Unraveling consumer behavior: Exploring the influence of consumer ethnocentrism, domestic country bias, brand trust, and purchasing intentions

Abstract

This narrative review examines consumer ethnocentrism, the preference for domestic products over foreign ones, as a significant factor influencing consumer behavior in both emerging and developed markets. Studies suggest that ethnocentric tendencies are more pronounced in emerging markets, driven by factors like national pride, perceived superiority, and familiarity with local products. This preference for domestic products is often linked to domestic country bias, the general inclination toward goods and brands from one's own country. However, this bias is not absolute and is moderated by product quality perceptions and the perceived capabilities of developing nations to produce high‐quality goods. In contrast, consumers in developed markets, exposed to international brands, may display a greater openness to foreign products, often driven by psychological factors like self‐expression and the symbolic value associated with these brands. Understanding these nuances of consumer ethnocentrism and domestic country bias is crucial for businesses to effectively tailor their marketing strategies and cater to diverse consumer preferences in different markets.