An empirical examination of the effect of national identity on willingness to pay for local origin products : a focus on Egyptian consumers

Building on social identity theory, this study develops and investigates a conceptual model that assesses the effect national identity has on the willingness to pay for local origin products. A systematic literature review highlighted the theoretical and managerial research gaps that are evident from a developing country's perspective. To better understand the link between national identity and willingness to pay for locally sourced goods, this study looks at the role of several mediating variables such as negative evaluations of foreign products, reluctance to buy foreign products, participation in the purchase decision process, self-categorisation and the perceived quality of domestic products in Egypt.These mediating effects are also examined under the moderating role of conservation values (tradition, security and conformity). An online survey of 794 respondents revealed that (a) a negative evaluation towards foreign products, (b) a reluctance to buy foreign products, (c) and perceived quality of domestic products were shown to mediate the effect of national identity on willingness to pay for local origin products. Accordingly, Egyptian consumers tend to prefer domestic products over foreign ones to satisfy their sense of national identity and maintain a positive social identity among members of their in-group (home nation). These findings extend social identity theory,where members of the in-group are expected to behave in favour of that in-group, but this does not necessarily suggest refusing foreign products in the case of a lack of domestic alternatives or domestic products of inferior quality. The study also empirically examines the construct of national identity within an Arab and developing country context where very limited research has been conducted. An important takeaway for managers is the importance of consideringEgyptian consumers' level of national identification and how it manifests itself in their purchasing behaviour