Journal of
Services Research
Volume 11
Number 2
October 2011 - March 2012
A STUDY OF SERVICE ETHNOCENTRISM AND ITS
RELATIONSHIP WITH SOCIAL CONNECTEDNESS
Shiri D. Vivek
Assistant Professor of Marketing and
Supply Chain Management College of Business
Eastern Michigan University, Ypsilanti.
Vivek Dalela
Assistant Professor of Marketing Seidman College of Business,
Grand Valley State University
Grand Rapids, MI 49504.
Abhijit M. Patwardhan
Assistant Professor of Marketing
A.R. Sanchez, Jr. School of Business
Texas A&M International University
University Boulevard, TX.
The Journal of IIMT
A STUDY OF SERVICE ETHNOCENTRISM AND ITS
RELATIONSHIP WITH SOCIAL CONNECTEDNESS
Shiri D. Vivek
Abhijit M. Patwardhan
Vivek Dalela
This research reports the relationship of service ethnocentrism to two constructs
representing social connectedness- susceptibility to interpersonal influence and
allocentrism. Using the responses on a survey measuring the constructs, the
hypothesized model was subjected to structural equation modeling. Based on the
model, the study concludes that individual's susceptibility to interpersonal influence
operates through service ethnocentrism to influence people's intent to choose a
service provider of their own ethnic origin. However, contrary to previous findings
in the literature on similar constructs (i.e. CET), allocentrism does not work on
intent to choose a service provider of one's own ethnicity through service
ethnocentrism. The paper also reports the preliminary attempts to develop a measure
of Service Ethnocentrism.
INTRODUCTION
M
arketing literature has witnessed a large body of research on
the influence of ethnocentrism, consumer ethnocentrism, and
country of origin of products/ parts on attitudes and purchase
intentions towards foreign products. Research in these areas suggests
that there is a relationship between the culture of buyers and that of
sellers. A number of studies have also documented that consumers
often are biased against foreign products, and are in favor of domestic
ones (Baughn and Yaprak 1993). Motivated by these findings in the
existing literature, the author conducted this study to find how these
relationships influence consumers' decisions to patronize services, in
situations where service providers of cultural backgrounds similar to
the consumer, are available.
The specific purpose of this study is to investigate consumer
responses as a function of their ethnocentrism towards service providers.
The study adds to existing insights in two ways. Firstly, it adapts the
concept of consumer ethnocentrism to services. Secondly, this research
integrates in a conceptual framework, the constructs representing
different levels of social connectedness- viz. susceptibility to
interpersonal influence and allocentrism - with ethnocentrism in service
Journal of Services Research, Volume 11, Number 2 (October 2011 - March 2012)
©2011 by Institute for International Management and Technology. All Rights Reserved.
8 A Study of Service Ethnocentrism
patrons and measures its impact on their intent to choose (hereinafter
choice) a service provider. The overall thesis is that consumers'
propensity for social connectedness operates through service
ethnocentrism (SET), which in turn affects their intention to patronize
providers of their own ethnicity. Relevant previous research on
consumer ethnocentrism is reviewed, followed by a discussion of
service ethnocentrism, as well as the two constructs representing social
connectedness, viz allocentrism and susceptibility to interpersonal
influence (hereinafter influence). Hypotheses are generated based on
existing research. Description of the measures used, the methods, and
the sample follows. Results of the structural equation model are then
discussed. The paper concludes with limitations of present research,
future research directions, and implications for managers.
ETHNOCENTRISM IN MARKETING
Ethnocentrism in marketing is primarily represented by the concept of
Consumer Ethnocentrism (CET) which has been derived from the
concept of ethnocentrism in Sociology (Shimp and Sharma 1987).
Ethnocentrism represents people for whom their own group is the center
of the universe, and who negatively perceive people who are culturally
dissimilar. Sumner (1906) defined ethnocentrism as "the technical name
for this view of things in which one's own group is the center of
everything, and all others are scaled and rated with reference to
it…….Each group nourishes its own pride and vanity, boasts itself
superior, exalts its own divinities and looks with contempt on outsiders"
(Sumner 1906). Shimp and Sharma (1987) construed CET as a domain
specific sub-set of Sumnerian ethnocentrism and defined CET as a
"trait-like property of an individual's personality" which encompasses
"the beliefs held by the consumers about appropriateness, indeed
morality, of purchasing foreign-made products". Since the development
of CETSCALE (Consumer Ethnocentric Tendencies Scale) to measure
CET (Netemeyer and Durvasula 1991; Shimp and Sharma 1987) there
has been extensive research on the antecedents and consequences of
CET as well as the other factors that interact to influence the relationship
of CET with its antecedents and consequences.
