**DETERMINE AND VALIDATE JORDANIAN CONSUMER ETHNOCENTRISM ANTECEDENTS Abbas Natheir Albarq University Utara Malaysia, Department of Marketing, 06010 Sintok, Kedah, Malaysia Tel.: +601 64737370 [email protected] Nik Kamuriah Nik Mat University Utara Malaysia, Department of Marketing, 06010 Sintok, Kedah, Malaysia Tel.: +601 64737399 [email protected] Ernest Cyril Dr Run University Malaysia Sarawak, Deputy Dean Faculty of Economic and Business, Tel.: +601 888430 [email protected] Abstract This study attempts to determine and validate the antecedents of consumer ethnocentrism in Jordan. Ethnocentrism is one of the oldest concerns of international marketers is whether the “foreignness” of a product will make it less preferable to consumers in different countries. From the literature, seven antecedents of customer ethnocentrisms were identified. Each variable is measured using 7-point Likert-scale: culture openness’ (6 items), conservatism (6 items), collectivism/ individualism (6 items), patriotism (6 items), control belief (5 items), interest in foreign travel (4 items) and attitude toward foreign product (4 items). Using survey method, 115 questionnaires were distributed for data collection, calling by telephone, household – selected randomly from yellow pages. The responses collected were 93 questionnaires representing 81 percent response rate. Exploratory factor analysis using principle component and varimax rotation method performed on the data produces seven underlying components consisting of culture openness’ (6 items), conservatism (5 items), collectivism/ individualism (6 items), patriotism (6 items), control belief (5 items), interest in foreign travel (4 items), attitude toward foreign product (4 items) and Consumer ethnocentrism was measured using the CETSCALE 17 items. Thus, the antecedents of customer ethnocentrism were substantiated and its construct validated in this study. The finding is discussed in the light of consumer ethnocentrism in Jordan. Keywords: ethnocentrism, culture openness, conservatism, patriotism 1.1 Introduction Despite globalization, barriers to success in foreign markets remain. One such barrier, ethnocentrism, was introduced by Sumner (1906), who defined it as the view of things in which one’s own group is the center of everything, and all others are scaled and rated with reference to it. Each group nourishes its own pride and vanity, boasts itself superior, exalts its own divinities and looks with contempt on outsiders. Ethnocentrism is considered a component of attitude that is deeply rooted in most sociological and interracial1 relations (Adorno, Frenkel-Brunswick, Levinson, and Sanford 1950; Chang and Ritter 1976; LeVine and Campbell 1972; Sumner 1906). It refers to an inflated preference for one’s own group and, at the same time, indifference and/or dislike for others. An ethnocentric individual strongly supports traditions, symbols, icons, and products of his or her own culture and, simultaneously, dislikes those of other cultures. Over time, individuals develop perceptions about various cultures that form a basis for comparing products of other countries with those of their own country. Ethnocentrism is learned and is part of an individual’s socialization. In addition, ethnocentric tendencies are reinforced by an individual’s experiences with outside cultures and the cultures’ products, it is a construct which has been widely used in studying consumer attitudes toward foreign products, its one of the oldest concerns of international marketers is whether the “foreignness” of a product will make it less preferable to consumers in different countries (Schooler 1965, 1971). Consumer ethnocentrism derives from this general construct of ethnocentrism and refers to people who view their own group as central. One of the most important definitions nowadays Shimp and Sharma (1987) as beliefs held by consumers about the appropriateness or morality of purchasing foreign products. Purchasing imported goods is seen as wrong as it will harm the domestic economy, have an adverse impact on domestic employment, and is unpatriotic. Along with increased nationalism and heavy emphasis on cultural and ethnic identity, consumer ethnocentrism will be a potent force in the global business environment in the years to come. Increased global business has also led to a renewed interest in the effect of consumer ethnocentrism; concepts evoke certain attitudes towards products from abroad on consumer decision making (Papadopoulos and Heslop, 1993). Globalization which tend to be increasing in import from and export to various countries around the world, it facilitate and brought culture closeness, but have we reached an era where geographical borders become less important as consumers across nations are becoming more homogeneous. Or, as globalization forces are intensified, consumers are more concerned about a product’s country of origin? To which extent nations prefer domestic products as opposed to foreign? Although still a long way from the "global village" that Ted Levitt (1985) predicted over a decade ago, an increasing number of consumer markets are characterized by global competition. Moreover globalization trying to integrate nations, peoples and culturally into a larger community, Schütte