“Ours” or “theirs”? Psychological ownership and domestic products preferences

This paper seeks to understand the role of psychological ownership in shaping perceptions and preferences of domestic versus foreign products. We provide evidence that quality judgments and purchase behavior of domestic products depend on different levels of shared ownership. From a theoretical perspective, we show that domestic psychological ownership is an important construct that explains how preferences for domestic brands are formed. In terms of methodological contribution, the study offers a psychometric measure that will assist researchers interested in international consumer research. Finally, the study is of managerial interest in that our findings provide at least a partial explanation why many foreign brands fail to establish stronger positions in domestic markets, as well as why hybridization and glocalization strategies are successful.