Consumer Planned Behavior Toward Domestic and Foreign Product Categories in Cross-Border E- Commerce

Abstract

The Indonesian government has implemented discriminatory policies against foreign bags, shoes, and garments to alleviate the concerns of local manufacturers amid intense e-commerce competition. This study investigates whether consumer behavior aligns with the theory of planned behavior and consumer ethnocentrism post-policy implementation. The objectives are to determine (1) the impact of ethnocentrism on purchasing plans for domestic versus global goods on e-commerce, where option overload may prevent consumers from making logical decisions, and (2) how different product types influence the relationship between ethnocentrism and consumer purchasing behavior. Using partial least squares structural equation modeling on 786 samples, the researcher reveals that ethnocentrism significantly influences planned purchasing decisions for local and international goods on e-commerce post-policy implementation. It confirms that existing theories apply online and highlights that ethnocentrism increases consumer preference for domestic products while decreasing preference for foreign ones, with imported bags being the only category that moderates this relationship. These findings suggest multinational marketers should explore ethnocentric markets, as consumer behavior varies by product type. Policymakers and local producers are cautioned not to assume consumers will always favor domestic items. Future research should broaden the context and consider additional factors to enhance predictive accuracy.

Keywords: Consumer, plan, behavior, domestic, foreign, product, category