DOCSLIB.ORG

GCEM Consumer Behaviour 14MBA MM301

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
GCEM Consumer Behaviour 14MBA MM301 GCEM Consumer Behaviour 14MBA MM301 Mr. SRINIVAS S, Assistant Professor, Department of MBA 2016 GOPALAN COLLEGE OF ENGINEERING AND MANAGEMENT Mr.Srinivas.S, Asst Professor CONSUMER BEHAVIOUR (14MBAMM301) Module 01 Introduction to the study of Consumer Behaviour Meaning and Definition of CB Consumer behaviour is a rapidly growing application-oriented discipline of study. The recent advancement in the technological and digital communication are also influencing consumer behaviour. This study is not just restricted to how a person buys a product but it is dynamic, complex and multi- dimensional process and reflects the totality of consumers' decisions with respect to acquisition, consumption or use and disposal activities. Consumer behaviour can be defined as "The behavior that consumers display in searching for, purchasing, using, evaluating, and disposing of products and services that they expect will satisfy their needs" (Leon G. Schiffman and Leslie Lazar Kanuk, "Consumer Behaviour" 2007) Consumer behaviour focuses on how individuals make decisions to spend their available resources (time, money, effort) on consumption related items. That includes what they buy, why they buy it, where they buy it, how often they buy it, how often they use it, how they evaluate it after the purchase, the impact of such evaluations on future purchases and how they dispose of it. So in Consumer Behaviour we not only learn what is the behaviour of the consumer when he buys it but also before the consumption, during the consumption and after the consumption. Difference between Consumer and customer: A consumer is anyone who typically engages in any one or all of the activities mentioned in the definition. Traditionally, consumers have been defined very strictly in terms of economic goods and services wherein a monetary exchange is involved. This concept, over a period of time, has been broadened. Some scholars also include goods and services where a monetary transaction is not involved and thus the users of the services of voluntary organizations are also thought of as consumers. This means that organizations such as UNICEF, CRY, or political groups can view their public as "consumers". The Marketing Concept In marketing concept the firms analyze the needs of their customers and then make decisions to satisfy those needs, better than the competition. To better understand the marketing concept, it is worthwhile to put it in perspective by reviewing other concepts that once were predominant. While these alternative concepts prevailed during different historical time frames, they are not restricted to those periods and are still practiced by some firms today. Department of Management Studies, GCEM 1 Mr.Srinivas.S, Asst Professor CONSUMER BEHAVIOUR (14MBAMM301) The Production Concept: The term production concept was coined by Henry Ford who made the auto-mobile which was till then only affordable for the rich people for even a common man to purchase. *Assumes that consumers are interested primarily in product availability at low prices Marketing objectives: * Cheap, efficient production * Intensive distribution * Market expansion The production concept was the idea that a firm should focus on those products that it could produce most efficiently and that the creation of a supply of low-cost products would in and of itself create the demand for the products. Virtually everything that could be produced was sold easily by a sales team whose job it was simply to execute transactions at a price determined by the cost of production. The production concept prevailed into the late 1920's. The Product Concept: Assumes that consumers will buy the product that offers them the highest quality, the best performance, and the most features Marketing objectives: * Quality improvement * Addition of features Tendency toward Marketing Myopia The Sales Concept: Assumes that consumers are unlikely to buy a product unless they are aggressively persuaded to do so Marketing objectives: * Sell, sell, sell Lack of concern for customer needs and satisfaction By the early 1930's however, mass production had become commonplace, competition had increased, and there was little unfulfilled demand. Around this time, firms began to practice the sales concept (or selling concept), under which companies not only would produce the products, but also would try to convince customers to buy them through advertising and personal selling. Before producing a product, the key questions were: * Can we sell the product? * Can we charge enough for it? The sales concept paid little attention to whether the product actually was needed; the goal simply was to beat the competition to the sale with little regard to customer satisfaction. Marketing was a function that was performed after the product was