NGHIÊN cứu THỐNG KÊ MÔ HÌNH đo LƯỜNG LÒNG YÊU NƯỚC KINH tế CỦA NGƯỜI TIÊU DÙNG THÀNH THỊ TẠI VIỆT NAM tt tiếng anh

MINISTRY OF EDUCATION AND TRAINING UNIVERSITY OF ECONOMICS HCMC --- Chu Nguyen Mong Ngoc A MEASUREMENT MODEL OF CITY-BASED CONSUMER PATRIOTISM : A CASE OF RESEARCH IN... The author fo

MINISTRY OF EDUCATION AND TRAINING

UNIVERSITY OF ECONOMICS HCMC

-

Chu Nguyen Mong Ngoc

A MEASUREMENT MODEL OF CITY-BASED CONSUMER PATRIOTISM : A CASE OF RESEARCH IN

CHAPTER 1 OVERALL INTRODUCTION

1.1 Research Motivations

Trade liberalisation has helped nations to assert themselves in international communities However, trade liberalisation also brings many challenges Market globalization has changed the competitive conditions of local enterprises The availability of imported goods at reasonable prices, as well as the rapidly increasing global marketing activities, have created a context of aggressive competition in the local market

In this situation, consumer biases towards domestic products are

an important factor in deciding the consumers' buying behaviour towards local products (Josiassen, 2011) Marketers and policymakers have used people’s affection to promote domestic consumption because it does not involve a tariff barrier, so it does not violate any trade agreement The campaign "Vietnamese people give priority to using Vietnamese goods", which was first launched nationwide by the Vietnam Politburo in 2009, is an proof of this strategy Therefore, researchers are very interested in investigating the emotional bias of consumers for domestic production, especially focus on a consumer ethnocentrism model These research which were conducted in many countries, even in Vietnam, found out the strong positive relationship between the patriotism and ethnocentrism of consumers (Auruskeviciene et al., 2012; Balabanis

et al., 2001; Cao Quốc Việt and Nguyễn Thị Quý, 2017; Dmitrovic et al., 2009; Erdoğan and Burucuoğlu, 2016; F-Ferrín et al., 2015; Ishii, 2009; Pentz et al., 2017; Rybina et l., 2010)

The consumer ethnocentrism model has been confirmed in developed countries, but applying this model to Vietnam, a developing country, requires that the antecedents must be investigated more carefully, due to the particular factors in the country’s economic and political environment and its history From this viewpoint, the author believe that it is possible to further explore the relationship between the patriotism and ethnocentrism of Vietnamese consumers, and to gain greater understanding of the nature and mechanism of patriots’ support for their domestic economy

The author continue to consider academic studies related to the construct of patriotism in consumption at the level of individual consumers (Chen, 2011; Han, 1988; Kim et al., 2013; MacGreg and Wilkinson, 2012; Min Han, 1994; Notari et al., 2011; Ngô Thái Hưng, 2013; Shah and Hazril, 2016; Tsai, 2010) The author found that although these works studied this construct with the outstanding feature is that they used quite identical terms such as "consumer patriotism", "patriotic consumption" or "economic patriotism", however, they did not explain this construct by knowledges of social identity theory (SIT), so they had not yet investigated whether or not the causal mechanism between it and the consumer ethnocentrism as well as with other important constructs of SIT

In order to unify the science name, the author combined the terms

of the previous work into a common name "consumer patriotism" The author also stated that the existences in the research works around this topic has made it difficult to understand the nature and role of the construct of consumer patriotism

1.2 Problem Statement

The operationalization of the construct of consumer patriotism and its relationship with Vietnamese consumer ethnocentrism The suitable measurement scale of the contruct of Vietnamese patriotism

The rule of the relationship between cosmopolitanism and ethnocentrism of Vietnamses consumer

The nomological network of consumer patriotism with the constructs of patriotism, cosmopolitanism and ethnocentrism of Vietnamese consumer, based on social identity theory

The using and developing the appropriate statistical techniques to solve the above research problems