and Ciarlante (1998) argue that globalization will not obliterate cultural differences and standardize consumer behavior around the globe. It has been hypothesized that cultural differences are still, by looking for the current conflict in the Middle East and events like September 11, serve as a reminder that the world is still not a cohesive international community, and geographic loyalties likely influence consumer preferences. Following the Gulf War in the early 1990s, the slogan “Made in America” urged American consumers to pledge loyalty to U.S. products, thereby showing their support of overseas military efforts. September 11 and the Afghanistan and Iraqi conflicts led to the quick depletion of American flags in stores, implying that positive U.S. sentiments were developing throughout the country. Thus, the objective of this study is to identify the antecedents of customer ethnocentrism and to validate the internal consistency of each antecedent construct. This paper is structured as follows. First, we review the marketing literature on the antecedents of customer ethnocentrism. Next, we present the research framework, methods, measures and findings. Finally, the results were discussed in terms of its contribution to global banking business and recommendations for future research. 2.1 Literature Review: Antecedents of customer ethnocentrism The term “ethnocentrism” derives from a more general concept; researchers have investigated the relationships between consumer ethnocentrism and a number of socio-psychological variables. From our reading we have identified seven main antecedence vis-à-vis, cultural openness (Sharma et al., 1995; Howard, 1989; Berkowitz, 1962; Skinner, 1959; Rosenblatt, 1964), patriotism (Sharma et al., 1995; Sumner, 1906; Adorno et al., 1950; Mihalyi, 1984; Han, 1988; Klein and Ettenson, 1999; Balabanis et al. 2001), conservatism (Sharma et al., 1995; Wilson and Patterson, 1968; Balabanis et al., 2002; Anderson & Cunningham, 1972; Wang, 1978) Collectivism/individualism (Sharma et al., 1995; Nishina, 1990; Ettenson et al.’s, 1988; Hui&Triandis,1986; Triandis, Brislin, & Hui, 1988), control belief (TPB Theory, Ajzen, 1998), interest in foreign travel (Mooij, 1997; Douglas, Susan P. and Edwin J. Nijssen, 1998), attitude toward foreign product (TPB Theory, Ajzen, 1998). 2.1.1 Cultural openness Cultural openness, is defined as awareness, understanding, and acceptance of other cultures (Sharma et al., 1995). Studies that found a negative relationship between cultural openness and CET (Shimp and Sharma, 1987; Howard, 1989) seem to have relied heavily on conventional wisdom that “cross-cultural interactions and travel opportunities can broaden one’s mind” (Berkowitz, 1962). As a matter of fact, Skinner (1959) observed that members of a group that have “the most contact with new cultures such as border dwellers, travelers and diplomats tend to be extremely ethnocentric or nationalistic” (Rosenblatt, 1964, p. 138). 2.1.2 Patriotism Sharma et al. (1995) put forward the argument that patriotism, defined as love for or devotion to one’s country, is positively related to CET. Their logic was imported from earlier studies that dealt with ethnocentrism in general. For example, several authors contended that patriotism is not only related to ethnocentrism, but also acts as a defense mechanism for the in-group (Sumner, 1906; Adorno et al., 1950; Mihalyi, 1984). Empirical support for a positive relationship between patriotism and CET is provided by studies such as Han (1988), Sharma et al. (1995) and Klein and Ettenson (1999). Balabanis et al. (2001) found that patriotism had a positive relationship with ethnocentrism, but only for one of the two samples surveyed. They concluded that the effect of patriotism on ethnocentrism may vary from country to country, often because of historical events. 2.1.3 Conservatism Conservative persons are those that “show a tendency to cherish traditions and social institutions that have survived the test of time and to introduce changes only occasionally, reluctantly and gradually” (Sharma et al., 1995, p. 28). In its extreme form, conservatism can manifest itself as religious intolerance, insistence on strict rules and punishments and an anti-hedonic outlook (Wilson and Patterson, 1968 in Sharma et al., 1995). Studies such as Sharma et al. (1995) and Balabanis et al. (2002) found a positive relationship between conservatism and costumer ethnocentrism. A positive relationship was found by country-of-origin researchers between conservatism and attitudes toward foreign products (Anderson & Cunningham, 1972; Wang, 1978). A conservative consumer typically exhibits characteristics such as religious fundamentalism, pro-establishment orientation, insistence on strict rules and punishments, preference for the conventional and anti-hedonic outlook 2.1.4 Collectivism/individualism Collectivism/individualism is another socio-psychological variable used in past research as an antecedent to consumer ethnocentrism. In the field of psychology, extensive research has revealed differences between collectivist cultures and individualistic cultures (Hui&Triandis, 1986; Triandis, Brislin, & Hui, 1988). Collectivistic persons are likely to show ethnocentric tendencies because they consider their actions in relation to their societal group. Individualistic persons, on the other hand, will act for their own benefit and will show lesser degrees of ethnocentrism. These findings were confirmed in a study conducted by Sharma et al. (1995). As collectivists consider the effect of their actions on the larger group or the society, people with collectivistic goals “tend to reveal more intensive ethnocentric tendencies than those with individualistic goals” (Sharma et al.,1995, p. 28). Empirical support for positive correlation between collectivism and CET can be found in studies such as Nishina (1990) and Sharma et al. (1995). 