Effects of Ethnocentrism on International Hospitality Brands: A Cross-Country Study of Starbucks

Abstract

Ethnocentrism is anticipated to have a growing impact on international hospitality brands, but current understandings of its effects is limited. Using the traditional, unidimensional conceptualization of ethnocentrism, prior hospitality research concluded that ethnocentrism drives people to favor domestic over foreign brands. This study proposes a model wherein ethnocentrism’s emotional and cognitive dimensions influence perceptions of international brands through separate direct and indirect mechanisms, which vary between the brand’s domestic and foreign markets. The model was assessed using multigroup analysis of perceptions of Starbucks in two samples of 186 and 235 consumers from the United States and Italy, respectively. The findings highlight that ethnocentrism’s emotional and cognitive dimensions have positive and negative effects, respectively, on brand image in the domestic market (United States) and vice versa in a foreign market (Italy). In the foreign market, ethnocentrism influences brand image only indirectly. The study concludes with implications for brand managers.