Marketing researchers have long attempted to measure general
consumer disposition towards buying foreign products (Anderson and
Journal of Services Research, Volume 11, Number 2 (October 2011 - March 2012)
9 Vivek, Dalela, Patwardhan
Cunningham 1972; Dornoff et al. 1974; Reirson 1966). However,
ethnocentrism became the focus of marketing researchers after Shimp
and Sharma published the CETSCALE in the late 1980s. The existing
literature reports a large number of studies measuring the influence of
CET on attitudes towards foreign made products. Most studies have
reported that consumers scoring high on CET prefer domestic products
over foreign ones.
Since its development, CETSCALE has been administered to
samples in United States, Japan, Germany, France (Netemeyer and
Durvasula 1991), Sweden (Hult et al. 1999), Spain (Luque-Martinez,
et al, 2000), Russia and Poland (Good & Huddleston 1995), China
(Klein et al. 1998) and many other developing and developed countries.
These and many other studies measured four broad categories of
antecedents of CET. Socio-psychological, economic, political and
demographic antecedents have been reported in CET research
(Shankarmahesh 2006). Studies of socio-psychological antecedents
include cultural openness, worldmindedness, patriotism, conservatism,
animosity, collectivism, materialism and dogmatism. Early in their
comparative study, Shimp and Sharma (1987) found Los Angeles to
be less ethnocentric than Denver, Detroit and Carolinas. Sharma et al
(1995) reported a negative relationship between cultural openness and
CET in Korean consumers, whereas Suh and Kwon (2002) found a
similar relationship among US consumers. The existing research does
not provide a conclusive evidence about the nature and direction of
influence worldmindedness (Rawwas et al. 1996; Balabanis et al 2001),
and patriotism (Bannister and Saunder 1978; Han 1998; Sharma et al.
1995; Klein and Ettenson 1999; Balabanis et al 2001) have on consumer
ethnocentrism. Individual studies on dogmatism and salience show
that they are positively correlated to CET (Shankarmahesh 2006).
Studies consistently report positive influence of conservatism
(Anderson and Cunningham 1972; Sharma et al 1995; Balbanis et al
2002), collectivism (Ettenson et al 1988; Nishina 1990; Strutton et al.
1994; Sharma et al 1995) and dogmatism (Anderson and Cunningham
1972; Shimp and Sharma 1987; Caruana 1996). Economic antecedents
like capitalism, improving national economy and improving personal
finances have a negative relationship with CET, although Good and
Huddleston (1995) found a curvilinear relationship between stage of
Journal of Services Research, Volume 11, Number 2 (October 2011 - March 2012)
10 A Study of Service Ethnocentrism
economic development of the country in which the study was done
and CET among the respondents. The results from studies relating
demographic variables like age, income, education, gender and race
to CET do not give any conclusive evidence about the direction of
these relationships (Shankarmahesh 2006).
Two common threads across almost all studies of CET are: a) The
respondents were almost always residing in their native country; b)
The studies have been done in the context of products. A thorough
investigation of the literature brought up two studies where the concept
of ethnocentrism has been applied to services. In a study by Pecotich
et al (1996) in Australia, ethnocentrism was used as a covariate to
measure consumer decision making processes for services in the case
of a change of ownership. They found that ethnocentrism seriously
influenced perceptions of service quality. The authors suggested that
where ethnocentrism is significant, service firms should retain a homenation image. The study used CETSCALE to measure the construct.
Ruyter et al. (1998) tested the product-specific model developed by
Sharma et al (1995) in the context of services. They found support for
the model in the context of services also, barring the demographic and
moderating variables. This research found that unlike in the case of
products, age determines consumer ethnocentrism towards services
while gender and income do not. Economic threat also does not
moderate consumer ethnocentrism towards services. Pecotich et. al
(1996) measured CET only as a covariate. Ruyter et al. (1998) modified
the CETSCALE to suit services. Not only are these studies limited in
their ability to be generalised in the context of CET, they also have
limited relevance in the changing environment where: a) growth in
world trade continues to outstrip growth in the gross national product
of most countries (World Trade Organization); b) migration across
cultures is increasing at a very fast rate; c) In globalized supply chains
country of origin cues are fast dissipating or losing relevance
(Advertising Age, June 4, 2007); d) even product marketing is being
guided by a service-dominant logic (Vargo and Lusch 2004). These
are some reasons Pharr (2005) made a call for an investigation in the
context of services, suggesting that "we need empirical studies to
determine whether the COO effect so robustly demonstrated for a wide
variety of physical products applies equally well to intangible services"
Journal of Services Research, Volume 11, Number 2 (October 2011 - March 2012)
11 Vivek, Dalela, Patwardhan
(Pharr, 2005: 42). This study attempts to address this gap by answering
the following research questions.
1. What is the nature of consumer ethnocentrism as it applies to
services?
2. How does SET (Service Ethnocentrism) affect the relationship
between social connectedness and service provider choice?
BACKGROUND AND HYPOTHESES DEVELOPMENT
This section proposes a model of the relationships among the constructs
in this study (see figure 1). Service ethnocentrism and intent to choose
service providers are variables positioned as dependent variables.
