The Impact of Status Orientations on Purchase Preference for Foreign Products in Vietnam,and Implications for Policy and Society

Abstract

In this article, the authors examine the impact of status orientations on consumer purchase preferences for foreign products, an emerging disposition in Vietnam. Both qualitative (in-depth interviews and focus groups) and quantitative methods (survey with urban Vietnamese consumers) were employed in this investigation. The results of structural equation modeling (SEM) provided empirical evidence for the positive influence of modern status orientation (MSO) on willingness to buy imported products. Traditional status orientation (TSO) was found not to be a predictor of willingness to buy. Consistent with the findings from literature, consumer ethnocentrism was negatively related to willingness to buy imported products. Implications for public policy and marketers pertaining to the emerging proclivity of status-seeking foreign purchase and the social motives underlying this phenomenon are provided.

Keywords

status orientation preference for foreign products Vietnam

Introduction

People today live in an increasingly global consumer culture, one in which consumption has become a crucial part of personal, social, and economic life (Belk 2003). In transitional economies (TEs) such as Vietnam, many consumers have a strong desire for and actively seek “leaping luxuries”—most of which are imported products (Belk 1999).This affinity for imported products in TEs drives many concerns including its effects on a country’s well-being, its economic development, how the country should integrate its existing marketing systems with global marketing ones, and a host of societal issues.

Speece and Nguyen (2005) note that many Vietnamese consumers value products from more developed countries; some 77 percent of Vietnamese consumers prefer foreign products over their domestic equivalents (Grey Group 2008). Reports from less-affluent TEs thought to be similar to Vietnam show similar results: imported products are often preferred and viewed as superior to domestic ones (Klein, Ettenson, and Krishnan 2006; Supphellen and Rittenburg 2001). Symbolism and a desire for status enhancement have been offered as possible explanations for this phenomenon (Batra et al. 2000; Zhou and Hui 2003).

Consumers’ behaviors in both developed and emerging markets are often motivated by a desire for social status, and products can be used as symbols to signal the owner’s social status (e.g., Eastman, Goldsmith, and Flynn 1999; Shukla 2010). Status considerations appear to be particularly important in TEs where consumption for the sake of status, often of imported products, has become rampant among many urban consumers (Belk 1999; Nguyen and Tambyah 2011). Little empirical research, however, has examined the factors underlying this phenomenon, particularly those driving consumer behaviors in TEs such as Vietnam. Thus, the authors find it both academically interesting and useful for public policy makers to better understand why Vietnamese consumers buy imported products, especially those purchased for the sake of status, and how those behaviors affect both society and marketing systems.

Vietnamese consumers are particularly interesting because their society has rapidly evolved since the DoiMoi economic reforms were initiated a little more than two decades ago. Dramatic changes are evident throughout Vietnam, including changes in consumers’ values, attitudes, and behaviors (Tambyah, Nguyen, and Jung 2009). Vietnamese consumers are trying to reconcile modern influences with traditional values and they struggle with conflicts inherent in two distinct perceptions of self: traditional self and modern self (Nguyen, Smith, and Johnson 2009). Perceptions of status symbols, an important indicator of one’s values, are changing too (Tambyah, Nguyen, and Jung 2009). Thus, status orientations, both modern and traditional, are also in flux, and as they are likely drivers of purchase intentions for imported products, this report shall explore them.

Goldsmith, Flynn, and Kim (2010) suggested that social motives including the pervasive and influential desire for social status motivate much consumer behavior. In particular, this study takes a societal perspective in its attempt to provide more comprehensive explanations for the proclivity Vietnamese consumers have shown for imported products. The impact of traditional status orientation (TSO) and modern status orientation (MSO) on Vietnamese consumers’ purchase preferences for foreign products is the focal point. Both qualitative and quantitative research methods were used in an attempt to provide both richness and statistical relationships. Shimp and Sharma’s (1987) well-known construct of consumer ethnocentrism is also included to provide a reference point.

Theoretical Background

Consumers in many regions of the world have relatively easy access to a wide range of products and services originating from companies located in many different countries. However, research has shown that globalization may not lead to standardized consumer values and behaviors across different countries (e.g., Nguyen, Nguyen, and Barrett 2008). In Vietnam, where foreign products are often superior to domestic ones, many consumers, especially the emerging middle and upper classes, demonstrate a strong desire for status symbols embodied by ownership of luxury, imported products (Nguyen and Tambyah 2011). In the following section, the authors elaborate on the theoretical relationships of interest.

