The Effects of Acculturation on Consumers' Sensitivity to Prices

Abstract

ABSTRACT This study drew upon anthropological learning models, research in cross-cultural psychology, and research in pricing to understand how an immigrant population's learning of a new culture and its norms affects their evaluation of price information and price acceptability for products offered in the host culture. Specifically, this study used a survey methodology to examine the effects of acculturation on the price sensitivity of Asian-Indian consumers. The survey included measures of participants' acculturation levels (measured by the SL-ASIA scale), price acceptability and prior knowledge. Findings suggest that as Asian-Indians' acculturation levels increase, higher prices become more acceptable. In particular, this appears to be true more for Asian-Indian females than males. With increasing acculturation the range of acceptable prices of the highly acculturated Asian-Indian consumers started to resemble those of the U. S. sample, hence supporting thelearning modelsof acculturation.