Interpersonal influence is one independent variable, and allocentrism,
a second latent construct, is positioned as the second independent
variable. The paths from the independent variables to the dependent
variables represent the hypotheses tested in the study.
Service Ethnocentrism (SET):
Services is the fastest growing area of international trade (Terpstra &
Sarathy 1993; Bradley 1995). Researchers argue that service activities
are spanning across the whole world in a major way (Vandermerwe &
Chadwick 1989). However, service consumption behaviors are different
from those evidenced in the consumption of products because of their
intangibility, inseparability of production and consumption,
heterogeneity, and transitoriness (Zeithaml et al., 1985; Berry, 1980).
The perceived risk from purchase of services is also high due to
availability of limited information (Bateson, 1992). Given the
characteristics of services, ethnocentric tendencies and ethnicity cues
of service providers might be important influences on service
consumption behaviors and thus merit focused investigation.
Researchers argue that CET can predict consumer preferences to buy
domestic as opposed to foreign products (Shimp and Sharma 1987;
Herche 1992). Research on country of origin (COO) also shows that a
product's country of origin can influence the evaluation of that product
(Tan and Farley 1987).
There are several reasons that marketing needs a new construct
that measures ethnocentrism in services. In their present form, the
concepts of ethnocentrism, CET and COO can be operationalized in
Journal of Services Research, Volume 11, Number 2 (October 2011 - March 2012)
12 A Study of Service Ethnocentrism
the case of products. Besides having limited relevance to the marketing
of products in a globalized world, these concepts need major
modification if they have to be applied to services. Moreover, research
measuring the effects of CET and COO of products on product choice
decisions has been done almost exclusively with samples taken from
natives (people who live in their own country) in different countries
and for different product categories. These concepts raise some
limitations when an attempt is made to apply them to the melting pots
that most countries have become; and in a world where global travel
has left little scope for extreme attitudes like contempt (in the definition
of ethnocentrism) and immorality (in the definition of CET). Another
reason to suggest the need for a new concept is that while finding the
country of origin of a product might be difficult in these times, the
ethnicity of a service provider is still a very significant cue to the
customer. For all these reasons, the authors propose conceptualization
of service ethnocentrism (SET) which may be defined as an obligatory,
dispositional bias towards ethnically similar service providers with
expectations of certain social and personal benefits and risk avoidance.
Ethnocentric tendencies have been found to be developing through
the formative years of an individual. Thus, irrespective of global travel
experience, we expect ethnocentric tendencies of people to influence
their behaviors and choices in certain ways. Given the above reasons,
the authors propose that SET is ethnocentrism of a nature different
from CET and needs to be conceptualized appropriately. For this study
a new scale was developed to measure the construct of SET empirically.
The ability of SET to influence choice of service providers was then
tested. The next section develops a conceptual framework of the
relationship between social connectedness and ethnocentric tendencies.
Role of Social Connectedness
Previous research shows that socialization processes play an important
role in influencing consumption behaviors. People build meanings
around consumption through interactions with others (Gallant and
Kleinman 1983). Socialization influences may manifest themselves at
different levels, such as an individual's susceptibility to interpersonal
influence or ones generally collective tendencies (allocentrism).
Journal of Services Research, Volume 11, Number 2 (October 2011 - March 2012)
13 Vivek, Dalela, Patwardhan
Susceptibility to Interpersonal Influence (Influence)
Merton and Rossi (1968) suggested that similarity, agreement, clarity,
sustained interaction, and significant others are pre-conditions to a group
becoming an individual's point of reference. Moreover, permanent
groups have more influence on an individual than transient groups.
This social influence might be complex in some cases, while in other
cases it might manifest itself in very simple acts, such as agreeing with
a visible majority (Jahoda, 1959). Agreement can be regarding the
information or the confirmation to expectations. Individuals might accept
information obtained from another as evidence about reality
(informational influence). Normative social influence is evident in the
pressure to conform to the social expectations of another person or
group (Deutsch and Gerard 1955). Studies, of which some are briefly
discussed above, show that "broader social ecology" plays an important
role in developing a sense of ethnic identity (Knight et al, 1993). This
leads the authors to hypothesize the following relationship between
influence and SET.
Hypothesis 1: Susceptibility to interpersonal influence positively affects
the level of service ethnocentrism of an individual.
Thus it is reasoned that higher sense of connectedness will bring strong
service ethnocentrism in an individual, which will operate to manifest
such connectedness in influencing consumption behaviors. People with
high service ethnocentrism will demonstrate a higher intent to choose
providers of their own ethnicity. This leads to the following hypothesis:
Hypothesis 2: Service ethnocentrism will mediate the relationship
between influence and choice of service providers.