Status Orientations and Willingness to Buy Imported Products

Tambyah, Nguyen, and Jung (2009) developed and tested a consumer status orientation scale in Vietnam. They defined status orientation as a motivational construct; one that focuses on the consumer belief that obtaining status symbols could help a consumer achieve his or her desired social standing. Two subconstructs of status orientation were proposed: TSO and MSO. Respectively, they refer to consumers’ orientation toward traditional status symbols (before the economic transition) and modern status symbols (at present, after the economic transition). TSO and MSO were identified as two distinct components that could coexist in each individual consumer at different levels with little correlation between the two (p > .05). In our study, these two distinct components of status orientation are modeled as two separate predictors of Vietnamese consumers’ willingness to buy imported products.

MSO

Previous research suggests that consumers in TEs often regard foreign products as status symbols due to their perceived superior quality and image (Batra et al. 2000; Ger, Belk, and Lascu 1993). In Confucian Asian TEs, luxury Western products can help consumers claim a desirable status, prestige or “face” (Wong and Ahuvia 1998; Zhou and Belk 2004). Particular to Vietnam, many foreign brands enjoy an advantage due to their symbolic values (Toyama 2001).

Since foreign brands are often attached to luxury products, the high MSO consumers identified by Tambyah, Nguyen, and Jung (2009) seem particularly relevant for this study on foreign products. High MSO individuals place a high value on luxury objects, on being rich and wealthy, and on being talented enough to earn a high income. They believe their social status will be enhanced with the purchase and consumption of newly available products and brands, including those we would consider luxury products (Steenkamp, Hofstede, and Wedel 1999). Findings from a recent study in Vietnam by Nguyen and Tambyah (2011) suggested that MSO was positively related to status consumption. Although status products could include some domestic items, most of them may be the imported ones. The authors therefore expect that high MSO consumers will tend to prefer and are more likely to engage in the purchase of foreign products.

High MSO consumers are a particular demographic in Vietnam. They are typically younger and more highly educated than the general population. Those attributes may partially explain why these individuals may not be strongly influenced by traditional values. Further, these consumers, many of whom have benefited from economic reforms, are typically more receptive to new, international brand appeals and have more chances at international experiences, including consumption ones (Tambyah, Nguyen, and Jung 2009). Thus, they are more likely to be influenced by modern lifestyles and should be more willing to purchase imported products.

TSO

TSO captures consumers’ orientation toward traditional status symbols that are associated with the past (mainly with the immediate period before the economic transition began). In Vietnam, before the economic reform, consumers could have a happy life without placing undue importance on material values, and the slogan “hard work and plain living” was emphasized (e.g., Do 1995). As suggested by the findings from Tambyah, Nguyen, and Jung (2009), the authors believe that high TSO consumers are more traditionally Confucian in their outlook, emphasizing the benefit of the country and people, the importance of living a simple and clean life, regardless of wealth, and embracing a philosophy of caring for others before themselves. Thus, for these individuals, being rich does not convey high status, wealth is not a means to display one’s position in life, and foreign luxuries should not be coveted. Rather, they value high morals and living a simple, thrifty, and clean life devoid of material objects. In a study by Nguyen and Tambyah (2011), TSO was found to be negatively related to status consumption for Vietnamese consumers. Accordingly, we expect that high TSO individuals may engage less in buying imported products since these items are often considered luxuries and may carry higher prices than the domestically produced alternatives.

Typically, high TSO consumers are older, less educated, and of a lower income level. They may strongly hold traditional viewpoints such as patriotism and national pride. Thus, they are more likely to prefer traditional products and services that are produced or provided in traditional ways (Tambyah, Nguyen, and Jung 2009). In the context of Vietnam, a less-affluent TE, where imported products are often preferred to the local counterparts, the authors are interested in seeing how TSO impacts preferences for imported products.

