Consumer Ethnocentrism and Buying Intentions - Term Paper Example

Argument For or Against the Ramifications of Buying Products from Your Own Country Table of Contents Introduction 3 Purchase Behavior towards ForeignProducts 4 Advantages and Disadvantages of Buying Products from Domestic or Own Country 9 Advantages and Disadvantages of Buying Products from Foreign Country 9 Conclusion 12 Works Cited 14 Introduction The emergence of international trade along with the formation of various economic and political trade policies and practices among others eventually has widened the presence upon a market of products of different national and international origins. This particular aspect inspired in explaining a country of origin’s role particularly in domestic and international markets along with severe consequences upon the activities of the consumers (Torres & Gutierrez, “The purchase of Foreign Products: The Role of Firm’s country-of-origin reputation, consumer ethnocentrism, animosity and trust”). In relation towards the activities of the consumers, the purchasing decision of a consumer seems to be influential towards the success of a company’s strategy especially in domestic and foreign markets. In addition, consumer liking regarding foreign and domestic products could be influenced by their utmost trust and faith regarding the products and conception of consumer ‘ethnocentrism’ among others (Torres & Gutierrez, “The purchase of Foreign Products: The Role of Firm’s country-of-origin reputation, consumer ethnocentrism, animosity and trust”). The idea of globalization represents significant challenges and opportunities especially for the marketers and the consumers. The various modernizations particularly in the trade policies have offered more foreign product options towards the consumers’. In this connection, one of the factors that may affect upon the decision of the consumer in order to buy domestic product that is own country’s product or foreign products is consumer ‘ethnocentrism’ (Ranjbarian & Et. Al., “Consumer Ethnocentrism and Buying Intentions: An Empirical Analysis of Iranian Consumers”). Consumer ‘ethnocentrism’ signifies the universal liking for the people in order to realize their own group as the centre of the world and is defined also as an attitude that one’s own group is superior compared to others (Riefler, “Advanced Topics in International Marketing”). From the perspective of ‘ethnocentric’ consumers, purchasing products from foreign countries is not useful for them because it weakens the domestic economy, causes lack of employment and considers being disloyal or non-nationalistic among others. In other words, consumer ‘ethnocentrism’ provides an individual a sense of uniqueness, emotion, a proper understanding and feelings of belongingness among others (Shimp & Sharma, “Consumer Ethnocentrism: Construction and Validation of the CETSCALE”). In the paper, an argument regarding the different consequences of buying products especially from domestic and foreign countries is elaborately discussed. Various aspects to support in order to buy products from own country on the basis of quality, price and availability among others will also be taken into concern in this paper. Purchase Behavior towards Foreign Products The views or the opinions of globalization eventually increased various opportunities for different companies in order to allocate their goods to the customers all over the world. At the same time, consumers are able to choose various commodities and services in almost any category. International product adaptation makes it difficult to compare between goods and consumers find it more complex as well as costly to attain extra information regarding the quality of foreign products along with the activities of foreign companies (Torres & Gutierrez, “Purchase Behavior towards Foreign Products”). In this connection, the above activities compel the consumers to refuse foreign products because either they are not adequately familiar with the foreign products along with the foreign companies or the consumers need more information in order to reduce any improbability to purchase any product (Torres & Gutierrez, “Purchase Behavior towards Foreign Products”). The consumer choice for a particular product of a definite origin can be a severe outcome of various reasons that include product dependence, country of origin likeness, similarity between the countries, a country’s level of development or consumers’ beliefs and experiences among others (Torres & Gutierrez, “Purchase Behavior towards Foreign Products”). The customers hold to the beliefs as well as to the perceptions about the countries, which eventually influence their estimation at the time of purchasing. It has been identified that a particular product’s purpose value fluctuates within the countries and those values are consistent with the perceptions of the customers in relation to the product’s origin (Torres & Gutierrez, “Purchase Behavior towards Foreign Products”). The consumer’s involvement in purchasing decision making is becoming a central part of the international marketing strategies, particularly for the products or goods that are not available in a home or domestic country. The factors that may influence consumers’ selection as well as likings in order to purchase products or goods from one country over the others are crucial in recognizing the success of a company that mainly relies upon international market. It has been recognized that the significant factors like ‘country of origin’ and consumer ‘ethnocentrism’ play a major role in buying factors of the consumers (Torres & Gutierrez, “Purchase Behavior towards Foreign Products”). The ‘country of origin’ is often referred to as ‘made in’ concept where a particular commodity is originally made. In broad view, country of origin can be described as the positive or negative effect and eventually which influences a country’s products upon consumers’ buying procedures or activities (Torres & Gutierrez, “Purchase Behavior towards Foreign