developed and produced, and many people came to associate marketing with hard selling. Even today, many people use the word "marketing" when they really mean sales. The Marketing Concept: Assumes that to be successful, a company must determine the needs and wants of specific target markets and deliver the desired satisfactions better than the competition Marketing objectives: * Make what you can sell * Focus on buyer’s needs After World War II, the variety of products increased and hard selling no longer could be relied upon to generate sales. With increased discretionary income, customers could afford to be selective and buy only Department of Management Studies, GCEM 2 Mr.Srinivas.S, Asst Professor CONSUMER BEHAVIOUR (14MBAMM301) those products that precisely met their changing needs, and these needs were not immediately obvious. The key questions became: * What do customers want? * Can we develop it while they still want it? * How can we keep our customers satisfied? In response to these discerning customers, firms began to adopt the marketing concept, which involves: * Focusing on customer needs before developing the product * Aligning all functions of the company to focus on those needs * Realizing a profit by successfully satisfying customer needs over the long-term When firms first began to adopt the marketing concept, they typically set up separate marketing departments whose objective it was to satisfy customer needs. Often these departments were sales departments with expanded responsibilities. While this expanded sales department structure can be found in some companies today, many firms have structured themselves into marketing organizations having a company-wide customer focus. Since the entire organization exists to satisfy customer needs, nobody can neglect a customer issue by declaring it a "marketing problem" - everybody must be concerned with customer satisfaction. The marketing concept relies upon marketing research to define market segments, their size, and their needs. To satisfy those needs, the marketing team makes decisions about the controllable parameters of the marketing mix. MARKET SEGMENTATION Definition: - market segmentation is defined as dividing a market into distinct groups of buyers who might require separate products of marketing mix. A market segment is a buyer group having similar wants. Market segmentation is dividing homogenous market into different heterogeneous market based on customer’s needs and wants. Bases for market segmentation • Geographic segmentation – dividing the market into different geographical units such as nations, states, regions, countries, and cities. The company can operates in one or a few areas, or operate in all but pay attention to local variations. • Demographic segmentation – the market is divided into groups on the basis of variables such as age, family size, family life cycle, gender, income, occupation, education, religion, race, generation, social class and nationality. The consumer needs, wants, and usage rates and product and brand preferences are often associated with demographic variables. • Psychographic segmentation – the market is divided into different groups on the basis of psychological/personality traits, lifestyle or values. The people within the same demographic group can exhibit very different psychographic profiles. • Behavioral segmentation – buyers are divided into groups on the basis of their knowledge of, attitude toward, use of, or response to a product. Behavioral variables are occasions, benefits, user status, usage rate, loyalty status, buyer readiness stage, and attitude. o Occasions – day, week, month and year. o User status – nonusers, ex-users, potential users, first time users and regular users. o Usage rate – light, medium, heavy product users o Buyer –readiness stage – unaware of the product, aware of the product, informed about the product, interested about the product, desire about the product, intended to buy the product. o Loyalty stage – hard-core loyal, split loyal, shifting loyal, switchers. Department of Management Studies, GCEM 3 Mr.Srinivas.S, Asst Professor CONSUMER BEHAVIOUR (14MBAMM301) Market coverage alternatives: - market strategies options pass through following 3 stages Mass marketing: - the seller mass producers, distributes and promotes one product to all the buyers. The idea is that it would lead to lowest costs and create largest potential market. Product differentiated marketing: - in this stage seller produces more products that exhibit different features, styles, quality and sizes and so on to offer variety to buyers rather than appeal to different market segments. Target marketing: - in this, seller distinguishes between segments, selects one or more of these segments
Load more

Recommended publications
  • Ethnic Identity, Consumer Ethnocentrism, and Purchase Intentions Among Bi-Cultural Ethnic Consumers: "Divided Loyalties" Or “Dual Allegiance”?
