low levels of consumer ethnocentrism favoured products from the culturally similar countries. It also indicated that an Australian origin may provide competitive advantage domestically, if this is brought to the attention of consumers, because the greatest impact of country of origin information appears to be by consumers who are female, come from low socio-economic groups, and have comparatively low levels of education and cultural exposure.

____________________

The concept of consumer ethnocentrism was developed to predict and explain consumers’ use of country of origin information and to understand how such product evaluations can be useful to marketers of both domestic and foreign products. Despite extensive research into the country of origin attribute and consumer ethnocentrism in consumers’ evaluations of high-involvement products, research into their impact on evaluations of low-involvement, non-durables has been limited, as has research into

consumer evaluations of products from culturally similar and dissimilar countries in an Australian context. Therefore, the research in this study investigates how ethnocentrism impacts on consumer’ evaluations of domestic and foreign produced low-involvement, non-durable products. It investigates whether those with high levels of consumer ethnocentrism favour domestically produced products more than those with low levels and how consumers evaluate

JOURNAL OF NEW BUSINESS IDEAS AND TRENDS 22

products produced in culturally similar and culturally dissimilar countries. It also investigates the impact of gender, socio-economic status, and level of education or extent of cultural exposure on attitudes toward country-of-origin. The authors consider that the findings from such research have implications for marketing literature on food buying behaviour and for marketers of domestic and foreign produced grocery items. The background literature Research into country of origin effect (COE) in product evaluations has been extensive for consumer durables, and it consistently rates as important in product evaluations (Okechuku 1994). Although it would be expected that increased globalisation of markets would decrease consumer’ sensitivity to product origins, many studies suggest that as globalisation intensifies, consumers’ perceptions of foreign products and hence, the COE

intensifies. This has important implications for marketers (Herche 1992; Papadopoulos 1993). Whereas much prior country of origin research has focused on high-involvement products, little has been directed at low-involvement, non-durables, such as food (table 1). Despite the scope of Australia’s production base in agriculture and food manufacture, some categories have no domestic alternatives. Hence, consumers encounter purchase situations where only imported products are available, as well as those where they are required to evaluate domestic products against imports. COE awareness can be used by consumers to reinforce, create, and bias initial perceptions of products (Johansson 1993). It is not just an extrinsic evaluation cue, but a basis for other product perceptions such as taste, design, performance and quality (Johansson 1993, Johansson 1989, Lee & Ganesh 1999).

Table I: Overview of recent country of origin research

Author(s) Date Products Studied Country

Ahmed & d'Astous

1995 Computer systems, fax machines, automobiles, video cassettes

Canada

Ahmed& d’Astous

1993 Automobiles Canada, Belgium

Iyer & Kalita 1997 Sneakers, jeans, portable stereos, watches

United States

Johansson, Douglas & Nonaka

1985 Automobiles U.S., Japan

Knight 1999 Microwave ovens and dishes United States

Knight & Calantone

2000 Automobiles United States, Japan

Lantz & Loeb 1996 Computer mousepads Canada, United States

Okechuku 1994 Televisions, car radio/cassettes U.S, Canada, Germany, The Netherlands

Quester, Dzever & Chetty

2000 Machine tools and components

Australia, New Zealand

Watson & Wright

2000 Cameras, televisions, refrigerators

New Zealand

Zhang 1997 Personal computer, luggage set

United States

(Source: developed for this research from the literature)

PHILP & BROWN 23

This is true of individuals who are not motivated to process product information and who engage in heuristic decision making and stereotyping (Zhang 1997). Whilst numerous studies have detected a relationship between country of origin and product evaluations, the strength of such association has varied considerably between products and for different experimental designs (Liefeld 1993). Some found that with complex products, country of origin effects are important (Papadopoulos & Heslop 1993), but other studies found it an important variable for mundane, low-involvement products, undifferentiated by price (Lantz & Loeb 1996). Others found country of origin bias to be strong for both high and low-risk products (Nes & Bilkey 1993). Because the extent to which consumers use country of origin information is important in evaluations of both high- and low-involvement products, along with brand name and price (Okechuku 1994; Ahmed, d'Astous & Zouiten 1993; Ahmed & d'Astous 1993). This research specifically concentrates on evaluating its importance for low-involvement, non-perishable food items. While some consumers believe country of origin is not important, others would use the information if it were readily available, and still others would seek and use it purchase decisions (Papadopoulos 1993). The COE effect can be analysed by looking at consumer ethnocentrism which is the tendency of some consumers to feel that it is inappropriate or even immoral to buy foreign-made products ‘due to patriotic and nationalistic sentiments as well as a personal level of prejudice against imports’ (Onkvisit & Shaw 1997, p. 256). To consumers with low levels of consumer ethnocentrism, foreign products to be evaluated on their own merits without consideration of origin whereas those with high levels are prone to biased judgements as they tend to accentuate positive aspects of domestic products and to denigrate foreign-made items (Shimp & Sharma 1987). Individuals with high levels of ethnocentrism tend to be female, older, come from low socio-economic groups,

and have low levels of cultural exposure (Shimp & Sharma 1987; Han 1988; Nijssen, Douglas & Bressers 1999). When evaluating products of foreign origin, the culture of the source country is a factor in a consumer’s decision-making process (Nes & Bilkey 1993). Consumers form ‘generalised images of specific countries from rational evaluations, prior experiences, knowledge and other possibly emotional responses, such as ethnocentrism’ (Iyer & Kalita 1997, p. 22). Lantz & Loeb (1996) found that consumers with high levels of ethnocentrism have more favourable attitudes toward products from culturally similar countries. Prior research has also hypothesised that consumers’ perceptions of the foreign countries as culturally similar or dissimilar, has an effect on their evaluation of imports (Watson & Wright 2000). Hence, this research analysed consumer’s attitudes towards products from both, and because not all food categories in Australia have a local alternative, consumers often have to choose between imported alternatives, this study looks at situations where an Australian alternative exists as well as where none exists. Methodology This was a predictive study aimed at providing a plausible explanation for consumer’s use of country of origin during the purchase process in order to facilitate prediction of consumer’s evaluations of domestic and foreign produced low-involvement, non-durable products (Cooper & Schindler 2001). Because, as previously noted, there was little, if any directly comparable research literature available, the research incorporated both qualitative and quantitative phases in order to first clarify the relevance of existing issues and to search for issues not in the existing literature about how consumer ethnocentrism impacts on buying behaviour in relation to low-involvement non-durable products such as food. Once these issues had been clarified in the qualitative phase of the research, which consisted of in-depth interviews and focus group discussions, a survey was conducted.


