Impedance to Globalization

Abstract

As globalization proceeds at a seemingly inexorable pace, there are signs that consumers in some countries may reject imported products because of ethnocentric tendencies. Although a literature has developed on the impact of country-of-origin and ethnocentrism on attitudes to imported products, less attention has been given to the role of perceived economic threat. The goal of this study is to examine how a consumer's economic threat impacts their purchase decision of imported products given different levels of ethnocentrism. Data were collected from Singapore and New Zealand to examine this issue using moderator regression analysis. The results clearly show that perceived economic threat plays a significant moderating role in intervening between a consumer's level of ethnocentrism and his/her attitude about purchasing imported products. The results also indicate that this relationship existed for American imported products. Implications are discussed in how marketers can mitigate the detrimental impact that perceived economic threat may have when ethnocentrism exits. Questions for future research are also provided.

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