The effect of perceived control on local consumption

Abstract

AbstractLocal consumption improves the economic health of local communities and reduces the environmental impact of marketing activities, and hence it is important to understand factors that increase the likelihood of local consumption. Across eight studies in the laboratory and field, we show that the likelihood of local consumption increases as consumers' perceived control decreases with this effect being mediated by feelings of anticipated warm glow. We also identify two boundary conditions of this effect, namely perceived quality of the product and public self‐consciousness of the consumer. This research contributes to the literature in the following ways. First, it identifies perceived control as a novel self‐discrepancy‐based antecedent of the likelihood of local consumption. Second, it identifies anticipated warm glow as a novel affective mechanism underlying the effect of perceived control on the likelihood of local consumption. Third, it identifies perceived quality of the local product as a novel moderator of the effect of perceived control on the likelihood of local consumption. Fourth, it identifies public self‐consciousness of the consumer as another novel moderator of the effect of perceived control on the likelihood of local consumption. This research also contributes methodologically by demonstrating robustness of effects across a range of manipulations and measures including incentive‐compatible behavior and online behavior.