RESEARCH

Consumer Ethnocentrism: includes research articles that focus on the

analysis and resolution of managerial and
CETSCALE Validation and academic issues based on analytical and
empirical or case research

Measurement of Extent
Anupam Bawa

Executive Summary
KEY WORDS
Consumer Ethnocentrism
Pseudopatriotism
CETSCALE
Consumer Behaviour
Consumer ethnocentrism means the appropriateness, indeed morality of purchasing
foreign made products. Today, when the Indian consumer has great access to foreign
goods and the Indian manufacturer is facing increasing competition from foreign
products, the neglect of this topic in India is hard to explain. The CETSCALE, a scale to
measure consumer ethnocentrism, has been tested in many parts of the world but not in
India.
This research examined the psychometrics of the CETSCALE, the extent of consumer
ethnocentrism in India, and the relationship of socio-demographic variables and quality
consciousness with consumer ethnocentrism.
Data were collected from three socio-demographic groupsmaterials management
professionals, the group with the largest influence on organizational buying behaviour;
university students, the most often researched group of respondents the world over and
hence ideal for a cross-cultural comparison of results; and senior secondary school
students, a group recommended as worth researching by a prominent earlier researcher.
Analysis of data was done with the help of currently used and recommended tools
including exploratory factor analysis and confirmatory factor analysis.
Results show that the concept of consumer ethnocentrism prevailing in India is not
conceptually equivalent to the concept of consumer ethnocentrism prevailing in other
countries where it has been found to be uni-dimensional. In India, the concept has more
nuances. What is more, the concept as understood by the three different socio-
demographic groups is also not identical. The level of consumer ethnocentrism in India
is not less than that prevailing in a similar demographic group in a developed country
like the US. It is the senior secondary school students who are the most consumer
ethnocentric. Socio-demographic variables do not adequately explain the presence, or
otherwise, of consumer ethnocentrism. Neither does quality consciousness.
The managerial implications of the major findings of this study are as follows:

In India, the label made in India is not a liability. The Indian consumers will not
lap up foreign goods merely because of their made in tags. This should bring
comfort to companies whose products carry the made in India label. The threat
perception of freer imports into India should be altered in the light of these
findings.

Foreign companies in India, planning to sell goods manufactured on Indian soil
rather than imported from their plants abroad, will also get support for their
actions from these findings.

That the young Indians (a numerically very large segment of the market) are the
most consumer ethnocentric of them all points to a comfortable future for the
made in India label.
An attempt has been made to refine the CETSCALE for use in India. Marketing needs
to respond to the criticism of the concept of ethnocentrism in the other social sciences.
It needs to explore the relationship of consumer ethnocentrism with consumer animosity
and consumer affinity (love-hate relationship with other countries).

