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Are Iranian consumers poised tobuy American?

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The Relationship - U.S. & Iran

1953: Overthrow of Mohammed Mossadeq by CIA

1979: Captivity of American hostages from U.S. Embassy for 444 days

2002: U.S. President Bush labeling Iran as an Axis of Evil in Union

Address

Timeline

Iran Backing of Hezbollah

U.S. support for Israel

Nuclear enrichment & bomb-making by Iran

Continued intervention by UN Security Council in Irans Nuclear Program

U.S. self-imposed economic & trade sanctions

Fight for Dominance in post-Saddam Iraq

Other Strategic Stand-offs

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Fallout - Consequences

Social repulsion towards

U.S. No economic restrictions

on American products

Iran

Political backlash by U.S.

Economic Sanctionsagainst imports from Iran

Embargo of U.S. goods inIran

U.S.

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Iran - Consumerism

Population: 70 m

Population

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Iranian Locally-maderefrigerator

$200

GE Refrigerator in Teheran$1600

Local Toothpaste

$1Colgate/Crest in Teheran

$3.25

Price

Vs.

Attitude

We as consumers

have an obligation

to buy quality

products

irrespective ofwhere they are

made!

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Two Striking Questions

Are Iranians generally nativist in their

purchase behavior in relation to foreign-made

products: Ethnocentrism?

Do Iranians curtail their purchase preferences

regarding goods from U.S. because of

continued hostility between two nations?

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Consumer Ethnocentrism

Beliefs held by American consumers about theappropriateness, indeed morality, of purchasing foreign-

made products

Understanding of what purchase behavior isacceptable/unacceptable for locals in regards to products

produced outside

Against import in general

Buy American campaigns of 1980s

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Iran - Ethnocentrism

Low CET-Scale Score of 49.3 of 119

Iranian tendency to look outward to maintain balance &survival creating an impact unlike U.S.

Women exhibiting higher ethnocentrism

Education creating for more critical approach

6 of 10 product categories indicate preference to import exceptCosmetics, Clothes, DVDs, DVD Players

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Consumer Animosity

Remnants of antipathy related to

previous or ongoing military, political or

economic events impacting consumer

willingness to buy foreign-made

products

Against a specific country

Chinese consumers for Japaneseproducts

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Iran - Consumer Animosity

Overall low to neutral scores across Iran

Age:

Older Iranians feel lower animosity against U.S.

Youth & Current Students possess higher levels

Education:

Higher educated Iranians hold Iranian Government more

responsible for current problems Gender:

Iranian women have traditionally been closed to the world

Frustration against West for turning its back against women in Iran

Related demographic variables

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Managerial Implications

Tendency of firms to refrain from business in hostilemarkets

Economics trumping Political Calculus

Strategies

Maintain Same Quality throughout the world

Make strategic tie ups for hostile markets

Consumers desire for world class quality products is

huge in developing countries

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Conclusion

Untapped Markets cannot be neglected

Way forward is Strategic Tie-ups

Goodwill of MNC is not compromised inhome country