Consumer ethnocentrism is the belief that products from one’s own country are superior to those from other countries, and buying foreign products is unpatriotic. Companies study this to develop marketing strategies for entering foreign markets, and countries with high levels of consumer ethnocentrism have strong patriotism and skepticism of foreign goods. Small countries with animosity towards larger countries, low exposure to other cultures, and low levels of domestic alternatives are more likely to exhibit consumer ethnocentrism.
Consumer ethnocentrism is a psychological concept that refers to people who believe that their country’s products are superior to those of other countries. This concept also describes consumers in one country who think that buying products in other countries is immoral or inappropriate because it is unpatriotic. It is a common view among groups showing signs of consumer ethnocentrism that buying foreign-made products means not supporting the economy and the labor market of the country of origin.
Companies often study consumer ethnocentrism to develop strategic marketing plans for entering new foreign markets. By understanding the attitudes and beliefs of overseas consumers, a company can better position itself to come across in a more positive light. For example, a company entering a market that exhibits ethnocentrism may want to include in its advertisements that buying from them is supporting their country because the company has local offices that employ their neighbors.
Characteristics of countries with this mindset include skepticism of foreign goods, strong patriotism, and high availability of domestic brands. If consumers feel that foreign goods are generally inferior to their own domestic goods, then they will be less likely to endorse foreign brands. These consumers are also aware of economic conditions and want to support local jobs and businesses by not buying items that will take their money out of the country. If there are no local brands to fill a need, consumers will buy foreign goods until their needs are met locally.
The types of countries likely to develop consumer ethnocentrism include small countries with animosity towards larger countries, countries with low levels of exposure to other cultures, and those with low levels of domestic alternatives. Small countries that have experienced struggles with outside countries through political, military, and social events, for example, are more likely to bring those negative feelings to market when it comes time to make a purchase. Also, if a country is more isolated without too much exposure to other cultures, it will be more skeptical and less likely to buy foreign brands. If people feel like they have no choice but to buy the foreign good since it’s not available locally, however, they will reluctantly do so.
Based on the general theory of ethnocentrism, consumer ethnocentrism is specific to consumers in a particular country. Ethnocentrism refers to general groups of people, where there is an “in-group” and an “out-group”. In terms of consumer ethnocentrism, the ‘in-group’ is the country of origin and the ‘out-group’ is a foreign country. In 1987, Terence Shimp and Subhash Sharma first recognized the phenomenon and created the CETSCALE to measure its levels in various countries.
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