Does Consumer Xenocentrism Encourage Dysfunctional Consumer Behavior? Empirical Evidence on Compulsive Buying and Brand Addiction

Drawing on literature on consumer xenocentrism (C XEN) and dysfunctional consumer behavior, we investigate the impact of C XEN on (a) compulsive buying, and (b) brand addiction, using conspicuous consumption orientation as a mediating variable. To this end, we develop a serial mediating model and test it on sample of Peruvian consumers (N=203). Our results reveal that C XEN indeed has a “dark side” as it encourages compulsive buying and positively stimulates brand addiction. These findings have important practical implications for both foreign and domestic producers and are also of relevance to public policy makers concerned with issues of consumer well being.