    Ethnic identity, consumer ethnocentrism, and purchase intentions among bi-cultural ethnic consumers: "Divided loyalties" or “dual allegiance”? for Journal of Business Research Dr. Michel Laroche, Editor by Dr. Alia El Banna, Senior Lecturer 1, * Dr. Nicolas Papadopoulos, Chancellor's Professor 2 Dr. Steven A. Murphy, Professor 3 Dr. Michel Rod, Professor 2 Dr. José I. Rojas-Méndez, Professor 2 1 University of Bedfordshire Business School University Square, Bedfordshire, LU1 3JU, UK 2 Eric Sprott School of Business, Carleton University 1125 Colonel By Drive, Ottawa, Canada K1S 5B6 3 Ted Rogers School of Business, Ryerson University 350 Victoria Street, Toronto, Ontario, Canada M5B 2K3 * Corresponding author Dr. Alia El Banna Senior Lecturer Department of International Business, Marketing, and Tourism University of Bedfordshire Business School University Square, Bedfordshire, LU1 3JU, UK Phone: +44 (0) 1582 489363 Email: [email protected] 1 Ethnic identity, consumer ethnocentrism, and purchase intentions among bi-cultural ethnic consumers: “Divided loyalties" or “dual allegiance”? ABSTRACT Consumer ethnocentrism has been studied extensively in international marketing in the context of one's country of residence. This paper investigates for the first time the notion of "dual ethnocentrism", which may be encountered among ethnic consumers who have an allegiance toward, or divided loyalties between, two countries: One with which they are ethnically linked, or "home", and one where they presently live and work, or "host". The study examines the relationship between ethnic identity, dual ethnocentrism, and purchase intentions among ethnic consumers, a market segment of growing importance in research and practice. The analysis focuses on differences in the respondents' home- and host-related ethnocentrism and finds that indeed ethnocentric feelings and their effects differ depending on the country of reference.
    [Show full text]
  • Alternative Proposals to Measure Consumer Ethnocentric Behavior: a Narrative Literature Review
    sustainability Article Alternative Proposals to Measure Consumer Ethnocentric Behavior: A Narrative Literature Review José Felipe Jiménez-Guerrero *, Juan Carlos Pérez-Mesa and Emilio Galdeano-Gómez Department of Economics and Business, Mediterranean Research Center on Economics and Sustainable Development (CIMEDES), University of Almería, Agrifood Campus of International Excellence, CeiA3 Almería, Spain; [email protected] (J.C.P.-M.); [email protected] (E.G.-G.) * Correspondence: [email protected]; Tel.: +34-950-214702 Received: 19 February 2020; Accepted: 10 March 2020; Published: 12 March 2020 Abstract: CETSCALE (Consumer Ethnocentrism Tendencies Scale), the scale developed by Shimp and Sharma in 1987 to study consumer ethnocentric behavior, has received preferential use in the literature, with numerous replications carried out in countries on all continents. Although it was proposed as a 17-item scale along with a smaller version of only ten items, studies that use only a part of these have been become increasingly common. To some extent, this practice responds to the multidimensional behavior of CETSCALE, as can be widely confirmed. It is for this reason that a growing consensus is in favor of reviewing the scale as a tool to measure ethnocentrism, made evident by the appearance of new alternative scales. CEESCALE and CES are two of the most recent proposals, which were developed with a similar number of items but grouped into a number of clearly defined dimensions, providing more robust results. Keywords: Consumer; Ethnocentrism; CETSCALE; CEESCALE; CES 1. Introduction For over 30 years, researchers have been applying CETSCALE (Consumer Ethnocentrism Tendencies Scale), which was designed by Shimp and Sharma (1987) [1] to represent consumer beliefs in the United States about the suitability of acquiring foreign products.
