Literature Review

The globalization of markets has changed the competitive conditions facing organizations (Wiersema and Bowen, 2008).Over the past two decades international investment activities have increased extraordinarily (Weng, et al 2010). Recently, global marketing activities have increased astonishingly due to the technical and communication developments (Chung et al 2009). Consumers’ bias towards their national products is a significant determinant of local product purchase behavior (Josiassen, 2011). Indeed, exploring consumers' attitudes towards domestic and foreign products can help local and global marketers to conduct more effective local and global marketing strategies (Chéron and Hayashi, 2001). Despite the sharp increase in foreign made products availability all around the world, little research  focused on this interesting development (Lim and Darley, 2009).The increased consumer awareness of foreign cultures, global markets and foreign brands has increased the importance of studies that explore consumer ethnocentric tendencies (Nijssen and Herk, 2009). In this context, the concept of consumer ethnocentrism can help marketers to conduct effective marketing strategies. Organisations and companies, in fact, need to consider the level of consumer ethnocentrism among consumers before launching their products in foreign countries (Phau and Chan, 2003).Ethnocentrism is a purely sociological concept that distinguishes between in-groups and out-groups (Simp, 1984). It refers to blind acceptance to the in-group and blind rejection to out groups. It leads individuals to overstate everything in their own culture that differentiates them from others (Al Ganideh, 2010). Therefore, ethnocentrism may cause contempt to other people and their cultures. It is clear that most individuals view their own group as the centre of the universe and evaluate other cultural groups from their perspective (Yu and Albaum, 2002).The earliest leading research on consumer ethnocentrism was conducted by Shimp and Sharma in 1987. The researchers define consumer ethnocentrism as: ‘The beliefs held by the consumers about the appropriateness, indeed morality, of purchasing foreign made products’ (p.240). Shimp and Sharma applied ethnocentrism to the study of marketing and consumer behaviour. They relate the term ‘consumer ethnocentric tendencies’ to consumers’ beliefs related to the appropriateness and morality of purchasing foreign made products (Klein et al (1998). The concept of consumer ethnocentrism was developed to capture consumer emotions related to purchasing foreign made products (Shimp, 1984). Bruning (1997) argues that national loyalty and consumer ethnocentrism effects are the outcomes of group behaviour and initiate from group communication. According to Shimp and Sharma (1987), consumer ethnocentrism gives the individuals a sense of identity; feelings of belonging to the in-group.

Ethnocentric tendencies in consumers are a part of a constellation of social, psychological and demographic influences   (Sharma et al 1995). Thus, it offers individuals a sense of distinctiveness, feelings of belongingness and a justification of why some purchase behaviours are suitable, or unsuitable to the group (Witkowski and Beach, 1998). Nevertheless, it is critical to recognize that consumer ethnocentrism tendencies may change due to time, historical events, economic crises or political status (Yu and Albaum, 2002). Generally, consumers become more ethnocentric towards purchasing local products during  crisis time (Al Ganideh, 2010). 

The consequences of consumer ethnocentrism (whether or not ethnocentrism leads consumers to purchase their national products) have been well researched (i.e Sharma et al 1995; Klein et al 1998; Kim and Pysarchik, 2000; Huddleston et al 2001; Orth and Firbasova, 2003). However, the sources of consumer ethnocentrism phenomenon have not been well acknowledged (Al Ganideh, 2010). It is crucial to be aware of what lead consumers to be ethnocentric. This study raises awareness of the importance of examining socio- psychological antecedents to consumer ethnocentrism in different countries and cultures.  Earlier, Shimp and Sharma (1987) developed a scale to measure consumers’ ethnocentric tendencies (CETSCALE) for purchasing foreign-versus American made products. Shimp and Sharma (1987) described their scale as a measure of tendency rather than attitudes, since attitude proposes a superior degree of objectivity specifically than the CETSCALE is intended to capture. The development and international application of the CETSCALE is a vital contribution to consumer research. The CETSCALE is the most widely used instrument to examine consumer ethnocentric tendencies (Klein et al 1998).  It became a part of any company’s tracking studies of consumer attitudes in domestic and foreign markets (Al Ganidehet al 2007). International companies and organizations could use the CETSCALE as part of their periodic tracking studies (Shimp and Sharma, 1987). However, marketers might find the CETSCALE less relevant and useful than giving more focused and precise information that provide specific insight concerning consumer aversion towards a particular country (Klein et al 1998).

