From cognitive bias to social identity: consumer ethnocentrism and traditional Chinese medicine consumption intentions in China

Purpose While modern medicine prevails in China’s pharmaceutical and medical sectors, traditional Chinese medicine (TCM) has experienced significant growth in recent years. This study aims to explore the link between consumer ethnocentrism and TCM consumption. Design/methodology/approach An online survey was conducted in China to gather the data for this study. The structural equation modeling (SEM) technique was applied, and data analysis was performed using PLS-SEM in SmartPLS. Findings Drawing on halo effects, we found that both consumer ethnocentrism and social value are positively associated with the functional value of traditional Chinese medicine and that consumer ethnocentrism directly increases consumption intention. Social identity theory indicates a positive relationship between consumer ethnocentrism and the social value of TCM. Social and functional values play a chain-mediating role between consumer ethnocentrism and consumption intentions. Originality/value Our findings indicate that consumer ethnocentrism extends beyond cognitive biases like halo effects, with the pursuit of social identity serving as a precursor to the cognitive assessment of domestic products. In this light, this study indicates that the investigation of the mechanism of consumer ethnocentrism should consider both cognitive bias and social identity. This study also provides managerial implications for the health service industry.