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43
T
oday, the Indian consumer has greater and easier
access to imported goods than ever before. Con-
sequently, the Indian manufacturer has to face
increasing competition from foreign goods that too on
home turf. In such a scenario, it would be worthwhile
to examine the attitude of Indian consumers towards the
purchase of foreign-made goods. Such an examination
will help the Indian manufacturers to assess the severity
of the threat from imports. The Indian as well as foreign
firms that wish to relocate into India or out of India can
assess the opportunities or threats of such an action and
can find out the extent to which the Indian consumers
differ from, or are similar to, the consumers in others
parts of the world with respect to preference or aversion
to foreign goods.
In this context, one relevant phenomenon that can
be examined is consumer ethnocentrism. The credit for
inspiring research into the phenomenon of consumer
ethnocentrism goes to Shimp and Sharma (1987). They
not only coined the term consumer ethnocentrism but
also gave to marketing literature the CETSCALE a
unique scale to measure consumer ethnocentrism
constructed and validated in a near textbook fashion.
Researchers have investigated the psychometrics of
the CETSCALE in the US, Japan, and many European
countries, including the East European ones (Durvasula,
Andrews and Netemeyer, 1997; Netemeyer, Durvasula
and Lichtenstein, 1991; Steenkamp and Baumgartner,
1998; Luque-Martnez, Ibanez-Zapata and Barrico-Gar-
cia, 2000; Lindquist, et al., 2001; Douglas and Nijssen,
2002). However, in India, the fifth largest economy of
the world, there has been no research on the validity of
the CETSCALE.
Interestingly, while there are many examples of
cross-cultural research carried out to test the CETS-
CALE, we have not come across any research study that
examines the applicability of the CETSCALE to different
demographic and socio-economic groups within a coun-
try. This is an intriguing omission considering that Shimp
and Sharma (1987) had themselves pointed this as a
direction for future research. This research effort has
three broad objectives:
To assess the validity and reliability of the CETS-
CALE across three socio-demographic groups in
India, namely, materials management profession-
als, university students, and senior secondary school
students.
To compare the extent of consumer ethnocentrism
44
44
prevailing in different socio-demographic groups in
India with that reported in other studies carried out
in different parts of the world.
To examine the relationship of consumer ethnocen-
trism with various socio-demographic variables.
The results of this research will also help to refine
and further develop the CETSCALE. Scale construction
is an important but oft-neglected step in the task of
theory building.
REVIEW OF LITERATURE AND HYPOTHESES
Ethnocentrism means culturally-biased judgement. The
origin of the concept is attributed to Summer (1906) who
explained it as a feeling of superiority for ones group
and all things related to the group. Over the years, the
concept has added psychological and now even econo-
mic overtones. Ethnocentrism is a concept of interest not
only to sociologists, psychologists, and anthropologists
but also to historians, political scientists, politicians, and
administrators.
Consumer Ethnocentrism
The best explanation of the concept is in the words of
the originators of the concept (Shimp and Sharma, 1987):
We use the term consumer ethnocentrism to
represent the beliefs held by American consum-
ers about the appropriateness, indeed morality,
of purchasing foreign-made products. From the
perspective of ethnocentric consumers, purchas-
ing imported products is wrong because, in their
minds, it hurts the domestic economy, causes
loss of jobs, and is plainly unpatriotic; products
from other countries (i.e., out groups) are objects
of contempt to highly ethnocentric consumers.
To non-ethnocentric consumers, however, fo-
reign products are objects to be evaluated on
their own merits without consideration for where
they are made (or perhaps to be evaluated more
favourably because they are manufactured out-
side the United States).
The CETSCALE: The 17-item, seven-point CETSCALE
has much to recommend it. It has been painstakingly
constructed and distilled through the stages of item
generation, item screening, two purification studies, and
four subsequent studies conducted to examine the psy-
chometrics of the scale. The framers of the scale, Shimp
and Sharma, were able to demonstrate its reliability and
validity convergent, discriminant as well as nomo-
CONSUMER ETHNOCENTRISM
logical (Appendix).
The CETSCALE adheres to the viewpoint that con-
sumer ethnocentrism is a matter of how ethnocentric?
and not whether ethnocentric? It does not give a con-
sumer ethnocentric/not ethnocentric type of categoriza-
tion. Rather it gives total scores ranging from 17 to 119.
Lindquist et al. (2001) are of the opinion that the 17
items of the CETSCALE are linked to the following four
concepts it hurts the domestic economy, results in
loss of jobs, is unpatriotic, and is tied to product
availability, though Shimp and Sharma did not classify
the items in this manner. There also exists a shorter 10-
item version of the CETSCALE (Appendix). It has been
used not only by Shimp and Sharma (1987) but also by
Steenkamp and Baumgartner (1998), Lindquist et al.
(2001), and Douglas and Nijssen(2003).
The CETSCALE has given mixed results in different
parts of the world. Results from the US, Russia, Spain,
France, Japan, and West Germany support the uni-di-
mensionality, reliability, discriminant validity, and
nomological validity of the scale (Netemeyer, Durvasula
and Lichtenstein, 1991; Durvasula, Andrews and Nete-
meyer, 1997; Luque-Martnez, Ibanez-Zapata and Bar-
rico-Garcia, 2000). The results obtained by Lindquist et
al. (2001) while working with the abridged 10-item CET-
SCALE in the Czech Republic, Hungary, and Poland, are
mixed but generally acceptable. Significantly, it was
found that different sub-sets of items worked in different
countries. Douglas and Nijssen (2003) found that in the
Netherlands, the 10-item scale was not uni-dimensional.
It had a two-dimensional structure one dimension
consisting of core ethnocentrism items, the other con-
sisting of items relating to the availability of domestic
products. The predictive validity of the CETSCALE has
been found to be inconsistent across product categories
(Herche, 1992). Mean scores on the CETSCALE appear
stable over time when the population is viewed as a
whole but they are not stable for specific sub-groups
(Nielsen and Spence, 1997).
It is against this background that the following
hypotheses have been proposed. A lack of prior research
in India on the psychometrics of the CETSCALE acted
as a constraint while framing the hypotheses.
H1: Each of the 17 items of the CETSCALE is able to
discriminate between high scorers and low scorers
in each of the three socio-demographic groups
sampled.
H2: The CETSCALE is uni-dimensional in each of the
VIKALPA VOLUME 29 NO 3 JULY - SEPTEMBER 2004
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three socio-demographic groups sampled.
H3: The CETSCALE has internal consistency in each of
the three socio-demographic groups sampled.
H4: The CETSCALE has discriminant validity with
respect to related phenomena against which it is
tested in each of the three socio-demographic groups
sampled.
H5: The CETSCALE has nomological validity with
respect to each of the variables in its nomological
net against which it was tested in each of the three
socio-demographic groups sampled.
Extent of Consumer Ethnocentrism
Consumer ethnocentrism is a phenomenon of the deve-
loped world (Okechuku, 1994; La Barre, 1994; Good and
Huddleston, 1995; Durvasula, Andrews and Netemeyer,
1997; Vida and Fairhurst, 1999). Consumers from less
developed countries have repeatedly shown a marked
preference for imported goods (Papadopoulos, Heslop
and Beraes, 1990; La Barre, 1994; Agbonifoh and Elim-
inian, 1994; Mohammad et al., 2000). Research that found
consumers of developed countries to have no prejudice
for home country products is in a minority (Johansson,
Douglas and Nonaka, 1985).
The Indians are generally perceived as clamouring
for foreign brands (Varma, 1998). Batra et al,s (2000)
paper contains an account of literature that gives pos-
sible reasons for the average Indians fondness for fo-
reign goods. These reasons include search for status
symbols in the hierarchy-conscious Indian society, in-
feriority complex vis--vis the (erstwhile) foreign rulers,
increased contact with the West, rising incomes, chang-
ing expectations, and cultural receptiveness to symbol-
ism of brands.
But, there exists a different strain of thought too.
La Barre (1994) quoting the results of the Bozell-Gallup
worldwide quality poll says: India is an import recep-
tive country but it has a healthy self image. This seeming
contradiction is easy to understand when we remember
that in India the open mind is as much a cultural heritage
as the closed mind (Ahmed, 1979). According to Ahmed,
the open mind of the Indian society can be gauged from
the innumerable invaders of alien cultures that have
been absorbed into this society; the Indian notion of
hospitality that has made Indians tolerant of different
cultures, languages, and religions; the lack of traits of
revenge and punishment in the people, and the Indians
being open not only to experiences of the world of reality
45
but also to a separate reality. The closed mind of the
Indian society can be evidenced from, among other things,
the intolerance and discrimination of lower castes, the
authoritarian family structure, concern with status and
power, and glorification of the past.
H6: Indian respondents will be less consumer ethnocen-
tric than comparable samples from the developed
world.
Consumer Ethnocentrism and Socio-demographic
Variables
A good review of literature has been presented by Good
and Huddleston (1995) and Al-Sulaiti and Baker (1998)
on this aspect of consumer ethnocentrism. Lately, Vida
and Fairhurst (1999) have also examined this aspect.
Regarding age, the dominant view is that the older will
be more consumer ethnocentric than the younger. Re-
garding education, there is a near consensus that higher
the education level lesser the consumer ethnocentrism.
Nijssen, Douglas and Bressers (2002) feel that consumer
ethnocentrism is due to lack of knowledge. The results
on income are split. Shimp and Sharma (1987) had found
those in the lower socio-economic group to be more
ethnocentric than those higher up. They attributed this
to the fear of losing jobs to foreign competitors. Regard-
ing gender, the dominant view is that women will be
more consumer ethnocentric.
In addition to the variables of age, education, in-
come, and gender, this study examined the variables of
socio-economic classification of households (SEC) and
quality consciousness for their relationship with con-
sumer ethnocentrism. The SEC grade of a household is
determined by the occupation and education of the head
of the household (Agrawal, 1994). It helps circumvent
the problems caused by the rampant misreporting of
income by the respondents in India.
It was hypothesized that the desire for foreign
products could be a quest for quality especially as
preference for foreign goods is higher in the less deve-
loped countries and more among the higher income
categories.
H7: The different socio-demographic groups will differ
with respect to consumer ethnocentrism. The most
consumer ethnocentric group will have a higher
average age, least education, least average income,
significantly more members from the lower SEC
grades, significantly more females, and will be the
least quality-conscious.
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The relationship between consumer ethnocentrism
and socio-demographic variables is proposed to be exa-
mined not only across the three socio-demographic
groups but also within each of the groups sampled by
means of testing the hypothesis given below.
H8: In each of the three socio-demographic groups, the
more consumer ethnocentric will be the older, the
less educated, from the lower income group, from
the lower SEC grade, females, and the less quality-
conscious.
METHODOLOGY
As far as possible, constructs and variables used by other
researchers examining consumer ethnocentrism were
used. A literal translation of the CETSCALE was used
following the practice adopted by all the researchers
previous to Douglas and Nijssen (2002). Pseudopatriot-
ism and image of home country were measured to
estimate divergent validity of the CETSCALE. To mea-
sure pseudopatriotism, a 14-item scale, closely following
the P-Scale of Adorno et al. (1950) was developed and
tested. To measure the image of home country, the
relevant part of the country-of-origin scale developed
by Parmeswaran and Pisharodi (1994) was used. Quality
consciousness was measured with the three-item perfec-
tionist/high quality conscious scale (Sproles and Ken-
dall, 1986). Belief about foreign-made products and belief
about products made in India were measured with two
similar, four-item, seven-point scales, adapted from the
scales used by Klein, Ettenson and Morris (1998) and
Nijssen, Douglas and Bressers (2002). The items of each
of these constructs are included in the Appendix. The
validity and reliability of these borrowed scales was
tested before they were put to use (Table 1).
Sample Profile
The business executives most likely to influence organ-
izational buying behaviour are material managers and
hence they were chosen as one socio-demographic group
of interest. The members of the Chandigarh branch of
the Indian Institute of Materials Management (IIMM),
a body of materials management professionals drawn
largely from the industry but also including government
and universities, were approached. One hundred and
ninety three of the 210 members could be contacted by
mail. Sixty replies were received before the cut-off date.
The students of the University Business School,
Panjab University, Chandigarh were the other socio-
CONSUMER ETHNOCENTRISM
Table 1: Reliability of the Scales Used

