10th Global Conference on Business & Economics ISBN : 978-0-9830452-1-2 Reexamination of Consumer Animosity-construct Toward Multi Opposed Countries Bayu Sutikno* PhD Candidate in Business Administration Dept., National Central University no. 300, Chung-Ta Rd., Chung-Li City, Tao-Yuan County, Taiwan 32001 Lecturer in Faculty of Economics and Business, Universitas Gadjah Mada, Indonesia Tel: 62-274-548510; Fax: 62-274-563212 e-mail: bayufeugm@yahoo.com Julian Ming-Sung Cheng Associate Professor of Marketing in Business Administration Dept., National Central University no. 300, Chung-Ta Rd., Chung-Li City, Tao-Yuan County, Taiwan 32001 Tel: 886-3-4227151#66100; Fax: 886-3-4226694 e-mail: mingsungcheng@yahoo.com *The Corresponding Author This paper is fully financially supported by Faculty of Economics and Business Universitas Gadjah Mada Indonesia. October 15-16, 2010 Rome, Italy 1 10th Global Conference on Business & Economics ISBN : 978-0-9830452-1-2 Reexamination of Consumer Animosity-construct Toward Multi Opposed Countries ABSTRACT Purpose – This study attempts to reexamine the reliability and validity of consumer animosity construct from the perspective of consumers in a single less developed country of Indonesia toward multi (eight) opposed countries. Methodology – The data in the form of self-completion survey are collected in Indonesia, and 1560 data set (from 195 respondents) is used for analysis process. The structural equation modelling was used to revalidate and re-examine the reliability of consumer animosity construct. Findings – The findings reveal that consumer animosity construct has valid and reliable measures across eight opposed countries. This construct showed strong discriminant validity with consumer ethnocentrism and it was able to predict unwillingness to buy product from opposed country, as an evidence of predictive validity. Originality of paper – The existing literature has neglected to re-examine the validity and reliability of consumer animosity construct in the context of multi opposed countries. This study reexamined the validity and reliability of consumer animosity scale of Klein et al., (1998) from the consumers’ perspective of single less developed country toward multi opposed countries context, which represents a pioneering attempt in investigating the aforementioned issue. Type of paper: Research paper Keywords: Animosity, Ethnocentrism, Opposed country, Validity, Reliability. INTRODUCTION The globalization of markets and free trade means a better understanding of the factors that influence consumer attitudes toward foreign products. The studies of the impact of international disputes such as territory, economic, diplomatic disagreement, religious and armed conflict on October 15-16, 2010 Rome, Italy 2 10th Global Conference on Business & Economics ISBN : 978-0-9830452-1-2 consumers’ behavior towards product of companies from the offending nation has gained high attention from both scholars and practitioners in recent years (Klein et al., 1998; Ang et al., 2004; Riefler and Diamantopoulos, 2007). Klein et al., (1998) was the pioneer scholar who investigated consumer animosity construct. They had revealed the importance of consumer animosity which refers to the remnants of antipathy related to previous or ongoing military, political or economic events. Consumer animosity will influence willingness or unwillingness of consumers to purchase foreign products from companies based in or associated with an opposed country in the international market place. It was supported in the contexts of B2C (Ahmed et al., 1994; Dzever and Quester, 1999); B2B (Edwards et al., 2007), longitudinal study design (Ettenson and Klein, 2005); between countries (Klein and Ettenson, 1999; Amine et al., 2005; Little et al., 2009); within country or domestic animosity (Cicic et al., 2005; Shoham et al., 2006); regional animosity (Shimp et al., 2004). In view of the significance of this subject, the previous studies by academicians and business actors have been devoted to replicate the Klein et al., (1998) in different contexts (Witkowski, 2000; Nijssen and Douglas, 2004; Edwards et al., 2007), and a lot of prior researches have been done to extend the applicability of the consumer animosity construct such as domestic animosity and interethnic animosity (Hinck et al., 2004; Shoham et al., 2006). Nevertheless, the existing literature has neglected to examine the consumer animosity construct in cross national settings. Only a few previous studies have explored consumer animosity from multi home countries in South East Asia to single opposed country of US and Japan (Jung et al., 2002; Ang et al., 2004), an inter-ethnic animosity from single ethnic toward two opposed ethnics (Kesic et al., 2005; Cicic et al., 2005). From the best of our knowledge, a few of prior studies intended to examine the reliability and validity from single home country toward multiple opposed countries (e.g. Leong et al., 2008; Bahaee and Pisani, 2009). In order to fill the literature gap and to provide more detailed insight into October 15-16, 2010 Rome, Italy 3 10th Global