Xenocentrism, Ethnocentrism, and Global Culture Influence on Consumer Preference for Global and Local Brands

Abstract

This study examines the effect of ethnocentrism and xenocentric consumer dispositions, and global culture on the purchase intention of national and global brands, in a developing country, conditioned on the individual’s social capital and identity. Through structural equation modeling, and a field experiment, we provide evidence that global preference bias, the cognitive duality of consumers in developing countries in choosing local or global brands, may be due to xenocentrism and global culture, and its interaction with consumer’s network and self-extension. It advances the understanding of global preference bias by bringing the perspective of micro and macro levels of group influence.