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European Journal of Social Sciences Volume 20, Number 1 (2011)

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Consumer Ethnocentrism Tendency in Services Sector: An

Evidence from Pakistan a Developing Economy

Naveed Iqbal ChaudhryPhD Scholar, University of Bedfordshire, UK, Lecturer University of the Punjab, Pakistan

E-mail: [email protected]

Zeeshan AkbarMS management Sciences Scholar, Iqra University, Islamabad, Pakistan


Kashif-u-RehmanAssistant Professor, Iqra University, Islamabad, Pakistan


Hafiz Mushtaq AhmadLectures, Bahria University, Islamabad, Pakistan


Ahmad Usman

Haley Collage, Punjab University, Lahore, Pakistan

E-mail: a.usman@live .com

Abstract

The study is intended to investigate the underplaying relationship between consumer

demographical characteristics and ethnocentric tendencies in services sector. Studyprovides a deep insight into consumer ethnocentric behavioural tendency towards foreign

services in developing country like Pakistan. Study provides its rationale in the concept ofthrough understanding of market for managers to deeply understand the consumer

behaviour in services market. Furthermore people working in services sector were also

hypothesized in relation with ethnocentrism. Data was collected from major metropolitan

cities across Pakistan to generalize the findings. A well established CETSCALE was usedto measure the consumer ethnocentrism in services sector in addition with some other

constructs items retrieved from past researches. The results of study were very much

consistent with earlier effort to explore consumer ethnocentrism in few developed marketsof world. All hypotheses are discussed in detail along with suggested theoretical and

managerial implications.

Keywords: Consumer Ethnocentrism, International Service Marketing, CETSCALE,

Consumer Behaviour, Developing Markets.

1. IntroductionGlobalization is shaping the face of markets and translating universal consumer market trends, Levitt(1983). At the one hand it is a corridor of opportunities for global corporate players but on the other

hand it is putting the marketing personals in hot water to understand a diverse consumer behavior,

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(Sengupta, Mohar, & Slater, 2006). Where local player use the ethnic marketing tools to provoke and

arise the patriotic attenuation of customers and compete the foreigners (Cui, 1997; Pires, 1999).

Ohmae.s (1992) it seems to be the new Borderless consumer markets. But there are many discoveredbarrier and unexplored hurdles which this borderless market order has to confront with. One of those

challenges is the social barriers named Ethnocentrism, it refer the customer bias towards local

products (Upadhyay & Singh, 2006).

The ethnocentric consumers normally prefer the local product and services. And moreover

marginally less developed market observed more to be with ethnocentric behavior holding consumers;Russia, Durvasula et al. (1997); Korea, Sharma et al. (1995); Malta, Caruana (1996); and Indonesia

(Hamin & Elliott, 2006). More over countries where cultural values are well accepted and exercisedhave also similar conditions. Where feelings are more patriotic and less diversified. Recent studies

have explored this, Japan and Sweden Hult et al. (1999); Poland, Good and Huddleston (1995) and

India Upadhyay & Singh, (2006).The services sector is supplementary apt to internationalization, where as this sector also

reports same level of ethnocentrism in incompliance with products market ethnocentrism level earlier

in various studies, (Ruyter, Birgelen, & Wetzels, 1998). The consumer ethnocentrism observed to be aNon-Tariff barrier in consumer goods market where as the developing markets services sector is yet to

be explored. Developing markets like Pakistan have recent familiarity with high increase in services

market. Services are measured as largest as 57.3% of GDP (CIA, World fact Book, 2007).Consumer ethnocentrism is explored through CET, a well developed scale across countries and

times, Shimp and Sharma, (1987) as well in present study. In past studies most of the time CETSCALE

was used for the purpose of exploring the consumer ethnocentric tendency with goods sector only.

