Extending consumer ethnocentrism theory: the moderating effect test

Abstract

PurposeWhile the idea that consumer ethnocentrism influences the willingness to buy domestic products is a well-known assumption for marketers, the purpose of this paper is to examine the moderating effect of consumer ethnocentrism on the willingness to buy domestic products in developing countries.Design/methodology/approachHierarchical moderator regression analysis and simple slope analysis are used to test the postulated hypotheses, and 385 consumers in Taiwan are studied.FindingsThe findings revealed that consumer ethnocentrism, perceived quality, perceived price and perceived brand image are significantly associated with the willingness to buy domestic products. Moreover, consumer ethnocentrism significantly moderates the relationships of the model.Research limitations/implicationsConsumer ethnocentrism increases the positive effects of perceived quality and perceived brand image on the willingness to buy domestic products in developing countries, whereas it may increase the negative effect of perceived price on the willingness to buy domestic products.Practical implicationsThe results of this study suggest that practitioners should not only improve the quality and brand image of domestic products but also avoid putting a high price on domestic products to increase the willingness to buy domestic products for consumers in developing countries.Originality/valueThis study advances the consumer ethnocentrism theory by adding the moderating effect of consumer ethnocentrism to the model.