Consumer Ethnocentricity within the Environment of Economic Crisis

Abstract

The purpose of this study is to examine consumer tendencies within the economic crisis, to examine consumer ethnocentrism (CE) among CEE consumers and its character and influence on buying domestic and foreign products. Based on broad existing theoretical and empirical knowledge, we constructed measures for this research derived from existing literature. The hypotheses were tested through structural equation modeling. The analyzed sample consisted of 199 Czech respondents. The results confirm effect of CE on buying behavior as well as national identity influence on CE. In the Czech context, CE significantly and positively influenced domestic purchase behavior. Alternatively, there was only a marginal influence of CE supported its negative effect on foreign purchase behavior. Cosmopolitanism did not affect CE in the Czech context. Therefore, the research findings suggest a prevalent influence of CE on buying behavior under conditions of economic crisis. The paper concentrates on ignored area that was very hard hit by economic crisis in Central and Eastern Europe. The findings provide useful information to marketing specialists in designing their marketing strategies for local "made-in" communication campaigns. In addition, implications for retailers to evaluate their merchandise assortment portfolio are implied from the findings. We build on the positive influence of CE on buying behavior of domestic products versus foreign, and infer preference for freshness and quality of goods. This suggest implications for public policy implications related to local job creation and employment, especially within the area of small local producers, self-employment, development of local agriculture, as well as countryside maintenance. This issue seems to gain more importance and attention given the nature of the global economic crisis for consumers, producers, retailers and government. Potentially, there appears to be significant carryover effect related to the present and future integration processes of the CEE economies.

Consumer Ethnocentrism and Attitudes towards the Domestic and Foreign-Made Dietary Supplements (the Case of Lithuanian Market)

“…Regional-specific approach leads to searching for some common tendencies in the countries which possess economical, historical and/or cultural similarities. In post-soviet countries the consumer values and attitudes, including consumer ethnocentrism, were inevitably shaped by such factors as centrally planned economy, import restrictions and lack of international competition, limited advertising and sales promotion techniques in the past [8], [9], as well as recent liberalization of economies and integration into the European Union.…”

“…The results of the studies on the effect of product's country of origin and manifestation of ethnocentrism in transitional economies are controversial. Reference [9] shows that after 1998, when "the iron curtain" fell, consumers felt great passion for foreign-made products. In post-communist countries consumers queued up to purchase foreign-made products because most of the products that had been deficit in the centrally planned economy [10] became available.…”

“…Campaigns of unusual advertising and purchase stimulation induced the demand for foreign-made products; the abovementioned promotional factors were hardly used by local companies. When local producers have learnt how to compete with foreign-made products the post-communist consumer again returns back to domestic products [9].…”

Spending and Saving Patterns of Two Consumer Age Groups During Economic Downturn and Recovery of 2009–2011 in Lithuania

“…For example, consumers in some states became more ethnocentric not only because domestic products are usually cheaper, but also due to moral obligations to support national economies (Smyczek. Glowik, 2011) or as a result of increased national identity (Kreckova, Odehnalova, Reardon, 2012). Consumer values have changed significantly over a couple of years, whereas in a stable environment values usually do not demonstrate short-term dynamics (Kolar, Zabkar, Brkic, Omeragic, 2010).…”

Consumer Ethnocentrism and Behavior in a Market of Dietary Supplements

“…In post-soviet countries, the consumer values and attitudes, including consumer ethnocentrism, were inevitably shaped by such factors as centrally planned economy, limited imports and lack of international competition, high consumption of national products, limited advertising and sales promotion techniques in the past (Reardon et al, 2005;Kreckova et al, 2012), as well as recent liberalization of economies and integration into the European Union. In this research, Lithuanian market was chosen as an example of post-soviet country and transitioning economy in the Central and Eastern Europe.…”