1.3 Research Objectives

Defining and establishing a measurement scale of the construct of consumer patriotism which is suitable for the context of Vietnamese consumers

Assessing the construct of consumer patriotism by multivariate statistical techniques in the quantitative research stage to confirm the findings from the qualitative stage

Determining the role of the construct of consumer patriotism in the mechanism transmitting patriotism to consumer ethnocentrism by mediator effect test

Assessing the suitable measurement scale of the construct of Vietnamese patriotism by multivariate statistical techniques

Identifing the causal relationship between the constructs of cosmopolitanism and ethnocentrism of Vietnamses consumer, using multivariate statistical techniques

Developing and testing a structure equation model (SEM) which shows the relationship of consumer patriotism with other important constructs of SIT theory

1.4 Research subjects, research scope

1.4.1 Research and data collection subjects

The research subject of the thesis is the measurement model of the construct of Vietnamese consumer patriotism Data collection subjects are Vietnamese city-based consumers who are mature and active in their buying making decisions

1.4.2 Research scope

The thesis focused on the construct of consumer patriotism at the level of individual consumers The space scope of the thesis was urban districts of two cities which were selected to collect data as Ho Chi Minh City and Hanoi

1.5 Research methods

At the qualitative research stage, the author applied the Grounded theory method of Strauss and Corbin (1990) to explore the relationship between consumer patriotism and consumer ethnocentrism and other related constructs From the results was obtained, the author build research model and research hypotheses Next stage, the author conducted quantitative research twice The first

is a preliminary study, the second is a formal study These two times study followed this order of steps: Building-completing the scale of construct/ Assessing the measurement scale first time/ Assessing the measurement scale second time

1.6 Value, new contribution in theory and practical implications 1.6.1 Value, new contribution in marketing science

The research results have formed the construct of consumer patriotism suitable to the context of Vietnamese city-based consumers and enriched the scientific knowldege of SIT Therefore,

the thesis could be used as a reference for researchers not only in the field of economics but also in sociology, anthropology, or political science

The author has chosen a suitable measurement scale of the construct of Vietnamese patriotism This scale showed its stability through two times of quantitative researches, provided a reliable reference for researchers who continue to develop on this topic The thesis has brought useful information for practical marketers about the operating rule of consumer cosmopolitanism It is meaningful in the context of global economic, cultural and social integration which makes consumer cosmopolitanism exist and actives more strongly than ever

In practical aspect, this research result can be applied directly to increase the effectiveness of the campaign "Vietnamese people give priority to using Vietnamese goods" which was first launched nationwide by the Vietnam Politburo in 2009

1.6.2 Value, new contribution in statistical aspect

The thesis can be a reference source for researchers in the fact that the application of mediator effect test of Baron and Kenny (1986) in quantitative studies still exists some problems In addition

to, the mediator effect test by Sem technique is used by the author to increase the persuasion of the conclusions Therefore, the thesis is a vivid illustration of how to combine the results of two different mediator effect test methods to draw the final optimal conclusions There has not been any domestic doctoral thesis (also application mediator effect test) in the same field with this research that reached this achievement

The thesis has provided an illustration of Sem application that implements all 06 steps according to the rules of Kline (2011) This

is advantage that no applied Sem research in Vietnam gained yet In the thesis, the author has performed detailed sample size calculations,

as well as checked multivariate normal distribution of data by rigorous tests, and overcame the violation to ensure reliable statistical conclusions from Sem These are useful informations for researchers who want to apply Sem

CHAPTER 2 OVERVIEW OF WORKS ABOUT CONSUMER

PATRIOTISM 2.1 Academic works

The earliest and the most referenced view is Han's view (1988) Han (1988) assumed that there is a significant relationship in buying domestic products and patriotism by consumers who realise their task is to protect their country’s economy and domestic manufacturing Consumers consider that their choice of buying domestic products has a powerful effect on their country They express their biases in purchasing domestic products to reaffirm their loyalty to their country Han (1988) built his measurement of the construct of consumer patriotism using 02 items adopted directly from the U.S consumer ethnocentrism scale of Shimp and Sharma (1987), namely CETSCALE Han's method led McMellon and Long (2006, pp.4) to say that “Han (1988) used the CETSCALE to examine the role of consumer patriotism“