In-depth interviews: These were conducted with individuals from a cross-section of ages, genders, socio-economic status and cultural exposure. This design was grounded in previous research about consumer ethnocentrism levels based on demographics (Nijssen, Douglas & Bressers 1999; Shimp & Sharma 1987). An interview protocol set the guidelines for interviewing after testing of questions for suitability and comprehensibility with four consumers of varying ages prior to the in-depth interviews. Findings from the in-depth interviews: Some interviewees indicated that they rarely if ever considered country of origin, whilst others indicated that they would use the information if packaging or branding made country of origin obvious, and others claimed that they always considered the country of origin attribute in purchase evaluations. The importance of this attribute varied between respondents and products. When asked to choose between Australia and foreign countries of origin, Australia was consistently the favourite, with most respondents indicating this was important to the economy and that such products are of higher quality. Furthermore, Australian origin was seen as most important in the fresh and non-perishable food categories where Australia was a well-known producer as they appeared to want to support such local industry sectors. In choosing olive oil and boxed chocolate, all preferred the Australian alternative. Some indicated that a foreign country of origin was important in culturally associated foods such as coffee and chocolate. The in-depth interviews showed that, in the absence of an Australian alternative, the country of origin attribute was not as important. When choosing between culturally similar and dissimilar countries of origin most indicated that they would base product evaluations on attributes other than country of origin, whilst others chose the culturally similar alternative. These interviews also determined the characteristics consumers used for evaluation including cuisine, climate, lifestyle, religion, working

conditions, festivals and multiculturalism. Attributes respondents used to evaluate the products and their relative importance to respondents’ evaluations were also explored in the in-depth interviews. The ten in-depth interviews helped to: · Obtain an understanding of how important the country of origin factor is to consumers in different purchase situations. · Explore the influence of country of origin in consumer decision-making. · Establish which terminologies are most easily understood by consumers when talking about high/low involvement purchases, country-of-origin, and cultural similarity. · Identify attributes for evaluation of products of different countries of origin. · Identify countries that consumers perceive as culturally similar and dissimilar. Focus group discussions: The in-depth interviews were followed by four focus group discussions aimed at expanding on the information obtained from the in-depth interviews. These were unstructured and free-flowing discussions which allowed the eight or so participants to discuss their true feelings, anxieties and frustrations, and to express the depth of their convictions in their own words (Zikmund 2000). Focus group settings also enabled the researcher to observe participant interactions and to gauge the diversity and intensity of attitudes. The objectives of the focus group discussions in this research were: · To establish which countries consumers viewed as culturally similar and dissimilar; · To establish which attributes consumers regarded as most important in their evaluations of each of the chosen products; and · To gain feedback on the preliminary questionnaire layout and questions. In order to obtain a variety of views, two of the focus groups consisted of university students and two were conducted with middle-aged consumers. The two student groups were differentiated on their level of cultural exposure, as measured by ethnic background and amount of international

PHILP & BROWN 25

travel. The two middle-aged consumer groups were divided on socio-economic levels. These focus group discussions sought to determine how consumers perceived possible countries of origin for each of the product categories in terms of cultural similarity to Australia. Theoretical models, such as that proposed by Schwartz (1994) have already been used in determining countries of similar cultures (Watson & Wright 2000). However, for this research, these models were considered inappropriate as they were not based on the characteristics that the everyday

consumer, as revealed in the in-depth interviews, uses to evaluate cultures and therefore do not reflect their sentiments. In each session, the group was asked to list countries in order of cultural similarity to Australia’s culture. A continuum, as shown in figure 1, was developed from the results of these discussions. Countries on the right of the continuum were perceived as being increasingly different from Australia’s culture and countries to the left were perceived as being increasingly similar. These results were then used in the quantitative phase of this research to distinguish between countries of origin.

Figure I: Continuum of cultural similarity

(Source: developed from focus group discussions).

Focus groups were also used to determine which attributes consumers regarded as most important in their evaluations of each of the chosen products. Participants were asked to list which attributes they considered in the purchase evaluations

and then, through discussion, a consensus was formed as to the five most important attributes. The results of this discussion are summarised in table II. These attributes were then utilized in the quantitative phase of this research.

Table II: Product attributes

Product Olive Oil Boxed Chocolates Instant Coffee

Attributes

Country of Origin Price Quality Packaging Taste

Quality Price Packaging Brand Country of Origin

Taste Price Brand Quality Country of Origin

(Source: developed from focus group discussions).

The survey: The survey instrument was a self-administered questionnaire distributed to respondents by the researcher after pre-testing. These were returned via a reply paid envelope. Survey questions were based on the research hypotheses. This choice was determined by cost constraints, the form and content of the questionnaire, the duration of the

data collection, and the population type (Kumar, Aaker & Day 1999). Sample selection: The sample population were all consumers over the age of 18 living in the city of Toowoomba in South-East Queensland, (some 90,000 people of all ages). However, due to the costs constraints, a purposeful sample was

New Zealand

Hong Kong

Switzerland

Germany

Netherlands

Italy

Belgium

Denmark

Spain

Brazil

Mexico Japan

Australia’s culture


taken using the network of contacts available to the researcher. The sample encompassed quotas based on age, gender and income level, consistent with the general population (table III). Age was the

key criterion for segmentation, with gender and income representing sub-segments.

