Cross-cultural differences of price perceptions

This chapter investigates how cultural factors shape consumer perceptions of value and price across different countries. Grounded in Hofstede’s five cultural dimensions—power distance, uncertainty avoidance, masculinity/femininity, individualism/collectivism, and long-term orientation—the discussion emphasizes their predictive power concerning consumer behaviors, including price sensitivity. It reviews empirical research demonstrating that price perception is multidimensional, involving both positive aspects (price-quality schema and prestige sensitivity) and negative aspects (value consciousness, price consciousness, coupon proneness, sale proneness, and price mavenism). The chapter highlights cultural variations in these dimensions through comparative studies involving countries such as the United States, China, Japan, Korea, and Germany. Additionally, it discusses how cultural superstitions, particularly regarding numerical associations in pricing, significantly influence consumer choices and price perceptions. The chapter concludes by suggesting future research directions in cross-cultural consumer pricing behavior.