There might be only a few time this scale is used in services sector. This scope becomes narrowerwhen we discuss it in developing countries like Pakistan. Here consumers have a cultural diversity as

compared with the consumers from Korea and the U.S.A. (Hofstede, 1980) cultural dimensions reveal

that Pakistan inequalities of power and wealth have been allowed to grow within the society.Pakistan is that they are a nation obsessed with status.

The local level of ethnocentrism is not much explored as compared in various markets over

times and changes (Malik & Merunka). Demographic characteristics like gender, age, and education

level are selected as demographical dimensions, because these have been as core characteristics in paststudies.

2. Literature ReviewA rich literature on consumer ethnocentrism in developed markets was explores. This literature

included a major portion in product sector only.

2.1. Ethnocentrism and Consumer Ethnocentrism

Originally the term ethnocentrism is derived from the subject of sociology. The earliest referenceIn literature that belongs to first decade of 20th as Sumner, (1906, p. 13). The view of things in

which ones own group is the centre of everything, and all others are scaled and rated with reference toit.... Each group nourishes its own pride and vanity, boasts itself superior, exalts its own divinities andlooks with contempt on outsiders. This concept reveals the ethnic preference of a group over all other

available groups. The term is widely exercised in various aspects of national life as, politics, social

order, civilian matters and in economics too. A more specific definition of consumer ethnocentrismrefers to the observable fact of consumer partiality for domestic products, or narrow-mindedness

against imports (LeVine and Campbell, 1972). Furthermore it is the beliefs held by consumers about

the appropriateness, indeed morality, of purchasing foreign-made products (Shimp and Sharma, 1987).

The ultimate reasons behind the ethnocentric tendencies are the indirect patriotic emotionswhich provoke the nationalism, morality and protection to local industry which ultimately serve the

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economy and customers in the form of less demolishing of local industry and un-employment (Booth,

1979; Levine & Campbell, 1972; Wagley, 1993; Worchel and Cooper, 1979; Durvasula et al., 1997;

Vida and Fairhurst, 1999).The ethnocentric tendencies of the customers are well associated with the term Country of

Origin (COO) of any brand. Here consumer attitude towards any product can hold dichotomy of

construct, as COO can hold positive and at the same time negative attitude base while making the

purchase decision (Papadoupoulos et al., 1993).

Numerous studies have been carried out all over the world to explore the ethnocentrism of localcustomers. These studies helped a lot to understand the contractual bases of consumer ethnocentrism

(Shimp and Sharma, 1987; Han, 1988; Chasin et al., 1988; Durvasula and Netemeyer, 1992; Sharma etal., 1992; Netemeyer et al., 1991; McLain and Sternquist, 1991; Kaynak and Kara, 1996). Shimp &

Sharma (1987) built a scale to gauge consumers ethnocentric tendencies: the named as CET-scale. The

scale consists upon 17 items with seven point likert statements. Furthermore the scale was primarysource of measurement in almost all upcoming researches. CET-scale was not found not only found

valid but also reliable Durvasula et al. (1997), Hult et al. (1999) and Luque-Martinez et al. (2000). So it

can be used in further research on consumer behavior construct specially ethnocentrism.After an extensive review of the ethnocentrism and country-of-origin literature, Shimp &

Sharma (1987) recognized more than a few socialpsychological notions and demographic factors,

related to consumer ethnocentrism in the product-sector. There were four socialpsychologicalantecedents of consumer ethnocentric tendencies: openness to foreign cultures, patriotism,conservatism, and collectivism/individualism. Demographic factors utilized were: age, gender,

education, and income. In product sector two moderating factors were also explored: perceived

necessity of the product and perceived economic threat of foreign competition. Prior to movingtowards ethnocentrism in service sector it will be of worth to note that this scale has been used in

services sector research of ethnocentrism exploration (Ruyter, Birgelen, & Wetzels, 1998).

