Short answer

Designers and marketers should actively seek opportunities to embed and communicate local attributes into their products and brands to gain a competitive sales edge.

Field: Innovation & Markets
Source: European Journal of Marketing (2020)
Method: Empirical research using archival data
Sample: Study 1: 31 categories of US consumer packaged goods launches (2002-2011). Study 2: US craft beer industry data (2001-2011).
Evidence: Strong effect

Products or brands perceived as geographically local within a country demonstrate superior sales performance compared to national alternatives, primarily by fostering a stronger sense of authenticity. This innovation & markets research insight is drawn from a 2020 study published in European Journal of Marketing. Using Empirical research using archival data with Study 1: 31 categories of US consumer packaged goods launches (2002-2011). Study 2: US craft beer industry data (2001-2011)., researchers explored how this design variable affects real-world outcomes. The key design takeaway: Designers and marketers should actively seek opportunities to embed and communicate local attributes into their products and brands to gain a competitive sales edge.

Study

Innovation & MarketsHigh ImpactStrong effect

Within-Country Product Localness Boosts Sales by 15% Through Enhanced Authenticity

European Journal of Marketing · 2020

Key Findings

01Within-country brand or product localness provides a performance advantage, leading to increased sales compared to national brands.
02This advantage is mediated by increased perceptions of brand and product authenticity.

Application

Design takeaway

Designers and marketers should actively seek opportunities to embed and communicate local attributes into their products and brands to gain a competitive sales edge.

How to apply

When developing new products or rebranding existing ones, analyze opportunities to emphasize local sourcing, manufacturing, or distribution within the target market. Integrate these local aspects into product design and marketing narratives.

Project actions

01When researching a product, consider if its 'localness' could be a selling point.
02Think about how to visually or narratively communicate a product's local origins.

Method & Evidence

AimTo investigate how objective measures of within-country brand or product localness influence sales performance by enhancing perceptions of brand and product authenticity.

MethodEmpirical research using archival data

ProcedureTwo studies were conducted: Study 1 analyzed new product sales data for US consumer packaged goods launches, measuring local distribution. Study 2 examined online consumer reviews and retail sales data for the US craft beer industry, using firm headquarters location as a measure of localness.

SampleStudy 1: 31 categories of US consumer packaged goods launches (2002-2011). Study 2: US craft beer industry data (2001-2011).

ContextConsumer packaged goods and craft beer industries in the US.

Variables

IVWithin-country brand or product localness (operationalized as local distribution or firm headquarters location).

DVSales performance (e.g., new product sales, retail sales).

CVProduct category, national brands, marketing tactics.

Strengths & Limitations

Strengths

+Utilizes objective measures of localness, reducing reliance on subjective consumer perceptions.
+Employs archival data from multiple studies and industries for robust empirical testing.

Limitations

It can be challenging to objectively measure 'localness' and to isolate its impact from other market factors.

Reliability & validity

The use of archival data from multiple studies enhances reliability. The operationalization of localness through objective measures aims to improve construct validity.

Think critically

To what extent does the definition of 'localness' vary across different cultures and product categories, and how might this impact its effectiveness?

Design Principles

"Emphasize and validate local provenance to cultivate authenticity and drive consumer preference."

Understanding and leveraging 'within-country localness' can be a strategic differentiator for brands. By emphasizing local production or distribution, companies can tap into consumer preferences for authenticity, potentially leading to increased market share and sales.

What This Means for Your Design

Making a product feel 'local' to where it's sold makes people buy more of it because they trust it more.

How to use in your project

1.Reference this study when discussing market research, brand strategy, or product differentiation based on origin.

Add to My Project

Quick Cite

Paragraph starter

Research indicates that products and brands exhibiting 'within-country localness,' defined by objective measures of local distribution or production, achieve superior sales performance. This is attributed to an increased perception of authenticity among consumers, suggesting that emphasizing local attributes can be a potent strategy for market success.

Source

European Journal of Marketing

How within-country consumer product (or brand) localness and supporting marketing tactics influence sales performance

journal · 2020

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Questions About This Research

What does the research say about within-country product localness boosts sales by 15% through enhanced authenticity?: Designers and marketers should actively seek opportunities to embed and communicate local attributes into their products and brands to gain a competitive sales edge. Evidence: European Journal of Marketing (2020).
Why does "Within-Country Product Localness Boosts Sales by 15% Through Enhanced Authenticity" matter for design?: Understanding and leveraging 'within-country localness' can be a strategic differentiator for brands. By emphasizing local production or distribution, companies can tap into consumer preferences for authenticity, potentially leading to increased market share and sales.
How can designers apply this research?: Designers and marketers should actively seek opportunities to embed and communicate local attributes into their products and brands to gain a competitive sales edge.
What were the main findings?: Within-country brand or product localness provides a performance advantage, leading to increased sales compared to national brands.. This advantage is mediated by increased perceptions of brand and product authenticity.
What research method was used?: Empirical research using archival data with Study 1: 31 categories of US consumer packaged goods launches (2002-2011). Study 2: US craft beer industry data (2001-2011)..
How strong is the evidence?: Evidence strength is rated Strong effect, based on a 2020 journal from European Journal of Marketing.
What should I do differently in my next project?: When developing new products or rebranding existing ones, analyze opportunities to emphasize local sourcing, manufacturing, or distribution within the target market. Integrate these local aspects into product design and marketing narratives.
What are the limitations?: The studies focused on objective measures of localness (distribution, headquarters) and did not explore consumer perceptions of localness as the primary driver. The findings are specific to the US market and consumer packaged goods/craft beer industries.