People demonstrate indirect support for a nation's identity by consuming products representing their nationality. In such context, this article focuses on how people react toward brands with national associations when the nation faces threats perpetrated by institutions. Institutions are important as they are one of the core elements defining national identity. Institutional threats to national identity can come from within the nation (internal threat) and from outside (external threat). Weekly supermarket scanner data from 2004 showed that sales of American-sounding brands declined in counties that saw higher coverage of the Abu Ghraib prison torture scandal (internal threat), and sales of American-sounding brands increased in counties with more war casualties (external threat). Seven additional experiments demonstrated that (1) self-enhancement derived from national identity mediates these main effects, (2) advertisements that refocus attention on how the brand helps cope with external threats mitigate the negative effects of internal threats for American brands, and (3) such advertisements do not mitigate the negative effects of internal threats for non-American brands. Qualitative surveys (N = 218), surveys (N = 1,603), experiments (N = 3,123), and secondary data analyses (encompassing sales of over 8,000 brands across more than 1,100 U.S. stores) were used to triangulate the results.
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