2.2. Consumer Ethnocentrism and Services

Over the last 50 years there has been a fruitful debate in the literature for the specific characteristics ofservices and products (Lovelock & Gummesson, 2004; Vargo & Lusch, 2004 & Berry, 1985) Services

are at for hand differentiated than products. The basic properties of services which distinguish them

from services are four well established dimensions like, inseparability of production and consumption,intangibility, transistorizes and heterogeneity (Berry, 1980; Zeithaml et al., 1985). The services possess

higher perceive level of risk while a purchase decision making process as less prior information is

available to end customer (Bateson, 1992). The services are more complex to present market andpenetrate. Customer does not get the accurate information like packing, tangible appearance and

warranty assurance prior to use. These characteristics make services sector more sensitive than

products (Griffin, 1997; Hughes & Wood, 2000; Sirilli & Evangelista, 1998).

Services sector plays a vital role today in any countrys growth both in productivity andstrategic point of view. Now a days services sector growth is generally for high than product sector in

almost every economy (Maroto-Snchez & Cuadrado-Roura, 2009). Furthermore, Vandermerwe &

Chadwick (1989, p. 79) note: the whole world is the domain of service activities today. The fact is,the services sector has been acknowledged as the best ever upward area of international trade (Terpstra

& Sarathy, 1993). Such shift seems to be result of technological innovations in recent times. So

ultimately the globalization of the products and markets is generating more complex market trends.The completion is becoming tougher in various services markets across globe. Ultimately the

local market growth has urged many international players to take part in local services markets.

Furthermore, bifurcation of services industry reveals a clear story. The completion in financial servicesis more than ever before. Same is the case in transport, courier, telecommunication and utilities sector.

This internationalization of services also invited researchers to point out the social barriers in

marketing of foreign services (Cowell, 1993).

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Past researches on internationalization of services focused on various strategic issues in

marketing of international services (Erramili, 1990, 1992; Erramili & Rao, 1990, 1993), international

services specifically the trade policies regarding services (Tronsden & Edfelt, 1987), industry specificissues of international trade (Terpstra & Yu, 1987; Williams, 1992) and competitive advantage in

various international services and product trade (Porter, 1990).

So as we see the services are core portion of todays world trade and unlike ever seen this

sector has got a great division of economic framework. The understating of consumer behavior

regarding this arising phenomenal increase becomes more necessary than ever before. The ultimateforces that shape the consumer attitude towards availing or not a service are very important. The recent

decentralization of services sector in the shape of privatization in developing countries has opened themarket scenario. The decentralization in various service sectors like telecommunication, transport,

courier and utilities in Pakistan has opened new horizons. Now it would be noteworthy to understand

to estimate the role of ethnocentrism in consumer decision making process regarding services. Havingsaid that, Pakistani economy has experienced the greatest in flow of investment in services sector. So

aim of this study would be examining the barrier of ethnocentrism in internationalization of services.

2.3. Demographical ContextDemographical context is found to be more vital while discussing the ethnocentric behavior of

consumers. Past studies are found to be very constant in this regard. Where, the demographics contextof the respondents is found to be constant (Good Linda K., & Huddleston, 1995). In all-purpose, agehas been merely consistently considerably and absolutely connected to approach towards products and

services. Customers with low age are generally more unlocked attitudes are more positive towards

foreign products (Schooler, 1971; Tongberg, 1972; Wall et al., 1988; Wang, 1978). McLain andSternquist (1991) found that customer with high age are more ethnocentric than the younger one. Age

is found to be a core determinant of ethnocentrism in consumer behavior.

Furthermore, the high income level was explored to be positively associated with a welcomeattitude towards foreign products (Wan, 1978; Wall et al, 1988). Heslop (1986) found a positive urged

the relation of high income and preference for foreign products. While some studies by the same

authors in different context rejected this theoretical claim.

