How do product involvement and prestige sensitivity affect price acceptance on the mobile phone market in Vietnam?

Abstract

Purpose The aim of this paper is to incorporate the theoretically and practically appropriate affecting factors of customers’ price acceptance to develop an integrated model explaining customers’ price acceptance on the mobile phone market in Vietnam. Design/methodology/approach This current research applied the cross-sectional design. Data was collected via questionnaires and 605 responses were left after refining. The exploratory factor analysis, confirmatory factor analysis and structural equation modeling methods were applied to analyze the collected data. Findings Prestige sensitivity and product involvement positively affect product knowledge and price mavenism. In turn, these two latter factors together with prestige sensitivity positively affect price acceptance. Besides, product knowledge and price mavenism mediated the effects of product involvement and prestige sensitivity on price acceptance in the context of complex products, rapid product innovation, social setting of using mobile phones, highly competitive market, the low purchasing power of customers and the typical cultural values of Vietnam. Practical implications The high product involvement and high prestige sensitivity customers could make up attractive market segments, especially important in the case of launching new products; concentrating marketing efforts on building product knowledge and price knowledge for these market segments may enhance price acceptance, speed up market penetration as well as improve price communication. Originality/value This is one of the first studies explaining price acceptance on the mobile phone market in Vietnam and clarifying the mediating effects of knowledge (product knowledge and price mavenism) on the causal relationships between product involvement/prestige sensitivity and price acceptance.

Customers response to online food delivery services during COVID‐19 outbreak using binary logistic regression

“…Product involvement means the extent of a customer's interest in buying a particular type of product and how dedicated they are to buy a specific brand (N. M. Nguyen & Nguyen, 2019;Peng et al, 2019;Zaichkowsky, 1994). Customer involvement in items appears to be greater for goods that have a higher cost and are purchased after extensive research and thought (Belanche et al, 2017;Handriana & Wisandiko, 2017;Soliha & Widyasari, 2018).…”

Predicting Local Brand Acceptance in the Leather Products Market

“…Several existing studies have found that product involvement can affect price acceptance (Goldsmith et al, 2010;Ramirez & Goldsmith, 2009). Product involvement reflects the level of consumer interest in a product and the importance of the individual's place in that product (Nguyen & Nguyen, 2020). Consumers who are higher in product involvement often focus more on product benefits than price.…”

“…Leather fashion is a popular commodity in Indonesia (Purwaningsih et al, 2021). In a highly competitive market, it leads to higher customer bargaining power, which then affects consumer price acceptance (Nguyen & Nguyen, 2020). This situation implies that it is important for marketers to understand the price acceptance of customers in the local leather products market.…”

“…By nature, price acceptance is the result of a price assessment based on a comparison of price cues with an acceptable price range stored in memory (Lichtenstein et al, 1988). Understanding the determinants of price acceptance related to product elements (product involvement and product knowledge) and prestige sensitivity can help practitioners develop strategies to increase customer price acceptance and accelerate market penetration (Nguyen & Nguyen, 2020). For this reason, this study examines the determinants of price acceptance theoretically and practically into an integrated model to explain customer price acceptance in the local leather product market.…”

Mediating Effect of Social Commerce Continuance Use Intention on the Relationship Between Perceived Values and Brand Loyalty

“…There are no similar studies conducted in Vietnam, especially in the social commerce context. Meanwhile, according to Nguyen & Nguyen (2019), contextual factors such as cultural characteristics, product complexity, product innovation rate and social setting of using products probably affect causal relationships between consumer behaviours. Therefore, this study aims at addressing the following research questions: (i) To what extent do perceived values affect brand loyalty in Vietnam social commerce?…”