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Journal of Management and Business Research, 2019
36( 2 ):117-150
DOI: 10.6504/JMBR.201906_36(2).0001
Title
Effects of Economic Insecurity on Consumer Ethnocentrism
Author
Abstract
This study examines how both incidentally induced and chronic economic insecurity influence consumer ethnocentric tendencies and preferences for domestic products. This situation is likely to occur because economic insecurity threatens perceived control. According to a group-based control model, a lack of personal control may elicit efforts to support and defend social ingroups. This lack of personal control in turn causes an increase in consumer ethnocentric tendencies and increased preference for domestic products. However, brand biography moderates the effects of economic insecurity on consumer preferences. This effect is stronger for brands that adopt an underdog brand biography than those that adopt a top-dog brand biography. Five experiments provide supporting evidence. This study concludes with theoretical and managerial implications.
Key Words
consumer ethnocentrism, economic insecurity, perceived control, brand biography, underdog effect.
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