    [Show full text]
  • Consumer Ethnocentrism in 21St Century: a Review and Research Agenda Sheeraz Tantray* Department of Business Administration, Central University of Jammu, India
    con d E om Tantray., Bus Eco J 2018, 9:3 n ic a s : s J s o DOI 10.4172/2151-6219.1000368 e u n r i Business and Economics n s a u l B ISSN: 2151-6219 Journal Research Article Open Access Consumer Ethnocentrism in 21st Century: A Review and Research Agenda Sheeraz Tantray* Department of Business Administration, Central University of Jammu, India Abstract Owing to the Industrial revolution, fading communist era and the relative convergence of economic ideologies across the globe as a consequence of liberalization and globalization leading to exponential growth in the world trade, formal tariff barriers have been reduced considerably. In such circumstances, if projected inclusively, the thrust for exploring informal tariff barriers can be beneficial for retaining the home market base besides attracting consumers from outer groups This new ‘forms of protectionism’ of the national businesses, called ‘cross-currents’ of globalization to dilute the international competition are emerging to discourage international competition and consumer ethnocentrism is one such non-tariff barrier. Researchers have explored the possibilities of reviving the segmentation and positioning strategies by employing ethnocentrism as a strategic tool. The objective of this paper is to explore the body of knowledge and literature gap confronting the subject area of consumer ethnocentrism and to deliberate upon the antecedents and consequences of the consumer ethnocentrism besides the roles of mediating and moderating variables. The paper presents the integrative framework and comprehensive summary tables with wide deliberations providing holistic view of consumer ethnocentrism in globalized world. Besides enriching the marketing knowledge, the paper also offers broad avenues for further research.
    [Show full text]
  • Cross-Cultural Variations in Consumer Behavior: a Literature Review of International Studies
    South East European Journal of Economics and Business Volume 13 (2) 2018, 49-71 DOI: 10.2478/jeb-2018-0012 CROSS-CULTURAL VARIATIONS IN CONSUMER BEHAVIOR: A LITERATURE REVIEW OF INTERNATIONAL STUDIES Timokhina Galina, Taylan Urkmez, Wagner Ralf Abstract This study presents a review of 85 peer-reviewed publications of cross-cultural variations in consumer behav- ior. The objectives of this study are to systemize conceptual and methodological approaches to research of cross-cultural variations in consumer behavior; to present an extended understanding of consumer behavior in related industries; to identify conceptual and methodological gaps and empirical issues in these studies; and by fulfilling the objective of this paper to develop an agenda guiding further research in a systematic manner. This literature review reveals the lack of a unified conceptual approach to defining cross-cultural variations and the absence of a unified terminology related to cross-cultural research. It also highlights methodological areas susceptible to common method bias, which hinders the establishment of equivalence in studies of cross-cultural variations in consumer behavior. This review accentuates the “cross-cultural vari- ations” concept in consumer behavior research, covering both the differences and similarities that are the subject of cross-cultural studies. Furthermore, the current study outlines relevant contributions for theoreti- cal and potentially managerial implications based on the study’s insights. Keywords: Cross-cultural variations, consumer behavior, data equivalence, measurement equivalence. JEL: M0, M31, M39 INTRODUCTION Galina Timokhina, PhD The timeliness of studying the behavior of consum- Associate Professor ers from different cultures in an increasingly fragment- Ural State University of Economics ed world is demonstrated by the dynamic growth of E-mail: [email protected] the number of published cross-cultural studies and the rise of special issues of consumer behavior-related Taylan Urkmez, PhD journals.
