Service Expectations and Consumer Ethnocentrism

Abstract

This paper proposes that the concept of consumer ethnocentrism can be examined by looking at departures from the strong price/quality relationship perceived by consumers in many countries. To illustrate the argument, we examine service expectations toward life insurance and university international programs in Thailand. In evaluating country-of-origin for brand, design, and nationality of service contact personnel, consumers rated Thai services well above Thailand's objective place in the country-of-origin hierarchy, which is a common way of detecting ethnocentrism. This in itself, however, is not necessarily evidence of ethnocentrism, as consumers may believe that home country services are higher quality. Then, if they also believe that price relates strongly to quality, they should expect to pay prices consistent with the higher quality. However, Thai services depart from an otherwise strong perceived price/perceived quality relationship. Consumers do not expect prices for Thai services which are consistent with their expected quality.