Table III: Demographics of the Sampling Frame (Population)

Age Gender ~ 18-24 25-34 35-44 45-60 above 60

17.71 % 19.05 % 17.94 % 22.34 % 22.96 %

Male Female

46.4 % 53.4 %

Nil $1 - $199 $200 - $499 $500 - $799 $800 or more

6.84 % 34.14 % 34.95 % 16.89 % 7.17 %

Total Population (over 18 years) = 60 448 Source: ABS 2000, 1996 Census of Population and Housing Toowoomba City (Statistics Subdivision) – Queensland [Online], Available: http://www.abs.gov.au/websitedbs/d3310108.nsf, [Accessed 6 June 2002]. Sampling strategy: A snowballing technique was used to obtain a sample reflecting the demographics of the sample population as in prior research about consumer ethnocentrism levels (Sharma, Shimp & Shin 1995; Han 1988; Shimp & Shama 1987). The principal selection driver was the need to obtain a sample consistent with the population based on age, with income and gender as lesser drivers. Potential respondents from the researcher’s network of contacts were asked to complete surveys and to distribute surveys amongst their contacts, thus attaining snowballing. The sampling frame was the network of contacts available to the researcher, and sample units were defined as members of the survey population who were asked to complete the survey by the researcher, or someone known to the researcher (Burns & Bush 1998). Although basically non-probability sampling and prone to sampling error (Malhotra 1993), purposeful measures to reflect population distribution of ages, income and gender were incorporated. Sample size: Important in the calculation of the sample size for this research was the need to divide the data into groups to identify individuals with both high and low levels of consumer ethnocentrism. Research conducted on people or households in a regional setting, which also includes some subgroups, should have a sample size of between 200 and 500 (Sudman 1976). Prior research

into the country of origin concept has used samples ranging from approximately 100 to 450 (Watson & Wright 2000, Lee, Kim & Miller 1992). This was also used as a guide for the sample size for this research. Therefore, the sample size was set at 300 and given the likely response, 800 questionnaires were distributed. Questionnaire composition: There were six sections in the questionnaire. In the product sections, respondents were asked to rate product attributes in terms of importance, and then to evaluate the attributes of the Australian produced alternative (excluding instant coffee), and two imported alternatives. Next, respondents were to complete the 17-item CETSCALE, which was modified to suit the Australian context by altering references to America. In relation to attitudes, the questionnaire contained seven-point numerical scales to be consistent with the CETSCALE, those used to measure attitudes about product attributes and the attributes of products from various countries of origin used seven-point numerical scales with bipolar adjectives “very important” and “very unimportant”, and “poor” and “excellent”. The CETSCALE consisted of a seven-point Likert scale (1 = strongly disagree, 7 = strongly agree). The scales used in sections one, two, three and four were classified as interval allowing the use of parametric analysis techniques by meeting assumptions of normality and homoscedasticity (Zikmund, 2000). This

PHILP & BROWN 27

permitted comparison with the New Zealand study of Watson and Wright (2000) who used a similar approach in their study of the effects of consumer ethnocentrism on consumer durables. Pre-testing and administration: The self-administered questionnaire had been pre-tested to reduce the possibility of misunderstanding (Zikmund 2000) and was a distributed to respondents by the researcher (Kumar, Aaker & Day 1999). Procedures to increase response rate: To achieve this, the following characteristics were incorporated into the administration of the questionnaire: · A cover letter explained the purpose and significance of the research (Lawley & Frazer 2000); · An addressed reply-paid envelope was provided to facilitate ease of return; · A guarantee of anonymity and confidentiality was communicated to the respondent (Zikmund 2000); · A $100 grocery voucher was offered as a prize incentive for returning the completed questionnaire; and · The layout and structure of the questionnaire was developed according to the principles set out by Dillman (2000). Measures used in the survey: The survey utilised both established measures as well as some specific to this research. These are now explained and justified. Assessing validity and reliability of measures: The measures included the CETSCALE, product attributes and culturally similar and dissimilar countries. Internal consistency estimates of reliability of this scale ranged from 0.94 to 0.96. Convergent and discriminant validity was demonstrated by significant positive correlations between the CETSCALE and measures of patriotism and political-economic conservatism through nomological validity (Shimp and Sharma 1987). Validity and reliability of the product attribute measures and the culturally similarity of countries was tested in focus groups.

Consumer ethnocentrism: The main measurement tool was the Consumer Ethnocentric Tendencies Scale (CETSCALE). For each respondent the 17 items on the scale were summed to produce a composite score. Those whose composite scores were > 60 (or a mean of <3.5) were classified as having low levels of consumer ethnocentrism, and those with a composite score of > 76 (or a mean > 4.5) were considered as having high levels. 82 respondents (26.55%) had medium levels. These were not used in hypothesis testing relating to high and low consumer ethnocentrism levels because they represented groups whose opinions were neutral (neither high nor low) and removing this group from the analyses reduced variability within the high and low categories and thereby increased variability between these two groups. In choosing the CETSCALE, previous evidence as to its construction and validation was recognised. Previous internal consistency estimates of reliability were consistent (from 0.94 to 0.96) and evidence of convergent and discriminant validity showed significant positive correlations between it and measures of patriotism and political-economic conservatism (Shimp and Sharma 1987), as was evidence of the quality of the scale through nomological validity. Support for the scale has also come from many countries (Luque-Martinez, Ibánez-Zapata & del Barrio-Garcia 2000; Netemeyer, Durvasula & Lichtenstein 1991). Cultural exposure: Previous studies linked consumers’ evaluations of foreign products to their cultural exposure, as manifested in their experiences in visiting or living in a foreign countries or ethnicity (Nijssen, Douglas & Bressers 1999). To test this, respondents were asked to indicate which continents they had visited and whether they or their parents were born overseas. Points were given for each continent visited and for foreign ethnicity and two points if they had not visited the continent and for having no foreign ethnicity. Scores were summated and respondents classified as having limited, moderate, or extensive cultural exposure.


Overall product evaluation: The overall evaluation of a product from a specific country of origin was calculated using the Fishbein multi-attribute model: A0 = Σ bi ei Where: A0 = attitude toward the object, bi = the importance placed on the attribute, and ei = the evaluation of the attribute (Engel, Blackwell & Miniard 1995). The model proposes that attitude toward a given object (in this case a product from a specific country) is based on the summed set of beliefs about the product’s attributes weighted by the evaluation of these attributes (Engel, Blackwell & Miniard 1995). This was then used to calculate an overall product evaluation for testing hypotheses two, three and four. Data cleaning and preparation: Prior to analysis, the data were adjusted for omissions, legibility, and consistency (Zikmund 2000). Administrative errors were explored using frequencies analysis and systematic cross-checking of entered

and raw data (Coakes & Steed 1999). New variables, such as level of cultural exposure were also computed and due to the significance of respondents’ composite CETSCALE scores, item non-response in this section were replaced using the Expectation Maximisation (EM) algorithm because such methods produce less bias than listwise or pairwise deletion (Graham & Donaldson 1993). After replacing missing CETSCALE items, composite scores for each respondent were computed and classified as having low, medium or high level of consumer ethnocentrism, (figure II). Internal reliability analysis using Cronbach’s alpha coefficient and the split-half test verified the internal reliability of the multi-item CETSCALE. In testing for assumptions of normality and homoscedasticity, Kolmogorov-Smirov tests were used and distributions were explored using various graphical techniques (Coakes & Steed 1999). Where not met, non-parametric tests equivalent to the parametric test minimised errors from the use of inappropriate analytical techniques (Davis 1996).