The education is also associated with ethnocentrism level of consumers. The relationship ofeducation and ethnocentrism has been found constant in literature. The low level of education is

positively associated with high level of education (Anderson and Cunningham, 1972; Wall and Heslop,

1986; Dornoff et al., 1974; Wang, 1978; Schooler, 1971). Likewise McLain and Sternquist (1991)explored the positive relationship between lower level of education and high tendency of

ethnocentrism. Han (1988) on the other hand argued the superior level of education is positively

associated with patriotic feelings.Same mixed response is originated in some studies regarding sex and ethnocentric feelings. The

females found to be more ethnocentric (Dornoff et al., 1974; Schooler, 1971; Wang, 1978). Whereas,

McLain and Sternquist (1991) seen the sights that there is no gender difference and particular opinion

concerning the attitude towards decision between local and foreign products. So, researchers

determined all of above demographical variables in the study.

3. Conceptual Framework and Hypothesis GenerationThe study is based upon well settled frame work of previous studies of (Shimp & Sharma, 1987;Sharma et al., 1995; Ruyter, Birgelen, & Wetzels, 1998). The complete frame work of study will be an

adoption of above discussed studies. So it should be discussed as replication and extension of those

studies. The study will use ethnocentricity as a crucial construct, will use four socialpsychological

concepts:, patriotism, openness to foreign cultures, conservatism and collectivismindividualism. While using the dempgraphical variables four variables will be looked at, age,

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education level, income level and sex. Two moderating variables availablity of alternative and

percieved economic threat are included in this study. The conceptual elaburation for our theoratical

frame work is elaborated in figure 1.The hypothis of the study will be a replication like Sharma et al. (1995).

The hypothesis H1-H8 was drawn from Sharma et al. (1995). While H9 was proposed by

(Ruyter, Birgelen, & Wetzels, 1998). H9 is based on assumtion that the professional emloyeed in the

sector will be more ethnocentric regarding the consumption of services.

H1: There will be a negative relation between cultural openness and consumer ethnocentrictendencies with regard to international services.

H2: There will be a positive relation between consumer patriotism and consumer ethnocentrictendencies with regard to international services.

H3: There will be a positive relation between consumer conservatism and consumer

ethnocentric tendencies with regard to international services.

H4: There will be a positive relation between consumer collectivism and consumer

ethnocentric tendencies with regard to international services.

H5: Older consumers will have more consumer ethnocentric tendencies towards services thanyounger consumers with regard to international services.

H6: Women will have more consumer ethnocentric tendencies than men with regard to

international services.H7: Higher educated consumers will have less consumer ethnocentric tendencies with regard to

international services than consumers with lower education.

H8: Consumers with Low income levels will have more consumer ethnocentric tendencies with

regard to international services than consumers with higher incomes.

H9: People working in the services-sector will have more consumer ethnocentric tendencies

with regard to international services than persons who work in other industry sectors.

Paulhus, (1991) has repoted that the respondents present themselves more patriotic while

answering the research question. Where as their orginal behaviour may vary in purche decision

making. So the ultimate response of the may tend more towards the patriotic feelings while markingtheir answers. This phenomenon was taken as a chellange and researchers will try their level best to

counter this issue.

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4. An Empirical Study4.1. Sectors Selection

Nine different services sector were identified in Pakistan, where both local and foreign serviceproviders were available. These services incorporated: banking services, travel agencies,

telecommunications, mail services, express delivery services, public transport by bus, medicine supply

and air travel.The selection criteria also included the basic theme of study like internationalization of

services. In Pakistan the competition is really tough as for as the banking sector is concern. Travelingagencies are included on the basis of limited options. In telecommunication as the largest growingbusiness sector the ground reality is there in face to face war between local and Foreign Service

providers for market share. Well established Pakistani companies are available in express delivery

services. These companies are providing tough time to international service providers. Mail services

sector is also rushed. Few international bus services providers are available and penetrating really goodin Pakistan. Like whole global market medicine services and air service market is also really tough.