Conference on Business & Economics ISBN : 978-0-9830452-1-2 the current subject, this study intends to fill this gap by reexamining the consumer animosity of multi opposed countries from single home country setting. The purpose of this study, therefore, is to reexamine the reliability and validity of consumer animosity construct from the perspective of consumers in a single less developed country toward multi opposed countries. In the following section, a brief review of consumer animosity construct and stages of reexamination of reliability and validity from relevant previous studies are provided. This is followed by a discussion of the design of the sample and data collection. The results from a reexamination of reliability and validity testing including internal consistency, exploratory factor analysis (EFA), confirmatory factor analysis (CFA), unidimensionality analysis, convergent validity, discriminant validity, and criterion related validity are presented in the next section. Finally, the implications of this study, its limitations and future research directions are discussed. LITERATURE REVIEW Consumer animosity construct Consumer animosity refers to the strong deep-rooted emotions arising from previous or ongoing military, political or economic events (Klein et al., 1998; Ang et al., 2004). Consumer animosity may result in negative attitudes towards products from the aggressor country, and reluctance to buy products from that country (Nijssen and Douglas, 2004; Nakos and Hajidimitriou, 2007). Consumer animosity could be described into 4 types of consumer animosity such as national animosity (based on macro perspective of an opposed country); personal animosity (based on micro or personal experiences with opposed or opposed country); situational animosity (based on situation-specific and of a temporary); stable animosity (based on historical perspectives) (Jung et al., 2002; Ang et al., 2004). Klein et al., (1998) revealed that consumer animosity consisted of two dimensions such as politic or war animosity, and economic animosity. In spite of Jung et al., (2002) and Ang et al., (2004) October 15-16, 2010 Rome, Italy 4 10th Global Conference on Business & Economics ISBN : 978-0-9830452-1-2 proposed four types of consumer animosity but most of prior studies adopted two dimensions of consumer animosity from Klein et al., (1998), since the stable versus situational animosity is still confusing, relative term and debatable. The politic or war animosity results from acts of aggression or warlike behavior by a country or nation-state, while economic animosity results from feelings of economic dominance or aggression. The previous studies tend to give more attention on economic animosity than war or politic animosity (Riefler and Diamantopoulos, 2007) since economic issues may be very frequent reasons than war-based; thus the scholars’ own interests in examining effects of economic disputes on buying behavior than war or politic disputes on buying behavior; and the existence of economic rivalries which have very similar reasons across country. The economic animosity is observed based on trading practice perceived as unfair to the home country, the unreliability of the trading partner and the economic dominance power of the foreign country toward home country. The war animosity refers to crimes and cruelty committed during historic occupations of foreign country toward host country (Klein et al., 1998; Hong and Kang; 2006; Riefler and Diamantopoulos, 2007). In recent situations, this study proposed that politic animosity is included war animosity, diplomatic disputes, border conflict and psychological war conflicts. The reexamination tests The reexamination of consumer animosity construct followed the robust stages from prominent scholars such as Churchill (1979); Anderson and Gerbing, (1988); Netemeyer et al., (1991). This process involved two main examinations in terms of reliability and validity. First, the consumer animosity construct have to be defined conceptually clearly. Second, the operational definition (measurement items or scales) of consumer animosity construct was collected from the initial seminal study (Klein et al., 1998) and related previous researches. Third, the modification of scales is employed by consider recent and context situation. Forth, the data collection process to the October 15-16, 2010 Rome, Italy 5 10th Global Conference on Business & Economics ISBN : 978-0-9830452-1-2 respondents and it is followed by data analysis process. Fifth, the purification test through internal consistency reliability by observes inter-item correlations of each item, and its composite reliability and cronbach alpha coefficients. Sixth, the exploratory factor analysis (EFA) is performed to determine the number of dimensions of consumer animosity construct. After this study found the number of dimensions of consumer animosity construct, then continuing to the seventh stage, we tested the unidimensionality, whether all items in a scale measures a single construct. A confirmatory factor analysis (CFA) in AMOS software is conducted. Eighth, the