Scale No. of Materials Management University Senior Secondary

Items Professionals Students School Students
Coefficient n Coefficient n Coefficient n
Alpha Alpha Alpha
CETSCALE 17 .9471 58 .8812 103 .8708 175
Pseudopatriotism scale* .7187 56 .6411 104 .7020 172
Home country image 9 .7815 58 .7489 103 .6327 178
Quality consciousness 3 .6435 58 .7186 104 .5703 187
Belief about foreign products 4 .6618 59 .7717 104 .5839 181
Belief about Indian products 4 .8727 59 .6857 104 .7185 184
Notes : Frequency totals may vary due to missing data.
* The number of items for materials management professionals was 11, for university students 12, and for senior secondary
school students 14. See also Appendix.

demographic group of interest through random sam-
pling of students. One hundred and four filled question-
naires were obtained. Including this group in the study
would facilitate comparison of findings across different
research studies as students belonging to the faculties
of Economics/Business Management/Commerce are the
most oft-researched group of respondents in studies on
consumer behaviour.
The senior secondary school students were chosen
as the third group of interest as no study on consumer
ethnocentrism has studied this age group though Shimp
and Sharma (1987) did wonder if the CETSCALE would
be applicable to high school students.
As government schools get the larger share of stu-
dents and are popular with all income groups at the
senior secondary level, the students of government senior
secondary schools of the Union Territory of Chandigarh
were considered. Using stratified random sampling, 188
filled questionnaires were obtained. Data were collected
from November 2002 to February 2003.
The profile of the sample drawn from each of the
three socio-demographic groups is given in Table 2. The
senior secondary school students are the socio-demo-
graphic group with the least age, education, and average
income. It is the only group in which members from all
the socio-economic grades are found. While there are no
females in the sample of the materials management
professionals, the number of males and females in the
samples of the university students and the senior se-
condary school students does not differ significantly
(X 2 = 1.927, df=1).
TESTING OF HYPOTHESES
Psychometrics of the CETSCALE
Hypothesis 1 relates to the discriminating power of each
of the 17 items of the CETSCALE. Table 3 gives, for each
of the three groups, mean scores of all respondents,
mean scores of the top 25 per cent scorers, and the bottom
25 per cent scorers. The difference in the mean scores
obtained by the top 25 per cent scorers and bottom 25
per cent scorers were tested with the t-test. All t values
were significant at .01 level of significance.* Thus, each
item of the CETSCALE has discriminating power.
Hypothesis 2 relates to the uni-dimensionality of
the CETSCALE. As can be seen from Table 4, all the item-
to-total correlations are significant in each of the three
groups studied. While in the group of materials man-
agement professionals, all item-to-total correlations are
above 0.6, in the group of university students, they are
above 0.47, and in the senior secondary school students
sample, they are above 0.39.
As the results of the exploratory factor analysis
given in Table 5 show, the KMO values are meritorious
(>0.8) for all the three groups. However, it is only in the
group of materials management professionals that at
62.779, the percentage of variance extracted exceeds the
thumb rule of 0.6 (Malhotra, 2001). The percentage of
variance extracted for the university students and senior
secondary school students is low at 46.21 per cent and
38.332 per cent respectively.
As the scale is hypothesized to be uni-dimensional,
all items should load highly (>0.3 or hopefully 0.5) on
one factor. Stringent items loading retention rules are
item loadings 0.5, the difference between an items two
highest loadings to be > 0.20, at least three items to load
on each factor (Tansey, Carroll and Lin Jun, 2001). On
the basis of these rules, the CETSCALE cannot be de-
clared to be uni-dimensional.
There is a three-factor solution for materials man-
* Details can be obtained from the author.

