Reconceptualization of price mavenism: do Chinese consumers get a glow when they know?

Abstract

Purpose -Buyers in China often communicate positive and negative purchasing experiences through word-of-mouth (WOM), which creates special problems and opportunities for marketers. Price mavenism, which is associated with price-information searching and price-sharing behavior, is often considered a negative dimension of price. The purpose of this paper, however, is to propose price mavenism as an outcome variable arising from both positive perceptions of price (prestige sensitivity) and negative perceptions (price and value consciousness) and examine that the ''know'' (price mavenism) will positively impact the ''glow'' (shopping hedonism) among the Chinese. Design/methodology/approach -Data were collected through a survey in Shanghai, China. The conceptual model was tested using structural equation modeling.Findings -This study found that prestige sensitivity, price consciousness and value consciousness shaped price mavenism among the Chinese, supporting the idea that price mavenism arises from both positive and negative perceptions of price. In addition, for the Chinese, being a source of price information and sharing the knowledge with their social groups fulfill a hedonic motivation for shopping. While value consciousness was positively associated with shopping hedonism, price consciousness per se was not. Research limitations/implications -This study challenges the idea that price mavenism is mainly explained by a negative perception of price. Practical implications -By understanding the drivers of price mavenism and their impacts on shopping hedonism, international marketers can fine-tune their marketing strategies to appeal more effectively to price mavens in China. Originality/value -This study highlights the importance of cultural perspectives in understanding the structure of price mavenism and its theoretical and marketing foundations.

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

“…The results confirmed all hypotheses except for the direct effect of product involvement on price acceptance. Specifically, prestige sensitivity has a direct and positive effect on price acceptance; this result confirmed the prior findings or arguments by various authors, such as Lambert (1972), Vigneron and Johnson (1999), Byun and Sternquist (2010). Particularly, they found or argued that the prestige-seeking customers are more willing to pay a higher price or are higher on price acceptance.…”

“…Vigneron and Johnson (1999) found the customer higher on prestige sensitivity has a stronger interest in and more knowledge about products. Findings of a study based on a sample from China, an East Asian country like Vietnam, Byun and Sternquist (2010) found a strong, significant and positive effect of prestige sensitivity on price mavenism.…”

“…Accordingly, Lichtenstein et al (1993) defined price mavenism as “the degree to which an individual is a source for price information for many kinds of products and places to shop for the lowest price, initiate discussion with other and respond to requests from other for price information.” However, Byun and Sternquist (2010) criticized that there is no link between her definition and measurement of the construct, the definition limited to the lowest price, but the measurement items mentioned all price information for different types of products. Consequently, Byun and Sternquist (2010) redefined price mavenism as “the degree to which an individual is a source of information about a broad range of price for many kinds of products and places to shop and enjoy sharing information with others and responding to requests from other customers for marketplace price information.” They considered price mavenism as the “know” dimension of price perception (or price knowledge). Applying this approach, our current research substitutes price mavenism for price knowledge.…”

“…As mentioned previously, prestige sensitivity represents a positive perception of price cue based on the perception of what it signals to others in social settings (Lichtenstein et al , 1993). Prestige-seeking customers believe that high price operates as a surrogate indicator of prestige; therefore, they would prefer high-priced products to low-priced ones and tend to purchase expensive brands to improve their social standing (Lambert, 1972; Vigneron and Johnson, 1999; Byun and Sternquist, 2010). Accordingly, prestige-seeking customers are more willing to pay a higher price for a mobile phone, or in the other word, more likely to accept price.…”

“…However, the effect of prestige sensitivity on price mavenism is still controversial. Lichtenstein et al (1993) believed that prestige sensitivity and price mavenism are the opposite price perceptions; whereas Byun and Sternquist (2010) found a very strong, significant and positive effect of prestige sensitivity on price mavenism when they treated price mavenism as the “know” dimension of price perception (price knowledge).…”