Figure II: Composite

CETSCALE frequency distribution

Composite CETSCALE

115.0105.0

95.085.0

75.065.0

55.045.0

35.025.0

15.0

40

30

20

10

0

Std. Dev = 21.49 Mean = 62.6

N = 300.00

(Source: developed from survey data).

PHILP & BROWN 29

Data analysis techniques: These were both parametric and non-parametric. Descriptive analysis addressed demographic and psychographic characteristics and Chi-square goodness of fit tests compared population statistics with sample statistics. Paired samples t tests and Wilcoxon signed rank tests analysed the relative importance of product attributes and differences between evaluations of products from different countries. Independent sample t tests and Mann-Whitney U tests determined differences between

individuals with high and low levels of consumer ethnocentrism in terms of product attitudes. Mann-Whitney U tests were conducted on ordinal data (income, age, education level and cultural exposure) to compare individual levels of consumer ethnocentrism. Kruskal-Wallis tests determined differences in product evaluations from ordinal data where there were more than two groups. Chi-square tests compared respondents with high and low levels of consumer ethnocentrism on the basis of gender. These are summarized in table IV.

Table IV: Hypotheses and statistical analysis techniques Variables Statistical Techniques

Hypothesis Independent Dependent Parametric Non-

parametric H1: Individuals place significantly more importance on the country of origin attribute in the evaluation of low-involvement, non-durable products, in comparison to other product attributes.

Paired samples t- test

Wilcoxon signed ranks test

H2: Individuals with high levels of consumer ethnocentrism will evaluate products produced in Australia more favourably than consumers with low levels of consumer ethnocentrism.

Consumer ethnocentrism

Product evaluations

Independent samples t- test

Mann-Whitney U- test

H3: Individuals with high levels of consumer ethnocentrism will evaluate domestically produced products more favourably than products produced in foreign countries.


Cultural similarity/ dissimilarity of source country

Product evaluations



H4: In purchase situations where there is no domestically produced alternative, individuals with high levels of consumer ethnocentrism will evaluate products produced in culturally similar countries more favourably than products produced in culturally dissimilar countries.

Cultural similarity/ dissimilarity of source country


Product evaluations



H5: Individuals from low socio-economic groups have significantly higher levels of consumer ethnocentrism than individuals from high socio-economic groups.

Income Consumer ethnocentrism

Mann-Whitney U test

H6: Older individuals will have significantly higher levels of consumer ethnocentrism than younger individuals.

Age Consumer ethnocentrism

Mann-Whitney U test

H7: Females will have significantly higher levels of consumer ethnocentrism than males.

Gender Consumer ethnocentrism

Chi-square test

H8: Individuals with lower levels of cultural exposure have significantly higher levels of consumer ethnocentrism than individuals with high levels of cultural exposure.

Cultural exposure Consumer ethnocentrism

Mann-Whitney U test

H9: Individuals with lower levels of consumer ethnocentrism have significantly higher levels of education than individuals with high levels of consumer ethnocentrism.

Education Consumer ethnocentrism

Mann-Whitney U test

(Source: developed from the research).

30 JOURNAL OF NEW BUSINESS IDEAS AND TRENDS

Limitations of the study The study was limited by the risk of sampling frame error in the non-probability sample (Malhotra 1993). However, as previously discussed, measures were taken to ensure that the sample reflected population characteristics and appropriate parametric statistical techniques were used. Where assumptions of normality and homoscedasticity were not met as required for parametric analysis, equivalent non-parametric tests were used. Purposeful measures were taken to ensure that the sample encompassed quotas based on age, as was consistency with population characteristics based on income and gender. Data analysis procedures included descriptive analysis, testing of differences across groups, chi-square goodness of fit tests, and analysis of internal consistency of the CETSCALE. From the 800 questionnaires distributed, 309 valid responses were analysed (38.6%) and this was considered sufficient. To test for response error, the demographics of the sample were compared with the target population (Zikmund 2000). There were no significant differences between early and late respondents (x2 = 1.206, df = 1, p = 0.547). Reliability of the CETSCALE: Internal reliability of the (CETSCALE) was analysed by the split-half method, which checks one half of the results of a set of scaled items against the other half (Zikmund 2000). This produced a result of 0.9147 and the Cronbach’s alpha coefficient test 0.9574 and indicated that the items on the CETSCALE yielded consistent results. These, in conjunction with previous findings of internal reliability ranging from 0.94 to 0.96 provided further evidence of support for the internal reliability of the CETSCALE (Shimp & Sharma 1987). However, comments from respondents in the final section of the questionnaire raised concerns about the validity of the CETSCALE which was developed over 15 years ago. This feedback suggested the some of the statements should be reviewed for their contemporary relevance

as it seemed that consumers’ knowledge and understanding of trade relations has increased and that the statements in the measurement scale are too absolute for some respondents. Statements included: ·“Although I support Australian products I think there should be choice and competition. What I strongly object to is countries like New Zealand who heavily subsidised dairy products, which can be purchased in Australia for less than our Australian products can be made”. ·“I had a little difficulty deciding as I strongly support Australian produce, but also believe we need a trade market and competition”. ·“I think this sort of research is encouraging to see, I believe however that it would be virtually impossible to put an end to imports. If we stop importing altogether then exports would be more likely to fall as well. Importing and exporting is healthy for basic infrastructure”. ·“Imports should not be allowed to threaten local industry but moderate competition is healthy”. ·“I like to buy Australian but also realize that trade is a two-way street – you can’t just buy Australian products and spurn foreign ones yet expect other countries to buy ours”. These findings indicate some support for previous research that found consumers can hold non-protectionist views but still refuse to buy the products of a specific country (Klein 2002) and that attitudes towards items on the scale may differ for different products and that the contemporary relevance of the CETSCALE may be diminished because it ignores consideration of attitudes towards products made in Australia by foreign owned companies. Results of the data analysis Table V summarises profiles of respondents for each of these characteristics, age groupings, gender, income, education level, extent of cultural exposure and consumer ethnocentrism.