convergent validity is employed by observed factor loadings of all items. Ninth, the reexamination of discriminant validity to determine the relation of consumer animosity construct with similar construct such as consumer ethnocentrism. Finally, this current study checked the criterion related or predictive validity, therefore, a structural model by employed consumer animosity as predictor of unwillingness to buy foreign products from opposed country is tested. Indonesia and multi opposed countries Indonesia is the world’ largest archipelagic state with 17,508 islands and also it is situated between two continents Asia and Australia/Oceania. This strategic location has a significant influence towards its culture, social, politics and economy. Indonesia is the most populous Muslimmajority and the world’s fourth most populous country with 222 million people in 2006 (Indonesia, 2008). Indonesia is colonized by Netherlands from 1602 through VOC (Dutch East Indian Company) until Japan invaded Indonesia from 1942-1945 during World War II. The surrender of Japan on August 14th 1945 caused the vacuum of power, then Indonesia declared Indonesia’ independence on August 17th 1945. During 1945-1950, Indonesia struggled from the re-invasion of Netherlands army. Indonesia is an active international diplomatic player as member of Security Council of United Nations, the founder of ASEAN (Association of South East Asian Nations) in 1967, October 15-16, 2010 Rome, Italy 6 10th Global Conference on Business & Economics ISBN : 978-0-9830452-1-2 member of Organization of Islamic Conference, and the founder of Non-aligned movement countries (Wikipedia, 2008). The estimated GDP (gross domestic product) for 2007 is 408 billion US$ with nominal percapita is 1,812 US$. The three main sectors are services (45.3% of GDP), industry (40.7% of GDP), and agriculture (14.0% of GDP). Indonesia’s main export markets in 2005 are Japan (22.3%), US (13.9%), China (9.1%), and Singapore (8.9%), while the main imports countries are Japan (18.0%), China (16.1%), and Singapore (18.8%) (IMF, 2007). In May 2008 (five months period), Indonesia ran a trade surplus with export revenues of 57.57 billion US$ and import expenditure of 53.04 billion US$, while during year of 2007 export revenues of 114.10 billion US$ and import expenditure of 74.47 billion US$ (Indonesia, 2008). In international relations both economic and politic aspects, Indonesia is still faced several disputed with other countries. The several disputes which caused potentially animosity toward eight countries in this study is showed in Table 1 below. Take in Table 1 METHOD This study was conducted in three main cities such as Jakarta, Jogjakarta, and Surabaya in Java as the main island of Indonesia where served as central of business and political activities, and the most density island. Setting and sample Data was collected through survey to Indonesians consumers; therefore the unit of analysis was determined to be an individual level. The respondents have to respond to the initial 10-item of consumer animosity (Klein et al., 1998), and a scale designed to evaluate the determinant and consequence of consumer animosity such as ethnocentrism (Shimp and Sharma, 1987), and unwillingness to buy foreign product (Klein et al., 1998). Each of respondents evaluated their October 15-16, 2010 Rome, Italy 7 10th Global Conference on Business & Economics ISBN : 978-0-9830452-1-2 attitude toward 8 opposed countries (within subject design) such as Netherland, Japan, United State, Australia, China, Malaysia, Singapore, and Taiwan. A total of 195 respondents were participated in this study, thus 1560 set of questionnaires were eventually collected and ready for analysis step. Scale development In order to achieve the research objectives, this study modified research scales with reference to previous related literature. As the scales were originally from English literature and the data was collected in Indonesia, back translation technique (Reynolds et al., 1993) was used to translate all scale items to Indonesian language to avoid potential mistranslations. Then, the questionnaire was pre-tested by five customers and academic colleagues. Following their comments and suggestions, a questionnaire refinement was made in terms of wording, format and sequence. The questionnaire included two main parts. The first part contained demographic characteristics of respondents such as age, gender, education level, income per-month, marriage status, expenditure per-month, occupation, religion, tribe, and city; while the second part asked the main research variables such as consumer animosity, willingness to buy foreign product, and ethnocentrism. All initial 32 items were measured on a five-point likert scale from “strongly disagree (1)” to “strongly agree (5)”. Based on the 9-item of consumer animosity from Klein et al., (1998), this current study modified and adapted into 10-item which consisted of two dimensions such as politic or war animosity (item 1 to 5), and economic animosity (item 6-10). The measurement of consumer animosity was comprised of ten items: “disliking to opposed country”, “never forgive for conflict with opposed country”, “opposed country should pay compensation”, “opposed country harm our national interest”, “opposed country was arrogant in diplomatic relation”, “opposed country was not reliable trading partner”, “opposed country doing business unfairly”, “opposed country taking self advantage from my country”, “opposed country was dominant or too much economic influence”, October 15-16, 2010 Rome, Italy 8 10th Global Conference on Business & Economics ISBN : 978-0-9830452-1-2 and “opposed country wants to gain economic power over my country”. The ethnocentrism was measured based on 17-item of CETSCALE (Shimp and Sharma, 1987), while unwillingness to buy foreign product construct was comprised of 5-item (Klein et al., 1998), such as “guilty feeling to buy foreign product”, “never buy foreign product”, “avoid buying foreign product”, “don’t like of owning foreign product”, and “pay premium for domestic product”. ANALYSIS Respondents’ profile The data is collected from 195 respondents in three main cities in Indonesia such as Yogyakarta (48.7%), Jakarta (37.4%), and Surabaya (13.8%). Respondents’ demographic profiles are presented in Table 2. The demographic profile consisted of six parts: gender, education, marital status, tribe, religion, and occupation. As can be seen, males occupied more than half of the total participants (52.3%), and almost the two-third were in participants educated in bachelor level (72.8%) and 86.9% graduated from university or high education level, it means the majority of respondents had enough ability for fulfilling the questionnaires. The data also showed that most of respondents are single (81.5%), 13.8% are married, and 4.6% are divorced. From the perspective of occupation, most of the respondents are students (50.3%), and private officer (34.9%) they occupied 85.2% of respondents. The data also represented the profile of Indonesian consumers which was dominated by Islam as religion (77.9%) and Javanese as tribe (80%). In addition, this study has asked the respondents by open-ended questions such as age, income and expenditure per months. The data informed that mean of age is 25.38 years with standard deviation of 6.26 years; mean of income per month is 3.02 million of rupiah (or 320 US$), while the mean of expenditure per month is 1.93 million of rupiah (or 200 US$). All of respondents’ profiles indicated that the respondents had enough experiences and information and, therefore the researcher was more confident to analyze the data in the following step. October 15-16, 2010 Rome, Italy 9 10th Global Conference on Business & Economics ISBN : 978-0-9830452-1-2 Take in Table 2 Descriptive statistic The Table 3 informed that Indonesian consumers were dislike with United States (3.43), and then it is followed by animosity to Malaysia, Australia, Singapore, China, Netherlands, Taiwan, and Japan. From two dimensions of animosity, animosity of politic showed high score than animosity of economic in 6 opposed countries such as United States (3.57>3.25), Malaysia (3.62>3.15), Singapore (3.15>3.12), Netherlands (3.01>2.90), and Japan (2.88>2.85). An interesting results, two opposed countries such as China and Taiwan were dominated by animosity economic than politic. Take in Table 3 From the typology of animosity (Ang et al., 2004), Indonesian consumers could be categorized as situational animosity than stable animosity. The Netherlands and Japan are selected since they had colonized Indonesia for more than 350 years of Netherlands and 3. 5 years of Japan with a lot of war and politic conflicts during 1596-1950. The Figure I informed that animosity of these opposed countries were lower than non colonial opposed countries such as United State, Malaysia, Australia, and China. The Indonesian consumer animosity was influenced by situational animosity. For example, United Stated is hated since their dominance and arrogance in global politic intervention and their terrorism campaign with stereotype the Moslem people country such as Indonesia as home base of terrorism after September 11th tragedy. Indonesian also has negative sentiment with Malaysia from Sipadan and Ligitan island dispute, migrant workers problems, and intellectual property right of several songs and traditional attractions, while Australia is viewed negative since their great support to independence of East Timor (previously is one of Indonesia province), their intervention in referendum of East Timor in 1999, and several diplomatic accidents. On the other hand, the animosity to China and Taiwan are derived from their dominance in economy activities as perceived by Indonesian consumers. October 15-16, 2010 Rome, Italy 10 10th Global Conference on Business & Economics ISBN : 978-0-9830452-1-2 Take in Figure 1 Internal consistency of reliability In this research context, a content validity is assessed by using face validity. For ensuring the face validity, we adopted the robust instrument from previous literatures (Klein et al., 1998; Ang et al., 2004; Riefler and Diamantopoulos, 2007) and checked each item