Inconsistencies in the behavioural effects of consumer ethnocentrism

Abstract

Purpose Despite the well-established impact of consumer ethnocentrism (CET) on purchase intentions, extant literature offers limited evidence on actual purchase behaviour. The purpose of this paper is to address the gap by investigating the factors underlying variations in CET behaviour using reported brand purchases. Product category, product cost and visibility, brand and country of origin (COO) of purchased products are investigated for their impact on the differences in the behavioural effects of CET. Design/methodology/approach This study uses survey data collected in the USA from a sample of 468 consumers. Self-reported brand purchases are used and involve ten product categories, 432 brands, and 22 countries of origin. Logistic regressions for repeated measures are used to test the hypotheses formulated. Findings The results confirm that product category is an important determinant of the behavioural effects of CET. CET also has a significant impact on purchases of the most expensive product categories rather than frequently purchased convenient items. Contrary to existing empirical evidence, cultural similarity does not mitigate the negative effects of CET and product visibility does not strengthen the behavioural effect of CET. Practical implications The study results should enhance managers’ understanding of the determinants of ethnocentric behaviour. The results caution managers about the value of self-reported measures and indicate that product features other than COO may be more effective in mitigating the negative effects of CET. Originality/value This study contributes to extant literature on CET and COO by investigating, for the first time, the problem of inconsistent predictions of purchase behaviour in the context of foreign vs domestic brands. For this purpose, the study adopted a novel methodological approach to investigate actual brand purchases.