Int. Journal of Business Science and Applied Management / Business-and-Management.org

Int. Journal of Business Science and Applied Management, Volume 20, Issue 3, 2025

Rethinking Ethnocentric Buying Behaviour: The Limited

Role of Brand Image in Domestic Product Preferences

Seema Chahal

Department of Commerce, Kurukshetra University

Kurukshetra, 136119, India

Email: seemaphd@kuk.ac.in

Mahabir Narwal

Department of Commerce, Kurukshetra University

Kurukshetra, 136119, India

Email: msnarwal@kuk.ac.in

Abstract

A great deal of research on consumer ethnocentrism has been undertaken in both developed and

developing countries. However, there has been a paucity of research in India into the effect of consumer

ethnocentrism on buying behaviour in relation to domestic items when domestic alternatives are available.

As a result, this study was carried out to fill this information gap as well as to investigate the moderating

influence of brand image and domestic product attributes to contribute to the existing literature. For this

purpose, data was collected from 252 consumers and Smart PLS 4 was utilized to evaluate the hypothesis.

The findings suggest that consumer ethnocentrism influences buying behaviour positively, and product

attributes significantly moderate the relationship between consumer ethnocentrism and buying behaviour

in relation to domestic products, while brand image does not affect this relationship. This study will

provide useful insights for marketers as well as enhance scholarly understanding of Indian consumers'

decision-making processes.

Keywords: consumer ethnocentrism, buying behaviour, structural equation modelling, brand image,

product attributes

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Submitted: 2025-01-04 / Accepted: 2025-07-28 / Published: 2025-11-21

Seema Chahal, Mahabir Narwal

1. INTRODUCTION

The debate over consumer preferences for domestic versus international products has been widely

explored in marketing and consumer behaviour research. The concept of domestic-country bias, where

consumers show a preference for homegrown products, is well-supported by empirical studies (Miguel

et al., 2022; Verlegh, 2007; Thoumrungroje et al., 2024). A central construct in this discussion is

consumer ethnocentrism (CE), the belief that buying domestic goods is morally justified and

economically beneficial, whereas foreign products are seen as harmful to the local economy (Shimp &

Sharma, 1987). This notion can be grounded in Social Identity Theory (SIT), which suggests that

individuals derive identity from their social group affiliations, including national identity (Tajfel &

Turner, 1986). In this context, CE represents a form of in-group favouritism, reinforcing national pride

and solidarity (Tajfel, 1978).

Numerous studies have examined the effects of consumer ethnocentric tendencies (CET) on

consumer attitudes (Akbarov, 2022; Aljukhadar et al., 2021; Gilal et al., 2019), product evaluations

(Bruwer et al., 2023; Guo et al., 2018), and purchase intentions (Souiden et al., 2018; Tie et al., 2025).

However, much of this research adopts a generalized approach, overlooking the fact that CE effects can

vary significantly across product categories (Herche, 1992; Trivedi et al., 2024). Moreover, the majority

of product-specific studies have been conducted in non-Indian contexts, limiting their relevance to Indian

consumers.

To better contextualize CE’s role in consumer behaviour, Dual-Process Theory (Evans & Stanovich,

2013) offers a valuable lens. It posits two modes of decision-making: System 1, which is fast and

emotionally driven, and System 2, which is slower and more rational. CE often operates at the System 1

level, driven by emotional attachments to national identity (Hogg et al., 1995; Stets & Burke, 2000). In

India, nationalistic campaigns such as Made in India and Aatmanirbhar Bharat have amplified

ethnocentric sentiments (Gupta et al., 2021). Yet, whether these sentiments translate into actual

purchasing behaviour remains uncertain, particularly among younger Indian consumers, who are

simultaneously influenced by global brand perceptions and local loyalty (Kumar & Paul, 2018).

While younger consumers may express ethnocentric attitudes, they often perceive foreign brands as

superior in quality and innovation (Chaudhry et al., 2021; Yang et al., 2022). Additionally, situational

factors such as pricing, availability, and brand trust can override CE in real-world decisions (Huddleston

et al., 2001; Kaynak & Kara, 2002). This gap between ethnocentric attitudes and actual behaviour

remains a critical issue in the Indian context.

Therefore, this study investigates how brand image and product judgements moderate the

relationship between CE and purchase intentions in India, specifically among young consumers

purchasing electronic products. These moderators are likely to influence how consumers resolve the

conflict between emotional (ethnocentric) and rational (evaluative) considerations during decision-

making.

The relevance of CE in India is further heightened by its evolving economic landscape, fuelled by

one of the world’s youngest populations, which makes up 66% of its total demographic (United Nations,

2014). This segment is increasingly exposed to both nationalistic messaging and global consumer culture,

making it an ideal group for examining the interaction between CE, brand perceptions, and product

evaluations. Although Indian consumers often associate foreign brands with better technology and

quality (Rehman, 2021), rising digital marketing campaigns and nationalist narratives have started to

reposition domestic brands more favourably (Kumar & Paul, 2018; Chakraborty & Sadachar, 2021). By

focusing on this dynamic, this study aims to contribute to the CE literature by identifying when and how

ethnocentric attitudes actually influence purchasing behaviour in a high-growth, emerging market.