with slight modifications to fit this research. Since the data was based on multi-item measures, and research constructs were therefore assessed for measurement accuracy including reliability. The internal consistency reliability of the adopted measures was tested using an item-to-total correlation of 0.3, a Cronbach α coefficient of 0.7, and a composite reliability (C.R) index of 0.7. From the first step reliability testing, three items such as animosity3, animosity9, and animosity10 were excluded from analysis since their item-to-total correlation below than 0.3 and its inconsistency value among eight opposed countries. Thus the 7 items from the initial 10 items of consumer animosity will be analyzed in the next step. The coefficient of Cronbach alpha is high and nearly across eight opposed countries, ranging a value of 0.70 for the China as opposed country to 0.81 for US as opposed country. In the consistent way, the composite reliability which is analogous and comparable with cronbach alpha estimated 0.80 to 0.87. The results in Table 4 showed that all values exceeded the recommended levels. Thus, the results provided evidence for internal consistency reliability and consistent with previous studies such as Klein et al., 1998; Nijssen and Douglas, 2004; Shoham et al., 2006. Take in Table 4 Exploratory factor analysis Since two major dimensions of consumer animosity (politic animosity, and economic animosity) were expected in the overall consumer animosity scale, the exploratory factor analysis was performed to verify their presence in the scale (Churchill, 1979; Bricker, 2005; Green Jr. et al., October 15-16, 2010 Rome, Italy 11 10th Global Conference on Business & Economics ISBN : 978-0-9830452-1-2 2008). The principal component analysis with varimax rotation (Eigen value >1.0) identified two main dimensions or factors as expected among the 7 items. The two factors were also identified for the animosity of politic and the animosity of economic. Items 1, 2, 4 and 5 loaded as politic animosity factor, while items 6 through 8 loaded as a second economic animosity factor. The Table 5 showed that the KMO coefficient is ranging a value of 0.71 to 0.80 and chi square value is significant (0.000), therefore it exceeded all the recommended cut off (KMO >0.5 and sig. of χ² <0.05). Take in Table 5 Confirmatory factor analysis (Unidimensionality) Unidimensionality required to all items in a scale measure a single construct. The confirmatory factor analysis was able to examine the test of unidimensionality (Dunn et al., 1994). This step should be determined prior to assessing overall construct reliability and is a necessary prerequisite to establishing construct validity (Gerbing and Anderson, 1988). The Table 6 informed that all the factor loadings were significant across multi opposed countries. We provided several indices designed to evaluate the goodness of fit of confirmatory factor models such as GFI, AGFI, CFI, and χ²/DF. At the first model, this study determined that consumer animosity was a single factor model. The GFI value indices range from 0.86 to 0.93 with 0.90 as average of GFI of 8 opposed countries; the AGFI is ranging from 0.72 to 0.88 with 0.80 as average of 8 opposed countries, while the CFI values from 0.71 to 0.90, thus the three indicators showed a level of acceptance level of goodness of fit. The χ²/DF14 is ranging from 3.21 of Malaysia to 6.67 of Australia. Since the χ²/DF14 value was marginal level of acceptance, this study proposed to the second model which consumer animosity consisted of two factors model such as politic animosity and economic animosity. In general the GFI, AGFI and CFI of second model were not different with the first model. It is also supported by ∆ χ² which are not significant; therefore it could be concluded that October 15-16, 2010 Rome, Italy 12 10th Global Conference on Business & Economics ISBN : 978-0-9830452-1-2 consumer animosity is a single factor model or a double factors model. Based on Table 6, in general, consumer animosity construct showed unidimensionality as expected through confirmatory factor analysis across 8 opposed countries. Take in Table 6 Convergent validity Churchill (1979) has suggested that convergent validity could be measured by the degree to which the scale under analysis correlates with other measures of the same construct. Then, the evidence of convergent validity was assessed by the significant loadings of each scale item to its latent construct. As can be seen in Table 6 above, in general, all of the 7 items in eight opposed countries have factor loading above 0.4 (with exception an1 and 2 for China and an7 for Malaysia) with strong significant at 0.001 level or significant at 0.1% level of significance. All validity indicators fell within accepted ranges. Thus, based on these results, it was concluded that consumer animosity scales of 8 opposed countries posed considerable convergent validity. Discriminant validity Discriminant validity is the extent to which measure is indeed novel and not simply a reflection of some other variable (Churchill, 1979). The discriminant validity