PHILP & BROWN 31

Table V: Respondent profiles

Sample Characteristic Categories

Frequency Valid Percentage

Population Percentage

18 – 24 years 38 12.3 17.71 25 – 34 years 62 20.1 19.05 35 – 44 years 66 21.4 17.94

Age

45 years and over 143 46.3 45.30 Male 82 26.7 46.4 Gender Female 225 73.3 53.4 Negative or no income 11 3.7 6.59 $1 - $299 28 9.5 24.05 $300 - $499 44 14.9 20.55 $500 - $699 46 15.6 16.68 $700 - $999 52 17.6 18.18 $1000 - $1999 95 32.2 17.17

Income

$2000 or more 19 6.4 2.70 Have not completed any non-school qualification 70 23.0 2.89

Certificate 70 23.0 42.54 Diploma or advanced diploma 42 13.8 21.62

Degree 60 19.7 24.57 Graduate certificate or graduate diploma 30 9.8 4.15

Education level

Masters or doctorate 33 10.8 4.23 Limited 186 60.2 NA Moderate 89 28.8 NA

Cultural exposure

Extensive 34 11.0 NA Low 135 43.7 NA Medium 82 26.5 NA


High 92 29.8 NA Legend: NA – not applicable

(Source: developed from survey data, ABS 2002, 2001 Census of Population and Housing Toowoomba City (Statistics Subdivision) – Queensland [Online], Available: http://www.abs.gov.au/websitedbs/.nsf, [Accessed 6 June 2002], ABS 1997, 1996 Census of Population and Housing Toowoomba City (Statistics Subdivision) – Queensland [Online], Available: http://www.abs.gov.au/websitedbs/.nsf, [Accessed 6 June 2002]). Product evaluations: Qualitative research had previously indicated the five attributes as being those that respondents perceived as being the most important (table VI).

32 JOURNAL OF NEW BUSINESS IDEAS AND TRENDS

Table VI: Relative importance of product attributes Product

Olive Oil Boxed Chocolates Instant Coffee Quality Quality Taste

Taste Quality

Price

Brand

Packaging Brand

Country of Origin Price

Deg

ree

of Im

port

ance

Lea

st

Mos

t

Packaging

Price

Country of Origin Country of Origin

(Source: developed from survey data) Survey respondents were asked to evaluate three grocery items: olive oil, boxed chocolates intended as a gift, and

instant coffee on a seven-point scale (1 = very unimportant, 7 = very important) and the results are shown in table VII.

Table VII: Importance of product attributes to purchase decisions

Product

Attribute Olive Oil Boxed Chocolates Instant Coffee

Mean σ Mean σ Mean σ

Brand NA NA 5.839 1.354 5.454 1.426

Country of Origin 4.743 1.705 4.790 1.809 4.627 1.655

Packaging 3.655 1.722 5.809 1.288 NA NA

Price 5.349 1.514 4.820 1.661 5.135 1.641

Quality 5.941 1.380 6.403 1.164 6.330 0.998

Taste 5.787 1.448 NA NA 6.475 0.992 NA = not applicable – attribute not evaluated (Source: developed from survey data). Evaluations of olive oil and boxed chocolates originating from either Australia, a culturally similar country, or a culturally dissimilar country were then evaluated on a seven-point scale.

Evaluations of olive oil produced in Australia, Italy (culturally similar) and Spain (culturally dissimilar) are shown in table VIII.

PHILP & BROWN 33

Table VIII: Mean respondent evaluations of olive oil

Country of Origin

Attribute Australia Italy Spain


Price 4.743 1.455 4.667 1.380 4.614 1.258

Quality 5.503 1.158 5.701 1.134 5.300 1.182

Taste 5.454 1.193 5.664 1.131 5.277 1.202

Packaging 5.220 1.194 5.230 1.146 4.941 1.183

(Source: developed from survey data). In the second product category, respondents were asked to evaluate boxed chocolates from Australia, Switzerland

(culturally similar), and Hong Kong (culturally dissimilar) (table IX).

Table IX: Mean respondent evaluations of boxed chocolates

Country of Origin

Attribute Australia Switzerland Hong Kong


Price 5.559 1.067 4.212 1.594 4.484 1.463

Packaging 5.655 1.053 5.723 1.105 4.033 1.220

Brand 5.683 1.134 5.863 1.169 3.536 1.207

Quality 5.801 1.176 6.205 1.051 3.526 1.276


In the final product category, instant coffee, for which there was no domestically produced alternative, respondents were asked to evaluate

instant coffee from Mexico (culturally dissimilar) and Germany (culturally similar). The results are shown in table X.

Table X: Mean respondent evaluations of instant coffee

Country of Origin

Attribute Germany Mexico

Mean σ Mean σ

Price 4.422 1.302 4.050 1.194

Quality 4.291 1.286 4.751 1.250

Taste 4.305 1.312 4.724 1.296

Brand 4.080 1.215 4.535 1.254



Findings about the research hypotheses The findings about each of the nine research hypotheses are summarised in table XI.

Table XI: Results of hypothesis testing in this research

Hypothesis Supported Not supported

H1: Individuals place significantly more importance on the country of origin attribute in the evaluation of low-involvement, non-durable products, in comparison to other product attributes

●

H2: Individuals with high levels of consumer ethnocentrism will evaluate products produced in Australia more favourably than consumers with low levels of consumer ethnocentrism.

●

H3: Individuals with high levels of consumer ethnocentrism will evaluate domestically produced products more favourably than products produced in foreign countries.

●

H4: In purchase situations where there is no domestically produced alternative, individuals with high levels of consumer ethnocentrism will evaluate products produced in culturally similar countries more favourably than products produced in culturally dissimilar countries

●

H5: Individuals from low socio-economic groups have significantly higher levels of consumer ethnocentrism than individuals from high socio-economic groups.

●

H6: Older individuals will have significantly higher levels of consumer ethnocentrism than younger individuals.

●

H7: Females will have significantly higher levels of consumer ethnocentrism than males.