Consumer Ethnocentrism and Willingness to Buy Imported Products

Shimp and Sharma (1987) introduced the construct of consumer ethnocentrism, a reference to consumers’ tendencies to make normative judgments about the appropriateness of supporting their national economy by buying domestic-made products and not buying foreign-made ones. Highly ethnocentric consumers are expected to have a negative attitude toward buying foreign products, and previous studies generally have found the expected negative relationship in a variety of circumstances (e.g., Lantz et al. 2002; Marcoux, Filiatrault, and Cheron 1997; Sharma, Shimp, and Shin 1995).

The negative relationship between consumer ethnocentrism and willingness to buy foreign products has previously been supported in two Asian TEs: China (Klein, Ettenson, and Morris 1998) and Vietnam (Nguyen, Smith, and Cao 2009). Thus, consumer ethnocentrism was included to provide a solid replication point for this study.

Qualitative Study

This report presents results from both an initial qualitative investigation and a survey-based statistical study. In-depth interviews and focus groups completed during the initial phase provided richness prior to executing a more formal, quantitative survey. Specifically, the authors investigated the social motives underlying urban Vietnamese consumers’ attitudes toward the purchase of foreign products.

Qualitative data came from a total of eighteen individual interviews and two focus groups the authors facilitated in Hanoi and Ho Chi Minh City, the two largest cities in Vietnam. Individual interviewees were solicited from a demographically heterogeneous sample of participants in an attempt to secure diverse opinions. Focus group participants were more homogenous in terms of age (ranging from twenty-four to forty-five), economic status (belonging generally to a relatively wealthy group), and levels of education (most holding a bachelor degree or above).

Key Findings

Several key themes emerged from our qualitative study. First, our informants repeatedly emphasized that urban consumers generally showed a strong proclivity for foreign products. Certainly, a trip through either Hanoi or Ho Chi Minh City validates this claim and it is not news. Some persons further noted that consumers in the cities were exposed to new lifestyles and modern consumption behavior on a daily basis via global media and other sources of information. The following excerpts demonstrate consumers’ preference for foreign products to the local counterparts:

I think at present, there is an evident trend of preferring to use imported products. If you pay a little more attention to the advertisements, you will see many products are advertised with emphasis on their foreign names. Even some local manufacturers also emphasize that their products are produced using imported technology. Something related to ‘foreign’ seems meaningful and powerful … Due to the globalization process, there have been many changes in lifestyles. Advertising also has a big impact on the way people eat, drink, and dress. Only imported products [from more developed countries] can meet the new requirements of living. (Male, age 32)

For a long time, Vietnamese products have been known as of low quality, poor designs and styles, and often very few choices. So, I think it’s difficult for Vietnamese people to believe that local products could meet their needs, especially for those with high income, living in big cities where foreign-made products are available in many stores. These products would be their ideal choices. (Female, age 38)

The informants of the study not only suggested a general preference for foreign products and brands among many consumers but they also provided some initial insights that Vietnamese consumers are differentiating foreign products according to their perceived degree of “foreignness.” That information is not as readily available from a walk through the streets. Imported, branded products (primarily Western in origin) were clearly the most preferred and also the option most salient to consumers when they were asked to describe “foreign products.” Informants often provided specific references to a particular late model mobile phone, laptop, or motorbike, and to globally branded clothing, cosmetics, and toiletries. Of late, however, an increasing number of foreign-branded products are actually being manufactured in Vietnam and our informants seemed quite cognizant of this fact. Foreign-branded products that were actually manufactured in Vietnam were noticeably less desirable, and the authors speculate this differentiation is possibly due to a “poor quality” legacy image. Domestically produced and branded products were a distant third preference.

Many of our informants noted that consumers showing a strong preference for foreign products were generally emerging urban middle- and upper-class consumers and that these individuals typically had higher levels of income and education. They were often described as young, modern, and successful in life. Our informants also suggested that while a broad cross section of Vietnamese consumers may strongly prefer foreign products for different reasons, those consumers, including persons with lower levels of income, typically older and less educated may not be able to afford or not willing to buy the imported products that they like. Those are the people, our informants hypothesized, who often purchase locally made products.