1.1 Product Category Context: Home Appliances in India

India’s electronics and home appliance sector has seen rapid growth in recent years, driven by rising

consumer demand, favourable government initiatives like “Made in India,” and a growing shift toward

local manufacturing (Gupta et al., 2021). Despite these developments, domestic brands such as Godrej,

Voltas, Havells, Bajaj Electricals, and Blue Star continue to face tough competition from well-established

foreign brands like Samsung, LG, Whirlpool, and Panasonic (Ray & Sharma, 2020).

This highly competitive environment presents a valuable opportunity to examine consumer

evaluations of domestic brands, especially when foreign alternatives are easily accessible. Prior studies

have found that the influence of CE on purchase behaviour can vary across product categories and is

shaped by the availability and perceived quality of domestic alternatives (Akbarov, 2022; Makri et al.,

2019). In situations where viable local options are lacking, even strongly ethnocentric consumers may

opt for foreign products (Evanschitzky et al., 2008).

To explore this complexity, the study focuses on high-involvement durable goods, specifically

washing machines, refrigerators, and air conditioners as the product category. These products are

Int. Journal of Business Science and Applied Management / Business-and-Management.org

typically associated with high financial investment, long-term usage, and greater perceived risk, which

elevates the importance of product evaluations and brand perceptions during purchase (Ahmed &

d’Astous, 1996; Gammoh et al., 2020). While domestic options are available, they are often perceived as

less reliable or prestigious compared to global brands.

Despite extensive research on CE in both Indian and global contexts, most studies have concentrated

on its direct influence on purchase intention, without fully examining the conditions that strengthen or

weaken this effect. Specifically, the moderating roles of product judgements (e.g., perceived quality,

durability) and brand image remain under-explored particularly in high-involvement categories like

home appliances, where consumers have to weigh national loyalty against functional value.

By addressing this gap, the current study offers a more nuanced, cognitive-evaluative model of CE

behaviour, grounded in Dual Process Theory, to explain why CE attitudes may not always result in

domestic purchases. This approach enhances the practical relevance of CE research by informing

marketing strategies for Indian firms and shaping policy decisions aimed at boosting domestic

consumption.

2. THEORETICAL FRAMEWORK

This study is primarily guided by Social Identity Theory (Tajfel & Turner, 1979), which posits that

individuals derive a sense of self and belonging from group memberships, including national identity. In

the context of consumer behaviour, this theory helps explain why consumers may prefer domestic

products that affirm their cultural and national identity.

In addition, several complementary theories are used to provide construct-level justification

throughout the study. Consumer Ethnocentrism Theory (Shimp & Sharma, 1987) explains the moral and

economic reasoning behind consumers' resistance to foreign goods. Cue Utilization Theory (Olson &

Jacoby, 1972) supports the role of extrinsic cues, such as country of origin and brand image in consumer

evaluations. Finally, Expectancy-Value Theory (Fishbein & Ajzen, 1975) is used to explain the trade-

offs consumers make based on perceived benefits, helping to clarify how product attributes and brand

image may moderate ethnocentric tendencies.

This integrated theoretical approach provides a robust foundation for understanding the drivers and

boundaries of consumer ethnocentrism in emerging markets. A literature review of the hypothesized

relationships is offered below:

2.1 Consumer ethnocentrism and buying behaviour

Consumer ethnocentrism plays a significant role in shaping purchasing behaviour, with research

presenting mixed findings on its impact. Studies suggest that ethnocentric consumers prefer domestic

products while exhibiting a negative attitude toward foreign goods (Nguyen et al., 2023; Thomas et al.,

2020; Trivedi et al., 2024; Xin & Seo, 2020; Yadav & Kishor, 2023; Yen, 2018; Thoumrungroje et al.,

2024). Social Identity Theory (Tajfel & Turner, 1979) provides a strong foundation for understanding

this phenomenon, as consumers often align their purchasing choices with their national identity. This

theory suggests that individuals categorize themselves into social groups, and, in doing so, they may

favour domestic products as a way to reinforce their cultural and national identity.

Empirical studies further validate this perspective. Pentz et al. (2017) found that South African

consumers with high ethnocentrism viewed imports unfavourably, while Prince et al. (2019) and Zebal

& Jackson (2019) observed that ethnocentrism drives the success of domestic brands. Ishii (2009) noted

that Chinese consumers with high ethnocentrism were reluctant to purchase goods from the US and UK,

while Nielsen & Spence (1997) found that US consumers preferred domestically manufactured cars when

their CETSCALE scores were high. However, some studies indicate that ethnocentric consumers do not

always reject foreign goods (Agbonifoh & Elimimian, 1999; Akbarov, 2022; Ardisa et al., 2022;

Mahmoud et al., 2023; Trivedi et al., 2024; Yildiz et al., 2018). Sharma (2011) found that ethnocentrism

negatively affects purchasing decisions in developed markets for products from emerging markets and

vice versa. Conversely, Karoui & Khemakhem (2019), Kara et al. (2024), and Rodrigo et al. (2023)

suggested that products from developed to developing markets face less resistance, while developing

markets should target non-ethnocentric consumers.