    [Show full text]
  • Revitalizing the American Dream in the Face of Economic Recessions, 1981-2012
    Chapman University Chapman University Digital Commons Business Faculty Articles and Research Business 1-8-2020 Citizen-Consumers Wanted: Revitalizing the American Dream in the Face of Economic Recessions, 1981-2012 Gokcen Coskuner-Balli Chapman University, [email protected] Follow this and additional works at: https://digitalcommons.chapman.edu/business_articles Part of the American Politics Commons, Behavioral Economics Commons, Civic and Community Engagement Commons, Economic Theory Commons, Growth and Development Commons, Other Economics Commons, Other Sociology Commons, Political Economy Commons, Politics and Social Change Commons, Public Economics Commons, Quantitative, Qualitative, Comparative, and Historical Methodologies Commons, Social Psychology and Interaction Commons, Sociology of Culture Commons, and the Work, Economy and Organizations Commons Recommended Citation Coskuner-Balli, Gokcen. (2020), "Citizen-Consumers Wanted: Revitalizing the American Dream in the Face of Economic Recessions, 1981-2012," Journal of Consumer Research, 47(3), 327-349. https://doi.org/ 10.1093/jcr/ucz059 This Article is brought to you for free and open access by the Business at Chapman University Digital Commons. It has been accepted for inclusion in Business Faculty Articles and Research by an authorized administrator of Chapman University Digital Commons. For more information, please contact [email protected]. Citizen-Consumers Wanted: Revitalizing the American Dream in the Face of Economic Recessions, 1981-2012 Comments This is a pre-copy-editing,
    [Show full text]
  • Consumer Ethnocentrism in Developing Countries
    A Service of Leibniz-Informationszentrum econstor Wirtschaft Leibniz Information Centre Make Your Publications Visible. zbw for Economics Karoui, Sedki; Khemakhem, Romdhane Article Consumer ethnocentrism in developing countries European Research on Management and Business Economics (ERMBE) Provided in Cooperation with: European Academy of Management and Business Economics (AEDEM), Vigo (Pontevedra) Suggested Citation: Karoui, Sedki; Khemakhem, Romdhane (2019) : Consumer ethnocentrism in developing countries, European Research on Management and Business Economics (ERMBE), ISSN 2444-8834, Elsevier, Amsterdam, Vol. 25, Iss. 2, pp. 63-71, http://dx.doi.org/10.1016/j.iedeen.2019.04.002 This Version is available at: http://hdl.handle.net/10419/205776 Standard-Nutzungsbedingungen: Terms of use: Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Documents in EconStor may be saved and copied for your Zwecken und zum Privatgebrauch gespeichert und kopiert werden. personal and scholarly purposes. Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle You are not to copy documents for public or commercial Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich purposes, to exhibit the documents publicly, to make them machen, vertreiben oder anderweitig nutzen. publicly available on the internet, or to distribute or otherwise use the documents in public. Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, If the documents have been made
    [Show full text]
  • The Case of Extra Virgin Olive Oil (EVOO)
    sustainability Article The Effect of Ethnocentrism on Product Evaluation and Purchase Intention: The Case of Extra Virgin Olive Oil (EVOO) Juan Jose Blazquez-Resino 1,* , Santiago Gutierrez-Broncano 1 , Pedro Jimenez-Estevez 2 and Israel Roberto Perez-Jimenez 3 1 Department of Business Administration, Faculty of Social Science, Castilla-La Mancha University, Av. Real Fabrica de Seda, Talavera de la Reina, 45600 Toledo, Spain; [email protected] 2 Department of Business Administration, Faculty of Legal and Social Sciences, Castilla-La Mancha University, San Pedro Martir, 45001 Toledo, Spain; [email protected] 3 Department of Spanish and International Economics, Econometrics and Economic History and Institutions, Faculty of Legal and Social Sciences, Castilla-La Mancha University, San Pedro Martir, 45001 Toledo, Spain; [email protected] * Correspondence: [email protected]; Tel.: +34-925-721-010 Abstract: This study is framed within the concept of sustainability of local foods such as extra virgin olive oil (EVOO) and considers the effects of country of origin (COO) and ethnocentrism as relevant factors in decision making about product choice. Our work contributes to the literature regarding the food industry with the main objective of investigating how consumer ethnocentrism may affect not only behavioral intention but also the perception of the quality of the EVOO. The authors of the present paper developed this line of research via a review of the existing literature, leading to the Citation: Blazquez-Resino, J.J.; elaboration of the conceptual model proposed in this paper. The research was developed through a Gutierrez-Broncano, S.; laboratory experiment and the modeling of consumer behavior, raising a series of hypotheses, which Jimenez-Estevez, P.; Perez-Jimenez, were contrasted following the different analyses conducted on the data.