●

H8: Individuals with lower levels of cultural exposure have significantly higher levels of consumer ethnocentrism than individuals with high levels of cultural exposure

●

H9: Individuals with lower levels of consumer ethnocentrism have significantly higher levels of education than individuals with high levels of consumer ethnocentrism

●

Hypothesis one: Individuals place significantly more importance on the country of origin attribute in their evaluations of low-involvement, non-durable products, in comparison to other product attributes. Qualitative research indicated that inferences about production standards and food quality were derived from country of origin information. Survey respondents indicated that this was important in their purchase decision because they wanted to support the domestic economy, but some intimated that country of origin was not important to their purchase decision. In determining the importance of country of origin attribute vis a vis other attributes, mean responses for each product attribute were

compared, and although this data was interval, assumptions of normality and homoscedasticity were not met so normality was assessed using measures of central tendency and Kolmogorov-Smirnov tests. This indicated that none of the variables were significant above 0.05, and thus not were normally distributed (Coakes & Steed 1999). Graphical techniques supported this and also indicated that the assumption of equal variances between groups was also violated in most instances. As the data did not meet the assumptions of the parametric test, the Wilcoxon signed rank test was used to assess the relative importance of the five product attributes. Olive oil: Respondents’ evaluations of the importance of olive oil attributes

PHILP & BROWN 35

disclosed significant differences between the importance placed on each attribute. Most important was quality, followed by taste, price, country of origin and packaging respectively. Boxed chocolates: In the evaluations of the importance of each of the attributes of boxed chocolates for gifts, quality was seen as much more important than brand and packaging, which were next. Although no significant difference was found between the importance of brand and packaging, these were seen as more important than price or country of origin. Instant coffee: As with olive oil, significant differences were found between the importance respondents’ placed on each of the instant coffee product attributes. Taste was the most important, then quality, brand, price and country of origin respectively. Thus, support for the hypothesis that the country of origin attribute is highly significant for low-involvement, non-durable products, when compared to other product attributes, was not sustained in this research but was found to be the least important variable in respondents’ evaluations of instant coffee and boxed chocolates intended as gifts. In evaluating the importance of olive oil product attributes, country of origin was only considered more important than packaging. Despite this, the mean responses, as outlined in table X, suggest that country of origin is still considered more important than unimportant in consumers’ evaluations of grocery items. Hypothesis two: Individuals with high levels of consumer ethnocentrism evaluate products produced in Australia more favourably than consumers with low levels of consumer ethnocentrism. Respondents’ overall evaluations of olive oil and boxed chocolates produced in Australia were calculated using the Fishbein model. Because the data did not meet the assumptions of normality and equal variance (homoscedasticity) as required for an independent t test, the non-parametric equivalent, the Mann-Whitney U test, was used to test for any significant differences.

Olive oil: Respondents with high levels of consumer ethnocentrism were found to evaluate olive oil produced in Australia significantly higher than other respondents (Z = -3.002, df = 219, p = .003). For each product attribute, those with high levels of consumer ethnocentrism were found to evaluate Australian olive oil significantly higher in terms of price (Z = -3.371, df = 222, p = 0.001), quality (Z = -3.299, df = 222, p = 0.001), and taste (Z = -3.173, df = 222, p = 0.002). Boxed chocolates: Respondents with high levels of consumer ethnocentrism were also found to evaluate boxed chocolates produced in Australia significantly higher than other respondents (Z = -4.492, df = 220, p = .000). In relation to product attributes, respondents with a high level of consumer ethnocentrism were found to evaluate Australian produced boxed chocolates significantly higher than others in terms of price (Z = -3.273, df = 224, p = 0.001), packaging (Z = -3.624, df = 225, p = .000), brand (Z = -5.394, df = 225, p = 0.000), and quality (Z = -5.278, df = 225, p = 0.000). These results support the hypothesis that individuals with high levels of consumer ethnocentrism have more favourable attitudes towards products produced in Australia than consumers with low ethnocentrism levels. Hypothesis three: Individuals with high levels of consumer ethnocentrism evaluate domestically produced products more favourably than foreign produced products. In two of the three product categories investigated, individuals were asked to evaluate a domestically produced alternative with two foreign produced alternatives, which also represented culturally similar and culturally dissimilar countries of origin. In the olive oil category, Italy (culturally similar) and Spain (culturally dissimilar) represented the foreign alternatives, and boxed chocolates were represented by Switzerland (culturally similar) and Hong Kong (culturally dissimilar). As discussed


previously, the culturally similarity and dissimilarity of countries of origin were established during in-depth interviews and focus group discussions. In the open-ended question at the end of the questionnaire, attitudes towards domestically produced products in comparison to foreign products were often related to the price attribute, as Australian food items were often seen as more expensive: • “Australian products need to become

more competitive price-wise to enable us to always buy them”.

• “I believe Australian products often cost more to purchase than foreign products”.

• “If I were richer I would support Australian made goods more”.

• “I always try to buy Australian, but if price is too much I’ll buy something else”.

• “Australian standards of production are higher than many places but the taste of an imported product often outweighs this”.

• “Some products made in Australia don’t have the same taste or flavour as some made overseas”.

• “Australian products need to be identifiable at a glance – I don’t have time to read labels”.

Hypothesis four: In purchase situations where there is no domestically produced alternative, individuals with high levels of consumer ethnocentrism evaluate products produced in culturally similar countries more favourably than products produced in culturally dissimilar countries. The product category in which no domestically produced alternative was available was tested by evaluating instant coffee which is only available in Australia from Mexico and Germany. Qualitative research revealed that, in general, consumers considered the culture of Germany to be similar to Australia’s and that of Mexico as dissimilar. Although the data relating to respondents’ evaluations of instant coffee from these countries was at the interval level, assumptions of normality and homoscedasticity were not met. Therefore, non-parametric Wilcoxon

signed ranks tests were conducted and product evaluations were calculated based on the Fishbein multi-attribute model, as previously discussed. Again, in analysing consumers with high and low levels of consumer ethnocentrism separately, the data file was split. Those with high levels were found to evaluate instant coffee produced in Germany significantly higher than that from Mexico (Z = -2.333, df = 89, p = 0.020) and saw the price of instant coffee from Mexico as significantly higher than that from Germany (Z = -4.062, df = 127, p = 0.000). However in each of the remaining product attributes, instant coffee from Germany was seen as significantly higher: quality (Z = -3.100, df = 128, p = 0.002), taste (Z = -2.504, df = 128, p = 0.012), and brand (Z = -3.024, df = 126, p = 0.002). This evidence supports the hypothesis that for purchase situations where there is no domestically produced alternative, individuals with high levels of ethnocentrism evaluate products produced in culturally similar countries more favourably than those from culturally dissimilar countries. However, although more favourable attitudes were found towards products from culturally similar countries than other products in terms of quality, taste and brand attributes, this favourable attitude did not extend to price. Furthermore, results suggest that favourable attitudes towards products from culturally similar countries is not just confined to consumers with high levels of ethnocentrism, but is also relevant to those with low levels. With regard to each product attribute, respondents with high levels of r ethnocentrism evaluated the quality (Z = -2.084, df = 90, p = 0.037), taste (Z = -2.098, df = 90, p = 0.036), and brand (Z = -2.120, df = 90, p = 0.034) of instant coffee from Germany significantly higher in comparison to instant coffee from Mexico. However, there was no significant difference (Z = -0.516, df = 90, p = 0.606) between the respondents from each group in their evaluations of the price of instant coffee from these two countries. (Z = -2.157, df = 125, p = 0.031).

