An Experimental Investigation of Home Bias in Online Retailing
(A2025-124341)

AUTHORS

Benjamin Klink, Eastern Switzerland University of Applied Sciences

ABSTRACT

Fueled by the aggressive international expansion of companies such as Temu, Shein, and AliExpress, cross-border online retailing is rapidly growing. This development is seemingly at odds with research on consumer ethnocentrism, which has repeatedly shown that many consumers prefer domestic products and services. Against this background, we experimentally investigate the prevalence and magnitude of home bias in cross-border online shopping. We test two nudges that may elicit home bias: the use of country-specific domains and domestic assurance labels. Our preliminary results confirm the relevance of home bias in online retailer choice and demonstrate nudges as an effective trigger. Based on our initial findings, internationally operating online retailers should take into account the adverse effects of ethnocentrism, while domestic retailers might use ethnocentrism nudges as a defense strategy.