    [Show full text]
  • The Influence of Culture on Consumers: Exploratory
    CORE Metadata, citation and similar papers at core.ac.uk Provided by Universidade do Minho: RepositoriUM THE INFLUENCE OF CULTURE ON CONSUMERS: EXPLORATORY AND RISK TAKING BEHAVIOUR A thesis submitted to the University of Minho in fulfilment of requirements for the degree of Doctor of Philosophy in Management Supervisors: Minoo Farhangmehr Aviv Shoham 2004 Acknowledgements This document is proof that this particularly difficult stage of my life is drawing to an end. Without the support of my family, supervisors, friends and colleagues this would not have been made possible. Looking back over this period of my life, I wish to thank all those who contributed in some way to this work. First of all, I wish to thank Prof. Minoo Farhangmehr who has believed in me from the outset of my academic career, and for having invited me to join the Strategic and Marketing Group. From that day on, her warm, wise and optimistic support has been an inspiration which has contributed in many ways to my achievements. A word of appreciation must also go out to Professor Aviv Shoham who, despite the physical distance between us, lent his direction and support through various phases of this project. I am truly indebted to his immediate guidance, positive attitude and confidence in me. Several colleagues and friends deserve a special mention. They were always available with a word of encouragement and assisted me in various ways throughout the whole project. A special thanks goes out to Isabel Macedo, Susana Marques, José Carlos Pinho, Teresa Pereira, Vasco Eiriz, José Crispim, Anabela Carvalho, Jarle Brinchman, Maria José Sá, Cláudia Simões and Luis Filipe Lages for their suggestions and encouragement.
    [Show full text]
  • Integrative Review: Factors Effecting Consumer Ethnocentrism (CET)
    R M B www.irmbrjournal.com June 2017 R International Review of Management and Business Research Vol. 6 Issue.2 I Integrative Review: Factors Effecting Consumer Ethnocentrism (CET) EMAN ALSHAMMARI School of Management, Swansea University, UK Email: [email protected] MICHAEL WILLIAMS School of Management, Swansea University, UK Email: [email protected] NIGEL MORGAN School of Management, Swansea University, UK Email: [email protected] Abstract This paper provides an integrative review of the main concept of CET in terms of its definition, theoretical perspectives, and the antecedents of CET including previous empirical studies. – Four categories of antecedents, namely, socio-psychological, political, economic and demographic are gathered from the literature. The majority of this work found that consumer ethnocentrism is an important factor that can determine behaviour in the decision making of consumers as they decide to purchase local or foreign products. Ethnocentric consumers exhibit a high preference towards domestic products over foreign products even when the quality is lower and price is higher due to nationalistic reasons. Also, the review of the literature found many studies have examined the degree of consumer ethnocentrism in more developed countries, where there still remains a lack of research related to consumer behaviour in developing countries and emergent markets. The results will be useful for marketers, policy makers and businessmen to find what is especially important in consuming foreign products in local market where could help in taking strategically decisions. Key Words: Conservatism, Patriotism, Consumers, Ethnocentrism, Foreign Products. Introduction In the era of global trade, marketers should consider the barriers that exist when they decide to expand their business globally.
    [Show full text]
  • Current Marketing Studies and Digital Developments
    Livre de Lyon Academic Works of Livre de Lyon Social, Humanity and Administrative Sciences 5-2021 Current Marketing Studies and Digital Developments Selda Ene H. Halil Başer Ceren Yeşiltuna Emrah Sitki Yilmaz Kazım Karaboğa See next page for additional authors Follow this and additional works at: https://academicworks.livredelyon.com/soc_hum_ad_sci Part of the Business Commons, and the Economics Commons Authors Selda Ene, H. Halil Başer, Ceren Yeşiltuna, Emrah Sitki Yilmaz, Kazım Karaboğa, Muhammed Ali Güngör, Neslihan Paker, Dilaysu Cınar, and Mehmet Cançelik Current Marketing Studies and Digital Developments Editor Assoc. Prof. Dr. Selda Ene Lyon 2021 Editors • Assoc. Prof. Dr. Selda Ene • ORCID: 0000-0001-5205-843X Cover Design • Subash Raghu Layout • Subash Raghu First Published • May/Mayıs 2021, Lyon ISBN: 978-2-38236-160-3 copyright © 2021 by Livre de Lyon All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by an means, electronic, mechanical, photocopying, recording, or otherwise, without prior written permission from the the Publisher. Publisher • Livre de Lyon Address • 37 rue marietton, 69009, Lyon France website • http://www.livredelyon.com e-mail • [email protected] PREFACE Dear Readers, Current digital changes and developments have been constantly taking place in the marketing studies and strategies. Thanks to developing technologies with digital economies- Industry 4.0 and innovative approaches, global businesses using a modern marketing approach are trying to discover ways to better under- stand consumers to increase the success of their brands. The changing demands of consumers, businesses in many sectors where there is intense competition must choose to follow these digital developments and current marketing strate- gies.