Consumer motivations were of great interest to us. When asked why they preferred foreign products to the local counterparts, our informants expressed quite similar opinions that we heard over and over. They strongly suggested that the foreign products were often thought of as being of high quality, attractive, and having excellent customer service that can bring consumers such benefits as comfort, convenience, fashion, uniqueness, and desired status. Country of origin, perhaps, plays an important role in Vietnamese consumers’ perception and purchase of imported products (Speece and Nguyen 2005). The following quotes provide a sample of comments:

There are some groups of people. The first one just likes foreign products. They like famous brand names and they feel happy with something “foreign” attached. The other group doesn’t look for fashions but they buy [foreign products] because they just want to have good products but they can’t find good local ones …, and for some imported products which are low value items and just a bit more expensive compared with the local ones, some people may buy [foreign products] mainly because of the quality. (Female, age 43)

The products with foreign brand names such as Gucci, IBM, and Sony are always more credible than those with local names. They have higher quality and we feel comfortable when we use them … Imported products have many advantages. Even some people from private companies told us honestly that they need to buy a luxury car to show that they are doing business well, then they can borrow money [from the bank] easier. (Male, age 28)

I have bought both types of shirts for myself, local made and imported brands. To be honest, when wearing the imported shirts, I often have a special feeling. On the streets, I can hold my head up and I can look at others confidently and proudly. (Female, age 40)

While domestic products still cannot satisfy the increasingly demanding consumers, the imported products with good quality, great variety, famous brands and high status can bring us good feeling, comfort and confidence. With such many benefits of imported products, when buying and using them, we can enjoy our life better and work more successfully, and therefore we can say we also contribute better to the whole society. (Male, age 35)

Speece and Nguyen’s (2005) research identifies value and quality as key drivers for Asian middle-class consumers, including Vietnamese. We heard quality and the implications for status as two key reasons why our informants purchase imported products, of which enhancing one’s status was strongly suggested as a salient motivation. Thus, of the two main drivers identified in this phase, quality and status, the authors found status seeking the more interesting and chose to explore it further. In the following section, the authors examine the impact of TSO and MSO on urban consumers’ foreign product purchase using empirical survey data obtained in Hanoi, Vietnam.

Survey

Sample and Data Collection

To serve our purpose of exploring the impact of TSO, MSO, and consumer ethnocentrism on foreign product purchase in Vietnam, the authors conducted a survey on urban Vietnamese consumers from Hanoi. Vietnam has recently experienced high economic growth rates and much of that growth has come in urban areas. Hanoi was chosen for our survey research since (1) it is a large city, and likely to contain many young, status-seeking individuals, (2) it is located in the northern part of the country, which is thought to be home to more people with traditional values than can be found in Ho Chi Minh City so we should be able to get some variation of opinions, and (3) because it is an area truly in transition, to the point where a slightly larger proportion of Hanoi residents desire to buy premium products (most of which are foreign ones) than do the percentage of those residing in Ho Chi Minh City (Nielsen 2009).

Our sample consisted of 240 consumers. Women accounted for 47 percent of the subjects and men 53 percent; more than 50 percent of the subjects were married. The sample included persons with many different types of occupations from many different employers, and their ages ranged from nineteen to fifty-seven, with an average age of thirty-two years old. Most subjects in this sample were relatively wealthy and can be considered emerging middle-class consumers.

A trained data collection team distributed questionnaires to respondents at their homes, including face-to-face explanations about the research’s objectives and instructions on how to complete the questionnaire. One or several days later, the interviewer came back and collected the finished survey.

The scales and questions in our questionnaire that were originally developed in English were assessed for cultural compatibility and adequacy for a Vietnamese sample (cf., Klein, Ettenson, and Morris 1998). The authors followed the process of back-and-forth translation suggested by Hui and Triandis (1985). After completing the process of checking and revising, the Vietnamese questionnaire version was pretested in a small convenience sample for a final check. Necessary changes were made for the purpose of accuracy and clarity before collecting data.

Measures

All scales used in our study were adapted or modified from past research including willingness to buy foreign products (Klein, Ettenson, and Morris 1998), status orientations (Tambyah, Nguyen, and Jung 2009), and the consumer ethnocentrism scale (CETSCALE) for consumer ethnocentrism (Shimp and Sharma 1987). The scales were scored on a 5-point Likert-type format from strongly disagree to strongly agree. All scales were subjected to exploratory factor analysis (EFA) and confirmatory factor analysis (CFA) for the purpose of scale testing and purification. The scales used in the final analyses are presented in Appendix A.

Willingness to buy imported products

The scale consisted of 4 items adapted and modified from Klein, Ettenson, and Morris (1998). The reversed score of willingness to buy was used for our analyses.

