Studying the Effects of Negative and Positive Perceptions of Price on Price Mavenism

Hossein Vazifedoost,Mahsa Akbari,Javad Ali Akbari,Parvaneh Charsetad

doi:10.19026/rjaset.5.4465

Abstract

Despite the importance of price mavens, little empirical research exists on understanding its theoretical and marketing drivers; especially in different cultural contexts Buyers in Iran 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 as negative dimension of price. The purpose of this study, 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). For this purpose structured questionnaire was developed to collect data and totaling 206 questionnaires of Iranian consumers were analyzed. The conceptual model was tested using structural equation modeling. This study found that prestige sensitivity, price consciousness and value consciousness shaped price mavenism among the Iranians, supporting the idea that price mavenism arises from both positive and negative perceptions of price.

Highlights

One of the greatest paradigm shifts in marketing over the past two decades has been the change in marketer objectives from a transaction focus to a relationship focus (Allaway et al, 2006)
In examining the culturally embedded characteristics of price mavenism, we address the limitations of theoretical positioning of price mavenism solely as a dimension of a negative price perception and remodel it as an outcome variable arising from both a positive price perception and negative perceptions
This study focuses on prestige sensitivity, price consciousness and value consciousness as possible predictors for price mavenism

Summary

Introduction

One of the greatest paradigm shifts in marketing over the past two decades has been the change in marketer objectives from a transaction focus to a relationship focus (Allaway et al, 2006). Even firms that accepted the marketing concept in principle did not recognize that the marketing concept required the organization to change its existing practices dramatically These firms viewed implementing the marketing concept as a marketing task rather than something in which the entire organization had to be involved. These companies conducted marketing and consumer research, this research was seldom used as the basis for designing the marketing strategy and the entire organizational strategy (Peter and Olson, 2010). Recently many Companies are making changes to serve consumers better

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