Interpersonal influence operates at a different level in the form of
allocentrism. Interpersonal influence is different from allocentrism in
that it goes beyond being part of a group, to allowing ones decisionmaking to get influenced by those groups.
Allocentrism
Triandis et al. (1985) studied individualism and collectivism at an
individual level of analysis as idiocentrism and allocentrism. Triandis
(1994) maintained that idiocentrics, besides other things, differ from
Journal of Services Research, Volume 11, Number 2 (October 2011 - March 2012)
14 A Study of Service Ethnocentrism
allocentrics in their attributions, self-concepts, emotions, attitudes and
values. The concept of allocentrism has been extensively applied to
many cross-cultural studies (Cialdini et al, 1999; Yamaguchi 1994;
Dutta-Bergman and Wells 2002). Social identity for allocentrics is more
core and salient and social comparisons more important for them
(Triandis 1988, 1989). As in-group norms are more important to
allocentrics than idiocentrics, their behaviors will be more influenced
by others around them. These assertions have led researchers to consider
idiocentrism and allocentrism (I-A) as useful constructs in the analysis
of ethnocentrism in cross-cultural context (Lee and Ward 1998). This
study thus hypothesizes the following:
Hypothesis 3: Level of allocentrism positively affects the level of service
ethnocentrism of an individual.
Lay et al. (1998) also found a strong correlation between family
allocentrism and a sense of relatedness to ethnic origin. This concept
of allocentrism is different from general concern and interaction with
others in that it reflects a sense of connectedness to in-groups (Lay et.
al 1998). Allocentrics are expected to show less positive behaviors
towards outgroups (Triandis et al, 1990). Thus, the following
hypothesis:
Hypothesis 4: Allocentrics are more likely to choose service providers
of their own ethnicity.
Kashima et. al (1995) suggested that allocentrism is more closely
aligned to cultural differences while general concern is associated with
gender differences. Given the influence of broader social ecology
mentioned above, this study further hypothesizes the following:
Hypothesis 5: Service ethnocentrism will mediate the relationship
between allocentrism and choice of service providers.
The next section discusses the development of Service Ethnocentrism
Scale (SETSCALE).
SETSCALE DEVELOPMENT
The first objective of this research was to understand the nature of SET
and develop a measure for the same. Following Churchill (1979),
development of the Service Ethnocentrism Scale (SETSCALE) began
Journal of Services Research, Volume 11, Number 2 (October 2011 - March 2012)
15 Vivek, Dalela, Patwardhan
with the review of existing scales (e.g. Shimp and Sharma 1987; Chang
and Ritter 1976; Warr, et al, 1967) and relevant literature. To get further
insights into the construct, 10 immigrants in the USA were asked to
express their opinions in response to a set of questions that enquired
elements relating to the ethnicity of the provider of any service of their
choice, how important ethnicity was in making this choice, their
decision-making process for that provider and if they, or their friends,
would prefer a provider of the same ethnicity in case of certain services.
From the content analysis of the responses, insights from existing scales
and relevant literature, six dimensions of SET were identified and
multiple items generated to represent these five dimensions. These
dimensions were: pride, morality, endorsement/ support, risk aversion,
personal benefits, and social influence. Subsequent to this step,
ambiguous and identical items were eliminated, resulting in a revised
pool of items. Nine marketing faculty and Ph.D. students were then
requested to evaluate the content of the items. The judges were given
the definition of the construct, definition of each dimension and were
asked to allocate each item to its respective dimension, or to a "not
applicable category". The judges were also requested to provide any
comments about possible improvements in the wording of the items.
Items were modified or eliminated until a consistent classification could
be obtained from seven of the nine judges. This analysis resulted in 25
items that were used to measure service ethnocentrism.
SAMPLE
Based on ethnic identity stated by the respondents, 301 females and
271 males were identified as a relevant sample which was reached
through e-mail, personal contacts and subsequent snowballing. In all
572 people were contacted of which 287 responded to the survey,
either online or on paper. Exclusion of incomplete and unusable surveys
brought the final sample to 281. The age of respondents included in
the final analysis ranged from 19 years to 55 years, with a median of
30 years. A large number of ethnic identities, primarily Chinese, Indian
and Korean nationalities are represented in the final sample. As is evident
from the dominant nationalities, respondents primarily from collective
cultures were invited to participate in the study. There were ten different
ethnic designations among the study respondents. The high numbers
Journal of Services Research, Volume 11, Number 2 (October 2011 - March 2012)
16 A Study of Service Ethnocentrism
were represented by South Chinese (74), North Chinese (37), South
Indians (64), North Indians (43) and South Koreans (63).
MEASURES
In order to avoid incorrect assumptions of ethnicity based on
perceptions, the respondents were first asked to indicate what represents
their ethnic identity. 38% of the respondents indicated nationality, 51%
percent indicated both nationality and religion, and 11% percent
indicated religion, and none indicated any other distinctions as a
representation of their ethnic identity. As only 60% of the respondents
shared information about their religion, while all indicated their
nationality, the meaning of ethnicity in this research would be restricted
to nationality.