The Consumer Ethnocentrism Theory (Shimp & Sharma, 1987) further explains why consumers see

purchasing foreign goods as economically and culturally inappropriate. This aligns with the Theory of

Planned Behaviour (Ajzen, 1991), which emphasizes the fact that purchasing intentions are shaped by

attitudes and subjective norms. Ethnocentric tendencies reinforce positive attitudes toward domestic

products while discouraging foreign product adoption. Given that behavioural intention serves as a proxy

for actual buying behaviour (Dorce et al., 2021; Schlosser, 2003; Wang et al., 2021), the following

hypothesis is proposed:

Seema Chahal, Mahabir Narwal

Hypothesis 1: Consumer ethnocentrism has a positive impact on buying behaviour in relation to

domestic products.

2.2 Judgement towards domestic product attributes and ethnocentrism

Perceived quality and evaluations of domestic products significantly influence consumers’ purchase

intentions, especially through judgements of attributes like performance, reliability, and innovation

(Ardisa et al., 2022; Chen et al., 2021; Ramadania et al., 2023). Rooted in Social Identity Theory (Tajfel

& Turner, 1979), consumer ethnocentrism (CE) reflects the tendency to favour domestic goods as an

expression of national loyalty (Shimp & Sharma, 1987). However, such ideological preferences may not

lead to purchase behaviour unless domestic products are perceived positively in terms of quality and

functionality.

Product judgement, including value for money, appearance, craftsmanship, and durability, serves as

a critical evaluative lens through which ethnocentric beliefs are either enacted or overridden (Ho et al.,

2022; Nguyen et al., 2023). Cue Utilization Theory (Olson & Jacoby, 1972) further suggests that the

country of origin (COO) operates as an extrinsic cue influencing these perceptions, especially in high-

involvement decisions (Achabou et al., 2023; Horváth & Komlós, 2023).

In emerging economies like India, consumers often perceive imported goods as higher in quality,

weakening the behavioural impact of CE (Klein, 2002; Netemeyer et al., 1991). Even strongly

ethnocentric individuals may defer to foreign products if domestic options are seen as lacking in utility

(Chopra & Chaudhary, 2022; Zhou et al., 2021; Kara et al., 2024). This aligns with Expectancy-Value

Theory (Fishbein & Ajzen, 1975), which holds that positive attitudes only influence behaviour when

linked to desirable outcomes. Thus, product judgement acts as a moderating factor, shaping whether CE

results in actual purchase behaviour.

Prior studies (Jiménez & San Martín, 2010; Kaynak & Kara, 2002; Herche, 1992) support this

interaction, showing that CE has a stronger impact on buying behaviour when domestic products are

positively evaluated. In the Indian context, particularly among young consumers purchasing high-

involvement appliances, favourable product judgements enhance the likelihood that ethnocentric

attitudes will translate into actual purchases. Therefore, the following hypotheses are formulated:

Hypothesis 2: Judgement toward domestic product attributes has a significant positive impact on

buying behaviour in relation to domestic products.

Hypothesis 3: Judgement toward domestic product attributes moderates the relationship between

consumer ethnocentrism and buying behaviour in relation to domestic products, such that the relationship

is stronger when consumers have more favourable judgements of domestic products.

2.3 Brand image and Consumer ethnocentrism

Brand image refers to the overall perception, associations, and attitudes consumers hold toward a

brand (Campbell, 1998; Plumeyer et al., 2019). It significantly influences consumer decision-making,

particularly in categories with strong brand competition (Biswas et al., 2021; Kotler & Armstrong, 2004).

Rooted in Social Identity Theory (Tajfel & Turner, 1979), consumers often favour brands that align with

their identity, treating brand choice as a reflection of group affiliation and self-expression.

Cue Utilization Theory (Elliott & Cameron, 1994) explains that brand image acts as a salient

extrinsic cue, guiding perceptions of quality when intrinsic information is limited (Boz et al., 2020;

Ortega-Egea et al., 2021; Woo, 2019). In such contexts, a favourable brand image may override country-

of-origin (COO) biases. Expectancy-Value Theory (Fishbein & Ajzen, 1975) further suggests that

consumers base their decisions on expected outcomes; hence, even ethnocentric consumers may choose

foreign brands if they believe the brand offers superior value (Ahmed et al., 2014; Karoui & Khemakhem,

2019).

Empirical studies support this moderating effect. For example, Balabanis and Diamantopoulos (2004)

found that strong brand image can reduce the negative effect of CE on willingness to buy foreign goods.

Similarly, Zeugner-Roth et al. (2015) and Chatzipanagiotou et al. (2020) reported that brand equity and

brand credibility attenuate COO effects and diminish ethnocentric resistance to foreign brands. Sharma

et al. (1995) also indicated that consumers with strong ethnocentric tendencies may still consider foreign

products if the brand reputation is highly favourable.

