How Do Price Fairness Perceptions Differ ACRoss Culture?

Lisa Bolton, Pennsylvania State University, USA
Hean Tat Keh , Pennsylvania State University, USA
Joseph Alba, University of Florida, USA
This research investigates the effects of across-consumer price comparisons on perceived price fairness as a function of culture. We find that collectivist (Chinese) consumers are more sensitive to in-group versus out-group differences than are individualist (American) consumers. The collectivist perspective orients consumers toward the in-group and heightens concerns about “face” (i.e., status earned in a social network) that arise from in-group comparisons. Process evidence for the causal role of cultural differences is provided, and robustness is tested to extend the findings to the context of firm relationships and to establish boundary conditions arising from other transaction factors.
[ to cite ]:
Lisa Bolton, Hean Tat Keh , and Joseph Alba (2010) ,"How Do Price Fairness Perceptions Differ ACRoss Culture?", in NA - Advances in Consumer Research Volume 37, eds. Margaret C. Campbell, Jeff Inman, and Rik Pieters, Duluth, MN : Association for Consumer Research, Pages: 235-241 .