«NATIONAL CASHBACK» AS A TOOL FOR CONVERTING PATRIOTIC ETHNOCENTRISM INTO CONSUMER LOYALTY TO LOCAL PRODUCTION

Abstract

The article examines the "National Cashback" state program as an instrument of targeted protectionism aimed at stimulating domestic consumption and supporting Ukrainian producers. It analyzes the program's operational mechanism, institutional structure, legal framework, and economic impact on consumer demand using empirical data.
Launched in September 2024, the program provides a 10% cashback on Ukrainian-made goods via the "Diia" digital platform. By March 2026, it attracted over 4.9 million participants and 1,955 domestic producers. Total cashback payouts exceeded UAH 6.3 billion, generating over UAH 63 billion in state-supported sales.
Transactional data analysis confirms a genuine demand-stimulation effect: the volume of purchased Ukrainian goods increased by 9.5%, and their share in average consumer receipts rose from 65% to 75% by late 2024. Furthermore, a comparative analysis of analogous international programs highlights the unique features of the Ukrainian approach, specifically its strict linkage to domestic origin, digital implementation, and explicit protectionist orientation.
The study identifies systemic limitations, including unequal access for small businesses, regional disparities, and absent unified labeling standards. Recommendations are proposed to expand participation, improve infrastructure, and enhance public awareness. Ultimately, "National Cashback" represents a novel model for converting patriotic consumer ethnocentrism into measurable loyalty to domestic production.