The second view came from Tsai (2010), which derived from his point that consumers were urged by their patriotism to buy domestic products and with such acts they consciously helped fellow citizens whose employment was threatened by imported products Tsai's (2010) definition of consumer patriotim was very similar to Han's definition (1988) but Tsai (2010) did not operationalise the construct

of consumer patriotism in his work

MacGregor and Wilkinson (2012) defined a specific form of consumer patriotism, which would express an individual’s willingness to contribute more to business for the benefit of the country However, they only constructed a single item – “It is more patriotic to buy goods made in the United States than goods made in other countries” – to measure an individual's patriotic beliefs It is unrealistic to expect that a hypothetical construct could be appropriately measured by a single item (Kline, 2005, pp.70)

In addition, the three works mentioned above reflected the characteristics of American consumer culture which is not entirely consistent with the context of other countries, such as Vietnam Another common point of the these works are their way to establish the theoretical basis of the research construct Consumer patriotism reflects the in-group bias among consumers but these works did not use SIT theory as a background Therefore they also did not exploit

the potential relationship between consumer patriotism and other related contructs of SIT

2.2 Views of the Vietnamese people - approach from public opinion

The author has compiled articles published on printed media and forums with many anonymous participants on the topic of patriotic consumption to understand the Vietnamese people's views on this topic The author used keywords like “Patriotic consumption“;

“Patriotic purchases“; “Patriotic shopping“; “Patriotic buying behaviour“ to find articles relevanting this content The results of the appearence frequency of these keywords were compared with definitions of comsumer patriotism of Han (1988); MacGregor and Wilkinson (2012); Tsai (2010) The author could realize that the views of Vietnamese consumers were similar to those of American consumers in that they felt their responsibility to help the jobs of their domestic peope, and help the economy of their country develop

In additon to, there is an emerging point, the Vietnamese consumer patriotism showed a clear bias attitude towards domestic goods, driven by a pure emotional reason that was the attachment to country of Vietnamese people This shows the fact that the construct

of Vietnamese consumer patriotism, beside the similar part of comsumer patriotism of foreigner authors (Han, 1988; MacGregor and Wilkinson, 2012; Tsai, 2010), there is an additional emotional part that the foreigner authors has not mentioned According to the author, when referring to the emotional bias, which is driven by the emotional attachment to the country, people must apply SIT theory to

be able to explain the reason satisfactorily

CHAPTER 3 LITERATURE REVIEW

3.1 Social identity theory (SIT) and its related contructs

3.1.1 Social identity theory (SIT)

The main point of SIT is that in a society, individuals categorize themselves into groups, then these groups identify themselves through things associated with their own group identity, and which can be distinguished from other groups The in-group people share the same views, and behaviors toward outgroups through an attitude

of cooperation, conflict, prejudice or discrimination in a process called social comparison (Tajfel, 1982)

3.1.2 Consumer ethnocentrism (CET)

Shimp and Sharma (1987) defined consumer ethnocentrism as a unique economic form of ethnocentrism that captures the beliefs of consumers about the appropriateness and morality of purchasing foreign products Consumers having an ethnocentric attitude consider that the products produced in their own country are good and consider the purchasing of foreign products as wrong because they can adversely affect workers’ jobs, restrain the development of domestic businesses, and endanger the economy

3.1.3 National identity and patriotism (PAT)

In marketing literature, national identity has been discussed using the concept of patriotism (Kim t al., 2013, pp.77) because patriotism

is one of the main sources of national identity (Petya, Marco, 2014) Patriotism is often perceived as a love of one’s country and devotion

to it, but it can take many forms (Schatz, Staub, and Lavine, 1999) Vida and Reardon (2008) noted that the concept of patriotism was attached to culture, so it should be operationalised in market scenarios Because of the broad perspectives on the concept of national identity and patriotism, up to now, in addition to a number

of works measured patriotism in a particular way, four main points can be listed in the measurement They are point of Adorno et al (1950), Kosterman and Feshbach (1989), Keillor et al (1996) and Karasawa (2002)