These findings support the idea that brand image serves as a boundary condition: when foreign brand

image is strong, the influence of CE on domestic product choice weakens. Thus, favourable brand

evaluations may dampen the behavioural impact of nationalistic preferences.

Int. Journal of Business Science and Applied Management / Business-and-Management.org

Hypothesis 4: Brand image has a significant positive impact on buying behaviour in relation to

domestic products.

Hypothesis 5: Brand image moderates the relationship between consumer ethnocentrism and buying

behaviour in relation to domestic products, such that the relationship weakens when the image of

competing foreign brands is perceived more favourably.

Based on the theoretical framework and hypothesis development, the following research model is

proposed to illustrate the relationships among consumer ethnocentrism, product judgement, brand image,

and buying behaviour in relation to domestic products. The model visually represents the hypothesized

direct and moderating effects, providing a structured overview of the study’s conceptual foundation.

Figure 1: Proposed model

Note: CE stands for Consumer ethnocentrism, BB stands for Buying behaviour in relation to

domestic products, PJ stands for Judgement of domestic product attributes and BI stands for Brand

Image.

3. METHODOLOGY

3.1 Measures

Standardized scales from previous research were adapted to fit the cultural and contextual setting of

this study. A 10-item short version of the CETSCALE (Shimp & Sharma, 1987), validated by Bawa

(2004), Lindquist et al. (2001), and Steenkamp & Baumgartner (1998), was used to measure consumer

ethnocentrism. Minor wording adjustments were made for clarity and cultural relevance. The scale for

judgement toward domestic product attributes was adapted from Klein et al. (1998), while brand image

items were drawn from Kendall & Sproles (1986). Buying behaviour in regard to domestic products was

assessed using adapted items from Granzin & Olsen (1998), Lee (2009) and Lee (2008). All scale items

were reviewed by subject experts and pre-tested on 40 students to ensure clarity and contextual

appropriateness. All variables were measured using a 5-point Likert scale (1 = Strongly Disagree, 5 =

Strongly Agree).

3.2 Sample justification

Scholars have proposed that youth are open to novel and creative ideas (Lee, 2009; Ottmann, 2017).

They have a strong influence on society and culture and are radical change agents (Waite & Allen, 2003),

having high exposure to international trade (Kjeldgaard & Askegaard, 2006). Also, youngsters are

frequently observed influencing family purchase decisions and they represent a specialized market sector

with significant spending power (Grant & Waite, 2003). According to Abeler et al. (2014) and Ahmad

et al. (2017), young students are engaged, active Internet users who exhibit non-student behaviour.

Additionally, some scholars have proposed that middle-class students can be considered as representative

Seema Chahal, Mahabir Narwal

of the masses (Ahmad et al., 2017; Shabnam, 2012). Therefore, a study of young consumers was

conducted to investigate the impact of consumer ethnocentrism. For this purpose, a survey was conducted

among north Indian consumers because North Indian consumers have a significant amount of purchasing

power, and the country's diversity and customs are reflected in its Indo-Aryan roots and the customs of

many different regions (Bhaskar et al., 2016).

3.3 Data collection

The target population for this study consisted of undergraduate and postgraduate students enrolled

in various programs at universities and colleges across different regions of Haryana, India. Data

collection was conducted between March and May 2024. To ensure regional representation, the sample

was drawn from six administrative zones of Haryana, covering both urban and semi-urban areas. Initially,

the questionnaire was pre-tested on 40 students from diverse academic disciplines to ensure the clarity

and reliability of the instrument. Following the pre-test, approximately 300 questionnaires were

personally distributed by the researcher on campuses, mainly in classroom settings and common student

areas, ensuring a diverse pool of respondents. This face-to-face approach allowed for immediate

clarification of any doubts, enhancing response accuracy (Dörnyei & Taguchi, 2009), and is considered

to contribute positively to the quality of data collected (Ahmad et al., 2017). Participation was voluntary,

and no incentives were offered, though students were informed that their feedback would contribute to

academic research on consumer behaviour. A total of 280 completed questionnaires were returned, out

of which 252 were deemed valid and included in the final analysis. This sample size satisfies the

requirement suggested by Kline (1998), who recommends having at least ten respondents per parameter

to ensure adequate statistical power. While the use of a student sample may limit generalizability,

previous research supports the appropriateness of student participants for consumer behaviour studies

(DelVecchio, 2000; Yavas, 1994).