is examined through two methods. First, it was determined by the correlation estimate of each pair of any two research dimensions (politic animosity or AnPol with animosity of economy or AnEco) less than 1.0 (ranging from 0.33 of China to 0.55 of Australia and Singapore) and the AVE value greater than the squared correlations between each of research constructs (ranging from 0.01 to 0.04). The AVE scores achieved for the entire model constructs, for each factor being over the criterion threshold of 0.4 with exception of China (ranging from 0.42 of Japan to 0.51 of Netherlands). Table 6 informed that all validity indicators fell within accepted ranges. October 15-16, 2010 Rome, Italy 13 10th Global Conference on Business & Economics ISBN : 978-0-9830452-1-2 Second, for each of eight opposed countries, the animosity scale was correlated with the measure of ethnocentrism (Shimp and Sharma, 1987), to determine consumer animosity is distinct from consumer ethnocentrism (Klein and Ettenson, 1999; Witkowski, 2000; Hinck, 2005). The consumer animosity is comprised of consumer attitudes toward a specific country, while consumer ethnocentrism related to the beliefs about the purchase of foreign products generally. It is expected that correlations coefficients between animosity and ethnocentrism was less than correlations coefficients between animosity and its dimensions such as politic animosity and economic animosity. Table 7 provided evidences of discriminant validity, the correlation coefficients of animosity with ethnocentrism are ranging from 0.07 of Australia and Malaysia to 0.20 of China. These was less than correlation coefficients of politic animosity with economic animosity (ranging from 0.33 of China to 0.55 of Singapore and Australia), animosity with politic animosity (ranging from 0.81 of Malaysia to 0.93 of Australia), and animosity with economic animosity (ranging from 0.78 of Japan to 0.84 of Singapore and Malaysia). Thus, based on these results, it was concluded that these measures pertained considerable discriminant validity. Take in Table 7 Criterion related or predictive validity Ahire et al., (1996) suggested the use of structural equation modeling as an appropriate method to assess criterion related validity. It could be examined through the construct with other construct that included antecedents and consequences (Churchill, 1979; Bagozzi, 1984). Therefore, the current study examined consumer animosity construct as predictor of unwillingness to buy foreign product (from opposed country), the higher consumer animosity with opposed country leads to higher consumer unwillingness to buy product from opposed country. The Table 8 revealed that these relations are supported strongly in 8 opposed countries. All of standardized coefficients are positive and significant at 0.001 level of significance (ranging from 0.55*** of Singapore to October 15-16, 2010 Rome, Italy 14 10th Global Conference on Business & Economics ISBN : 978-0-9830452-1-2 0.71*** of Malaysia). The goodness of fit felt in accepted range with the exception from China case; a GFI of 0.84-0.90; a AGFI of 0.77-0.85; a CFI of 0.74-0.88; and χ²/DF of 2.41-3.82. Thus, based on these results, it was concluded that these measures posed considerable criterion related validity. Take in Table 8 CONCLUSIONS AND DISCUSSIONS This current study revealed the reliability and validity of consumer animosity construct from single home country toward multi opposed countries. In general, the findings provided evidences that the scale of consumer animosity from Klein et al., (1998) is reliable and valid across eight opposed countries. Consumer animosity construct differed with consumer ethnocentrism construct as evidence of discriminant validity. The consumer animosity also influenced unwillingness to buy foreign products from opposed countries, the higher consumer disliked with opposed countries, the higher unwillingness (lower willingness) to buy foreign product from opposed countries (Rice and Wongtada 2007; Rose et al., 2009). In the context of Indonesian consumers; Japan, Netherlands and Taiwan are three opposed countries with low animosity, while United States and Malaysia are the most disliked countries from the perspective of Indonesian’ consumers. So, the current politic animosity is more important for consumers than war animosity from historical events during colonialization era by Japan and Netherlands in Indonesia. These research findings implied the importance of consumer animosity construct for both practitioners and academicians. For marketing practitioners, since consumer animosity construct have strong effect to unwillingness to buy foreign product from opposed countries, therefore marketers should be more sensitive with this issue (Smith and Li, 2010). They have to identify potential politic animosity and economic animosity when they enter to international markets by involving local partners, adaptation with host cultural values, glocal branding in host markets and October 15-16, 2010 Rome, Italy 15 10th Global Conference on Business & Economics ISBN : 978-0-9830452-1-2 providing