Final answer:
Consumer ethnocentrism refers to a bias where consumers prefer domestic goods over foreign products based on the belief that their own culture's goods are superior. It impacts international trade and is influenced by wider ethnocentric views which can lead to misunderstandings and conflicts.
Step-by-step explanation:
The individual difference in consumers' propensity to be biased against the purchase of foreign products is known as consumer ethnocentrism. This concept is an extension of the broader notion of ethnocentrism, which sociologist William Graham Sumner described as the belief that one's own culture is superior to others. Consumer ethnocentrism is evidenced when consumers prefer goods and services from their own country over those produced in foreign countries, sometimes due to patriotic feelings, but often because they have a belief, whether conscious or unconscious, that domestic products are of a higher quality than their foreign counterparts.
Ethnocentrism can lead to a range of negative consequences, such as misunderstandings, conflicts, and in the sphere of commerce, it can influence consumer preferences and affect international trade. Governments sometimes intervene to preserve cultural heritage by restricting foreign imports, as seen with the French government's limitations on the showing of U.S. films and the playing of U.S. music on radio stations. Ethnocentric attitudes in consumers can shape the economic landscape, determining the success of domestic versus foreign goods in the marketplace.