Economic nationalism and cosmopolitanism

Abstract

Purpose – The purpose of this study is to investigate the differential influences of economic nationalism (EN) and cosmopolitanism (COS) on consumer behaviour, and how the two concepts are underpinned by different (normative versus informational) interpersonal influences. Design/methodology/approach – Surveys took place in two countries, South Korea (n = 257) and Taiwan (n = 258). Both are rapidly developing economies with a cosmopolitan consumer base. Two products, one representing conspicuous and one representing non-conspicuous categories, were used in each country’s survey. The data were subjected to exploratory and confirmation factor analyses and fitted using structural equation modelling. Findings – Contrary to past studies, EN and COS were unrelated. Economic nationalism was strong and biased towards domestic products. The results also suggest that COS may be related to bias against domestic products. EN related strongly to normative influence, whereas COS rested on informational influence. The results were similar across the countries and the product types. Research limitations/implications – Economic nationalism and COS may coexist as consumer dispositions and their relative salience may vary across individuals. Foreign firms should not overlook consumers’ nationalistic sentiment, just as domestic firms may capitalise on it. Both foreign and domestic firms can capitalise on consumer nationalism by highlighting benefits such as domestic employment and wealth creation. Practical implications – EN and COS may coexist as consumer dispositions, and their relative salience may vary across individuals. When managing their brand portfolio, foreign firms would benefit from considering consumers’ nationalistic sentiment, just as domestic firms may capitalise on it. Both foreign and domestic firms can capitalise on consumer nationalism by highlighting social benefits such as domestic employment and wealth creation. Originality/value – This study brings research on EN and COS from a macro/country level to a micro/individual level. It provides theoretical and empirical insights on the differential influences of EN and COS on consumer behaviour and sheds light on their psychological underpinnings.