4.2. Questionnaire Development and Sampling MethodThe researchers preferred to use the established scales while measuring conservation, collectivism,

patriotism, perceived economic threat and ethnocentrism. Whereas, the attitude of customer while local

competitors was available, was measured by self established scale.To measure the level of ethnocentrism researchers has used the well established scale of (Shimp

& Sharma, 1987). The scale is validated in various studies across the world. Many researchers have

also been conducted on ethnocentrism tendency with the help of that17 items CETSCALE. Patriotismwas measured with a five items scale developed by (Yang et. al., 2010). The level of conservatism was

measured with the help of six items derived from a scale developed by Ray (1983). Collectivism

tendency was measured with an eight item scale of (T. M. Singelis et. al., 1955). Whereas, perceived

economic threat was measured with a two item scale derivative from (Ruyter, Birgelen, & Wetzels,1998). All item measured with a seven point likert scale. Where 1 = strongly disagree, 2 = disagree, 3 =

somewhat disagree, 4 = neutral, 5 = somewhat Agree, 6 = agree, 7 = strongly agree.

The hypotheses were tested on the collected data. Sampling method was simple random

probability where everyone got the equal chances of selection. The questionnaire was a selfadministrated. To reduce the level of researchers biasness, researchers only interfered when they were

asked to do so in case of any sort of ambiguity. The data was collected from five major cities ofPakistan like Rawalpindi, Karachi, Lahore, Peshawar and Faisalabad. The total number of fully

completed were 196. As the questionnaire was lengthy enough the response rate was about 23%.

The table 1 Explains the references of the studies from where the questionnaire was derived.

Table 1:

Sr.

No.Construct Number of Items Study Author Year

1 Ethnocentrism 17

"Consumer ethnocentrism:

construction and validation of the

CETSCALE"

Shimp, T. andSharma, S.

1987

2 Collectivism 8

"Horizontal and Vertical Dimensions

of Individualism and Collectivism: A

Theoretical and Measurement

Refinement"

T. M. Singelis,

H. C. Triandis,

D. P.S. Bhawuk

1995

3 Patriotism 5

"Effects of boundary-permeated self

and patriotism on social participation

in the Beijing Olympic Games'

Yang et al. 2010

4 Conservatism 5"A scale to measure conservatism of

American public opinion"Ray, J. J. 1983

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4.3. Descriptive AnalysisData collected from 196 Pakistani respondents was analyzed with the help of SPSS (19 Version).

While analyzing the responses of the respondents it would be note worthy to point out the generalcharacteristics of the sample. The general respondents were women their ages range between 20 to 40

years. And majority of the respondents were working with product sector business. The majority of the

respondents were of graduate are above level of education. While there monthly income was between

20000 to 30000 Pakistani rupees. Table 2 will present a glimpse of demographical characteristics of the

sample.

Table 2: Demographical Characteristics of Sample

Sr. No. Variable Choices Percentages

1 Gender Male 49.60%

Female 51.40%

2 Age Below 20 23.90%

20 to 40 Years 46.10%

Above 40 30.00%

3 Education Metric or Below 13.30%

Intermediate 29.80%

Graduation or Above 56.90%

4 Income (Monthly) Below 20,000 Rupees 34.20%

20,00040,000 Rupees 41.80%

40,000 or Above 24.00%

5 Professional sector Agriculture 2.90%

Trade and industry 60.10%

Services Sector 40.00%

Having said that replication is an important source of more pure and refined scientific

knowledge (Rosenthal & Rosnow, 1984). This study also aimed to refine the previous study of

consumer ethnocentrism. Here, researchers have tried to compare the result of this study with one ofinitial studies on consumer ethnocentrism of product sector done by Sharma et al. (1995) in Korea and

the most relevant research on consumer ethnocentrism by Ruyter, Birgelen, & Wetzels, (1998)

conducted in Neitherland on services sector. In Sharma et al. (1995), an average score 5.00 score on theCET-scale was gained, 0.71 of the highest possible score of 7 points likert scale. Whereas, in

Netherlands the average score was 4.52, and highest score possible was 0.50 on 9 point likert scale.