2.1.5 Control belief toward foreign product Ajzen (1998) refers the PBC control beliefs as the perceived ease or difficulty of performing the behavior and it is assumed to reflect past experience as well as anticipated impediments and obstacles" (Ajzen, 1988, p. 132). This refers to perceived control over a behavior, not the objective, actual amount of control a person has in a certain situation. Therefore, perceived control over a certain behavior in the same situation may differ, depending on the person's perception of the control. 2.1.6 Interest in foreign travel This tends to reduce tendencies towards ethnocentrism where these stem from a lack of experience or knowledge rather than prejudice (Mooij 1997). Individuals often learn about other cultures in school by reading about them, or by watching programs on television. However, actual experience of visiting or living in another country is likely to have the most profound effect on knowledge about other countries and other peoples' life-styles and increase receptivity towards foreign products. Positive attitudes toward travel abroad will reflect a more international orientation. Douglas, Susan P. and Edwin J. Nijssen (1998) found that, while negative attitudes towards the purchase of foreign products are associated with patriotism, they are not necessarily strongly associated with lack of interest in foreign travel. On the other hand, more nuanced attitudes towards the purchase of foreign products appear to be associated with love of foreign travel and exposure to foreign countries. 3.1 Research Framework Figure 1 shows the research framework of the study. The literature indicates that culture openness, conservatism, collectivism/ individualism, patriotism, control belief, interest in foreign travel and attitude toward foreign product are direct antecedents of customer ethnocentrism. FIGURE 1: RESEARCH FRAMEWORK Culture Openness Conservatism Collectivism Patriotism CET Control belief Foreign travel Attitude 4.1 Methodology A total of 115 calling by telephone, household respondents from yellow pages of Jordan– was randomly selected for the survey, The responses collected were 93 questionnaires representing 81 percent response rate. Each variable is measured using 7-point Likert-scale: culture openness measure was adopted from Sharma. (1995) Jeongshin (1993)-(6 items), conservatism was adopted from Rays (1983)- (6 items), collectivism/ individualism was adopted from Hui (1988)-(6 items), patriotism was adopted from Andorno, (1950) - (5 items), control belief was adopted from Ajzen. (1998). and interest in foreign travel was adopted from (Douglas and Nijssen, 1998) (4 items). Attitude toward foreign product was adopted from Martin and Stewart (2001) and Hastak and Olson (1989) - (4 items). Consumer Ethnocentrism, Consumer ethnocentrism was measured using the CETSCALE 17 items (Shimp & Sharma, 1987). The data collected was analyzed using SPSS software mainly utilizing factor analysis, descriptive statistics and reliability test. The cronbach alpha readings of all measures are presented in Table 1. All alpha readings are above .70 indicating a high internal consistency in all measures utilized. TABLE 1: RELIABILITY COEFFICIENT Variable Name N No. of Items Alpha Coefficient Culture Openness 93 6 .964 Patriotism 93 6 .928 Conservatism 93 6 .842 Collectivism/individualism 93 5 .940 Control Belief 93 4 .855 Interest in foreign travel 93 4 .854 Attitude toward foreign product 93 4 .964 93 17 .990 Ethnocentrism 5.1 Findings An exploratory factor analysis using principal component extraction method with varimax rotation was applied in the first instance to test for sample adequacy in running this method of analysis. The KMO or Measure of Sampling Adequacy (MSA) reading is .812 (>.5) and Bartlett's test of sphericity stands at significant level of .000 (sig<.05), thus making the following factor analysis permissible (Hair.et al.2006). Next, an exploratory factor analysis using principle component extraction method with varimax rotation method was duly conducted. The KMO has increased to .812 and Bartlett’s test of sphericity shows a significantly high reading (sig at .000). Table 2 illustrates the result of the exploratory factor analysis. The final results produced seven components with eigenvalues above 1 and explaining a total of 79.374 percent of variance cumulatively. Factor 1 which represents culture openness’ contains 6 items remaining from 6 items proposed originally. Factor loadings above .50 were selected and it explains 29.609 percent of variance in factor one. Factor two which is patriotism contains 6 items. Only