4. RESULTS AND DISCUSSION

Smart PLS 4 was utilized to evaluate the hypotheses. PLS-SEM software was chosen due to its

effectiveness and robustness and for estimating complex models incorporating direct and indirect

interactions with limited sample sizes (Hair et al., 2021; Quoquab et al., 2018). According to Lowry and

Gaskin (2014), PLS is a method that can be very helpful for causal analysis in behavioural research. As

social science investigations frequently collect data that deviates from normality, PLS is a useful

technique for handling this non-normality (Astrachan et al., 2014; Kline, 2005; Sarstedt et al., 2017). The

study's analysis has been covered in two parts: the measurement model and the structural model (Hair et

al., 2021). Before proceeding with the measurement model assessment, it is essential to address the issue

of Common Method Variance (CMV), as Podsakoff and Todor (1985) noted that the issue of general

procedure variance is likely to arise whenever research employs self-reported measures obtained from

the same sample. To evaluate if a single general factor could not explain the substantial fraction of

variation (more than 50%), Podsakoff et al. (2003) stacked all the proposed variables as one un-rotated

factor to eliminate the risk of bias. In Herman's single factor score, the first component only accounts for

21.96% of the variation, which shows that our data is not biased.

4.1 Measurement model

This model was evaluated to determine the construct's reliability and validity. Internal consistency,

convergent validity and discriminant validity are all important considerations used to evaluate

measurement models (Hair et al., 2018; Ringle et al., 2015).

In PLS-SEM, Cronbach alpha and composite reliability (CR) are used to evaluate the reliability of

each latent variable (Fornell & Larcker, 1981). According to Hair et al. (2016), Cronbach alpha values

are a more conservative approach so are not more suitable for PLS modeling. Therefore, for reliability,

the rho_a value should lie between the alpha and rho_c values (Dijkstra & Henseler, 2015). To further

state that a measure is internally consistent, statistics for both should be greater than the thresshold value

of 0.7 (Hair et al., 2021; Henseler et al., 2016; Wasko & Faraj, 2005). As shown in Table 1, all the latent

variables, CR and Cronbach alpha values are greater than 0.7, and the rho_a value lies between the alpha

and rho_c values, hence indicating good reliability. Therefore, this demonstrated good internal

consistency and reliability.

Int. Journal of Business Science and Applied Management / Business-and-Management.org

Table 1: Composite reliability (CR) and convergent validity of constructs

Construct

Cronbach's

alpha

Composite

reliability (rho_a)

Composite

reliability

(rho_c)

Average variance

extracted (AVE)

0.701

0.718

0.813

0.524

0.785

0.791

0.852

0.536

0.817

0.820

0.862

0.462

0.706

0.785

0.809

0.516

Convergent validity is proven when the AVE for each construct exceeds 0.5. Initially, every item in

the model has a factor loading with a value higher than the minimal permissible value of 0.50 (Hair et

al., 2010). However, factor loadings greater than 0.70 are desired (Vinzi et al., 2010), and researchers in

the social sciences usually achieve lower loadings (<.70). Instead of automatically removing indicators,

the effects of item removal on CR and convergent validity should be investigated. Generally, items

having outer loadings ranging from 0.40 to 0.70 will only be eliminated when this takes the CR and AVE

above the suggested range of values (Hair et al., 2016). This is why items CE2, CE3, PJ2, PJ4, BB2 were

deleted. But if any of the items with factor loading above 5 but below 7 we will not delete that item if

our AVE is established. For example, as in our case all the factor loadings are above .50 and CR is

above .70 but our AVE of one of the constructs is less than 5 (like .462) then there is no need to delete

further items because AVE is already near .5 (Table 1). So, our convergent validity is established.

Therefore, no items were eliminated for further analysis. For full details of the survey items, including

the deleted ones, please refer to the Appendix.

On the other hand, discriminant validity illustrates the distinct characteristics of each concept when

examined with other concepts in the model. The two ways through which the discriminant validity has

been measured are Fornell & Larcker's (1981) criterion and the HTMT criterion. Fornell and Larcker

(1981) recommended that the square root of the AVE of each construct should be higher than the inter-

construct correlation to establish discriminant validity (Table 2). Additionally, discriminant validity is

also established when Heterotrait–Monotrait (HTMT) values are smaller than 0.85, as shown in Table 3.

Henseler et al. (2016) claimed that the HTMT ratio is a more effective way to examine discriminant

validity than the Fornell–Larcker criterion.

Table 2: Discriminant Validity through Fornell & Larcker's (1981) criterion

Construct

0.724

0.170

0.732

0.555

0.168

0.665

0.384

0.114

0.450

0.718

Table 3: Discriminant Validity through HTMT criterion

Construct

0.245

0.698

0.263

0.498

0.197

0.563

4.2 Assessment of structural model

Analysis of the structural model begins with a Collinearity assessment. Lowry and Gaskin (2014)

state that the problem of Collinearity exists between the corresponding exogenous variable and the

endogenous variable. When the VIF (variance inflation factor) value is higher than five (Hair et al., 2018,

2021; Henseler, 2010) or lower than 0.2 (Wong 2013), this implies that collinearity problems exist.

Therefore, it can be concluded that there is no multi-Collinearity problem with the latent variables

because all the inner VIF values were determined to be less than 5 and above 0.2 (Table 4).

Seema Chahal, Mahabir Narwal

Table 4: Inner VIF values

Hypothesized relationships

VIF values

BI -> BB

1.143

CE -> BB

1.286

PJ -> BB

1.333

4.3 Hypothesis testing

The structural model was evaluated using the bootstrapping process with sub-samples of 5000.