Consumer Ethnocentrism and Socio-psychological Antecedents

Overall, there is a dearth of studies  examining socio-psychological variables as antecedents to consumer ethnocentrism. Moreover, the results of previous empirical studies regarding the influences of socio-psychological antecedents on consumer ethnocentrism are inconsistent. Recently, a number of researchers have concentrated on exploring patriotism, nationalism and internationalism as antecedents of consumer ethnocentrism (i.eBalabaniset al 2001; Lee et al 2003;   Al Ganidehet al 2007). The current study examines the influence of socio-psychological antecedents; namely, dogmatism, conservatism and world-mindedness on consumer ethnocentrism. Caruana and Magri (1996) define dogmatism as a personal attribute that differentiate reality in black and white. Caruana and Magri (1996) found in Malta that consumers with higher levels of dogmatism express higher levels of consumer ethnocentrism. Dogmatic individuals are those who hold beliefs and disbeliefs that are rigidly demarcated within the cognitive system (Crowson, 2009, p.265). Sharma et al (1995, p.28) define conservatism as ‘a tendency to cherish traditions and social institution that have survived the test time and to introduce changes only occasionally, reluctantly and gradually’. Conservatism has become connected in the U.S. to the political opinions that defend liberty, good character, strong families and the importance of religion (Blitz, 2010, p.61). Overall, a devotion to the precedent is the core of conservatism (Strauss, 2011).

A positive relationship was found between conservatism and consumer ethnocentrism in South Korea (Sharma et al 1995). Ruyter et al (1998) found a positive significant influence for conservatism on consumer ethnocentrism for consumers from the Netherlands and Korea. Moreover, in France, Javalgi et al (2005) concluded that conservatism has a significant influence on consumer ethnocentrism. Rawwas and Rajendar (1996) argue that it is essential for international marketers to give attention to consumers’ ideologies such as world-mindedness. World-mindedness does not mean cultural openness. A world-minded person is one whose most important reference group is mankind, rather than Americans or English or Chinese (Nijssen and Douglas, 2008). It is a state of mind that uses humankind as reference group (Shankarmahesh, 2006). Rawwas and Rajendar (1996) indicated that world-minded consumers perceive higher quality for foreign products. Consumers should not interact with peoples from other cultures to be world-minded. Nevertheless, they just have to have positive attitudes towards problems of the humanity. Balabanis et al (2001) found that world-mindedness has no significant influence on consumer ethnocentrism for two samples from Turkey and the Czech Republic. However, Lee et al (2003) concluded that world-mindedness has negative significant influence on consumer ethnocentrism in the U.S.A. Surprisingly, Al Ganideh et al (2007) found that world-mindedness has positive significant influence on consumer ethnocentrism for a student sample in Jordan. Overall, the advantages of examining socio- psychological antecedents such as dogmatism, conservatism and world-mindedness to consumer ethnocentrism lie in the opportunities of segmenting consumers based on their favorable and unfavorable disposition to foreign products and could help to know more regarding the sources of consumer ethnocentrism phenomenon (Caruana and Magri 1996; Ruyter et al 1998; Shankarmahesh, 2006; Al Ganideh et al 2007). It is known that differences between consumers in different countries still exist due to diversities in culture. The concept of consumer ethnocentrism can help marketers to differentiate markets and strategies and to position their products very well domestically and globally. Overall, it is dangerous for domestic and global marketers to suppose that consumers all around the world are similar. Nevertheless, they need to know more about consumers and their attitudes all around the world. Yet, this research is the first that offers those interested in the area of consumer ethnocentrism all around the world more information and understanding about consumer ethnocentrism concept in Jordan. This research aims to examine socio- psychological variables; namely, dogmatism, conservatism and world mindedness as antecedents to consumer ethnocentrism for Jordanian consumers.

