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Ethnocentrism and Country of Origin Effects: Ethnocentrism and Consumers by Doreen Soutar

This literature review is divided into three main sections: This section looks at The Country of Origin (COO) Effect…

Shankarmahesh (2006) suggested that ethnocentrism can be the result of a combination of four issues: socio-psychological, economic, political and socio-demographic.

Socio-demographic issues

Erdogan & Uzkurt (2010) found that ethnocentrism varies with socio-demographic and biological variations, such as gender, age, education, and income. They also discovered that individuals who tend to be less ethnocentric in general tend to have more favourable attitudes, beliefs and intentions towards foreign products. Watson & Wright (2000) suggest that older, female, less wealthy and less educated individuals are more likely to be ethnocentric, and the opposite is also the case. Read more

The Country of Origin (COO) Effect by Doreen Soutar

This literature review is divided into three main sections: This section looks at The Country of Origin (COO) Effect…

Introduction

Complementary to research on internal and external influences on purchase behaviour motivation, research has also been carried out which looks at the intrinsic and extrinsic cues individuals use when making purchasing decisions. The intrinsic cues are based on the product itself, such as the quality of the materials it has been make from. The extrinsic cues are those which are not directly related to the product, such as the brand label or the price. Some researchers (Lantz & Loeb, 2006; Okechuku, 2004) suggest that the country of origin of a product can be a stronger cue for purchasing behaviour that brand name, price, or quality. Scottish whisky or Egyptian cotton are prime examples of the COO effect. Read more

Ethnocentrism and Country of Origin Effects: The Process of Purchasing by Doreen Soutar

The early models of purchasing behaviour were developed in the 1970s, and were informed by research in psychology into the relationship between the individual’s intention to act and their subsequent behaviour (Fishbein & Azjen, 1975).

These models relatively simplistic, suggesting that behaviour was a result of a reasoning process which took internal thought processes and external influences into account. As these models were applied to purchasing decisions and expanded, it became clear that purchasing decisions were only partly rational, and contained a much wider and more complex interaction of influences.

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Ethnocentricism and Country of Origin Effects: Literature Review by Doreen Soutar

The literature review is divided into three main sections: the first section looks at the background into models of purchasing behaviour developed out of psychological research, such as the Theory of Reasoned Action (TRA) proposed by Fishbein and Azjen (1975) and the Theory of Planned Behaviour (Azjen, 1991).

These psychological models began to adapted for use in business research in the late nineties and early 2000s with models developed by Kotler (2000) and Hawkins et al (2001). From simple early models, theories of purchasing behaviour have become more complex over the years, and have attempted to account for both rational and non-rational aspects of behaviour, as well as social and cognitive aspects of purchasing trends. Read more