Bootstrapping, as defined by Hair et al. (2021), is a resampling approach used to calculate the standard

error, which is not based on assumptions regarding population distribution. According to Wong (2013),

it is employed to ascertain the significance of the t statistic for path coefficients. The statistically

significant values for the path coefficients are shown in Table 5.

As shown in Table 5, the statistical results validate Hypothesis 1, indicating that consumer

ethnocentrism has a significant positive impact on buying behaviour in regard to domestic products (p =

0.00, t = 4.979), implying that if consumers are ethnocentric then their ethnocentric tendencies will

positively affect their purchase decision. Hence H1 was accepted.

Table 5: Structural paths, Regression coefficient, p values and hypothesis status

Hypothesis

Structural Paths

Regression

coefficient

T statistics

(|O/STDEV|)

p values

Hypothesis

status

CE -> BB

0.459

4.979

0.000

Accepted

PJ -> BB

0.183

2.435

0.015

Accepted

PJ x CE -> BB

-0.097

1.985

0.047

Accepted

BI -> BB

0.109

1.485

0.137

Rejected

BI x CE -> BB

-0.015

0.281

0.779

Rejected

Hypothesis 2 states that consumer judgement towards domestic product attributes has a significant

effect on buying behaviour (p = 0.015, t = 2.435), therefore H2 was accepted. This means that product

attributes are credible when consumers shop for electronic products.

Hypothesis 3 examined the moderating role of product judgement (PJ) in the relationship between

consumer ethnocentrism (CE) and buying behaviour (BB). The results (p = 0.047, t = 1.985) indicate a

significant moderation effect, which is visualized in Figure 3. The three lines in the figure represent

different levels of product judgement: low (-1 SD, red line), mean (blue line), and high (+1 SD, green

line).

The slope analysis reveals that when consumers have low product judgement (negative perceptions

of Indian products in terms of quality, reliability, and technological advancement), the relationship

between CE and BB is stronger (steeper red line). This suggests that consumers with negative perceptions

of domestic products still tend to buy them primarily due to ethnocentric beliefs rather than confidence

in the product attributes.

Conversely, when consumers have high product judgement (positive perceptions of Indian products),

the relationship between CE and BB weakens (flatter green line). This indicates that when domestic

products are seen as technologically advanced, reliable, and high quality, consumers are more likely to

buy them independently of ethnocentric tendencies, relying more on product attributes rather than

national loyalty

Int. Journal of Business Science and Applied Management / Business-and-Management.org

Figure 2: Moderating effect

The statistical results validate Hypotheses 4 and 5, indicating that there is no any significant direct

or moderating effect of brand image and buying behaviour (p = 0.137, t = 1.485, p = 0.779, t = 0.281),

so H4 and H5 were rejected. This may be because while buying electronic products consumers believe

that the product attributes are a more credible option than the brand image.

Apart from the above analysis, R square and Q square are examined to check the accuracy and

predictive relevance of the model (Hair et al., 2018). R square (Coefficient of determination) is a measure

of the model's explanatory power (Shmueli et al., 2016), and shows the extent to which changes in

endogenous variables are brought about by the exogenous variables. According to Hair et al. (2018),

researchers who focus on marketing issues suggested 0.75, 0.5, and 0.25 as substantial, moderate, and

weak values. The results demonstrate an explanatory power, with values of 0.355, which shows a

medium-level influence of consumer ethnocentrism on buying behaviour in regard to domestic products.

Similarly, adjusted R squared shows the relevance of the independent variable included in the study,

which is 0.342, showing medium-level values (Table 6).

Table 6: R

and Adjusted R

Construct

Adjusted R

Effect

0.355

0.342

moderate

Further, the Q square for the endogenous variable is used to check whether the model has predictive

relevance or not (Chin et al., 2020). According to Hair et al. (2016) and Shmueli et al. (2016), if the value

is more than zero it shows good predictive relevance of the constructed model. Since the values of the Q

square are 0.278 this indicates the excellent predictive relevance of the model.

Apart from this, F-Square (effect size) is the change in R-Square when an exogenous variable is

removed or indicates the contribution of moderation in the explanation of the endogenous variable

(Cohen, 1988). Values of 0.02, 0.15, and 0.35 represent the small, medium and large effects of exogenous

variables (Cohen, 1988). In the current study, the F

effect size values of the hypothesized relationships

have been shown in Table 7. The relationship of consumer ethnocentrism and buying behaviour in regard

to the purchase of domestic products has an effect size 0.254. This shows that the exogenous variables

(CE) are capable enough of explaining the endogenous variable (BB), having a moderate level of effect

size. The relationship of Product judgement and brand image with buying behaviour in regard to domestic

products has a low level of effect size in the model.

Table 7: F square values

Hypothesized relationships

values

Significance of effect size

CE -> BB

0.254

moderate

PJ -> BB

0.039

small

BI -> BB

0.016

small

Seema Chahal, Mahabir Narwal

In addition to the foregoing analysis, our suggested model's SRMR value is 0.094, which is below

the recommended value of 0.10 (Henseler et al., 2016), indicating that the framework's model fit is

satisfactory.