    [Show full text]
  • Linking Global Consumer Culture and Ethnocentric Consumerism to Global
    The current issue and full text archive of this journal is available on Emerald Insight at: https://www.emerald.com/insight/0144-333X.htm Mediating Linking global consumer culture effect of and ethnocentric consumerism to cultural global citizenship: exploring the intelligence mediating effect of cultural intelligence Received 18 October 2019 Revised 19 February 2020 17 March 2020 Aluisius Hery Pratono Accepted 17 March 2020 Faculty of Business and Economics, Universitas Surabaya, Surabaya, Indonesia, and Denni Arli Labovitz School of Business and Economics, University of Minnesota Duluth, Duluth, Minnesota, USA Abstract Purpose – This article attempts to understand the impact of global consumer culture and ethnocentric consumerism on global citizenship by identifying the mediating effect of cultural intelligence. Design/methodology/approach – The proposed structural equation model explains the relationship between global consumer culture, ethnocentric consumerism, and global citizenship. The empirical analysis involves an online survey targeted young people in Indonesia context. Findings – The empirical evidence broadly supports the view that cultural intelligence strengthens the impact of global consumer culture and ethnocentric consumerism on global citizenship. There is a strong tendency in this study to suggest that global consumerism will not be able to contribute to global citizenship unless cultural intelligence provides as a mediating variable. However, the results do not support the mainstream literature, which suggests that
    [Show full text]
  • How Consumer Ethnocentrism Modulates Neural Processing of Domestic and Foreign Products: a Neuroimaging Study
    How Consumer Ethnocentrism Modulates Neural Processing of Domestic and Foreign Products: A Neuroimaging Study Casado-Aranda, Luis-Alberto Sánchez-Fernández, Juan Ibáñez-Zapata, José-Ángel Liébana-Cabanillas, F.J. Abstract Consumer services literature offers substantial evidence that ethnocentric consumers tend to prefer domestic over foreign products. Yet no research to date has delved into the question how consumer ethnocentrism (CE) modulates the neural processing of products. This is the first study resorting to neuroimaging to explore to what extent CE levels affect the processing of domestic (Spain) and foreign (USA and China) products. The brain data yielded by neuroimaging reveal that highly ethnocentric consumers experience a greater degree of activation in brain regions linked to self-reference and reward when considering to purchase domestic products and a greater activation in brain regions related to risk in the case of foreign products. Keywords: consumer ethnocentrism; neuroimaging; consumer neuroscience; country of origin 1 1. Introduction In the retail field, where more and more players compete with one another, consumers encounter every day with a wide variety of product information, supplied through packaging, branding or advertising. Information such as taste, product design, brand name, warranty or country of origin can play important roles in consumer evaluations of products (Balabanis and Diamantopoulos, 2004). One of the oldest concerns of retailing and consumer services is whether the “foreignness” labeling of a product will make it more or less preferable to consumers in dif- ferent countries (Verlegh and Steenkam, 1999). An extensive corpus of literature has reported that a bias against foreign products and in favor of domestic ones does, in fact, exist (Lin and Chen, 2006; Sharma, 2011).
    [Show full text]