The findings of this study depicts the CET score in Pakistan was 4.93 and highest possible score was0.70 on 7 point likert scale. So this score is very much in accordance with Sharma et al. (1995) in

Korea.

Table three is aimed to provide a bird eye view and comparison of consistency of this studywith two previous studies. Where each variable is compared in triple background constructs. This will

add the contextual back up of finding of this study with previous studies on same topic.

Table 3: Comparison of Variable Scores in Various Contexts

Variable

CET services Sector

(Netherlands)CET products Sector (Korea)

CET services Sector

(Pakistan)

MeanHighest Possible

ScoresMean

Highest Possible

ScoresMean

Highest

Possible Scores

Cultural Openness 6.14 0.68 5.07 0.72 4.73 0.69

Patriotism 5.49 0.61 5.27 0.75 5.1 0.71

Conservatism 5.57 0.62 5.64 0.81 5.9 0.86

Collectivism 5.97 0.66 5.18 0.74 6.1 0.9

CET-scale 4.52 0.5 5 0.71 4.93 0.7

Economic Threat 4.32 0.48 4.12 0.59 5.1 0.73

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Chronbachs Alpha was realized as measure of data reliability. An overall reliability score of

inter item reliability was .872 of the collected data. George and Mallery (2003) argued: _ > .9

Excellent, _ > .8 Good, _ > .7 Acceptable, _ > .6 Questionable, _ > .5 Poor and _ < .5 Unacceptable (p. 231). So, we may conclude this as score Good on reliability measure. Table 4 is a

comprehensive detail of Chronbachs Alpha of all variables.

Table 4: Reliability of the scales

Variables Chronbach's Alpha ()

Cultural Openness 0.691

Patriotism 0.79

Conservatism 0.812

Collectivism 0.619

CET-scale 0.872

Economic Threat 0.764

4.4. Hypotheses TestingThis section will include the hypothesis testing their result and inter predation of the results. H1, H2,

H3, H4, H5 and H8 were depicting the assumption or correlation. So, correlation analysis was

conducted to analyze the nature of relationship. All tests were performed with 5% significance level.H1 was accepted as there was significant relationship found between culture openness and

ethnocentrism it can be concluded that the consumers with more tendency towards cultural openness

were less ethnocentric as r = - 0.229 (p 0.002). H2 revealed that consumers with more patrioticemotions proved to be more ethnocentric. Ultimately the hypothesis was accepted with r = 0.519 (p

0.001). H3 resulted in a positive correlation between conservatism and ethnocentrism as r = 0.398 (p

0.002). It concludes conservative customers are more ethnocentric while using the foreign services. In

H4 case higher collectivism follower were more biased towards using the local services, where as r =0.273 (p 0.002). H5 reached to acceptance level by supporting the hypothesis that elder consumers

are more reluctant towards using the foreign services. Here r = 0.503 (p 0.001) describes a sound

relationship between consumer ethnocentrism and age. H8 was also accepted with significantcorrelation r = 0.438 (p 0.001) between low income and consumer ethnocentrism for international

services.

To measure the mean difference of gender approach to biasness towards local product in H6researchers used t-test. The women (CET mean = 5.32) were found to be more ethnocentric than men

(CET mean = 2.97). The t vale was 2.4 at the significance level p 0.002. As the result the hypothesis

was accepted as a significant difference of approaches towards foreign services across gender was

found. Due to assumption nature H7 and H9 were tested with the help of One Way ANOVA analysis.While discussing the H7 consumers with higher education level were less ethnocentric (CET

mean = 3.97) than low education level (CET mean = 5.71) While overall (CET mean = 4.58). As a

result H7 was significantly accepted. H9 was also accepted with revealing the high level of consumerethnocentrism to (CET mean = 5.58) using foreign services as compare to persons working in other

sectors (CET mean = 3.74) whereas, average mean was (CET mean = 5.63).