Susceptibility to Interpersonal Influence
Bearden et al.'s (1989) scale was used to assess susceptibility to
interpersonal influence. The original scale had 12 items, 4 items each
representing the value-expressive, utilitarian and informational
influence. However, the authors had grouped the eight items reflecting
susceptibility to value-expressive and utilitarian influence to form the
normative dimension. The responses on the 12 items were obtained on
a 5 point scale where 1 represented 'highly disagree' and 5 represented
'highly agree', with 3 representing 'neither disagree nor agree'.
Cronbach's alpha for the items was .92.
Allocentrism:
The measure of allocentrism was derived from Triandis et al. (1995).
The original measure had eight collectivism and seven individualism
items and was suggested as a reliable measure based on a probe by
Triandis et al. (1995). As this study considered allocentrism and
idiocentrism (collectivism and individualism measured with individual
as the unit of analysis) as two ends of a continuum, only the eight
collectivism items were used to measure allocentrism. The responses
were obtained on a 5 point scale where 1 represented 'highly disagree'
and 5 represented 'highly agree', with 3 representing 'neither disagree
nor agree'. Cronbach's alpha for the items was .78.
Journal of Services Research, Volume 11, Number 2 (October 2011 - March 2012)
17 Vivek, Dalela, Patwardhan
Service Ethnocentrism (SET)
SET was measured using 25 item author designed scale. The procedure
for developing the scale has been discussed previously. Responses
were obtained on a five point Likert scale (1-strongly disagree, 3-neither
disagree nor agree, 5- strongly agree). Cronbach alpha for these items
was .96.
Intent to Choose
This variable was included to measure the intent to choose service
providers of the same ethnic origin. In the measurement of intent to
choose, the services of a doctor and a lawyer were included as instances
to obtain the response in regards to high involvement services (Donthu
and Cherian 1994), and the services of a gas station and a dry cleaner
were included to represent low involvement services. The responses
were obtained on a 5 point scale where 1 represented 'very unlikely'
and 5 represented 'very likely'. Cronbach's alpha for the items was .72.
ANALYSES AND RESULTS
This section discusses the results of statistical procedures conducted
on the data. Structural Equation Modeling (SEM) was conducted to
test the hypothesized relationships between exogenous and endogenous
variables, as well as the overall fit of the hypothesized model (see
Figure 1).
Preliminary Analysis
Preliminary analysis of the data was conducted to evaluate the extent
and nature of missing data and missing subjects. Because the power
loss was acceptable and the missing data were very few, listwise deletion
was deemed the most appropriate method for handling the missing
data, which meant loss of six cases. The amount of missing data was
not significant enough to reduce the effect size of the study, which,
given the high correlation between SET and choice, is in the high range
of .45. Visual inspection of histograms and bivariate scatter plots did
not suggest any violation of the assumption that the indicators were
normally distributed.
Journal of Services Research, Volume 11, Number 2 (October 2011 - March 2012)
18 A Study of Service Ethnocentrism
Factor Analysis
The data collected were based on multi-item scales from previous
research, as well as an author-designed scale. Thus, before testing the
specified hypotheses, the constructs were assessed for measurement
accuracy. Factor analysis was conducted separately on exogenous
variables and endogenous variables. As each scale was being used to
measure a general construct, the dimensions were not of interest to this
study. Therefore, the objective of conducting this analysis was to see if
the items for each scale load on one general factor. The items measuring
influence and allocentrism loaded on two factors, each with loadings
greater than .40 on the relevant factor. The only exception was
Allocentrism 4, which loaded at .346. Given that previous research
has used all the seven items to measure allocentrism (Triandis et al.
1985) and that Chronbach's alpha (.78) was equivalent to that obtained
with a reduced item scale, the original seven items were retained for
hypothesis testing. Factor loadings for the exogenous variables are
reported in Table 1.
Table 1: Factor Loadings for Exogenous Variables
Interpersonal
Influence
I achieve a sense of belonging by purchasing the same brands that
others from my ethnic group purchase.
I often identify with my ethnic group by purchasing the same
products and brands they purchase.
I like to know what brands make good impressions on others from
my ethnic group.
I often buy the same brands that people from my own ethnic group
buy.
To make sure I buy the right product or brand, I often observe
what others from my ethnic group are buying and using.
When buying products, I generally purchase those brands that I
think others from my ethnic group will approve of.
If other people from my ethnic group can see me using a product, I
often purchase the brand they expect me to buy.
It is important that others from my ethnic group like the products
and brands I buy.
I frequently gather information from friends of my ethnic group
about a product before I buy.
If I have little experience with a service, I often ask my friends
from my ethnic group about the service.
I mostly purchase the latest fashion styles when I am sure friends
from my own ethnicity approve of them.
