Applying the Consumer Ethnocentrism Model to Norwegian Consumers

Abstract

This thesis explores Norwegian consumers perceptions towards foreign products. It specifically investigates consumers ethnocentric tendencies, which influences purchase intentions and preferences to domestic versus foreign products. The purpose of this thesis has been to establish Norwegian consumers’ level of ethnocentrism and look at variables affecting this. The following research question was therefore developed; What level of presence does consumer ethnocentrism have within Norwegian consumers, what factors affect this, and ultimately how does this affect the perception of foreign commodities? The conceptual framework of this study was inspired by numerous studies building on Shimp and Sharma’s theory of consumer ethnocentrism, consumer ethnocentric tendencies, and the CETSCALE. From this we also decided on the study’s independent socio-psychological variables: perceived product necessity, cultural openness, perceived economic threat, and environmental concern. We also researched the demographic variables age and ethnic identity. The paper is sectioned in four parts: firstly, a theoretical opening to introduce the topic and its relevance to contemporary society. Secondly, a methodology part where the responses were analysed and interpreted. Thirdly, discussion and conclusion where the results from methodology are defined and elaborated. Lastly, a reflective ending highlighting the limitations of the study, self-reflection and where to go with future research. A descriptive, quantitative design was used to increase the generalisability; the survey gave a total of 169 usable responses to analyse. Primarily the analyses used were ANOVA and regression to test the six hypotheses formulated for the study. Prior to analysing the hypotheses, several validity analyses were done to uncover which questions belonged under the different variables. Of the six formulated hypotheses four were supported. For the demographic variable, there is a significant difference in the level of consumer ethnocentric tendencies concerning age. As for the socio-psychological variables perceived economic threat, cultural openness, and environmental concern all have a significant effect on the level of CET. The level of CET was evaluated as high, however as perceived economic threat was proven to have an effect, the current COVID-19 pandemic has in all likeliness affected the level to be higher than normal. Ethnic identity and perceived product necessity was not supported. However, certain findings in the analyses gives an indication that it needs to be further researched.