This document summarizes a study on ethnocentric tendencies of Indian students. It begins with an introduction discussing the importance of understanding consumer behavior and how consumer ethnocentrism influences product purchasing decisions. It then reviews literature on the topic, defining consumer ethnocentrism and its cultural and economic components. The literature review also discusses the CETSCALE, a measurement tool for consumer ethnocentrism. The presentation flow and objectives are then outlined.
1. A Study on Ethnocentric
Tendencies of Indian
Students
Presentors
Harsh Ajmera
Korada Rahul Gupta
Prof. Sandeep Puri
2. Presentation Flow
• Introduction
• Literature Review
• Objective
• Methodology
• Finding
• Conclusions and recommendations
3. Introduction
• Stiff cut throat competition leads to forcing any manager to understand
his consumers.
• Understanding would lead to better strategies
• consumers love for the products made in own country has attracted
interest amongst practitioners to develop and evaluate their marketing
strategies and policies.
• The decision to purchase products made locally or internationally can be
stimulated by this expression. (CE).
• Big shift in Indian Economy since 1991
4. • Big changes in Consumer Behavior, Entry of foreign players, competitive
pricing,
• CE refers to views of consumers about appropriateness and morality
purchasing products made in foreign land.
• For people of ethnocentric opinion it is wrong to purchase imported
products because it hurts economy, causes to loss of jobs.
• For highly ethnocentric consumers, products from foreign land are a
matter of great contempt.
• While for the non ethnocentric consumers the products irrespective of
their origin have to be evaluated on the basis of its merits alone.
5. Literature Review (1)
• Term Introduced by W G Summers in 1906It is psychological construct
that aids in shaping attitudes and moral grounds of purchasing products
made not in one’s own country.
• Shankermahesh, 2006 sociological construct, as a view of things in
which the center of one’s decision making is one’s own group and others
are scaled and rated with respect to it.
• Luque Martizez et al 2000
– A difference arises between the in group and out group or the we-
group and other group or the us and everybody else as a group
– It’s a tendency of a person to identify strongly with his group culture
or to view any political, social or economic activities from point of in-
group
6. Literature Review (2)
• Shimp and Sharma 1987, consumer ethnocentrism is a universal
phenomenon rooted to racial and cross cultural relations such views
would be natural and even unconscious. Though
• Shankarmahesh 2006 argued on the contrary that they are part of
human nature. People have tendencies to
– Define their own culture correct and natural and while discard others.
– Perceive their customs are natural and universally good.
– Favor one’s own group.
– Feel proud of in-group and hostile of out-group
7. Literature Review (3)
• Ethnocentrism has two major components- cultural and economic.
– Cultural ethnocentrism would relate to views of a person that would
give preference to one’s own cultural norms and attitudes and devalue
others. This comes as visible by view of their clothing, religious
symbols, etc
– Economic Ethnocentrism views other groups as economic competitors
and therefore should be limited in their capacity. It is visible by the
preference one gives to goods and services of one’s own group.
8. Literature Review (4)
• The CETSCALE:
Shimp and Sharma 1987, developed the consumer ethnocentrism to a
measurable construct.
CETSCALE is a 17 items instrument formulates to better understand and
explain and predict consumer’s behavior for foreign products or services.
The Likert type sentences in this instrument measure the tendency of
consumers to act consistently towards and their origin.
• Bawa (2004), CETSCALE can be linked to the following four concepts:
– It results in the loss of jobs
– It is unpatriotic
– It hurts the domestic economy
– It is tied to product availability
– The instrument is well tested for validity and reliability as a measure of
Consumer Ethnocentrism with sample from USA, Spain and other
nations.