Looking at the brain: Neural effects of “made in†labeling on product value and choice

Casado-Aranda Luis-Alberto, Dimoka Angelika and Juan, Sánchez-Fernández

Journal of Retailing and Consumer Services, 2021, vol. 60, issue C

Abstract: International business research posits that, under certain circumstances, consumers prefer goods manufactured in their own country regardless of their country of origin image. Yet the psychological origin of such Domestic bias remains unknown. This study presents a neuroimaging experiment developed in Spain. The task combined low and high involvement goods marked with Domestic “Made in Spain†and Foreign “Made in USA†(similar culture) and “Made in China†(different culture) labels. The findings reveal that Domestic goods always convey neural rewarding sensations. Neural aversive biases toward Foreign goods occur only when the products are culturally different and high involvement. These findings help improve business retailing strategies.

Keywords: Product labeling; Domestic and foreign origin; Low and high involvement products; Consumer valuation; Country of origin (COO); Neural responses (search for similar items in EconPapers)
Date: 2021
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Persistent link: https://EconPapers.repec.org/RePEc:eee:joreco:v:60:y:2021:i:c:s0969698921000187

DOI: 10.1016/j.jretconser.2021.102452

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