Methodology

Generally, fuzzy logic can improve the study in the area of customer preferences. The application of fuzzy logic theory to consumer behavior research can improve the research in the area of consumer ethnocentrism (Liu, 2009). Enache (2010) argues that fuzzy logic has started to help marketers and managers to probe new insights in their data. In this context, Al Ganideh et al (2011) indicated that fuzzy logic can help in developing the research of consumer ethnocentrism by giving accurate insights to international marketers regarding every single customer ethnocentric tendencies. To examine the influence of socio- psychological variables; namely, dogmatism, conservatism and world-mindedness on consumer ethnocentrism, a survey was conducted focusing on the Jordanian consumers. Jordanian consumers have a different culture and lifestyle to their American and European counterparts who have been mainly examined in earlier research (i.e Caruana and Magri, 1996; Kim and Pysarchik, 2000; Javalgi et al 2005). The respondents were asked to answer a modified 17-item 5-point Likert format   CETSCALE (Shimp and Sharma, 1987)-Jordanian modified version. Moreover, they were asked to answer 7-item 5-point Likert format Rawwas and Rejendran (1996) world-mindedness scale and 5-item 5-point Likert format Bruning et al (1985) dogmatism scale. These two scales were used in marketing studies. To measure conservatism, and due to the specialty of the Jordanian society, the respondents were asked to answer 4 item 5-point Likert format related to tribes in Jordan, tribal law, honor killing and the role of women in the political life in Jordan developed by the researchers based on open questions. The Cronbach's alpha measure of internal consistency was carried out to assess the overall reliability of the used scales. All used scales have been found very reliable as Cronbach’s Alpha values have exceeded 0.70 for the four scales. The recommended minimum acceptable level of reliability for Cronbach’s alpha is 0.60, using Hair et al (1998). Out of 352 questionnaires  distributed to random Jordanian shoppers in 3 main market areas in Irbid City (north of Jordan); Amman City (Centre of Jordan) and Karak City (south of Jordan), 272 were usable. Questionnaires with substantial missing data were excluded (Sekaran and Bougie, 2010). Data has been collected in October and November 2009. Pecher and Tregear (2000) criticized previous country-of-origin studies as many of them used students as samples and preferred to reach a broad profile of respondents by collecting data from major sites in city centers such as busy shopping streets.

Analysis and Discussion

Unquestionably, fuzzy logic can improve the research of consumer ethnocentrism and can illuminate uncovered sides in the area of consumer ethnocentrism.  Fuzzy logic has been adopted to analyze the data in this study. The study is the first to apply fuzzy logic on a consumer ethnocentrism research. However, previous studies in the field of consumer ethnocentrism used traditional statistical techniques to examine the nature of relationships between socio- psychological variables and consumer ethnocentrism. Fuzzy logic has been used in large numbers of applications since it was first proposed by Zadeh in 1965. It is important to bear in  mind that Zadeh has introduced a new methodology in defining notations that cannot be defined precisely. In a classical {0, 1} set, an object can be either a member of the set or not a member of the set. However, in fuzzy sets defined by Zadeh (1965) objects can belong to the set with different degrees of membership. That means any number in the interval [0, 1] where 0 denotes that the object does not belong to the set at all, and 1 denotes that the object belongs completely to that group. Overall, there are four main components of a fuzzy system; namely, fuzzification module, inference engine, knowledge base and defuzzification).Fuzzification module converts a crisp input to its corresponding fuzzy value. In addition, inference engine (rule-based system) applies fuzzy rules to compute the output contributed by each rule individually. Moreover, knowledge base contains all the rules and membership functions. Furthermore, defuzzification module combines the several rules outputs into one crisp value and then denormalizes the output value if needed.

MATLAB® ANFIS, a training mechanism for Sugeno-type fuzzy inference system, has been used in the current study to model the relationship between three inputs dogmatism, conservatism and world-mindedness and one output ethnocentrism (Figure 1). Subtractive clustering was used to generate the fuzzy inference system where the clustering parameters were chosen as the following range of influence (0.5), squash factor (1.25), accept ratio (0.5) and reject ratio (0.15). Depending on the values of these three parameters, an 11 rules fuzzy inference system (FIS) was generated with 9 membership functions for each variable of inputs and the output.

The following are the specifications of the used fuzzy inference system: type: 'sugeno' and Method: 'prod' or Method: 'probor' defuzz Method: 'wtaver' imp Method: 'prod' agg Method: 'max' input: [1x3 struct]output: [1x1 struct] rule: [1x9 struct] trndata: [272x4 double]. A first order Sugeno type fuzzy model has three inputs (x, y, and z) and one output (f) and it has rules of the following form:

IFx is a₁and y is b₁ and z is c₁Thenf is h₁x + i₁y + j₁z +r