PHILP & BROWN 37

Hypothesis five: Individuals from low socio-economic groups have significantly higher levels of consumer ethnocentrism than individuals from high socio-economic groups. Socio-economic groupings were measured by income groupings. A Kruskal-Wallis test revealed significant differences between respondent’s income levels and levels of ethnocentrism. (x2 = 11.069, df = 2, p = 0.004). Mann-Whitney U tests were then used to investigate such differences. No significant differences in income were found between respondents with low and medium or medium and high levels of consumer ethnocentrism. However, there was a significant difference (Z = -3.338, df = 1, p = 0.001) between the means of incomes for individuals with high and low levels of consumer ethnocentrism and from this it would appear that those low on consumer ethnocentrism have higher incomes and thereby this hypothesis is supported. Hypothesis six: Older individuals have significantly higher levels of consumer ethnocentrism than younger individuals.

The Kruskal-Wallis test was also used to test for significant differences between the three consumer ethnocentrism levels based on the ordinal variable age, but no significant difference between the means of the three groups was found (x2 = 2.249, df = 2, p = 0.325). Hence this hypothesis was not supported. Hypothesis seven: Females have significantly higher levels of consumer ethnocentrism than males. A Chi-square test determined whether or not the difference between the observed and expected frequency distribution of males and females in each level of consumer ethnocentrism could be attributed to sampling variation alone (Zikmund 2000). The Pearson statistic at 11.851 with a significance of 0.003, indicated that the observed distribution was not attributable to sampling variation but to a significant difference between the groups and indicated that the relative proportion of females increases as consumer ethnocentrism levels increase and thereby supports the hypothesis (see figure III).

Figure III: Gender and consumer ethnocentrism

Consumer Ethnocentrism Level

HighMediumLow

Per

cent

70

60

50

40

30

20

10

0

gender

male

female

(Source: developed from survey data). Hypothesis eight: Individuals with lower levels of cultural exposure have

significantly higher levels of consumer


ethnocentrism than individuals with high levels of cultural exposure. Cultural exposure was measured using an ordinal scale (limited, moderate and extensive). A Kruskal-Wallis test determined a significant difference existed between respondents’ consumer ethnocentrism levels based on their level of cultural exposure (x2 = 20.866, df = 2, p = 0.000). Mann-Whitney U tests found a significant difference between the low and medium levels of consumer ethnocentrism (Z=-3.231, df = 1, p = 0.001) and low and high levels of consumer ethnocentrism (Z=-4.103, df = 1, p = 0.000) based on cultural exposure. Based on the mean ranks in these results, the hypothesis was supported. Hypothesis nine: Individuals with low levels of consumer ethnocentrism have significantly higher levels of education than individuals with high levels of consumer ethnocentrism. As level of education was also considered ordinal data, the Kruskal-Wallis test was appropriate in determining whether the three independent samples, low, medium and high levels of consumer ethnocentrism, had the same distribution (Coakes & Steed 1999). The result indicated that a significant difference existed (x2 = 19.987, df = 2, p = 0.000) between the groups. Mann-Whitney U tests then revealed significant differences between respondents with low and medium levels of consumer ethnocentrism (Z = -3.219, df = 1, p = 0.001) and low and high levels of consumer ethnocentrism (Z = -4.112, df = 1, p = 0.000). Based on the mean ranks in these analyses, this hypothesis was supported. Conclusions concerning the research hypotheses Hypothesis one: Although most prior studies found the country of origin attribute to be one of the two or three most important attributes in consumers’ product evaluations (Okechuku 1994, Ahmed & d'Astous 1993, Ahmed, d'Astous & Zouiten 1993), this was not supported in this research. In comparison to other attributes, country of origin was found to be the least, or one of the two least,

important attributes in consumers’ evaluations of olive oil, boxed chocolates intended as gifts, and instant coffee. The lesser importance of this attribute may be because familiarity and experience with these products is greater, and the country of origin attribute therefore has a lesser effect (Knight & Calantone 2000). Whilst the importance placed on country of origin was found to be less important than other attributes, this does not mean that it does not impact on consumers’ product evaluations, as it was found to have some importance. Hypothesis two: Overall results indicated that individuals high on consumer ethnocentrism had more favourable attitudes towards Australian products than those with low levels in both product categories. This is consistent with previous research from different countries and for high-involvement purchases, which found consumers with high levels of consumer ethnocentrism exhibit a greater preference for domestic products when a domestic alternative is available (Watson & Wright 2000). Possible reasons for the bias towards Australian grocery products in this research included a desire to support the Australian economy, and the perception that such products are superior in terms of quality and production standards. Hypothesis three: Consumers with high levels of ethnocentrism were again found to favour domestic products. Those with low levels generally had more favourable attitudes towards foreign products from culturally similar countries than domestic products or those from culturally dissimilar countries. This was more significant for boxed chocolate than for olive oil. The reduced effect in this category may be due to the larger cultural difference between the countries of origin in the boxed chocolate category (Graby 1993). Alternatively, as olive oil production is only emerging in Australia, it may be that the foreign product is commonly regarded as better. If so, then consumers with high levels of ethnocentrism are motivated to favour the domestic product although at the same