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Table 2: Profile of the Sample

Demographic Variables Materials Management University Senior Secondary

Professionals Students School Students
F Percentage F Percentage F Percentage
Age (Years)
15-19 - - - - 187 99.5
20-24 - - 92 88.5 1 0.5
25-29 4 6.8 10 9.6 - -
30-39 13 22.0 -
40-49 22 37.3 2 1.9
50-59 17 28.8
60-69 2 3.4
70+ 1 1.7
Mean age(n) 44.80(59) 22.93(104) 16.56(187)
SD 10.223 3.257 0.922
Education
Class 10 - - - - 188 100
Class 12+ but not graduate 4 6.9 - - - -
Graduate/post-graduate general 20 34.5 72 69.2 - -
Graduate/post-graduate professional 34 58.6 32 30.8 - -
Mean no. of years of education (n) 16.79(58) 15.91(107) 10.00(188)
SD 1.281 0.915 0.00
Household income (Rupees/pa)
0-40000(LC)* - - - - 33 17.9
40,001-80,000(LMC)* - - - - 44 23.9
80,001-1,20000(UMC)* 1 1.07 9 8.7 43 23.4
1,20,001-1,60,000(UMC)* 3 5.2 7 6.7 18 9.8
1,60,001-2,50,000(UC)* 13 22.4 31 29.8 29 15.8
2,50,001-5,00,000(uc)* 23 39.7 46 44.2 13 7.1
+5,00,000(uc)* 18 31.0 11 10.6 4 2.2
Mean income (Rs/pm)(n) 36,706.8(54) 29,412.385(98) 9,511.3(153)
SD 23,542.4 22,876.84 7,579.8
Sec grade**
1 49 84.5 64 62.1 31 17.4
2 7 12.1 25 24.3 34 19.1
3 2 3.4 1.2 11.7 24 13.5
4 - - 1 1.0 10 5.6
5 - - - - 27 15.2
6 - - 1 1.0 25 14.0
7 - - - - 24 13.5
8 - - - - 3 1.7
Gender
Male 60 100 67 64.4 104 55.3
Female - - 37 35.6 84 44.7
Notes: Frequency totals may vary due to missing data.
* LC lower class, LMC lower middle class, MC middle class, UMC upper middle class, UC upper class.
** SEC grade 1 is the highest and 8 is the lowest (Agrawal, 1994).

agement professionals and senior secondary school stu-
dents and a four-factor solution for university students.
As identification and labelling of each of the factors is
not required by the hypothesis, it is not being done.
Confirmatory factor analysis (CFA) was performed
on the CETSCALE with the objective of determining the
fit of the one-factor model. Some items of the LISREL
output are reported in Table 6.
While using CFA, researchers are advised to report
one or two indices of each of the three types of fit
absolute fit, comparative fit, and parsimonious fit
(Kelloway, 1998). The rule of thumb for good fitting
models are, among others, non significant chi-square
results, values >0.9 for goodness of fit index (GFI),
comparative fit index (CFI), normed fit index (NFI) and
non normed fit fix (NNFI), value >0.8 or >0.9 for adjusted
goodness of fit index (AGFI), value <0.10 for root mean
square error of approximation (RMSEA), and value <0.05
for root mean square residual (RMSR). The parsimoni-
ous normed fit index (PNFI) and the parsimonious

48 CONSUMER ETHNOCENTRISM

48
Table 3: Discriminating Power of the Items of the CETSCALE

Materials Management University Students Senior Secondary

Professionals School Students
Item Mean for Mean for Mean for Mean for Mean for Mean for Mean for Mean for Mean for
All Low High All Low High All Low High
Respondents Quartile Quartile Respondents Quartile Quartile Respondents Quartile Quartile
n* n=15 n=14 n** n=27 n=23 n*** n=45 n=41
1 3.82 1.87 6.07 3.18 1.93 4.43 4.94 3.18 6.61
2 4.03 1.80 6.07 3.89 2.44 5.22 5.66 3.96 6.39
3 4.50 1.80 6.21 4.27 2.15 5.96 5.90 4.71 6.93
4 3.36 1.87 5.64 3.01 1.59 4.65 4.52 2.89 5.80
5 2.07 1.07 3.57 1.63 1.07 2.61 2.87 2.29 4.27
6 3.05 1.40 5.07 2.60 1.89 3.61 4.56 2.78 6.37
7 2.73 1.27 5.07 2.36 1.07 3.96 4.68 2.47 6.49
8 3.43 1.60 6.0 3.80 2.07 5.39 5.06 3.27 6.54
9 3.53 1.67 5.64 3.26 2.22 4.57 5.03 3.84 6.39
10 3.53 1.60 5.79 3.35 2.00 4.65 5.62 4.58 6.54
11 3.03 1.47 5.50 3.06 1.74 4.26 4.94 3.18 6.66
12 2.18 1.07 3.71 2.13 1.11 3.17 2.81 2.20 4.15
13 4.03 1.93 5.64 3.63 2.52 4.87 4.75 3.24 5.90
14 2.10 1.07 3.79 2.11 1.48 2.83 3.36 1.76 5.46
15 3.23 1.47 4.43 3.26 2.15 4.87 4.00 2.20 6.02
16 4.33 1.93 5.86 4.39 2.78 5.91 5.91 4.44 6.78
17 2.80 1.20 5.00 2.52 1.41 4.00 4.31 2.71 6.00
Notes: Responses were obtained on a seven-point scale with one being strongly disagree (low ethnocentrism) and seven being
strongly agree (high ethnocentrism).
* n is 58 for item 4. It is 60 for all other items. ** n is 103 for item 5. It is 104 for all other items.
*** n is 183 for item 13, 185 for item 2, 186 for items 6,8, and 11, 187 for items 1,5, and 10 and 188 for all the remaining
items.
goodness of fit index (PGFI) should be high though there of all the other scales used in this study.
is no such norm as high. There should be no standard- Hypothesis 4 relates to the discriminant validity of
ized residuals greater than 2.58 (Kelloway, 1998; Shar- the CETSCALE. Pseudopatriotism and Image of Home
ma, 1996; Lindquist et al., 2001).
Table 4: Assessment of Uni-dimensionality of
From the results reported in Table 6, it is highly CETSCALE, Item to Total Correlation
doubtful that the 17-item CETSCALE is uni-dimension-
al. All the three chi-square probabilities are significant; Item Correlated Materials University Senior
with Total Management Students Secondary
in none of the three samples do GFI, CFI, NFI or NNFI CETSCORE Professionals School
touch the value of 0.9, RMSR is greater than the norm Students
Item n=58 n=103 n=175
of 0.05, and the standardized residuals >2.58 are many
1 .771 .584 .624
(3 to 6). However AGFI exceeds 0.8 in the sample of
2 .756 .550 .513
senior secondary school students and the RMSEA is 3 .781 .700 .579
<0.10 in two samples university students and senior 4 .786 .659 .588
5 .606 .476 .405
secondary school students. The CETSCALE, though not
6 .677 .508 .625
uni-dimensional, has the best fit in the sample of senior 7 .798 .672 .712
secondary school students. Not only are the PNFI and 8 .833 .726 .699
PGFI values the highest of the three samples, even the 9 .784 .558 .574
10 .761 .569 .459
GFI, AGFI, CFI, NFI, and NNFI are the highest in this
11 .820 .634 .650
sample. 12 .610 .476 .392
Hypothesis 3 relates to the internal consistency of 13 .707 .528 .501
the CETSCALE. This was assessed with the help of 14 .728 .386 .594
15 .637 .578 .623
coefficient alpha. As can be seen from Table 1, it is above 16 .664 .705 .504
0.9 for materials management professionals and above 17 .824 .633 .609
0.8 for the other two groups. A very laudable score, Range of Correlation .606-.833 .476-.726 .392-.712
indeed. Reliability of the CETSCALE is higher than that Note: All correlations are significant at the .01 level (two-tailed).