Products”). In today’s world of modern marketplace, where the markets are eventually performing dynamically, the products are designed in one country, manufactured in another country and get assembled in other parts of the world. This particular operation has resulted in the introduction of “hybrid” products, where the products may engage many origin countries. Thus, it is recommended that the hybrid products will be increasingly prevalent in the marketplaces worldwide because of the varying strategies of global corporations (Torres & Gutierrez, “Purchase Behavior towards Foreign Products”). Along with the conception of ‘country of origin’ in relation to purchase or to get access of products from domestic or own country, the idea of consumer ‘ethnocentrism’ also emphasizes upon the responsibility as well as the moral principles of acquiring foreign made products along with the faithfulness of the consumers towards the different products that are manufactured in their home countries (Torres & Gutierrez, “Purchase Behavior towards Foreign Products”). Cultural similarities along with the dissimilarities between the consumer’s country of origin along with the products and goods country of origin are perceived as a fundamental element that constitutes the dominance of consumer ‘ethnocentrism’ (Torres & Gutierrez, “Purchase Behavior towards Foreign Products”). The study of consumer ‘ethnocentrism’ along with the buying objectives of the customers’ would be suitable in a particular product market where a severe contest lies with domestic and foreign made products. Along with ‘country of origin’ and consumer ‘ethnocentrism’, the other factors such as ‘conspicuous consumption’ also count towards the issue or subject matter of acquiring products from own country or foreign countries (Ranjbarian & Et. Al., “Consumer Ethnocentrism and Conspicuous Consumption). The conception of conspicuous consumption refers to the requirement of various major facts and information which are provided to the customers regarding their capability to use luxury and convenient goods among others. It has been observed with certain conducted researches that the consumers especially in developed countries intend to perceive domestic products as being of higher quality than imported products from foreign countries (Ranjbarian & Et. Al., “Consumer Ethnocentrism and Conspicuous Consumption). In this connection, the consumers’ estimation regarding the quality of domestic or foreign products significantly persuades their purchase likings. As a result, the effectiveness of ‘ethnocentrism’ particularly lies upon the buying eagerness along with the activities relating to the consumers’ choices that varies with domestic and foreign countries (Ranjbarian & Et. Al., “Consumer Ethnocentrism and Conspicuous Consumption). Thus, focusing upon the above discussion, it can be concluded that the significant aspects such as ‘country of origin’, ‘consumer ethnocentrism’ and ‘conspicuous consumption’ among others collectively influence or bring to light several consequences regarding buying various products from domestic or own country along with imported products from foreign countries as well. Advantages and Disadvantages of Buying Products from Domestic or Own Country Buying products from domestic or own country ultimately benefits the domestic economy through higher tax revenues, more jobs and more earnings among the domestic shareholders. However, the needs and the requirements in order to buy domestic product varies from different consumers’ viewpoint within a particular country (Yoo & Donthu, “The Effect of Personal Cultural Orientation on Consumer Ethnocentrism: Evaluation and Behaviors of U.S. Consumers towards Japanese Products”). However, along with the advantages there also lies certain disadvantages while buying products from own or domestic country. The disadvantages include government limitations relating to importing or exporting, inflexibility and competition relating to licensing among others (Griffin, R. W., “Principles of Management”). Advantages and Disadvantages of Buying Products from Foreign Country The advantages of buying products from foreign country lies upon better quality of the products that are provided to the customers, attraction of the foreign product that fulfills the requirements of the consumers’ and eventually raises the financial revenue along with uplifting the foreign economy among others (Griffin, R. W., “Principles of Management”). The disadvantages include high purchasing costs, lack of employment in domestic country, weakening the economy structure of domestic country, high tariff rates and taxes, increased carrying costs relating to importing or exporting and restriction in the progression as well as advancement of domestic country among others (Griffin, R. W., “Principles of Management”). Consumers may not possess all relevant information when purchasing a product from domestic or foreign country. It is obvious to the fact that a market is usually considered a place in which a few customers do not know or are aware of the respective products market prices, qualities and availability among others. In order to support the economy, it is very much essential for the customers to be aware or get familiar with the products market prices, product quality and product accessibility among others (Torres & Gutierrez, “Purchase Behavior towards Foreign Products”). The consumers’ support towards the economy by buying products from domestic or foreign countries can be justified by focusing upon a specific scale to measure this construct, which is known as “Cetscale”. This particular instrument was designed especially in order to evaluate the consumers’ objectives in order to buy domestic or foreign commodities (Ranjbarian & Et. Al., “Consumer Ethnocentrism & Buying Intensions”). The consumers’ support towards the economy on the basis of price, quality and availability of the products from domestic or foreign countries lies upon this important structural element i.e. “Cetscale”. It has been