"Buy Local" Campaigns in Times of Crisis: Insights from Reactance Theory

PurposeReactance theory is applied to investigate consumer responses to “buy local” campaignsinitiated by government to counteract the effects of an economic crisis, using the COVID-19pandemic as an illustrative context.Design/methodology/approachA conceptual model is developed, aimed at revealing the extent to which “buy local” campaigns– explicitly justified by the need to fight an economic crisis – are likely to lead to (a) compliance(i.e., support for local products/retailers) or (b) freedom restoration (i.e., support for foreignproducts/retailers). The model is subsequently tested on samples of German (N=265) and Italian(N=268) consumers.Findings“Buy local” campaigns are likely to generate reactance amongst consumers and such reactancecan lead to both non-compliance and, albeit less so, freedom restoration outcomes. At the sametime, consumer ethnocentrism acts as a countervailing influence by attenuating the effects ofgenerated reactance and its undesirable outcomes.OriginalityThe findings confirm the relevance of reactance theory as a conceptual lens for studying theeffects of “buy local” campaigns and have important implications for domestic/foreign firms aswell as for policy makers seeking to encourage consumers to support the local economy duringtimes of an economic crisis.