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Table 5: Assessment of Uni-dimensionality of the CETSCALE: Results of Exploratory Factor Analysis

Materials Management University Senior Secondary

Professionals Students School Students
No. of Factors
(Eigen Value >1) 3 4 3
KMO .879 .815 .868
Percentage of
Variance Explained 62.779 46.215 38.332
Item/Factors and
Loadings a b c a b c d a b c
1 .686 .471 .327 .439
2 .564 .622 .592 .693
3 .755 .488 .487 .576
4 .642 .770 .534
5 .670 .616 .399
6 .396 .302 .451 .699 .374 .563
7 .655 .454 .386 .308 .557 .269 .394
8 .679 .418 .394 .515 .523 .401 .217
9 .770 .458 .405 .281 .239
10 .710 .666 .397
11 .543 .363 .514 .597 .522
12 .805 .462 .473
13 .526 .165 .112 .351 .444 .570
14 .731 .372 .244 .117 .577
15 .307 .371 .399 .323 .305 .242 .142 .533
16 .576 .762 .495
17 .727 .387 .551 .420 .589
Notes: For each item, the highest factor loading is reported. The other factor loadings are reported only if their difference from the
higher ones is <0.2.
Analysis was done using common factor analysis (with principal axis factoring). These are rotated factor loadings obtained using
varimax rotation.
Country were identified as constructs that were related CETSCALE lacks divergent validity. The correlations
yet conceptually distinct from consumer ethnocentrism. may be due to true covariation between related con-
It was expected that the correlation of CETSCORE with structs. Shimp and Sharma(1987) describe the ethnocen-
these two phenomena would not be high as they were tric consumer as one to whom purchasing foreign goods
after all different constructs. The results are presented is plainly unpatriotic. According to them, it is the non-
in Table 7. As expected, the three correlations with Image ethnocentric consumer for whom foreign products are
of Home Country are low (r = 0.180, 0.122, and 0.115) to be evaluated on their own merit. But, according to
and none of these is significant. However, all the cor- Adorno et al. (1950) this critical understanding is a trait
relations with the pseudopatriotism scale are significant of the patriot as opposed to the pseudopatriot. There-
and of a moderate level (r = 0.444, 0.421, and 0.566). This fore, consumer ethnocentrism and pseudopatriotism may
last set of results should not be taken to mean that well be found together.

Table 6: Assessment of Uni-dimensionality of the CETSCALE: Results of Comfirmatory Factor Analysis

Sr. Indicator Materials Management University Students Senior Secondary

No. Professionals School Students
1 Chi-square 237.38 242.11 217.18
2 Degrees of freedom 119.00 119.00 119.00
3 Chi-square probability .000 .000 .000
4 Goodness of fit index (GFI) .69 .79 .87
5 Adjusted goodness of fit index (AGFI) .60 .73 .83
6 Root mean square error of approximation (RMSEA) .12 .098 .070
7 Root mean square residual (RMSR) .30 .24 .26
8 Comparative fit index (CFI) .82 .78 .87
9 Normed fit index (NFI) .71 .65 .76
10 Non normed fit index (NNFI) .80 .75 .85
11 Parsimony normed fit index (PNFI) .62 .57 .76
12 Parsimony goodness of fit index (PGFI) .53 .61 .68
13 Standardized residuals > 2.58 3 6 5