I often consult other people from my ethnic group to help choose
the best alternative available from a product/ service class.
I am the kind of person who is likely to entertain visitors even if
they drop in at odd hours.
I am the kind of person who is likely to take time off from work to
visit an ailing friend.
I am the kind of person who is likely to ask my old parents to live
with me.
I am the kind of person who is likely to entertain even unwelcome
guests
I am the kind of person who is likely to stay with friends, rather
than at a hotel, when I go to another town.
I am the kind of person who has parents who would consult my
fiancee’s parents extensively, before they decide whether we two
should get married
I am the kind of person who is likely to ask close relatives for a
loan.
Allocentrism
.836
.772
.767
.765
.755
.740
.734
.708
.705
.581
.537
.532
.756
.679
.635
.572
.571
.546
.358
Journal of Services Research, Volume 11, Number 2 (October 2011 - March 2012)
19 Vivek, Dalela, Patwardhan
The items measuring SET and choice also loaded on two factors.
Reported in Table 2 are the factor loadings for items measuring SET.
As can be seen from the table, there were few cross-loadings, but
considering the sample size, support was generally found for the
construct of SET. Moreover, because items were summed into scales,
these anomalous results do not adversely impact the study. They do,
however, provide guidance for development and further refinement of
a measure of service ethnocentrism.
Table 2: Factor Loadings for Exogenous Variables
SET
I support my group culture by using a service provider of my own ethnic
origin.
Even if the service is expensive, I would support a service provider of my
own ethnic origin.
Services in America should model themselves after the friendly services in
my native country.
Using service providers of one’s own ethnicity is the right thing to do.
I feel most comfortable using a service provider of my own ethnic origin.
A provider of my ethnic group will be more trustworthy than others.
It is my moral responsibility to give business to people from my own
ethnic origin.
I will probably not get poor service if I use a provider of my own ethnicity.
A service provider of my own ethnicity will be the least risky choice.
Service culture in my own ethnic group is better in comparison to services
in other places.
There is little risk of something going wrong if I use a service provider of
my own ethnicity.
Service providers of my ethnic group will be generally fairer to me, than
other service providers.
I will generally get faster service from a provider of my own ethnicity.
People should support service providers of their own ethnicity.
By supporting a service provider of my own ethnic origin, I am helping my
people.
I will probably not be over-charged if I use a service provider of my
ethnicity.
My friends like that I use a service provider of my own ethnicity.
It is usually beneficial for people to have business relationships with my
ethnic group.
Service providers of my ethnic group understand my needs better.
S A service provider of my own ethnicity will generally offer me cheaper
services.
My family generally prefers that I use a service provider of my own
ethnicity.
A service provider of my own ethnicity will offer me services that other
customers won’t get.
Service providers of my ethnic group understand my language better.
When available it would be wrong not to use a service provider of my own
ethnicity.
I am proud of my ethnicity.
Assume that you need a doctor, and that you know there are competent
Intent to
choose
.852
.829
.822
.814
.806
.785
.784
.751
.751
.749
.738
.722
.720
.719
.708
.696
.671
.658
-.209
.617
.603
.261
.568
.291
.553
.438
.329
.305
.293
.289
Journal of Services Research, Volume 11, Number 2 (October 2011 - March 2012)
20 A Study of Service Ethnocentrism
SET
Assume that you need a dry cleaner, and that you know there are
good dry cleaners available, of your own ethnic origin as well as
of other ethnicities. What is the likelihood that you would choose
a dry cleaner of your own ethnic origin?
Assume that you need a lawyer, and that you know there are
competent lawyers of your own ethnic origin as well as of other
ethnicities, available. What is the likelihood that you would
choose a lawyer of your own ethnic origin?
Assume that you are looking for a gas station, and that you know
there are good gas stations nearby, some of which are owned by
people of your own ethnic origin, and some by people of other
ethnicities. What is the likelihood that you would choose a gas
station owned by a person of your own ethnic origin?
Intent to
choose
.747
.560
.214
.402
Structural Equation Model
The hypothesized relationships among the latent variables are
graphically represented in Figure 1. Interpersonal influence and
allocentrism were modeled as the exogenous variables in the model.
SET and choice were modeled as endogenous variables. The exogenous
variables represent the social connectedness, whereas the endogenous
variables are the tendencies and behaviors in the specific context of
services.
Susceptibility to
Interpersonal
influence
Service Ethnocentrism
Intent to choose same
ethnicity provider
Individual ‘s
Collectivism
(Allocentrism)
Figure 1: Hypothesized Model
Due to a small sample size, the hypothesized model was tested at scale
level using the student version of LISREL 8.80 (Jöreskog and Sörbom
2006). The estimated model provided a good fit to the data. The ratio
of χ2/degrees of freedom (df) = 1.4, which is well within the
recommended range. Hypothesis testing was accomplished by
examining the completely standardized parameter estimates and their
t-values. Specifically, t-statistics greater than 1.96 for all but one path
Journal of Services Research, Volume 11, Number 2 (October 2011 - March 2012)
21 Vivek, Dalela, Patwardhan
indicate that path loadings are significant at the 0.05 level. The goodnessof-fit indexes from the hypothesized model are reported in Table 3.
