The Dimensionality of Price Perceptions: A Cross-Cultural Comparison of Asian Consumers

Abstract

Recent research has found that rather than being a uni-dimensional construct, price has a variety of underlying dimensions; these underlying factors can be categorized as positive and negative. Some consumers interpret price as an indicator of product quality or prestige. Higher price is thus associated with higher likelihood of purchase. Other consumers may view price negatively, and seek to reduce the price they pay with different shopping strategies. Although much work homogenizes the consumer patterns of different Asian countries, limited research has focused on the similarities and differences in shopping habits and perceptions of price across Asian cultures. The focus of this study is to better understand price perceptions among Korean and Chinese consumers; the goal of this study is to contribute to the body of knowledge available to international marketers and to market scholars and strategists. In this manuscript, we first explore six price-related constructs before describing the study approach and addressing research findings. The results of this study indicate that both Korean and Chinese consumers perceive price as multidimensional, but in the case of Chinese participants, all price perceptions are negative.

Keywords:

• Dimensionality
• price perception
• shopping behavior
• Asian consumers