4.4 Discussion

Ample research has investigated the effects of consumer ethnocentrism (CE) on attitudes and

willingness to purchase domestic and foreign goods (Aljukhadar et al., 2021; Fischer et al., 2022; Karoui

& Khemakhem, 2019; Miguel et al., 2022; Netemeyer et al., 1991; Nguyen et al., 2023; Thomas et al.,

2020; Raman & Hu, 2024; Tie et al., 2025). However, limited research has explored the effect of CE on

actual buying behaviour and the potential moderating variables that influence this relationship—

especially in developing countries and within specific product categories (Batra et al., 2000). To bridge

this gap, the current study examined how consumer judgement toward domestic product attributes and

brand image moderate the relationship between consumer ethnocentrism and buying behaviour in the

context of home appliances in a developing economy like India.

The findings confirmed that consumer ethnocentrism positively influences buying behaviour,

supporting H1. This aligns with prior research (Casado-Aranda et al., 2020; Fernández-Ferrín et al., 2018;

Maksan et al., 2019; Nguyen et al., 2023; Thomas et al., 2020; Xin & Seo, 2020; Yadav & Kishor, 2023),

reinforcing Social Identity Theory (Tajfel & Turner, 1979). Consumers with strong ethnocentric

tendencies often view domestic purchases as an extension of their national identity, leading them to

favour local products over foreign alternatives. This effect is further amplified by Expectancy-Value

Theory (Fishbein & Ajzen, 1975), which suggests that ethnocentric consumers perceive greater value in

local products because they associate them with economic and social benefits. Thus, ethnocentric

consumers in India may prioritize "Made in India" products, believing that supporting foreign brands

could harm local industries and employment. Given these strong ethnocentric tendencies, marketers in

India could benefit from using nationalist-themed promotions emphasizing domestic production.

However, the study also found that in developing nations, factors such as brand image and product

attribute judgements work to moderate the effects of ethnocentrism (Wang & Chen, 2004). When

judgement towards domestic product attributes is low, the positive impact of ethnocentrism on buying

behaviour weakens, supporting H3. These findings are in line with previous studies (Ardisa et al., 2022;

Camacho et al., 2021; Chopra & Chaudhary, 2022; Shimp & Sharma, 1987; Yormirzoev et al., 2019;

Zebal & Jackson, 2019; Kinawy, 2025; Zhou et al., 2021). Cue Utilization Theory (Elliott & Cameron,

1994) helps explain this dynamic, as consumers use product attributes (e.g., price, technology, durability,

design) as extrinsic cues to assess quality. The findings suggest that young, educated Indian consumers

experience cognitive dissonance between their ethnocentric values and their quality expectations. While

they may prefer domestic brands out of national loyalty, their preference weakens if domestic products

fail to meet their quality expectations, aligning with studies showing a weaker ethnocentrism-product

judgement link in emerging markets (Klein, 2002; Netemeyer et al., 1991).

Furthermore, the study examined brand image as a potential moderator. While it was hypothesized

that brand image would significantly impact the ethnocentrism-buying behaviour relationship, the results

indicate that its moderating effect was not statistically significant, suggesting that brand image does not

substantially alter this relationship. Therefore, brand image neither directly impacts buying behaviour

nor plays a significant moderating role. As a result, hypotheses H4 and H5 are rejected. This result is

consistent with research suggesting that brand image is not always a dominant predictor of purchase

behaviour, especially in categories where functional attributes outweigh symbolic benefits, such as home

appliances (Sadat, 2009; Gillespie et al., 2018). Expectancy-Value Theory supports this finding, as

consumers may perceive that functional benefits (e.g., product reliability, durability, features) outweigh

brand prestige when making purchasing decisions. This finding is also consistent with studies on

consumer electronics, where consumers rely more on product specifications and user reviews rather than

brand name alone (Young et al., 2019).

Ultimately, this study suggests that product attributes are a stronger predictor of consumer buying

behaviour than either consumer ethnocentrism or brand image in India. This is particularly relevant in

high-involvement product categories like home appliances, where rational evaluation of product quality

outweighs nationalistic sentiment. The findings are consistent with previous research in China, where

young consumers tend to favour quality and innovation over national loyalty (Zhou & Hui, 2003; Woo,

2019; Kinawy, 2025). This also aligns with Acharya & Elliott (2003), who found that younger consumers

tend to prioritize objective product attributes over ethnocentric preferences when purchasing high-

involvement goods.