identified that “Cetscale” is fundamentally an interpreter of consumers’ values, thoughts, buying objectives and preferences among others (Ranjbarian & Et. Al., “Consumer Ethnocentrism and Buying Intentions: An Empirical Analysis of Iranian Consumers”). The features of “Cetscale” are considered to be a measure of ‘tendency’ rather than attitude, as tendency refers to the general idea of a nature to act, whereas attitude is referred as consumers’ feelings for a particular product (Ranjbarian & Et. Al., “Consumer Ethnocentrism and Buying Intentions: An Empirical Analysis of Iranian Consumers”). However, the consumer ethnocentrism along with the structural element of “Cetscale” eventually signify the attitudes of the consumers regarding the suitability and moral principles among others while purchasing foreign made products. From the viewpoint of American ethnocentric customers, it is strongly believed that buying imported commodities is not beneficial for them because of various issues that include weakening of the domestic economy, lack of employment, increased tariff rates along with taxes and high transaction costs among others (Shimp & Sharma, “Consumer Ethnocentrism: Construction and Validation of the CETSCALE”). In this connection it can be noted that consumers provide support towards the economy on the basis of price, product and availability. It has been identified that the structural element of “Cetscale” is strongly correlated with the customer’s values, thoughts and objectives among others in order to buy foreign commodities. However, this significant structural element of “Cetscale” also establishes a strong connection between the actual choices and preferences especially of American and other foreign made products in order to determine wide range of factors that include price, quality and availability of the products (Shimp & Sharma, “Consumer Ethnocentrism: Construction and Validation of the CETSCALE”). On the basis of various significant factors that include ‘country of origin’, ‘consumer ethnocentrism’ and the structural element of “Cetscale” among others, the consumers can support the economy in order to buy products either form domestic or foreign countries. The mentioned significant factors along with necessary information eventually describe or help to make choices to the consumers in order to buy products from domestic or foreign countries. The various issues regarding buying products especially from foreign countries may compel the consumers to refuse the foreign products to large extent (Shimp & Sharma, “Consumer Ethnocentrism: Construction and Validation of the CETSCALE”). Conclusion In this world of global competition, various global competitors engage with each other and utilize diverse plans to survive in a progressive global marketplace. It has been recognized that the various cultural challenges in the global marketplaces is not limited especially towards the buyers. At the level of consumer “ethnocentrism” which is measured in this particular paper, the consumers’ will not always assess the domestic commodities highly and foreign commodities negatively. However, the level of consumer “ethnocentrism” which is strongly taken into concern in this particular paper ultimately brings forth the issues relating towards the impact, attitudes and intentions among others and also possess a major impact upon the consumer liking behaviors. It has been observed that the connection between the structural elements of “Cetscale” along with the definite buying objective especially for domestic commodities was low. Therefore, in this connection there is no such assurance regarding consumers’ buying of domestic commodities. The factors such as country of origin, consumer “ethnocentrism” and “Cetscale” among others collectively are considered as the most significant factors that convince the consumer’s buying likings of either domestic or foreign commodities. The understanding of those significant factors would provide the manufacturers with the opportunity in order to strategize their existing marketing activities which ultimately influences the consumers’ purchasing preferences and intentions among others. It has been recognized that the consumers’ have a negative feeling regarding buying products especially from foreign countries because of various significant reasons that include weakening of the domestic economy, lack of employment, acting as a barrier towards the advancement as well as the progression of the domestic country, increasing high tariff rates as well as taxes and transaction costs among others. Due to all these reasons or factors, the consumers pay little importance along with possessing negative preferences and intentions among others toward purchasing products especially from the foreign countries. Thus, the above discussions would definitely help to recognize the behavior pattern of the consumers in order to encourage or discourage their buying decisions and preferences especially of foreign and domestic products to a large extent. Works Cited Griffin, Ricky W. Principles of Management Cengage Learning, 2006. Ranjbarian, Bahram. & Et. Al. “Consumer Ethnocentrism and Buying Intentions: An Empirical Analysis of Iranian Consumers”. European Journal of Social Sciences 13(3) 2010: 371-386. Reifler, Petra. “Advanced Topics in International Marketing. January 18, 2012. Definition of Ethnocentrism, No Date. Shimp, Terence. A. & Sharma, Subhash. “Consumer Ethnocentrism: Construction and Validation of the CETSCALE”. January 18, 2012. The Consumer Ethnocentrism Concept, 1987. Torres, Nadia Huitzilin Jiménez. & Gutierrez, Sonia San Martin. “The purchase of Foreign Products: The Role of Firm’s Country-Of-Origin Reputation, Consumer Ethnocentrism, Animosity And Trust”. January 18, 2012. Introduction, 2007. Yoo, Boonghe. & Donthu, Naveen. “The Effect of Personal Cultural Orientation on Consumer Ethnocentrism: Evaluation and Behaviors of U.S. Consumers towards Japanese Products”. Journal of International Consumer Marketing 18 (1/2) 2005: 7-44. Read More