Table 5 is a comprehensive depiction of overall results.

Table 5: Hypothesis Testing Results

Hypothesis and Test Results

HI Correlation Cultural Openness & CET r = - 0.229 (p 0.002)

H2 Correlation Patriotism & CET r = 0.519 (p 0.001)

H3 Correlation Conservatism & CET r = 0.398 (p 0.002)

H4 Correlation Collectivism & CET r = 0.273 (p 0.002)

H5 Correlation Age & CET r = 0.503 (p 0.001)

H6 T-test Gender & CET t = 2.4 (p 0.002)

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Table 5: Hypothesis Testing Results - (Continued)

H7 One-way-ANOVA Education & CET F = 11.93 (p = 0.002)H8 Correlation Income & CET r = 0.438 (p 0.001)H9 One-way-ANOVA Professional Sector & CET F = 3.782 (p = 0.026)

5. Summary and Concluding RemarksNow study can be concluded and summarize the overall results and findings of this study. There isnegative relation between cultural openness and consumer ethnocentrism tendency. Patriotism is

positively associated with consumer ethnocentrism. Conservation feelings of consumers lead to general

ethnocentric behavior towards foreign services. Consumers who believe more in collectivism are

tended to be more ethnocentric. Generally elder consumers are more ethnocentric as compared toyounger one. Moreover, women have high ethnocentric feelings as compared to men in Pakistan.

Whereas, less educated consumers generally are more biased towards using local services, as compared

to highly educated consumers. As for as income level is concerned people with low income level preferthe consumption of local services. People working in services sector showed high level of

ethnocentrism in choice between consumption of local and foreign services.

To find out the generalize the finding of the study table 6 is aimed to compare the findings ofthe study with an initial study of consumer ethnocentrism level of Korean customers in product sector

Sharma et al. (1995) and a services sector study of consumer ethnocentrism Ruyter, Birgelen, &

Wetzels, (1998) in Neitherlands. It wolud be noteworthy to point out here the settings of these

researches are in various geographical location but the finding may inculde some wide-rangingthoratical implications. Slight variation in the study might be result of dissimilar sort of cultural context

and setting of the study.

Table 6: Comparison of Results of Hypothesis

HypothesisCET services Sector

(Netherlands)

CET products

Sector(Korea)

CET services Sector

(Pakistan)

1. Cultural openness & CET Accepted

Accepted Accepted2. Patriotism & CET Accepted Accepted Accepted3. Conservatism & CET Accepted Accepted Accepted

4. Collectivism & CET Accepted Accepted Accepted5. Age & CET Accepted Rejected Accepted6. Gender & CET Rejected Accepted Accepted7. Education & CET Accepted Accepted Accepted

8. Income & CET Rejected Accepted Accepted9. Professional sector & CET Accepted N/A Accepted

Hypothesis Result

Study have some limitations also, the researchers could not include the moderator variables

such as perceived necessity of the service, availability of the alternative and economic threatsassociated with service consumption. More over a study should be conducted in vast geographical

location including more metropolitan cities in Pakistan. The literature also lack as for as consumer

ethnocentrism tendency in product sector of the country.

5.1. Managerial ImplicationThe findings of this study can have great contribution towards understanding and comprehension of

consumer attitude towards foreign services in developing countries. Where literature suggest aimmense gap in theory and its implication in developing countries (Iqbal et al, 2010). To understand

and implement the service marketing concept in devloping countries this study can help a lot to

managers while making decisions like market entrance, market penetration and advertesement modes.Good & Huddlestone (1995, p. 45) point outs: Advertisements need to use Polish/Russian actors and

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need to communicate in a culturally consistent manner, focusing on the countries rich history and

cultural arte facts. To understand the consumer feelings expectations is well base for marketing

policies and decision making whereas study provides a deep insight into ethnocentrism trends of adeveloping countrys consumer market.

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