Consumer Xenocentrism When Domestic Products Are Better

Author(s)
Adamantios Diamantopoulos, Amonrat Thoumrungronje, Nathalie Scherer
Abstract

Purpose
Drawing on cue utilization theory and the theory of motivated reasoning, we investigate the impact of consumer xenocentrism on product preferences in a situation where domestic products objectively outperform their foreign counterparts.

Design/methodology/approach
We develop and test a model linking xenocentrism to consumers’ preference towards domestic vs. foreign products by (1) examining the mediating role of consumers’ ability to identify the superior product and (2) assessing the role of product involvement in potentially moderating this relationship. An experimental design was employed, whereby respondents (Thai consumers, N = 579) were asked to compare two products in the same product category, one foreign and one domestic. In one condition, the foreign product outperformed the domestic one on a range of relevant product attributes, whereas in a second condition, the opposite was the case.

Findings
Our findings provide clear evidence that xenocentric consumers often cannot recognize the superiority of domestic products and, even if they do, they still exhibit preferences toward (inferior) foreign products. Thus, for xenocentric consumers, it seems that the country of origin (COO) overrides other cues and often results in suboptimal product choices.

Originality/value
Our study adds to our theoretical understanding of the functioning of the consumer xenocentrism construct and has important implications for foreign companies targeting xenocentric consumers as well as for local firms seeking to counteract xenocentric tendencies.

Organisation(s)
Department of Marketing and International Business
External organisation(s)
Mahidol University (MU)
Journal
International Marketing Review
Volume
41
Pages
490-513
No. of pages
24
ISSN
0265-1335
DOI
https://doi.org/10.1108/IMR-01-2023-0007
Publication date
03-2024
Peer reviewed
Yes
Austrian Fields of Science 2012
501021 Social psychology, 502052 Business administration, 502019 Marketing
Keywords
ASJC Scopus subject areas
Marketing, Business and International Management
Portal url
https://ucrisportal.univie.ac.at/en/publications/consumer-xenocentrism-when-domestic-products-are-better(a1e0e3c7-3970-4515-9918-6c02b85f5a6a).html