50 CONSUMER ETHNOCENTRISM

50
 Hypothesis 5 relates to the nomological validity of
the CETSCALE. Scores obtained on the CETSCALE were
correlated with five other scores belief about foreign-
made products, belief about Indian-made products,
attitude towards foreign products, attitude towards
Indian products, and the importance of buying products
made in India. The pattern of correlations, as discerned
from Table 7, is almost entirely as expected. While all
the correlations of CETSCORES with belief about for-
eign-made products are negative, the correlations with
belief about Indian-made products are positive (r = -0.09,
-0.127, and -0.072 as against r = 0.212, 0.008, and 0.215).
While consumer ethnocentrism scores correlate nega-
tively with attitude towards foreign products, they
correlate positively with attitude towards Indian produ-
cts (r = -0.27, -0.279, and -0.270 as against r =0.088, 0.196,
and 0.307). It was expected that correlations of CET-
SCORE would be higher with attitudes (both for foreign-
made and Indian-made products) than with beliefs (both
about foreign-made or Indian-made products). This has
been found correct in five of the six pairs of correlations
examined (comparing correlations with attitude and
belief respectively towards foreign products in each of
the three socio demographic groups, r = -0.27, -0.091;
r = -0.279, -0.127; r = -0.270, -0.072; comparing correla-
tions with attitude and belief respectively towards
Indian-made products, r = 0.088, 0.212; r = 0.196, 0.008;
r = 0.307, 0.215). The only exception is in the data obtained
from the materials management professionals where
correlation of CETSCORE with belief about Indian prod-
ucts (r = 0.212) is higher than attitude towards Indian
products (r=.088). Lastly, it was expected that the CE-
TSCORES correlation with importance of buying prod-
ucts made in India would be higher than its correlation
with the other four variables selected for ascertaining
nomological validity. Not only are these correlations the
highest (r = 0.476, 0.492, and 0.349), they are also all
significant at p=.000.
Extent of Consumer Ethnocentrism
Hypothesis 6 relates to the comparison of levels of
consumer ethnocentrism in India with those reported
from comparable samples in research conducted in other
parts of the world.
Table 8 gives a snapshot of the CETSCORES ob-
tained by the different groups in this study as well as
the CETSCORES reported in the studies that had college
or university students as samples. When the significance
of the difference between means of the CETSCORE
obtained by university students in this study and the
eight other results from other studies using university/
college students was examined, only two results were
found to be significantly different. The means reported
by Durvasula, Andrews and Netemeyer (1997) for the
Russian students and those reported by Vida and Fair-
hurst (1999) for the Hungarian students are significantly
lesser than those obtained in this study giving a critical
ratio of 8.839 and 3.990 respectively. The results ob-
tained in the US, Czech Republic, Estonia, and Poland
are not significantly different from those obtained in
India. They all give a critical ratio of less than 1.96
(Garrett, 1966). This challenges the belief that consumer
ethnocentrism is a phenomena of the developed world.
While on the one hand, the Indians cannot be ac-
cused of clamouring for foreign goods, on the other
hand, they do not give evidence of having an open mind
greater than that present in other countries.
Consumer Ethnocentrism and
Socio-demographic Variables
Hypothesis 7 states that the group with the highest
CETSCORE would be the one with the highest average

Table 7: Assessment of Divergent Validity and Nomological Validity of the CETSCALE Using Correlations

Scales Materials Management University Senior Secondary

Professionals Students School Students
r n p r n p r n p
Pseudopatriotism .444 54 .001 .421 103 .000 .566 160 .000
Home country image .180 56 .183 .122 102 .224 .115 166 .140
Belief about foreign products -.091 57 .500 -.127 103 .201 -.072 169 .354
Belief about Indian products .212 57 .113 .008 103 .936 .215 171 .005
Attitude towards foreign products* -.27 58 .024 -.279 103 .004 -.270 174 .000
Attitude towards Indian products* .088 58 .511 .196 103 .047 .307 174 .000
Importance of buying Indian products .476 58 .000 .492 103 .000 .349 174 .000
* These were gauged by single item scales of seven points each.

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51
Table 8: CETSCORES Obtained by Different Studies Using Student Samples

Author and Year Sample Description Sample Size Mean SD

Shimp and Crafted with pride 145 51.92 16.37
Sharma (1987) 145 53.92 16.52
(College students sample)
Durvasula et al. (1997) USA 144 50.24 22.85
(University students sample)
Russia 60 32.02 12.47
(University students sample)
Vida and Czech Republic 131 45.17 11.97
Fairhurst (1999) Estonia 179 53.59 13.79
Hungary 76 43.30 13.76
Poland 172 50.61 14.33
(All university students)
Bawa (2004) University students 103 52.43 16.812
Materials management professionals 58 55.24 25.128
Senior secondary school students 175 78.71 19.400

age, least education, least average income, significantly
more members from the lower SEC grades, significantly
more females, and least quality consciousness.
As can be seen from Table 8, the group with the
highest score is that of the senior secondary school
students. The t-test results given in Table 9 show that
while the CETSCORE obtained by the materials man-
agement professionals is no different from that obtained
by the university students, the CETSCORE obtained by
the senior secondary school students is significantly
higher than that obtained by the other two groups.
In accordance with hypothesis 7, the group with the
highest consumer ethnocentrism (senior secondary school
students) does have the least education, least average
income, and more members from the lower SEC groups
than do the other two groups. But it is early to tell
whether the high consumer ethnocentrism of this group
is because of these characteristics.
It may be pointed out here that as opposed to
hypothesis 7, the senior secondary school students have
the least average age and not the highest average age.
The part of hypothesis 7 that pertains to gender
could not be tested because the number of females in
the two student groups university and senior sec-
ondary school does not differ significantly. It may be
recalled that there were no females in the sample of
Table 9: T-test Results
Samples Compared t(df)
University students with senior -11.45
secondary school students (276)
Senior secondary school students 6.501
with materials management professionals (80.713)
University students with materials -.762
management professionals (86.293)
materials management professionals. As the three groups
have similar scores on quality consciousness, even that
aspect of hypothesis 7 could not be checked. (On quality
consciousness, for material management professionals
M = 13.40, SD = 1.388; for university students, M = 13.24,
SD = 1.549 and for senior secondary school students,
M = 13.30, SD = 1.828).
Hypothesis 8 relates to the relationship of CET-
SCORE and socio-demographic variables within each of
the groups. Once again it was hypothesized that greater
ethnocentrism will be found among the older, the less
educated, those from the lower income group, the lower
SEC group, females, and the less quality conscious. This
hypothesis was tested with the help of ANOVA. The
results are summarized in Table 10.
Contrary to the hypothesis, people of different age
groups, different gender, and different levels of quality
consciousness do not differ significantly with respect to
consumer ethnocentrism. This is true for all the three
groups studied.
The relationship of education and consumer ethno-
centrism is as hypothesized in the sample of university
students but not in the sample of materials management
professionals. Those without a professional qualifica-
tion are significantly more consumer ethnocentric than
those with a professional qualification in the sample of
university students.
The relationship of consumer ethnocentrism with
p value income and SEC is not significant for materials manage-
.000 ment professionals and university students but it is
significant for senior secondary school students. When
.000
cell means are examined for senior secondary school
students, it is seen that as income rises, consumer eth-
.448 nocentrism decreases up to an income of Rs 0.25