Graphical representation of the structural model, model fit statistics,
and path coefficients are provided in Figure 2.
Influence
.71
Service
Ethnocentrism
.07
.40
Choice
.34
Allocentrism
Figure 2: Structural Model with path coefficients
This study hypothesized that influence positively affects the level of
service ethnocentrism of an individual (H1). In support of H1, influence
has a strong positive effect on SET. H2 hypothesized that SET will
mediate the relationship between influence and choice. Support was
found for this hypothesis too. The significance of relationship between
influence and choice drops when SET is entered. SET works as a
significant mediator between influence and intent to choose a service
provider of one's own ethnicity. Consistent with the existing literature
(e.g., Lay et al. 1998), H3 hypothesized that level of allocentrism will
positively affect the level of SET (H3), which in turn will positively
influence choice (H5). However, contrary to H3, level of allocentrism
did not significantly influence SET and in turn, contrary to H5, SET
did not play a significant mediating role between allocentrism and
choice. However, H4 was supported in that there is a significant direct
path from allocentrism to choice indicating that the level of allocentrism
has a positive influence on intent to choose a service provider of one's
own ethnicity. Initially, no relationship between allocentrism and SET
appears to be counterintuitive because collective tendencies would seem
to be positively related to the overall construct of ethnocentrism.
However, reflecting on primary conceptual differences between
collective tendencies in general (allocentrism) and specific preference
for same ethnicity (ethnocentrism) provides robust support for the
Journal of Services Research, Volume 11, Number 2 (October 2011 - March 2012)
22 A Study of Service Ethnocentrism
findings. Researchers in the past have found that group relations are
more central to allocentrics who are generally willing to moderate their
behaviors in reference to in-group norms (Lee and Ward 1998). A
deeper understanding of the construct, though, reveals that being
collective in general is different from acting collectively towards one's
ethnic group specifically (i.e. being ethnocentric). As defined,
ethnocentrics are necessarily collective towards their own ethnicity.
However, allocentrics could have a collective attitude towards
whichever group they are part of, even if they are working in a multicultural group. Consequently, it is reasonable to expect an insignificant
relationship between the collective tendencies of an individual and
service ethnocentrism.
A competing model was tested to provide tangible support for the
specified research model. As an alternative to the hypothesized model,
allocentrism was modeled as the lone exogenous variable. Influence
and SET were modeled as mediating the relationship between
allocentrism and choice. The theory behind the alternative model was
that influence and SET would both have a differential effect on choice
while the level of allocentrism will affect influence. A chisquare
difference test of the competing model indicated that the alternative to
the hypothesized model failed to provide a significant improvement in
, thus supporting the hypothesized research model
model fit
(Table 3).
Table 3: Goodness-of-Fit Indexes for Structural Equation Models
Model
χ2 (df)
Hypothesized Model
1.12 (1)
Alternative Model
7.74 (3)
∆ χ2 (∆
df)
6.62 (2)*
AGFI
CFI
NFI
RMSEA
.93
1.00
.98
.04
.85
.92
.89
.141
DISCUSSION
Results of the present study provide support for making three important
inferences related to ethnocentrism in marketing. First, the results of
phase one of the study suggest that although the construct of
ethnocentrism is losing relevance in the light of dissipating COO cues
in products, it is still relevant in the context of services. The study
found that unlike CET, SET may not encompass so much of outgroup
Journal of Services Research, Volume 11, Number 2 (October 2011 - March 2012)
(
23 Vivek, Dalela, Patwardhan
denigration, as much as it does a favorable intent to choose service
providers of the same ethnicity.
Second, an unexpected finding from this study brought the
difference between allocentrism (collective tendency in general) and
ethnocentrism (bias towards one's ethnic group) into greater focus.
This study did not find a significant relationship between allocentrism
and service ethnocentrism. This might appear counterintuitive, since a
general tendency (allocentrism) should logically impact tendencies in
a specific context (service ethnocentrism). However, this finding appears
intuitively correct if we consider the conceptual difference between
allocentrism and ethnocentrism. As also reported by some scholars
(e.g. Lee and Ward 1998) allocentrism is a more generalized collective
attitude and is more representative of strong belief in group cohesion
than an in-group bias. Collectivism manifests itself in whichever group
individuals are part of, and whichever ethnicity the group is comprised
of. The similarity between ethnocentrics and allocentrics stops at the
group cohesion they work towards. An important difference between
allocentrics and ethnocentrics is that allocentrics will have a cohesive
attitude towards any group they are in. Ethnocentrics, on the other
hand, are more selective in showing group cohesion, rather group bias,
because their feelings of cohesion are limited to groups of their own
ethnicity. Thus, while ethnocentrics have a bias towards an in-group
that is formed of people of their own ethnicity, allocentrics will show
collective tendencies for any group they are a member of.
