Title: Consumer Confidence & Domestic Bias: Dr Hampson Publishes in Top SSCI Journal

28 Oct 2025

Recently, a paper entitled “Confidence and Country: How Consumer Economic Outlook Shapes Domestic Country Bias”, co-authored with Dr Daniel Hampson from the International Business School Suzhou (IBSS), part of Xi’an Jiaotong-Liverpool University (XJTLU) and collaborators, has been published in the Journal of Retailing and Consumer Services, an authoritative international SSCI journal in the field of management,  ranked Tier 1 by the Chinese Academy of Sciences (CAS). Focusing on consumers' perceptions and decision-making logic about domestic products against the backdrop of economic uncertainty, this study presents conclusions with both theoretical depth and practical value, providing key decision-making references for the retail industry and brand owners.

The research clearly demonstrates that economic uncertainty is profoundly reshaping consumers' perceptions of domestic products, with consumer confidence (CC, defined as an individual's expectations about the economic outlook) as a core variable influencing domestic country bias (DCB, referring to consumers' tendency to choose domestically produced goods). When consumers are confident in the economy, their willingness to purchase domestic products significantly increases. The underlying logic is that strong consumer confidence enhances national identity, which in turn translates into supportive behaviors toward local brands. Conversely, when consumer confidence is low, traditional marketing approaches for promoting domestic products become ineffective. In particular, promotional campaigns emphasising altruistic attributes—such as "fulfilling national obligations" or "supporting local farmers"—not only fail to resonate with consumers but may also trigger resistance. Consumers resent the moral pressure imposed by such promotions, ultimately leading to counterproductive results.

In response to the critical question of "how to adjust strategies during periods of declining confidence," the research offers a clear direction: a shift toward self-focused promotion is necessary. This means highlighting the practical benefits that products bring to individual consumers, such as superior quality, a distinctive taste, or healthier attributes. Notably, this strategy is particularly effective for high-typicality products—goods deeply tied to national culture, such as Chinese herbal tea or Swiss watches. However, it is more difficult to enhance the appeal of low-typicality products (those without traditional local characteristic labels) through this approach, which in turn requires the exploration of differentiated strategies.

Based on empirical research conducted in both the United States and China, the paper summarises three core insights for retailers and brand managers. Firstly, track consumer confidence in real time, and use changes in economic outlook as a key indicator for predicting fluctuations in the market share of domestic products and a basis for strategy adjustment. Secondly, use national identity with care—recognise that while national identity is a strong driver of domestic consumption during periods of high confidence, its influence weakens significantly when confidence is low, and it should not be relied on blindly. Thirdly, design customised promotions for domestic product purchases: during economic downturns, focus on conveying personal benefits for high-typicality products and eschew generalised patriotic narratives. Overall, this study dispels the misconception of a "one-size-fits-all" approach to promoting domestic product purchases. It contends that if retailers can flexibly adjust their promotional strategies based on consumer confidence levels and product types, they will be better able to stabilise sales performance of domestic products amid economic cycle fluctuations.

Daniel earned his PhD from the University of Manchester in 2014. Under the supervision of Professor Peter McGoldrick, Daniel’s thesis explored the effects of the Great Recession on consumer psychology and behaviour. Subsequent published work examines various facets of the relationship between macroeconomic conditions and consumerism, including conspicuous consumption and domestic product purchases in Brazil, price consciousness and store disloyalty in the UK, and financial well-being and vulnerability in the US. Current research projects include examination of the relationship between consumer confidence and ethical consumption, and the effects of financial comparisons on the gifts that we buy for our friends. In addition to his primary research interest in economics and marketing, Daniel has collaborated with other scholars on a range of marketing and management subjects, including consumer incivility in the sharing economy, curatorial consumption in the context of vintage markets, intra-organisational knowledge hiding and sharing, and the relationship closeness paradox.

The Journal of Retailing and Consumer Services focuses on the fields of retailing and services research. It is committed to providing a platform for research exchange and debate in these two rapidly developing and increasingly integrated fields, with a core focus on three key areas: consumer behaviour, policy formulation, and management decision-making.

28 Oct 2025