The Differential Effect of Local-Global Identity Among Males and Females: The Case of Price Sensitivity

66 Pages Posted: 25 May 2018

See all articles by Huachao Gao

Huachao Gao

University of Victoria, Peter B. Gustavson School of Business - Marketing

Vikas Mittal

Rice University

Yinlong Zhang

University of Texas at San Antonio

Date Written: May 22, 2018

Abstract

The authors propose the effect of local-global identity on price sensitivity is moderated by gender. Specifically, when the two are inconsistent with each other (i.e., female with global identity or male with local identity), consumers tend to experience identity incongruence, which depletes their cognitive resources and facilitates a sacrifice mindset leading to lower price sensitivity. Consistent results emerge in six studies, including a field study in China using real consumption data, one field survey, and four more experiments. Across studies, we tested our hypotheses with divergent operationalizations of the independent and dependent variables, different product categories, and diverse samples. Furthermore, building on the process explanation of sacrifice mindset, we demonstrate self-focus and social class as theoretically relevant moderators, such that the interactive effect on price sensitivity is attenuated when consumers are self-focused or perceive themselves as having lower social class. This research not only extends marketing literatures such as consumer identity and price sensitivity, but also offers useful guidelines for pricing strategies.

Keywords: gender, local-global identity, identity incongruence, price sensitivity, sacrifice mindset

Suggested Citation

Gao, Huachao and Mittal, Vikas and Zhang, Yinlong, The Differential Effect of Local-Global Identity Among Males and Females: The Case of Price Sensitivity (May 22, 2018). Available at SSRN: https://ssrn.com/abstract=3178452 or http://dx.doi.org/10.2139/ssrn.3178452

Huachao Gao

University of Victoria, Peter B. Gustavson School of Business - Marketing ( email )

Business & Economics Building, Room 256
Victoria, British Columbia
Canada
2504725503 (Phone)

HOME PAGE: http://https://www.uvic.ca/gustavson/faculty/faculty/faculty/current/gaoh.php

Vikas Mittal (Contact Author)

Rice University ( email )

6100 South Main Street
250 McNair
Houston, TX 77005-1892
United States

Yinlong Zhang

University of Texas at San Antonio ( email )

One UTSA Circle
San Antonio, TX 78249
United States

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