Identity, Media and Consumer Behavior

62 Pages Posted: 11 Feb 2021

See all articles by Mattia Nardotto

Mattia Nardotto

KU Leuven

Sandra Sequeira

London School of Economics & Political Science (LSE)

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Date Written: February 2021

Abstract

This paper examines how national identity affects day-to-day economic behavior. We exploit the Brexit referendum as a shock to the salience of identity and measure its impact on consumer choices in the UK, between British and EU grocery products. Drawing from a unique panel dataset with 12 million shoppers, we find that the referendum is associated with an increase in consumption of UK products (6%) and a reduction in demand for EU products (13%). Changes in consumption are driven by identity being top of mind: consumption of UK products is up to 7% higher during intense media discussions on Brexit, particularly during discussions on the politics of regaining sovereignty relative to the economic or social issues associated with Brexit. These findings underscore the importance of national identity in shaping routine economic decisions, and the mediating role that political events and the media can play by keeping identity top of mind.

Suggested Citation

Nardotto, Mattia and Sequeira, Sandra, Identity, Media and Consumer Behavior (February 2021). CEPR Discussion Paper No. DP15765, Available at SSRN: https://ssrn.com/abstract=3783991

Mattia Nardotto (Contact Author)

KU Leuven ( email )

Naamsestraat 69
Leuven, 3000
Belgium

HOME PAGE: http://sites.google.com/site/mattianardotto/Home

Sandra Sequeira

London School of Economics & Political Science (LSE) ( email )

Houghton Street
London, WC2A 2AE
United Kingdom

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