52 CONSUMER ETHNOCENTRISM

52
Table 10: Effect of Various Variables on Consumer Ethnocentrism: One-way ANOVA

Source Sum of Squares Df Mean Squares F

Materials management professionals
Age 2913.845 5 582.769 .900 ns
Education 2497.278 2 1248.639 1.980 ns
Income 4293.963 4 1073.491 1.771 ns
SEC 349.938 2 174.969 .261 ns
Gender - - - -
Quality consciousness 187.727 3 62.576 0.92 ns
University students
Age 631.886 2 315.943 1.120 ns
Education 1479.791 1 1479.791 5.465*
Income 1638.741 4 409.685 1.477 ns
SEC 232.990 4 58.248 .201 ns
Gender 283.531 1 283.531 1.003 ns
Quality consciousness 1302.173 3 434.058 1.561 ns
Senior secondary school students
Age 300.513 1 300.513 .798 ns
Education - - - -
Income 11926.082 6 1987.680 6.156**
SEC 10355.957 7 1479.422 4.633**
Gender 309.703 1 309.703 .822 ns
Quality consciousness 2504.636 3 834.879 2.265 ns
* Significant at .05. ** Significant at .01. ns: Not significant.

million per annum. After that, increase in income goes
hand in hand with increase in consumer ethnocentrism.
As for SEC, as SEC levels increase, consumer ethnocen-
trism generally decreases. Results obtained for SEC
should be given greater credence than those obtained
for income owing to rampant misreporting of income in
India.
REFINING THE CETSCALE
In the light of the results of the confirmatory factory
analysis which revealed that the 17-item CETSCALE was
not uni-dimensional, it was decided to obtain better
scales with the help of item reduction. This is a well
documented practice in marketing research (Churchill,
1979; Goodwin, Purwar and Rogers, 1985; Lindquist et
al., 2001). CFA was used repeatedly. The largest La-
grange multipliers (also known as modification indices)
indicated which scale item should be deleted. This it-
erative process helped obtain stronger fitting single factor
models. Table 11 contains information on the key indi-
cators of the modified scales thus obtained.
As can be seen from Table 11, items have been
dropped from the CETSCALE to get better scales. While
six items have been dropped each in the sample of
materials management professionals and university
students, three items have been dropped in the sample
of senior secondary school students.
In Table 11, the chi-square probabilities are all non
significant (>0.05), the RMSEAs are all <0.10, all the CFIs
and NNFIs are >0.9, all the coefficient alphas are >0.8,
the GFIs are >0.9 in the samples of university students
and senior secondary school students and 0.88 in the
sample of materials management professionals. The
AGFIs are all >0.8. However, the RMSRs are higher than
the norm of 0.05, the NFIs are between 8 and 0.9, and
in the sample of university students, there is one stand-
ardized residual that is greater than 2.58. Overall, these
are fairly good single factor scales. What is more, the
values of the fit indices for the modified CETSCALE
given in Table 11 are far superior to the values of the
fit indices for the 17-item CETSCALE given in Table 6.
It is worthwhile to examine the items dropped from
the CETSCALE in the different samples (Table 12). From
Table 12, it is evident that a total of nine items have been
dropped in one or the other sample. No item has been
dropped in all the three samples. Three items have been
dropped in one sample only (items 1,10, and 17) while
six items have been dropped in two of the three samples
(items 2,4,5,6,7, and 12). From this, it can be inferred that
consumer ethnocentrism means different things to dif-
ferent samples.
It may be pointed out that there are eight items of
the CETSCALE that feature in each of the three modified
scales. These items are item serial numbers 3, 8, 9, 11,
13, 14, 15, and 16 of the original 17-item CETSCALE.

VIKALPA VOLUME 29 NO 3 JULY - SEPTEMBER 2004 53

53
Table 11: CFA Fit Indices for the Modified CETSCALE

Scale and Fit Indices Materials Management University Senior Secondary

Professionals Students School Students
No. of items in the modified scale 11 11 14
Items dropped 1,5,6,7,12,17 2,4,5,6,7,10 2,4,12
1. Chi-square 46.06 52.33 96.26
2. Degrees of freedom 44 44 77
3. Chi-square probability .39 .18 .068
4. Goodness of fit index (GFI) .88 .92 .93
5. Adjusted goodness of fit index (AGFI) .82 .88 .91
6. Root mean square error of approximation (RMSEA) .00 .033 .033
7. Root mean square residual (RMSR) .21 .16 .20
8. Comparative fit index (CFI) .99 .97 .97
9. Normed fit index (NFI) .89 .83 .86
10. Non-normed fit index (NNFI) .99 .96 .96
11. Parsimony normed fit index (PNFI) .71 .66 .73
12. Parsimony goodness of fit index (PGFI) .59 .61 .68
13. Standardized residual >2.58 0 1 0
14. Coefficient alpha .9278 .8312 .8575

Thus, there is a core group of items that feature in all
the modified CETSCALEs. This information should be
used by all the subsequent researchers working on
consumer ethnocentrism in India.
While in this section a modified CETSCALE has
been offered for each of the three samples, the reader
would do well to treat this modification exercise an
exploratory exercise only. Kelloway (1998) cautions that
such post hoc modifications, which are empirically gen-
erated, must be cross-validated on independent sam-
ples.
DISCUSSION OF FINDINGS AND
MANAGERIAL IMPLICATIONS
In India, overall, the CETSCALE behaves just as a scale
measuring consumer ethnocentrism should behave in
terms of internal consistency/reliability, divergent, and
nomological validity. But, the consumer ethnocentrism
concept, in at least two of the three groups examined,
is not conceptually equivalent to the concept of consum-
er ethnocentrism prevailing in the US and other coun-
tries where the scale was found to be uni-dimensional.
In India, consumer ethnocentrism has more nuances
than in the developed countries of the West. What is
more, the results of EFA and the repeated CFA done to
obtain better versions of the scale indicate that the concept
of consumer ethnocentrism as understood by the three
different socio-demographic groups studied is also not
conceptually equivalent.
Proceeding with the examination of CETSCORES,
it was found that the Indian university students have
CETSCORES comparable not only to college/university
students in the Czech Republic, Estonia, and Poland but
also to the US. This challenges the viewpoint that con-
sumer ethnocentrism is a phenomenon of the developed
world. All those who are prone to criticize the Indians
for their craze for foreign goods should make a special
note of this finding. The Indians level of consumer

Table 12: Items Dropped in Modified Scales

Sr. No. in Brief Item Description* Materials Management University Senior Secondary
CETSCALE Professionals Students School Students
1. Always buy Indian made products x**
2. Import only unavailable products x x
4. Indian products always! x x
5. Purchasing foreign goods un-Indian x x
6. Employment impact x x
7. Real Indians buy Indian products x x
10. Import only necessary items x
12. Curb all imports x x
17. Employment impact x
* For the full wording of the item see Appendix.
** x indicates that the item was dropped.