Status orientation (MSO and TSO)

The scale developed by Tambyah, Nguyen, and Jung (2009) was adapted for this study. Their scale includes two distinct components (TSO and MSO) and consists of a total of 10 items.

Consumer ethnocentrism

The authors adapted and modified the 4-item reduced version of Shimp and Sharma’s (1987) CETSCALE to make it workable in Vietnam.

Data Analysis

Structural equation modeling (SEM) was used to test the hypothesized relationships. Analysis via latent variable SEM first provided information on the measurement properties of the model (Klein, Ettenson, and Morris 1998). The structural equation analysis (using Analysis of Moment Structures [AMOS] 4.0’s maximum likelihood method) was then applied to estimate path coefficients for each proposed relationship in the structural model.

For our theoretical interest, it seemed important to control for some demographic variables such as age and income. The literature has suggested that preference for foreign products seems to be more salient among more wealthy and younger groups of Vietnamese consumers (Toyama 2001). In our survey, income may not be a concern because most of our surveyed participants belong to the wealthier group. In estimating our model, therefore, the authors controlled for only the variable of age.

Results

The Measurement Model

The authors first conducted an EFA and reliability assessment (using coefficient α) before performing CFA. Cronbach’s coefficient α for all the scales used in this study ranged from .81 for MSO to .86 for the CETSCALE, all of which exceeded Nunnally’s (1978) minimum recommended level of .70. They also examined the correlations among the variables in our study. Table 1 presents the correlation matrix and summary statistics.

Table 1.

Correlation Matrix and Summary Statistics (n = 240)

Variables	1	2	3	4	Mean	Standard Deviation
1. Willingness to buy	1				4.03	.68
2. Consumer ethnocentrism	−.44^*	1			2.10	.91
3. MSO	.30^*	−.25^*	1		3.90	.69
4. TSO	−.25^*	.29^*	−.09	1	4.03	.66

Note. MSO = modern status orientation; TSO = Traditional status orientation.

^* p < .01.

In order to assess measurement validity, the authors performed CFA using AMOS 4.0 (Hair et al. 1998). The results generally indicated a good level of fit for the measurement models. After assessing each construct, the full measurement model was analyzed. The results of CFA exhibited a reasonably good level of fit: χ²(129) = 302.2, p < .01; root mean square residual (RMR) = .07; root mean square error of approximation (RMSEA) = .07; minimum discrepancy/degrees of freedom (CMIN/DF) = 2.34; comparative fit index (CFI) = .91; and Tucker-Lewis index (TLI) = .90. All t-tests of the indicator variables were significant at the .001 level.

Structural Equation Model

The authors first added a control variable of age to the hypothesized model. The model was estimated before and after addition of the control variable (cf., Gruen, Summers, and Acito 2000).The overall fit statistics of the model without the control variable indicated an acceptable level of fit: χ²(129) = 302.21, p < .01; CMIN/DF = 2.34; CFI = .91; TLI = .90. Overall, the model accounted for 35 percent of the variance in willingness to buy. The model fit did not improve significantly when the control variable was added: χ²(143) = 314.68; CMIN/DF = 2.20; CFI = .91. So, the original model was used to test the hypothesized relationships.

A total of three proposed relationships were tested. Two of the three hypothesized paths were statistically significant and in the direction predicted, while one failed to obtain support from the data. Specifically, as expected, MSO had a significantly positive effect on willingness to buy (γ₁ = .20; t-value = 2.56). However, TSO was found to be insignificantly related to willingness to buy (γ₂ = −.12; t-value = −1.69). This will be discussed subsequently. As expected, the path from consumer ethnocentrism to willingness to buy was significant and negative (γ₃ = −.46; t-value = −5.48). The results of estimating the hypothesized relationships are presented in Table 2 .

Table 2.

Results of Estimating the Hypothesized Relationships

Structural Path	Standardized Estimate	t-Value
MSO to willingness to buy	.20^a	2.56
TSO to willingness to buy	−.12	−1.69
Consumer ethnocentrism to willingness to buy	−.46^a	−5.48

Note. MSO = modern status orientation; TSO = Traditional status orientation.

^aThe path was statistically significant.

