Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
5109452 | Journal of Business Research | 2017 | 9 Pages |
Abstract
Although consumers do not usually take kindly to price increases, their perceptions of fairness of price increases are contingent on relevant factors. This study investigates consumers' perceptions of the fairness of retail price increase by a domestic versus a foreign brand, as moderated by consumers' ethnocentricity, bias toward inferring a profit motive from a price increase (i.e., “profit stickiness”), and relevant contextual information. Over the course of two sets of experiments, the authors find that ethnocentricity does not necessarily lead to the intuitively expected favorable (unfavorable) bias toward (against) a domestic (foreign) brand's decision to raise prices, subject to profit stickiness and contextual information. These findings have implications for theory, practice, and further research.
Keywords
Related Topics
Social Sciences and Humanities
Business, Management and Accounting
Business and International Management
Authors
Sujay Dutta, Attila Yaprak, Dhruv Grewal,