an integrated corporate social responsibility program. On the other hand, for academicians, since the growing attention of consumer animosity construct in empirical studies, the academicians are challenged to provide more robust measurement of consumer animosity construct with more valid, more reliable across opposed countries, the more comprehensive antecedents and consequences of consumer animosity construct, and an extended application of consumer animosity construct such as domestic animosity, ethnic animosity, and regional animosity. Limitations and future research In spite of the contributions this research devotes to the consumer animosity construct in this research context, and these research findings generally supported the reliability and validity of the scale proposed, there leaves some research deficits which provide directions for future research. First, all of the measurement items are based on consumers’ perception toward opposed countries from Klein et al., (1998) with some modification. Therefore, future researchers should try to measure by using other measures such as four typology of consumer animosity; national versus personal, and stable versus situational (Jung et al., 2002; Ang et al., 2004; Russell and Russell, 2006). Second, the scale of consumer animosity are tested in the cross sectional study design, therefore, in the future it should be validated in longitudinal study design as suggested by Ettenson and Klein, (2005). It will be more confident to test the proposed model rigorously. Third, the scale of consumer animosity are examined from the consumer side of home country toward opposed countries, future studies are challenged to examine from the opposed countries side, and both side (two-way or dyadic relationship). Fourth, the current studies used within subject where consumer response toward multi opposed countries with repeat measures bias. We avoid this bias by arrange the sequence of opposed countries in questionnaire. 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October 15-16, 2010 Rome, Italy 21 10th Global Conference on Business & Economics ISBN : 978-0-9830452-1-2 Table 1: Politic and Economic disputes No 1 Opposed country Netherlands 2 Japan 3 Malaysia 4 Singapore Border conflict Military training zone 5 Australia 6 United States 7 China 8 Taiwan Supporting East Timor independence Flight border zone Supporting non governmental organization in Papua province Terrorism issue Terrorism issue Military embargo Human right issues Border conflict Communism conflict in 1965 One China policy effects No formal diplomatic bond October 15-16, 2010 Rome, Italy Politic disputes 350 years of colonization 3.5 years of colonization Compensation to romusha and geisha Military conflict in 1960 Border conflicts 22 Economic disputes Inter governmental group on Indonesia (IGGI) accident in 1997 Economic dominance in foreign direct investment Wood smuggling Migrant workers problems Acquisition of Indonesia companies Acquisition of Indonesia companies Oil conflict in sea of Timor Fishing area conflict International trade barriers Effect of economic recession Economic dominance by low prices Dumping and smuggling Economic dominance in electronic sectors Migrant workers problems 10th Global Conference on Business & Economics ISBN : 978-0-9830452-1-2 Table 2: Respondents’ Demographic Profiles Gender Male Female Total City Jakarta Yogyakarta Surabaya Total Occupation Students Private officer State officer Entrepreneur Other Total Tribe Java Sunda Batak Betawi Bali Others Total October 15-16, 2010 Rome, Italy Total Freq. % 102 52.3 93 47.7 195 100 Freq. % 73 37.4 95 48.7 27 13.8 195 100 Freq. % 98 50.3 68 34.9 8 4.1 8 4.1 13 6.7 195 100 Freq. % 156 80 8 4.1 9 4.6 1 0.5 3 1.5 18 9.2 195 100 Aspect Income per month Expenditure Age Marital status Single Married Divorced Total Religion Islam Christian Catholic Hindu Buddha Total Education Senior high school Bachelor Master Doctorate Total 23 Total Mean SD 3.02m 4.33m 1.93m 2.77m 25.38y 6.26y Freq. % 159 81.5 27 13.8 9 4.6 195 100 Freq. % 152 77.9 26 13.3 13 6.7 3 1.5 1 0.5 195 100 Freq. % 26 13.1 142 72.8 26 13.3 1 0.5 195 100 10th Global Conference on Business & Economics ISBN : 978-0-9830452-1-2 Table 3: Mean of item Aspect An1 An2 An4 An5 AnPolitic An6 An7 An8 AnEcon Animosity Nether lands 2.81 3.12 3.15 2.95 3.01 2.75 2.88 3.06 2.90 2.96 October 15-16, 2010 Rome, Italy Japan US 2.50 2.99 3.06 2.97 2.88 2.62 2.82 3.10 2.85 2.87 3.07 3.33 3.78 4.09 3.57 2.97 3.16 3.61 3.25 3.43 Aus tralia 2.87 3.17 3.49 3.74 3.32 2.90 2.92 3.16 2.99 3.18 China 2.95 2.98 3.12 3.09 3.04 3.06 3.29 3.25 3.20 3.11 24 Malay sia 3.36 3.42 3.81 3.89 3.62 2.45 3.46 3.54 3.15 3.42 Singa pore 2.88 3.07 3.37 3.27 3.15 2.87 3.05 3.43 3.12 3.13 Taiwan Mean 2.77 3.00 2.94 2.87 2.90 2.87 2.99 2.99 2.95 2.92 2.90 3.14 3.34 3.36 3.18 2.81 3.07 3.27 3.05 3.13 10th Global Conference on Business & Economics ISBN : 978-0-9830452-1-2 Table 4: Reliability analysis of 2nd Running Aspect An1 An2 An4 An5 An6 An7 An8 Cronbach α CR (Composite Reliability) Nether lands 0.39 0.42 0.47 0.55 0.45 0.54 0.59 0.76 0.87 Japan US 0.38 0.50 