Discussion and Implications

This study adds some richness to our understanding of the social factors influencing Vietnamese consumers’ purchase preferences for imported products. Status appears to be a key driver of purchase behavior and we have some indication that marketing efforts, such as advertising and promotion campaigns, are behind much of the shift toward what is now seen as status in Vietnamese society.

Our qualitative study replicated others’ findings that Vietnamese consumers are generally favorably disposed to foreign-branded products, but it extended those findings to identify that Vietnamese consumers are now apparently discerning not just brand names, but in which country the branded goods under consideration were manufactured. Products carrying foreign brand names but manufactured in Vietnam are seen as inferior to those carrying foreign brand names that were manufactured somewhere more developed than Vietnam. This means global brands may no longer be enough in TEs; perhaps managers must also pay attention to the country of manufacture. Our qualitative findings also identified two clear reasons for urban Vietnamese consumer interest in foreign products: perceived quality and the ability to achieve status, and of the two, status seems to be a more salient driver.

Empirical results provide statistical support for the qualitative findings: MSO and consumer ethnocentrism influence consumers’ willingness to buy foreign products. However, the authors found a negative, yet not significant coefficient between TSO and willingness to buy. This intriguing finding raises several questions. Perhaps, high TSO consumers are indifferent to imported products and indeed there is no relationship. On the other hand, perhaps high TSO consumers actively avoid imported products—as suggested by some of our informants—and there is indeed a negative relationship here. Perhaps, some consumers, even those holding high TSO levels, may be motivated to purchase imported products too, but not for the status reasons cited by high MSO consumers. Or perhaps the unmeasured perceived quality dimension is driving TSO individuals to consider foreign products in spite of the apparent conflict with their status orientation. A strong appreciation of product quality and performance, a perception of high value for the money spent, or possibly the ability to express care for others could be salient motivations for their purchase intentions. These inferences are speculative at this point and require further exploration.

Implications

This study is expected to provide contributions for academics, public policy, and marketers. For academics, this research enriches our understanding of Asian TE consumer preferences for foreign products from a societal perspective, in the context of Vietnam, an area that has received only modest research attention. We add to our understanding of status orientations, specifically those associated with economic transition in Vietnam, and their influences on consumer behavior. Vietnamese consumers are quickly becoming more sophisticated.

Managers can derive several implications from this study. This study suggests promising opportunities for foreign companies offering products to less-affluent TE markets like Vietnam since in general the authors found a strong preference for imported products. Needs-based segments, specifically ones built on MSO or TSO may be effective. For instance, international firms targeting the promising consumer group of high MSO would emphasize superior status associated with their products. When targeting high TSO consumers, quite possibly with the same product, a firm might highlight the superior quality for the owner or how gifting the product to another person might express a particularly high level of caring for another person.

In this study, many urban Vietnamese consumers showed a strong preference for foreign products, and generally did not much appreciate the local ones. Local firms seeking to counteract that sentiment may be best served by a two-pronged attack: improve their actual product quality and develop better marketing messages about their products to urban consumers. Another option for local firms is to focus on a different segment that might be more receptive. The rural market may be more promising, as rural individuals are generally more price sensitive and we expect a higher proportion of TSO individuals with a corresponding higher regard for locally produced goods to reside in the countryside.

Policy makers may wish to consider the implications in the finding that the pursuit of modern status is an important predictor of Vietnamese consumer intentions to buy imported products. The pursuit of imported products can bring individuals hope and satisfaction from displaying and enhancing their status. In addition, product quality, safety, hygiene benefits, and good customer service are associated with foreign products. These purchases can, therefore, lead to confidence, comfort, good feelings, a more enjoyable life, and being successful at work. These outcomes are in line with the general goal to enhance people’s material and mental standards of living recently identified at the 11th Congress of the Vietnamese Communist Party.

Public policy makers may find positives here, particularly if individuals purchasing imported products could have a better life. These happy individuals should have good energy and even more motivation to better contribute to the society’s development. However, policy makers may also wish to consider some potential negative societal ramifications.

First, some concerns have been expressed pertaining to problems with the social and psychological effects resulting from the pursuit of luxury imported products (Belk 1999). In search of social status, a consumer may seek to buy imported products, regardless of that consumer’s actual income or social-class level (Eastman, Goldsmith, and Flynn 1999). This may be related to the collectivist culture found in Asian TEs such as Vietnam creating peer pressure to conform. Should that be true, one might expect a number of consumers from the lower-income groups to actively seek imported luxuries. Some might use illegal means to achieve their consumption objectives.