The author noticed Keillor et al (1996) based on SIT when developing the measure of patriotism, but the scale was designed quite complicated with four diemensions that one of which bias consumer ethnocentrism So the author decided to reference simply this scale to measure Vietnamese patriotism Therefore, the author continued to review marketing science studies that referenced the scale of Keillor et al (1996) to find the most reasonable reference Through the review, it could be seen that most these studies had the statements expressing main ideas such as: Love for the country; Pride in nationality; The meaning of being a citizen of that country; The connection with the country These statements exhibit similar psychological characteristics of patriots in many different countries, including Kazakhstan (Rybinal et al., 2010) The author assumed that Kazakhstan and Vietnam have a number of geographical - historical and political similarities that can make people's psychology similar

So the application the Kazakh patriotism scale for Vietnamese case

could be a reasonable choice As a result, the author decided to use the measurement scale of the construct of patriotism in the work of Rybina et al (2010) for Vietnamese people

3.1.4 Consumer cosmopolitanism and open-mindedness

3.1.4.1 Cosmopolitanism (COS)

In the 20th century, sociology literature defined cosmopolitans as people who oriented themselves outside their community rather than being influenced solely by local traditions and values (Riefler và ctg., 2012) Cosmopolitanism is like a form of openness to different cultures, along with a desire to work to seek experiences from other cultures rather than from one's own culture (Hannerz, 1990; Roudometof, 2005; Thompson and Tambyah, 1999) In the preliminary study, the author used the CYMYC scale (Cannon et al., 1994) to measure consumer cosmopolitanism

3.1.4.2 Open-mindedness (OPEN)

After conducting preliminary study, in order to increase the monological validity of the construct of consumer cosmopolitanism, the author reviewed the literature to find out a newer measurement scale called C-COSMO (Riefler và ctg., 2012) This scale defines consumer cosmopolitanism as a three-dimensional, second-order construct capturing the extent to which a consumer (1) exhibits an open-mindedness towards foreign countries and cultures, (2) appreciates the diversity brought about by the availability of products from different national and cultural origins, and (3) is positively disposed towards consuming products from foreign countries (Riefler et al., 2012)

According to Riefler et al (2012), the first dimension named

"open-mindedness" is an important characteristic of consumer cosmopolitanism Riefler et al (2012) established a scale for the construct of open-mindedness with statements revolving the consumer desire for cultural exchange and travelling to interact with people and other cultures The author decided to choose open-mindedness to represent the consumer cosmopolitanism in the formal stydy (second quantitative study)

3.1.5 Consumer patriotism (COPAT) and its position in SIT

3.1.5.1 The definition of consumer patriotism

Clift, Woll (2012a, pp.308-33) defined “economic patriotism as economic choices which seek to discriminate in favour of particular

social groups, firms or sectors understood by the decision-makers as insiders because of their territorial status Economic patriotism entails a form of economic partiality: a desire to shape market outcomes to privilege the position of certain actors”

The author used the main idea of the definition of consumer patriotism from the empirical studies of Han (1988); MacGregor, Wilkinson (2012); Tsai, (2010) and improved the definition of the nature of social identity in consumer patriotism proposed by Clift, Woll (2012a) to get the definition of consumer patriotism:

Consumer patriotism is the biased consumer choices made to support the domestic economy by buying domestic goods to help domestic businesses and workers, and the emotional reasons for that biased choice

