Abstract
Prices are among the most frequently discussed topics in consumer research. Although word-of-mouth is known to be highly influential and it is considered to be of growing importance, previous research has largely neglected price-related word-of-mouth, especially in a cross-cultural context. The present study fills this research gap by analyzing the effects of price-related word-of-mouth valence, price changes communicated by word-of-mouth, market mavenism and national culture on price fairness and expensiveness perceptions, as well as on subsequent word-of-mouth intentions. Two studies employing Hofstede’s national culture dimensions reveal considerable differences between the cultures of the United States and China.
Highlights
Product prices are the most frequently discussed topic in conversations between friends and acquaintances about vendors or service providers (Lexis et al 2013)
The study measures the effects of culture on the relationship between WOM valence and price fairness and expensiveness perceptions as well as on the relationship between a recent price change communicated by WOM and perceived expensiveness
As market mavens are known to play an important role for WOM transmission and the presumption that their influence differs due to culture has been expressed, the present study extends this knowledge by evaluating their cross-cultural role in price expensiveness perceptions due to WOM and divides the sample into mavens and non-mavens (Goodey and East 2008; Slama et al 2015; Stephen and Lehmann 2009) (Fig. 1)
Summary
Product prices are the most frequently discussed topic in conversations between friends and acquaintances about vendors or service providers (Lexis et al 2013). The very few studies that combine the topics of behavioral pricing and WOM have focused on situations that encourage the initiation of WOM with regard to prices; they have failed to explore possible knock-on effects and WOM diffusion (Lexis et al 2013; Siems and Gerstandl 2011) This lack of research leaves marketing practitioners in the dark in terms of how to utilize this potentially highly influential process, which exhibits strong potential as a marketing tool for influencing consumer price perceptions in a self-reinforcing process (Siems and Gerstandl 2011). Price-WOM differs significantly from other forms of WOM as price functions as a signal of quality in situations in
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