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

Abstract

PurposeThe 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/approachThis 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.FindingsPrestige 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 implicationsThe 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/valueThis 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.