3.1.5.2 The relationship of consumer patriotism with other constructs

of SIT

In social identity theory, the origin of both consumer ethnocentrism and patriotism arises from the attachment of individuals to their in-group, which in this case is their mother country, but consumer cosmopolitanism focuses primarily on a person's relationship with outside groups (ie, foreign countries) (Z-Roth et al., 2015) In terms of direction, patriotism is concerned with bias that favors the in-group (Bizumic et al., 2009; Brewer, 1999), but consumer ethnocentrism and cosmopolitanism are a bias against out-groups (Z-Roth et al., 2015) A similar classification is also used for the construct of consumer patriotism Consumer patriotism is the economically positive bias that is based on an individual's attachment

to his/her in-group Consumer patriotism is only directed toward the relationship with the in-group and not directled toward the out-group From these ideas, the authors identified the potential relationships between the these constructs like that:

(1) The relationship between patriotism and consumer patriotism: Roth et al (2015) proposed that the national identity of a person brings bias for his/her in-group In the current study, consumer patriotism is an economic in-group bias so it is considered to be the result of national identity The author can summarize the relationship

Z-as follows: people who are more patriotic will be more biZ-ased towards domestic economic support In other words, the consumer patriotism will be positively influenced by their patriotism

(2) Relationship between consumer patriotism and consumer ethnocentrism: Z-Roth et al (2015) stated that consumer ethnocentrism is an out-group bias against foreign countries However, consumer patriotism is the individual's positive bias for his/her in-group Therefore, there is potential for these two factors to

On the contrary, consumer patriotism is the positive in-group bias Therefore, the author hypothesized that consumer cosmopolitanism would reduce the consumer patriotism

3.2 Theory of evaluating the measurement model

3.2.1 Requirements for the measurement scale

3.2.1.1 Content validity

Assessing the appropriateness of the measurement variables designed for a measurement scale of construct with the definition of that construct

3.2.1.2 Unidimensionaltity

The overall fit of the model provides the necessary and sufficient conditions to determine whether a set of observed variables is unidimensional (Steenkamp and Van Trijp, 1991) However, this is true only if there is no correlation between the residuals of the observed variables

3.2.1.3 Reliability

The researchers used the following criterion: item-total correlation> 0.5 (Hair et al., 2010); Cronbach's alpha coefficient> 0.7 (Hair et al., 2010); AVE> 0.5 (Bagozzi and Yi, 1988); CR> 0.6 (Bagozzi and Yi, 1988)

3.2.1.4 Validity

Convergent validity: Hair et al (2010) proposed that the condition for convergent validity of scales is FLs ≥ 0.5 or ideally, 0.7 Discriminant validity: It involves confirming whether the population correlation among constructs is truly different from a value of 1 The Fornell–Larcker criterion (1981) requires that the AVE of a construct should be higher than the highest squared

correlation between this construct and other constructs to ensure this construct has discriminant validity

Content validity: Steenkamp and Van Trijp (1991, p.294) say the content validity is assessed by statistical testing the relationship between construct and other constructs in the theoretical system

3.2.2 Exploratory factor analysis technique for preliminary assessment of measurement scale

Assessing the discriminant validity: The number of factors extracted by EFA must be consistent with the original hypothesis of the number of factors, combined with the condition that the observed variables download exactly the latent concept that it is designed for measuring (Nguyen Dinh Tho, 2011)

Assessing the measurement model by EFA requires that the cumulative percentage of variance is higher than the threshold of 50% (Gerbing and Anderson, 1988) Hair et al (2010, pp.117) noted that Factor loadings FL greater than 0.5 to meet the requirement of convergent validity for the construct scales

3.2.3 Covariance based structural equation modeling

3.2.3.1 Basic steps of SEM

Step 1 Specify the model

Step 2 Evaluate model identifcation

Step 3 Select the measures and collect, prepare, and screen the data Step 4 Estimate the model:

a Evaluate model ft (if poor, skip to step 5)

b Interpret parameter estimates

c Consider equivalent or near-equivalent models (skip to step 6)

Step 5 Respecify the model (return to step 4)

Step 6 Report the results

3.2.3.2 Path model (PA)

A path model (PA) is a structural model for observed variables, and a structural model represents hypotheses about effect priority

In the PA model, the variables analyzed are observed variables but not the latent variables are measured through a set of observed variables

Calculate the PA degrees of freedom:

dfM = Number of observations - Number of free model parameters