54 CONSUMER ETHNOCENTRISM

54
ethnocentrism is not less than that prevailing in a de-
mographically similar group in a developed country like
the US. It would be wrong to view consumer ethnocen-
trism as a phenomenon of the developed world only.
The high consumer ethnocentrism among senior
secondary school students means that the made in India
tag is a valued one in the numerically very large younger
segment of the Indian market.
These findings should bring comfort to companies
whose products carry the made in India label. In India,
this label is not a liability. The Indian consumers will
not lap up foreign goods merely because of their made
in tags. The threat perception of freer imports into India
should be altered in the light of these findings. Strategic
decisions related to off-shore manufacturing should not
be made by the Indian companies merely to get a dif-
ferent made in label. Foreign companies in India plan-
ning to sell goods manufactured on Indian soil rather
than imported from their plants abroad will also get
support for their actions from these findings. That the
young Indians (a numerically very large segment of the
market) are the most consumer ethnocentric of them all
points to a comfortable future for the made in India
label.
Socio-demographic variables fail to adequately
explain the phenomenon of consumer ethnocentrism.
While two of these variables, viz., income and SEC, are
related to consumer ethnocentrism in the sample of
senior secondary school students, a different variable,
viz., education, is related to consumer ethnocentrism in
the sample of university students, but none of the socio-
Appendix: Constructs and their Items
The CETSCALE
1) Indian people should always buy Indian-made products instead
of imports.
2) Only those products that are unavailable in India should be
imported.
3) Buy Indian-made products, keep India working.
4) Indian products, first, last, and foremost.
5) Purchasing foreign made products is un-Indian.
6) It is not right to purchase foreign products because it puts
Indians out of jobs.
7) A real Indian should always buy Indian-made products.
8) We should purchase products manufactured in India instead
of letting other countries get rich off us.
9) It is always best to purchase Indian products.
10) There should be very little trading or purchasing of goods from
other countries unless out of necessity.
11) Indians should not buy foreign products because it hurts Indian
business and causes unemployment.
12) Curbs should be put on all imports.
VIKALPA VOLUME 29 NO 3 JULY - SEPTEMBER 2004
55
demographic variables is related to consumer ethnocen-
trism in the sample of materials management profes-
sionals. Even quality consciousness is not related to
consumer ethnocentrism.
DIRECTIONS FOR FURTHER RESEARCH
This research has been conducted in only one part of
India, a vast and heterogeneous country. None of the
scales used in this research had been previously tested
for validity and reliability. The sampling of materials
management professionals was not random.
While the initial work on refining the CETSCALE
for use in India has been done, this work needs to be
cross-validated on other samples. There needs to be
further investigation into the reasons for high consumer
ethnocentrism among the school students. More atti-
tudinal and behavioural variables should be included
in further studies on consumer ethnocentrism.
Last of all but not the least, marketing literature
needs to pay more attention to the criticism of the concept
of ethnocentrism which Levine (2001) is constrained to
describe as a dated fallacy of early twentieth century
social sciences. Research in the emergent area of con-
sumer animosity (Klein, Ettenson and Morris, 1998;
Nijssen, Douglas and Bressers, 2002) can help by exam-
ining the coexistence of consumer animosity with con-
sumer affinity because, as Levine (2001) points out, the
boundaries between in group and out group are no
longer clear and stable and these are being blurred by
communication and migration.
13) It may cost me in the long run but I prefer to support Indian
products.
14) Foreigners should not be allowed to put their products on our
markets.
15) Foreign products should be taxed heavily to reduce their entry
into India.
16) We should obtain from foreign countries only those products
that we cannot obtain within our own country.
17) Indian consumers who purchase products made in other
countries are responsible for putting their fellow Indians out
of work.
Note: Items 2, 4, 5, 6, 7, 8, 11, 13, 16, and 17 are part of the
shorter 10-item version of the scale.
The Pseudopatriotism Scale
1) Patriotism and loyalty to the country are the first and most
important requirements of a good citizen.
2) Some forms of military training, obedience, and discipline such
as drill, marching, and simple commands should be made a
Contd.
55
Appendix Contd.
part of the elementary school educational programme.
3) Under our judicial system, the punishment awarded to those
who disobey the law of the land is very light.
4) Nepal can never advance to the level of India due mainly
to the innate laziness, lack of ambition, and general
backwardness of the Nepalese.
5) Pakistan can never advance to the level of India because it
has weak democratic institutions.
6) The main threat to basic Indian institutions comes from the
infiltration of foreign ideas, doctrines, and media.
7) The US is a war minded and power seeking country and the
international community should devise ways and means to
control it.
8) Pakistan is a rogue country and India needs to teach it a
lesson.
9) Only natural Indian citizens should have the right to hold office
under the Constitution of India.
10) Refugees from Bangladesh, Sri Lanka, etc., may be in need
but it is a big mistake to allow them to enter our country.
11) When international matches are played in India, the audience
should not be allowed to wave flags of other countries.
12) The day India became a nuclear power was a great day for
India.
13) There will always be wars because, for one thing, there will
always be countries who ruthlessly try to grab more than their
share.
Belief in Foreign Made Products / Products Made in India
What is your belief about foreign-made products?
1) Poor value for money 1 2 3 4
2) Technically backward 1 2 3 4
3) Low quality 1 2 3 4
4) Unreliable 1 2 3 4
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5) Places emphasis on technical education.
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7) People are motivated to raise standard of living.
8) Technical skills of workforce are high.
9) Country participates in international affairs.
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Anupam Bawa is Reader at the Unviersity Business School, Panjab
University, Chandigarh. She did her MBA from Panjab University,
Chandigarh and Ph.D. from Punjabi University, Patiala. Her
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research work has been published in some of the leading
management journals of the country.
e-mail: anupambawa@gmail.com
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