one item of the original collectivism/individualism with factor loading less 0.5 was drop in this component. Conservatism measure indicates a 12.092 percent variance. The fifth factor produced by the CFA is interest to travel consisting four items with factor loading above .5 and percentage of variance explained is 7.444. Control belief forms the six factor consisting of 5 items with factor loadings readings above .5 and percentage of variance of 4.907. The seventh component is attitude toward foreign product which consists of 4 items with factor loadings of above .5 and percentage of variance is 3.553. To conclude, the CFA conducted indicates that all seven factors are likely constructs of each measure. The internal consistency of each construct are somewhat substantiated. TABLE 2: FACTOR ANALYSIS RESULT Factor/Variance Label explained Attributes Factor 1 Culture Openness 1. I have strong desire to overseas travel. 2. I would like to learn more about other countries. 3. I would like to have opportunities to meet people from other countries. 4. I am very interested on trying food from different countries. 5. I am open-minded towards foreigners and their habits. 6. We should have a respect for traditions, cultures and way of other nations. .892 .884 .880 1. Serving the mother land is an “honorable” thing 2. I get very angry when foreigners speak ill of Jordan. 3. On every national holiday we should raise the flag 4. It’s important to sustain our national anthem. 5. If I were to be born again, I would like to be born as a Jordanian again.. 6. A real Jordanian man supports Jordanian sportsmen when they compete in international games. 1. Jordanian should use their hand to eat (traditional mails) and not use the spoon. 2. Erotic and obscene literature should be prohibited from public sale. 3. The wedding should not be mixed, must separate between men and women. 4. School children should have plenty of discipline. 5. Low against cousin Marriage are old fashioned and wrong. 6. Teenagers should listen to their parents advice on choosing spouses 1. There is everything to gain and nothing to lose for classmates to group themselves for study and discussion 2. Young people should take into consideration their parents’ advice when making education/career plans 3Classmate assistance is indispensable to getting a good grade at school. 4. It is reasonable for a son to continue his fathers business 5. One needs to return a favor if a colleague lends a helping hand 1. I like to visit exotic places during my vacation 2. I love to go abroad 3. I love traveling and visiting other countries 4. I go abroad several times a year 1. It would be convenient for me to buy foreign products. 2. It would not be difficult for me to buy foreign products. .890 .861 .854 .849 .847 Variance 26.490 % Factor 2 Patriotism Variance 14.538% Factor 3 Conservatism Variance 12.092% Co1 Co2 Co5 Co4 Co3 Co6 P3 P4 P2 P1 P5 P6 C1 C2 C3 C4 C5 C6 Ci3 Factor 4 Collectivism/indi vidualism Variance 10.350% Factor 5 Travel Variance 7.444% Factor 6 Ci4 Ci2 Ci5 Ci6 F4 F2 F1 F3 F5 F4 Factor Loadings .868 .867 .858 .798 .899 .891 .884 .883 .877 .824 .917 .891 .891 .888 .866 .806 .794 .791 .660 .759 .702 Control belief F1 F3 F2 3. I am extremely confident to buy foreign products. 4. It’s much more likely to buy foreign products. Variance 4.907% 5. It’s up to me to decide weather or not to buy foreign products. Factor 7 A1 1. I like foreign products very much Attitude A3 2. I think the foreign products are high quality. A2 3. I buy foreign products as much as possible. Variance 3.553% A4 4. I believe that a foreign product offers benefits to the consumers Extraction Method: Principal component Analysis. Rotation Method: Varimax with Kaiser Normalization. Kaiser-Meyer-Olkin (KMO) Measure of Sampling Adequacy .812, Bartlett’s test of Sphericity: Square= 3314.521, df = 630, Sig= .000. .669 .646 .550 .929 .926 .901 .875 Chi- 6.1 Discussion The objective of this research is to determine and validate the antecedent factor constructs of customer ethnocentrism in Jordan. Seven factors were subjected to confirmatory factor analysis shows a promising result of internal consistency. The CFA include all the six factors as possible antecedents of customer ethnocentrism. Bearing in mind that the measurements has been usually applied in a western culture, the construct validity gives some indications of its applicability in an Middle East (Arab) culture such as Jordan. 7.1 Contribution and recommendation for future research The findings could be applied for utilization in research regarding customer ethnocentrism in other Arab countries. Furthermore, the analysis of this study could be extended to the confirmatory factor analysis using structural equation modeling (SEM). 8.1 Conclusion This study has achieved its objective in determining and validating the internal consistency of seven constructs or the antecedents of customer ethnocentrism. References Adorno, T.W., Else Frenkel-Brunswik, Daniel J. Levinson and R. Nevitt Sanford (1950), The Authoritarian Personality. New York: Harper & Row Anderson, W.T. and Cunningham, W.H. (1972), “Gauging foreign product promotion”, Journal of Advertising Research, February, pp. 29-34. 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