PHILP & BROWN 39

time they may want to comply with the in-group norm that foreign is better (Supphellen & Rittenburg 2001). Hypothesis four: Unlike the New Zealand study into consumer durables, which found that cultural similarity may not serve as a significant variable in situations where individuals with low levels of consumer ethnocentrism evaluate products without a domestically produced alternative (Watson & Wright 2000), this study suggests that cultural similarity may be a better predictor of how consumers evaluate products than consumer ethnocentrism. In this research, a bias towards products from culturally similar countries was found for consumers with both high and low levels of ethnocentrism. It might be expected that consumer ethnocentric tendencies would have a stronger impact on evaluations of olive oil and boxed chocolates than on instant coffee, as the perceived threat to the domestic economy that importation poses in these product categories would be greater (Sharma, Shimp & Shin 1995). Although this result does not indicate that consumers’ product evaluations in situations where no domestic alternative is available could be due to ethnocentrism, it suggests a common bias among consumers against culturally dissimilar countries of origin. This was found across each product category and suggests that ethnocentric attitudes may well be specific rather than universal, thus bringing into question the validity of the CETSCALE as a measure of consumer ethnocentrism. A bias towards instant coffee produced in a culturally similar foreign was evident for the attributes of quality, brand and taste, but not for price. This result, as for boxed chocolates and olive oil, suggests that consumers may perceive that grocery items produced in culturally dissimilar countries are cheaper. Hypothesis five: The results indicated that individuals from low socio-economic groups have higher levels of consumer ethnocentrism than individuals from high socio-economic groups. According to previous studies, this result is attributable to their perceptions that their quality of

life is threatened by foreign competition (Sharma, Shimp & Shin 1995, Shimp & Sharma 1987). Hypothesis six: Although older individuals did not have significantly higher levels of consumer ethnocentrism than younger people, the country of origin attribute for all product categories was significantly more important in the purchase evaluations of older people. Hypothesis seven: As with prior studies (Sharma, Shimp & Shin 1995, Han 1988), females in this research study were found to have significantly higher levels of consumer ethnocentrism in comparison to males. As previously discussed, although there were more females in the sample, the difference was not attributable to sampling variation but to the fact that gender is significant as females are more ethnocentric than males in a buying behaviour setting. Hypothesis eight: Individuals with lower levels of cultural exposure were found to have significantly higher levels of consumer ethnocentrism than those with high levels. Furthermore, in comparison to individuals with extensive cultural exposure, those with limited exposure evaluated the attributes of domestically produced boxed chocolates significantly higher and those from Switzerland significantly lower. This suggests that consumers who exhibit high levels of consumer ethnocentrism accentuate the positive aspects of domestic products and discount the virtues of foreign products (Shimp & Sharma 1987). Hypothesis nine: As respondents with low levels of consumer ethnocentrism were found to have significantly higher levels of education than individuals with high levels, this finding supports previous research conducted by Nijssen, Douglas and Bressers (1999). Conclusions concerning the research question


Overall, it was found that consumer ethnocentrism impacts upon consumer evaluations of domestic and foreign produced low-involvement, non-durable products. Those with high levels of consumer ethnocentrism were found to favour domestically produced products and consumers with low levels tended to evaluate products from culturally similar countries more favourably than domestic products and those from culturally dissimilar countries. Consumers with high levels of ethnocentrism tended to be female, come from lower socio-economic groups, are not highly educated and have limited levels of cultural exposure. In purchase situations where there was no domestically produced alternative, consumers with both high and low levels of consumer ethnocentrism preferred products from the culturally similar countries. These findings have implications for marketing literature and for marketers of domestic and foreign produced grocery items, particularly in regard to how such products are promoted. Contributions to the marketing literature: This research advances understanding of the effects of consumer ethnocentrism and the country of origin attribute on consumers’ product evaluations. It contributes further to academic literature in the area of consumer evaluations of products from culturally similar and dissimilar countries, by finding that products from culturally similar countries tend to be evaluated more favourably by consumers with both high and low levels of consumer ethnocentrism. It also advances country of origin theory by comparing consumers’ evaluations of products in situations where domestic and foreign products were available as well as where no domestic alternative existed. It also extends knowledge about low-involvement, non-durable products in an Australian context. Managerial implications: As understanding consumers’ biases for or against a product’s source country, and attitudes influencing such biases can determine the success or failure of a

particular product (Lee, Kim & Miller 1992) the appropriate use of country of origin identifiers can provide product-based competitive advantages (Baughn & Yaprak 1993). If the country of origin image is favourable, this can enhance the product’s competitive position, however if not, it may be advisable not to draw attention to its origin (Chen & Pereira 1999). The results imply that using country of origin information may be advantageous for importers when the country of origin is considered culturally similar to Australia. Where this is not so, importers should reduce emphasis on the country of origin. Marketers of foreign products from culturally dissimilar countries of origin should also consider the apparent consumer perception that such products will be less expensive. It was indicated that references to the Australian origin of grocery items needs to be displayed prominently on packaging to gain the attention of those consumers who do not actively seek such information but would use it if available (Papadopoulos 1993). Marketers may find that the perception among consumers that Australian grocery products are superior in terms of quality and safety standards to be a source of competitive advantage. The greatest impact of country of origin information may be on consumers who are female, come from low socio-economic levels, are not highly educated and have lower levels of cultural exposure. Finally, although older consumers were not found to be more ethnocentric, they rated the country of origin attribute more highly than younger consumers. Limitations and suggestions for future research Although the sampling method limited the generalisability of these findings to the sample, results suggest that consumer ethnocentrism does impact on consumer evaluations of domestic and foreign produced low-involvement, non-durable products and invites future research such as exploring the impact of consumer ethnocentrism on evaluations of Australian made products from foreign

PHILP & BROWN 41

owned companies as well as those from local companies. The impact of ethnocentrism on other non-durable products may also be compared with this research and more foreign countries of origin should be studied to see if such attitudes are country specific. This could further test the proposition that culturally similar countries of origin are evaluated more favourably than others. Consumer concern over issues of food safety and genetic modification are also aspects of the country of origin cue that could be investigated. Future research incorporating probability sampling methods would provide greater strength to these results. Although the validity and reliability of the CETSCALE has been established in previous research studies (Shimp & Sharma 1987), it is recommended that its validity in measuring consumer ethnocentrism in current environments be re-evaluated and tested in more countries. Summary The purpose of this research was to determine the impact of ethnocentrism on consumer evaluations of domestic and foreign produced low-involvement, non-durable products. The literature suggested that consumers with high levels of ethnocentrism evaluate domestically produced products more favorably than foreign products. This was supported in this research which also found that consumers with low levels of ethnocentrism evaluated foreign products from culturally similar countries more favorably than domestic products and where no domestic alternative was available, all consumers evaluated products from culturally similar countries more favorably. References

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