José, Professor of International Business and Marketing, is highly intrigued by this understudied phenomenon in international consumer behaviour, and with support of an Insight Development Grant (IDG), José and his collaborators aim to better understand the impetus for the existence of xenocentristic behaviour, what factors lead to consumer propensity to all things foreign, and to create a scale to measure xenocentrism worldwide.
From the initial study in Mexico a few years ago, to today, José and his collaborators have amassed a huge dataset of psychometric properties from twelve countries on four continents and have created the X-Scale— the most comprehensive, robust, and accurate scale to effectively measure and explain xenocentristic consumer behaviour worldwide.
Moreover, José continues to build the scope of the X-Scale with expansion of sample countries using different parameters to test the scale. With this, José’s goal is to create a global index for consumer xenocentrism that allows comparisons among countries in their xenocentric level. Foreign brands can market their products in ways that cater to countries high on the xenocentristic scale. As well, domestic companies can leverage their marketing strategies to better profile domestic products and effectively compete with foreign ones.
What is quite remarkable about José’s research discoveries is the revelation that xenocentristic behaviour is not objective; in fact, it is often irrational because buying foreign products often comes with a cost. The preferred products and brands are often more expensive and of lesser quality than similar domestic brands. A “rational” consumer, conversely, would choose a product that makes “purchasing sense,” in other words, products that are less expensive and/or of better quality.
Why, then, does xenocentristic behaviour exist?
“It’s an attitude and belief that one can increase their status in society when they purchase and flaunt foreign products. It’s a little irrational because domestic products can be better quality and cheaper, yet xenocentristic individuals will overlook this and buy the foreign brand anyway.”
José and colleagues use two theories to support this phenomenon: The first is System Justification Theory, which explains the desire to signal to others their high status through certain highly coveted products and brands (think Louis Vuitton handbags or Porsche sports cars). The second is Social Dominance Theory, which explains not only a desire to set yourself apart from the rest, but to disassociate from those that one deems of “lesser status.” José notes, “There is a desire to show distinction through brands, vacation destinations, or the type of vehicle you drive, for example.”
José reveals that the countries who score higher on the consumer xenocentrism index are underdeveloped countries as well as countries with a high degree of power-distance. Underdeveloped countries tend to be higher on the X-Scale due to a need for the “irrational” desire for a higher perceived status; a function of “the grass is greener” perception that foreign brands signal wealth and power. In developed countries, South Korea for example, which also shows some degree of consumer xenocentrism, José found that these countries also have high power distance. In other words, the impetus for status is not necessarily monetary, but instead a function of cultural values and acceptance of the hierarchical paradigm of the society—meaning the greater disparity between socioeconomic status and power among the population, the higher the degree of power distance and a higher association with xenocentrism.
Additionally, José further reveals that xenocentristic individuals that prefer foreign brands but cannot afford these more expensive imports, will also show a positive attitude and purchasing propensity toward counterfeit products or their look-alikes, fueling the power of this phenomenon.
José recently published these findings in two highly profiled journals: Marketing Intelligence and Planning and Journal of Global Marketing ; and has three additional papers in review on consumer xenocentrism. He continues to broaden the scope of his understanding of xenocentrism in international consumer behaviour with additional research questions in the works—research that continues to solidify the validity, effectiveness, and value of his novel X-Scale and the robust understanding of xenocentristic behaviour on consumer purchase intentions.
José I. Rojas-Méndez is supported, in part, by an Insight Development Grant (IDG) from the Social Sciences and Humanities Research Council .
Sprott School of Business