0.50 0.51 0.39 0.40 0.38 0.72 0.83 0.51 0.56 0.63 0.52 0.52 0.53 0.52 0.81 0.84 Aus tralia 0.47 0.51 0.61 0.55 0.46 0.52 0.57 0.79 0.86 China 0.26* 0.32 0.49 0.47 0.45 0.41 0.50 0.70 0.80 * is excluded from analysis October 15-16, 2010 Rome, Italy 25 Malay sia 0.52 0.52 0.59 0.57 0.49 0.14* 0.61 0.79 0.83 Singa pore 0.43 0.46 0.59 0.60 0.53 0.58 0.52 0.80 0.86 Taiwan Mean 0.41 0.34 0.50 0.45 0.50 0.48 0.51 0.74 0.87 0.41 0.45 0.53 0.52 0.47 0.45 0.52 0.76 0.84 10th Global Conference on Business & Economics ISBN : 978-0-9830452-1-2 Table 5: Exploratory Factor Analysis (EFA) Aspect KMO Chi square Significance # of factors An1 An2 An4 An5 An6* An7* An8* % of Cumulative variance Nether lands 0.77 341.66 0.000 2 0.58 0.69 0.75 0.65 0.89 0.85 0.56 58.50 Japan US 0.75 243.29 0.000 2 0.58 0.63 0.83 0.82 0.73 0.79 0.48 53.65 0.80 391.66 0.000 2 0.73 0.68 0.78 0.73 0.83 0.85 0.58 61.04 Austra lia 0.79 398.56 0.000 2 0.54 0.65 0.89 0.89 0.80 0.77 0.54 61.24 * All items are loaded in second factor or dimension October 15-16, 2010 Rome, Italy 26 China 0.71 269.01 0.000 2 0.63 0.66 0.69 0.72 0.69 0.83 0.83 55.54 Malay sia 0.80 332.68 0.000 2 0.77 0.71 0.74 0.64 0.54 0.84 0.69 58.69 Singa pore 0.78 392.01 0.000 2 0.75 0.84 0.66 0.56 0.76 0.78 0.75 60.29 Tai wan 0.76 278.77 0.000 2 0.81 0.79 0.66 0.74 0.49 0.69 0.78 55.86 Mean 0.77 330.96 0.000 2 0.67 0.71 0.75 0.72 0.72 0.80 6.59 58.10 10th Global Conference on Business & Economics ISBN : 978-0-9830452-1-2 Table 6: Confirmatory Factor Analysis (CFA) Aspect An1 An2 An4 An5 An6 An7 An8 χ²14 χ²/DF GFI AGFI CFI χ²15* χ²/DF GFI AGFI CFI ∆ χ² Sig. of ∆ χ² Nether lands 0.41 0.44 0.53 0.64 0.61 0.67 0.71 72.54 5.18 0.90 0.80 0.82 72.89 4.86 0.90 0.81 0.82 0.35 n.s. Japan US 0.41 0.59 0.68 0.69 0.41 0.40 0.46 46.06 3.29 0.93 0.87 0.86 46.89 3.13 0.93 0.87 0.86 0.83 n.s. 0.58 0.63 0.73 0.59 0.58 0.58 0.60 71.77 5.13 0.90 0.81 0.85 72.93 4.86 0.90 0.81 0.85 1.16 n.s. Aus tralia 0.49 0.52 0.76 0.73 0.47 0.53 0.65 93.41 6.67 0.86 0.72 0.79 94.76 6.32 0.86 0.73 0.79 1.35 n.s. China 0.25 0.32 0.56 0.51 0.57 0.59 0.70 86.92 6.21 0.87 0.74 0.71 93.65 6.24 0.87 0.75 0.69 6.73 n.s. Malay sia 0.56 0.55 0.68 0.69 0.59 0.16 0.71 44.92 3.21 0.94 0.88 0.90 45.02 3.00 0.94 0.87 0.91 0.1 n.s. Singa pore 0.45 0.48 0.69 0.67 0.63 0.67 0.62 81.11 5.79 0.89 0.78 0.82 81.95 5.46 0.89 0.80 0.82 0.84 n.s. Note: All factor loadings and χ² are significant at 0.001 and χ²1 of 0.005 is 7.88 October 15-16, 2010 Rome, Italy 27 Taiwan Mean 0.41 0.35 0.58 0.58 0.57 0.62 0.67 59.15 4.23 0.92 0.83 0.83 61.50 4.10 0.91 0.84 0.82 2.35 n.s. 0.45 0.49 0.65 0.64 0.55 0.53 0.64 69.49 4.96 0.90 0.80 0.82 62.08 4.14 0.90 0.81 0.82 1.71 n.s. 10th Global Conference on Business & Economics ISBN : 978-0-9830452-1-2 Table 7: Discriminant validity Aspect Ethno-AnPol Ethno-AnEco Ethno-An AnPol-AnEco AnPol-An AnEco-An AVE of An Max of Square correlations Nether lands 0.14 0.09 0.13 0.49 0.91 0.82 0.51 0.02 Japan US 0.13 0.17 0.17 0.45 0.91 0.78 0.42 0.03 0.12 0.09 0.12 0.53 0.92 0.82 0.44 0.01 Aus tralia 0.06 0.07 0.07 0.55 0.93 0.82 0.48 0.01 China 0.19 0.13 0.20 0.33 0.83 0.80 0.38 0.04 Malay sia 0.04 0.08 0.07 0.37 0.81 0.84 0.45 0.01 Singa pore 0.11 0.07 0.11 0.55 0.92 0.84 0.48 0.01 Taiwan Mean 0.11 0.17 0.16 0.50 0.90 0.83 0.49 0.03 0.11 0.11 0.13 0.47 0.89 0.82 0.46 0.02 Note: Ethno=Ethnocentrism; AnPol=Animosity of politic; AnEco=Animosity of economy; An=Animosity. October 15-16, 2010 Rome, Italy 28 10th Global Conference on Business & Economics ISBN : 978-0-9830452-1-2 Table 8: Criterion related validity Aspect An→Uwb p value Critical ratio χ²53 χ²/DF GFI AGFI CFI RMSEA An1 An2 An4 An5 An6 An7 An8 Uwb1 Uwb2 Uwb3 Uwb4 Uwb5 Nether lands 0.63 0.000 4.53 147.9 2.79 0.88 0.83 0.86 0.09 0.41 0.43 0.51 0.61 0.63 0.68 0.72 0.76 0.74 0.62 0.72 0.14 Japan US 0.62 0.000 4.63 136.8 2.58 0.90 0.85 0.88 0.09 0.45 0.56 0.62 0.65 0.48 0.46 0.49 0.76 0.81 0.68 0.77 0.52 0.63 0.000 6.00 176.7 3.34 0.86 0.80 0.87 0.11 0.59 0.60 0.68 0.58 0.63 0.62 0.60 0.77 0.84 0.81 0.76 0.58 Aus tralia 0.64 0.000 5.43 178.6 3.37 0.86 0.79 0.86 0.11 0.50 0.53 0.68 0.65 0.55 0.59 0.71 0.79 0.83 0.77 0.78 0.53 China 0.66 0.000 3.62 202.2 3.82 0.84 0.77 0.74 0.12 0.32 0.34 0.55 0.50 0.57 0.59 0.68 0.75 0.75 0.62 0.20 0.50 Malay sia 0.71 0.000 6.16 127.5 2.41 0.90 0.86 0.91 0.08 0.55 0.54 0.68 0.68 0.62 0.18 0.71 0.80 0.84 0.78 0.76 0.25 Note: An= Animosity; Uwb= Unwillingness to buy foreign product October 15-16, 2010 Rome, Italy 29 Singa pore 0.55 0.000 4.72 158.6 2.99 0.88 0.82 0.87 0.10 0.47 0.51 0.65 0.65 0.66 0.68 0.61 0.77 0.82 0.65 0.72 0.49 Taiwan Mean 0.64 0.000 4.98 134.1 2.53 0.89 0.84 0.88 0.09 0.47 0.41 0.57 0.52 0.61 0.62 0.61 0.76 0.82 0.62 0.75 0.56 0.64 0.000 5.01 157.8 2.98 0.88 0.82 0.86 0.10 0.47 0.49 0.62 0.61 0.59 0.55 0.64 0.77 0.81 0.69 0.68 0.45 10th Global Conference on Business & Economics ISBN : 978-0-9830452-1-2 Figure 1: Animosity of 8 opposed countries 4 3,5 3,4 3,3 3,2 3,1 3 2,9 2,8 2,7 2,6 2,5 3,5 3 2,5 2 1,5 1 0,5 U Au S st ra lia Ch M ina al ay si Si ng a ap or e Ta iw an To ta l Ne th er la nd Ja pa n 0 October 15-16, 2010 Rome, Italy 30 AnPolitic AnEcon Animosity