Third, this study found that SET is a causal carrier of people's
susceptibility to interpersonal influence in their choice of service
providers. Previous research has shown that consumer decision
processes are often influenced by other people. Some people are more
susceptible to influences from others around them while others are less
susceptible. Findings of this study show that increased influence
operates through increasing service ethnocentrism when patrons go
out to choose service providers in foreign land.
THEORETICAL AND MANAGERIAL IMPLICATIONS
The study makes several contributions from the theoretical perspective.
Firstly, the findings extend our knowledge of ethnocentrism to the
context of services. The influence of ethnocentric tendencies on making
choice of a service provider seems to be higher than it would be in the
Journal of Services Research, Volume 11, Number 2 (October 2011 - March 2012)
24 A Study of Service Ethnocentrism
case of products. An important reason for this is that in an increasingly
globalized world, COO cues in the case of products are fast dissipating.
However, ethnicity of a service provider is one of the very initial
peripheral cues that a service patron gets that can influence decision
making. This study makes another important theoretical contribution
by illuminating the interrelationships between constructs of social
connectedness and service ethnocentrism. The impact of social
connectedness on service ethnocentrism will depend on the level at
which the constructs are being studied. While connectedness within an
individual (allocentrism) might itself not strongly influence service
ethnocentrism, influence at interpersonal level will necessarily be driven
through service ethnocentrism when patrons make a choice of the
service provider.
From the services marketing point of view, the findings suggest
that marketers need to be aware of the influence of ethnocentric
tendencies while offering their services out of the dominant ethnicites.
Inclusion of front line personnel and service providers from different
ethnicites might help increase presence in an ethnic market segment.
However, they also have to keep in mind that mere inclusion will not
work favorably, as service patrons are also considering aspects such as
risk aversion and personal benefits. Thus, an ethnic market might not
be captured solely on pride and morality appeals, or by social influence
(such as recommendation from same ethnicity friend), but by its own
merits also.
LIMITATIONS AND FUTURE RESEARCH
Inspite of attempts to ensure very high levels of conceptual and
methodological rigor, as in other cases, this study suffers from several
limitations. Although the effect size of this study is high (.45), the
findings could have been even more robust and informative if data
could be collected and evaluated at sub-culture levels within each
nationality represented in the study. Understanding how SET relates to
sub-dimensions of interpersonal influence (normative and informational
influence) could further contribute to the existing research. The
confidence in results could have been even higher if I had enough data
to run the measurement model with individual items rather than a scale
level model.
Journal of Services Research, Volume 11, Number 2 (October 2011 - March 2012)
25 Vivek, Dalela, Patwardhan
These limitations also indicate towards opportunities for future
research. First, and most important, the concept of service ethnocentrism
needs further development, with scope for developing a scale that would
measure ethnocentrism in the new market environment. Researchers
in the social sciences have long understood that scale length has a
major impact on the psychometric properties of a measure (Anastasi
1976; Kenny 1979; Nunnally 1976). Although fewer items can reduce
the internal consistency of a measure, scales with as few as three items
can demonstrate adequate reliability (Cook et al. 1981). Scales that are
too long tend to perform poorly in more sophisticated multivariate
analyses (e.g., CFA, SEM, etc.) (Hinkin 1995). Accordingly, scale
developers recommend more parsimonious scales to tap latent constructs
(Hinkin 1995; Rossiter 2002). Given its high reliability, the SET scale
can be modified in the future to have fewer items and necessary depth
and breadth.
The study also needs to be replicated on larger and more diverse
samples to see how sub-cultures, extent of global experience, age,
education, and individualistic versus collectivistic cultural backgrounds
moderate the relationship between social connectedness and different
levels and service ethnocentrism.
ACKNOWLEDGEMENT
I acknowledge and appreciate the guidance received from Dr. Sharon
E. Beatty and Dr. George Franke in conceptualizing this construct. The
data collection for this research was made possible by the funding
received from Office of the Provost, Eastern Michigan University,
Ypsilanti, MI, USA, for which I am thankful.
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Shiri D. Vivek, Assistant Professor of Marketing and Supply Chain
Management College of Business, Eastern Michigan University,
Ypsilanti.
Vivek Dalela, Assistant Professor of Marketing Seidman College of
Business, Grand Valley State University, Grand Rapids, MI 49504.
Abhijit M. Patwardhan, Assistant Professor of Marketing, A.R.
Sanchez, Jr. School of Business Texas A&M International University,
University Boulevard, TX.
Journal of Services Research, Volume 11, Number 2 (October 2011 - March 2012)
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