Teenagers and young adults may be a group worthy of particular concern. Some young people, by virtue of their rich parents, get to drive the latest model imported motorbikes, talk on the newest model cell phones, be seen wearing foreign-branded clothes, and drink imported wines. They are connoisseurs of fashion and typically at the forefront of new trends. However, other urban teenagers who cannot afford to buy imported goods are left to other devices including addictively renting famous imported products for the sake of status (V. L. 2011). Or, they may purchase counterfeit imports, adding demand to an area with profound public policy issues.

Policy makers, when grappling with issues related to foreign products such as import laws, foreign direct investment (FDI) rules, support for local firms or domestic products, and the design of communication campaigns to the public, may wish to consider carefully all the benefits and costs from various stakeholders’ perspectives. Policy choices will drive changes in the Vietnamese marketing system, which can have immediate impacts on the well-being of the community (Layton 2009).

We expect changes in the Vietnamese marketing system. At the consumer end, we foresee a move toward international retailers, including the big ones such as Wal-Mart and Carrefour. Cost savings in the channels will likely drive this trend in a similar way that cost savings have driven a proliferation of joint ventures and in-country manufacturing for many products now available in Vietnam. These changes mean that Vietnamese consumers, especially urban consumers, will see even greater exposure to new products from around the world. Consumer demand—particularly for foreign-branded goods—will accelerate and drive even more change to the system. Domestic firms will need a wise strategy in order to focus their resources in products/fields where Vietnam has unique competitive advantages such as the proximity to market for agricultural products. Opportunities will emerge to create systems of importers, distributors, and transportation companies in areas where Vietnam does not have a competitive advantage.

Future Research Directions

Future research can take several directions. First, expansion of the sample beyond Hanoi or Ho Chi Minh City may identify biases and yield new insights. Second, data from other TEs, such as China, would further verify the findings and give some idea of how the results might generalize to other locations. Third, it would be worthwhile to examine the impact of TSO on willingness to buy imported products. Some other potential factors motivating consumers to purchase imported products such as perceived product quality may also be included in the model for investigation. Finally, it would be meaningful to explore how the actual purchase of imported products of those consumers holding different levels of status orientations (i.e., different levels of MSO and TSO) affects consumers’ subjective well-being (Guillen-Royo 2008) since well-being is an objective of Vietnam’s policy makers.

Footnotes

Appendix A Scales used in the final analyses

Status Orientations (adapted from Tambyah, Nguyen, and Jung 2009)

TSO

I respect people who devote their lives to the benefit of the country and the people.

I respect people who always give the first priority to social benefit.

I would try to lead a simple life devoid of material objects.

In order to merit the respect of others, a person should lead a clean life regardless of fame and wealth.

I respect people who care for others more than for themselves.

MSO

Striving to become a rich man would be one of the important goals in life.

I admire people who have abilities to earn high incomes.

I admire people who have a wide relationship network, especially with important people.

It would be worth considerable effort to obtain luxury products and services.

I would try to learn things that will help me earn a higher income.

Willingness to Buy Imported Products (adapted and modified from Klein, Ettenson, and Morris 1998)

I would feel guilty if I bought an imported product (from advanced countries).

I would never buy imported products (from advanced countries).

Whenever possible, I avoid buying imported products.

I do not like the idea of owning imported products (from advanced countries).

Consumer Ethnocentrism (adapted and modified from Shimp and Sharma’s 1987 CETSCALE)

Purchasing foreign-made products is un-Vietnamese.

It is not right to purchase foreign products.

A real Vietnamese should always buy Vietnamese-made products.

Vietnamese consumers who purchase made in other countries are responsible for putting their fellow Vietnamese out of work.

Acknowledgments

The authors would like to thank the editor Clifford Shultz and three anonymous reviewers for their many valuable and insightful comments.

The authors declared no potential conflicts of interest with respect to the research, authorship, and/or publication of this article.

The authors disclosed receipt of the following financial support for the research, authorship, and/or publication of this article: The authors would like to thank the U.S. Agency for International Development (USAID) for partly funding this research.

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