Vrije Universiteit
Marketing Research
Faculty of Economics and Business Administration
Exam:
Cross-cultural Marketing (MSc Marketing)
Sample answers
Dr. H. van Herk
March 25, 2008
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,1. Country-of-origin and horizontal – vertical IDV-COL
In the article by Gurhan-Canli and Maheswaran (2000) superior and inferior products from
both the USA and Japan were evaluated by respondents from the respective countries. In
Japan, inferior products from the own country were evaluated more positive than inferior
products from the USA. In the USA, inferior products from both Japan and the USA were
evaluated equally.
a. What is the explanation for the difference in evaluation of the inferior products in those
countries?
In general people evaluate products from their home country more favorable. The difference
in evaluation found in the article is due to the cultural orientation in the USA and Japan. In
the USA people are Vertical Individualist; in Japan people are Vertical Collectivist. In
collectivist societies group membership is important; in vertical collectivist societies (Japan)
products from the in-group are favored even if they are of inferior quality. In the USA
(vertical individualist) inferior products are assessed equally unfavorably, independent of
country of origin.
Reason: in an individualist society people want to enhance their competitive goals of buying
a superior product; an inferior product is rejected irrespective of its country-of origin. In-
group feelings are far less prominent in individualistic societies.
b. Does the same effect hold for superior products?
In general people evaluate products from their home country more favorable than a product
from another country. When a superior product is assessed the home product is assessed
better than the product from a foreign country as expected.
In the article a distinction is made between horizontal and vertical individualism and
collectivism.
c. What is does horizontal and vertical add to the well-known dimension of individualism –
collectivism as operationalized by Hofstede?
Horizontal and vertical add to the IDV and COL dimensions by Hofstede by adding the
concepts of hierarchy and equality in society. Some societies are horizontal (valuing
equality), whereas others are vertical (emphasizing hierarchy). Shavitt et
al. (2006, p. 326) “In vertical, individualist societies or cultural contexts
(VI; e.g., United States, Great Britain, France), people tend to be
concerned with improving their individual status and standing out—
distinguishing themselves from others via competition, achievement, and
power. In contrast, in horizontal, individualist societies or cultural contexts
(HI; e.g., Sweden, Denmark, Norway, Australia), people prefer to view
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,themselves as equal to others in status.” People in horizontal societies
value self-direction (and uniqueness) more whereas people in vertical
societies strive more for power and achievement (and status).
d. What element of individualism-collectivism, horizontal or vertical, explains product
evaluations most? Why?
In studies published in the literature (JCR, JCP, JM, JMR), the vertical dimension seems
important to explain product evaluations; that is, those studies compare respondents in USA
and Hong Kong, China or Japan. Studies including horizontal collectivist (e.g., Israeli
kibbutz) and horizontal individualist (e.g., Denmark) are not published in the literature.
It is also likely that product evaluations (or purchase intention) are explained better in the
vertical case, because vertical societies value status and emphasize distinguishing oneself
from others. Especially for adoption of new (or status enhancing) products the effect of
vertical (not horizontal) collectivism-individualism is likely stronger.
2. Consumer racism
In the recent article by Ouellet (2007) a new construct, Consumer Racism (CR), is introduced
and tested in three countries.
a. What is the difference between consumer racism, consumer ethnocentrism and animosity?
Differences focus on (i) what group the construct si aimed at and (ii) the effect the
construct has on product judgments and on buying intention of products from the
other group.
“Antipathy toward a given ethnic group’s products or services as a symbolic way of
discriminating against that group” (Ouellet, 2007, p. 115)
“Consumer ethnocentrism represents the beliefs held by American consumers
about the appropriateness, indeed morality of purchasing foreign-made products”
(Shimp and Sharma, 1987, p. 281)
“Remnants of antipathy related to previous or ongoing military, political or
economic events” (Klein, Ettenson & Morris 1998, p. 90)
The main difference between the three constructs:
• Consumer Ethnocentrism: From either ethnic group toward itself; negative effect on
product judgments and negative effect buying intention
• Ethnic based Consumer Animosity: Ethnic group specific; apparently from the ethnic
minority toward the ethnic majority; negative affect on buying intention, not necessarily on
product judgments
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, • Consumer Racism: Ethnic group specific (from the ethnic majority toward the dominant
ethnic minority); decreased willingness to but products from the dominant ethnic group and
decreased judgments about products from the dominant ethnic group.
b. What is the effect on product judgments of an increase in the level of cross-ethnic
interaction (that the product requires) for people with low and high levels of CR
respectively?
When a product is intangible a higher level of cross-ethnic interaction is required. For people
who are high on consumer racism, product judgments decrease significantly when a higher
level of interaction is required. For people with a low level of CR product judgments stay at
about the same level independent of level of interaction.
c. Explain how the findings on consumer racism by Ouellet (2007) can be generalized to the
Dutch situation where several large ethnic groups (Turkish Dutch, Moroccan Dutch) are
present.
This question can have multiple answers. Part of the answers should be that generalizability
to the Dutch situation is not straight forward.
Important is to recognize that the article by Ouellet (2007) includes countries where there is
clearly one large ethnic group e.g. Hispanics in the USA. Moreover, French Canadians are
about equally wealthy as English Canadians. In the Netherlands, the TMSA group is large
and there are many other nationalities in our county (e.g., Germans and British).
Generalizability to the Dutch situation can exist in e.g., the large cities (Amsterdam,
Rotterdam) and then for specific groups.
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, 3. Measurement issues in cross-cultural research
In cross-cultural research the comparability or equivalence of data across cultures is essential.
Threats to equivalence are response styles and bias. In the article by Baumgartner and
Steenkamp (2001) seven types of response styles are mentioned, and in the article by Van
Herk et al. (2005) three types of bias are distinguished.
a. Mention three kinds of response styles and explain them.
See Baumgartner and Steenkamp (2001) page 145. According to those authors here are 7
response styles: acquiescence (ARS), disaquiescence (DARS), directional bias (NARS),
extreme response style (ERS), response range (RR), midpoint responding (MPR), and non
contingent responding (NCR). The most prominent response styles are ARS and ERS.
For definitions see the article.
b. What effects can response styles in a survey have on (i) mean scores of constructs, and (ii)
correlations between constructs?
Response styles can have an inflating or a deflating effect on means of scores of constructs.
Mostly the effect is inflating of mean scores (see e.g., scores by Greek respondents in Van
Herk et al. 2004).
Correlations between constructs can be inflated when response style components are
positively correlated and true components are positively correlated or not correlated.
Deflation of the correlation is found when the response styles are negatively correlated and
the true scores are negatively correlated as well.
c. What three different kinds of bias are distinguished in the article by Van Herk et al.
(2005)? Not only mention them, but also give a short explanation of each.
The three kinds of bias are: construct bias, method bias and item bias. Construct bias is likely
to be present if the construct being studied differs across countries, or if the
operationalisation does not fit cultural understanding. Method bias refers to instances where
all or most items in a questionnaire are equally affected by a factor that is independent of the
construct studied. Finally, item bias refers to distortions in specific items in the instrument.
d. In what phases in the research process are these biases important? Are they all equally
important in all phases of the research process or not?
The aforementioned biases are not equally important in all phases in the research process.
Construct bias is especially important in the stage of problem formulation. Method and item
bias become more prominent in the later stages in the research process (research design,
sample section, data collection, data editing and coding, and analyzing and interpreting
data).
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