Int. Journal of Business Science and Applied Management / Business-and-Management.org

5. THEORETICAL AND PRACTICAL IMPLICATIONS

5.1 Theoretical Implications

This study contributes to the consumer ethnocentrism literature by highlighting the role of domestic

product judgements in shaping purchase behaviour, particularly among young Indian consumers. It

extends previous research by demonstrating that product attributes—rather than brand image—serve as

a crucial moderating factor in ethnocentric consumer decision-making. While prior studies suggest that

consumer ethnocentrism leads to a preference for domestic brands (Klein et al., 1998; Netemeyer et al.,

1991), this study refines this understanding by showing that ethnocentric consumers evaluate domestic

products based on their quality rather than mere national origin. Furthermore, the distinction between

"soft ethnocentric" and "hard ethnocentric" consumers provides a new perspective on varying degrees of

consumer attachment to domestic goods (Pereira et al., 2002). This research also supports the argument

that consumer ethnocentrism is product-category dependent, as found in earlier cross-cultural studies

(Kinra, 2006; Kwak et al., 2006), with durable goods requiring stronger quality perceptions for consumer

preference.

5.2 Managerial Implications

Given the increasing globalization of young Indian consumers, local manufacturers need to enhance

domestic products’ perceived quality to compete effectively with international brands. Product attributes

such as technological innovation, design, workmanship, and durability significantly influence purchase

decisions, underscoring the need for Indian companies to invest in R&D and quality improvement

(Girsang et al., 2020). Marketers should use nationalistic and patriotic messaging to reinforce consumer

ethnocentrism, as campaigns like "Indian people use Indian goods" can align national pride with purchase

behaviour (Khan & Rizvi, 2008). Additionally, government and industry collaborations should

emphasize "Made in India" branding to strengthen local product appeal, ensuring that domestic products

are not just positioned as nationalistic choices but also as competitive alternatives based on quality (Klein

et al., 2006).

6. CONCLUSION

The purpose of this study was to investigate the effects of consumer ethnocentrism on buying

behaviour and to understand how brand image and judgements of domestic product attributes moderate

this relationship. Data were collected from respondents in the home appliances category, where domestic

alternatives are available. The results confirmed that consumer ethnocentrism significantly influences

buying behaviour in regard to domestic products, and that judgements of domestic product attributes play

a strong moderating role in this relationship. This suggests that domestic manufacturers should go beyond

appealing to nationalist sentiment and instead focus on enhancing product quality to attract rational, high-

involvement consumers.

The study reinforces the point that ethnocentrism alone is not a sufficient predictor of consumer

behaviour in high-involvement product categories. Instead, tangible product attributes serve as a

dominant influence, while brand image plays a secondary role. These findings offer practical insights for

Indian marketers and policymakers, emphasizing the need for sustained product innovation and quality

assurance to strengthen consumer trust and preference for domestic brands.

5.1 Limitations of the Study

Despite its contributions, this study has several limitations that should be acknowledged. First, the

data were collected using a cross-sectional design, which restricts causal interpretation of the

relationships identified. Future research using longitudinal methods could offer deeper insights into how

consumer ethnocentric tendencies evolve over time.

Second, the sample was limited to young consumers in Northern India, which may affect the

generalizability of the findings to other regions or age groups. Consumer preferences and ethnocentric

attitudes may vary significantly across different cultural and economic settings within the country.

Third, the study focused specifically on tangible, high-involvement products—namely home

appliances. As a result, the findings may not apply to low-involvement or intangible goods such as

services. Future research could examine whether these moderating effects hold true across different

product categories.

ACKNOWLEDGMENT

The authors have no conflicts of interest to declare.

Seema Chahal, Mahabir Narwal

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APPENDIX

Table 1: Construct statements and source

Consumer

ethnocentrism

CE1

Indians should always buy Indian products

instead of imported ones.

0.512

Shimp and Sharma

(1987)

CE4

It is not right to purchase foreign products

because it puts Indians out of a job.

0.732

CE5

A real Indian should always buy Indian products.

0.772

CE6

It is always best to purchase Indian products.

0.638

CE7

There should be very little purchasing from other

countries unless out of necessity.

0.634

CE8

Restrictions should be put on all imports.

0.685

CE9

Foreigners should not be allowed to put their

products in India’s market.

0.670

CE10

Foreign products should be taxed heavily to

reduce their entry into India.

0.512

Buying

Behaviour in

relation to

electronic

products

BB1

I shop at the retail stores that make a special

effort to offer domestic brands.

0.596

Granzin and Olsen

(1998),

Lee (2009),

Lee (2008)

BB3

I prefer to buy domestic brands even if they are

more expensive than others.

0.690

BB4

While purchasing, I see the label of our country

before buying the product.

0.842

BB5

I prefer domestic brands over imported ones

even if the products qualities are same.

0.746

Product

judgement

towards

domestic

products

PJ1

Products made in India are carefully produced

and have fine workmanship.

0.820

Klein et al. (1998)

PJ3

Products made in India show a very high degree

of technological advancement.

0.700

PJ5

Products made in India are usually quite reliable

and seem to last the desired length of time.

0.633

PJ6

Products made in India are usually a good value

for the money

0.707

Brand Image

BI1

The well known brands are important to me.

0.670

Sproles and Kendall

(1986)

BI2

The more expensive brands are usually my

choices.

0.710

BI3

I prefer buying the best selling brands.

0.768

BI4

The most advertised brands are usually very

good choices.

0.789

BI5

Nice department and speciality stores offer me

the best product.

0.719