Cross-national differences in price–role orientation and their impact on retail markets

Journal of the Academy of Marketing Science · 2015 · Volume 43 · Issue 2

Abstract

This paper analyzes differences in price–role orientations between economically developed and emerging markets and how these differences influence store brand and store format preferences. It extends cross-national research on price–role orientations by (1) focusing on culturally similar but economically different countries, (2) relating differences to preferences for store brands and low-price store formats, and (3) analyzing these effects for functional versus hedonic and low- versus high-price product groups. Based on theories explaining the effects of income on individual price perception and behavior, we hypothesize cross-national differences in price and value consciousness, the price–quality schema, and prestige sensitivity. Furthermore, we present a theoretical link between these price–role orientations and store format preferences based on the ability of store formats to address different price roles. A survey conducted in Germany and Poland reveals several cross-national differences in price–role orientations and resulting preferences, which, however, depend on product group characteristics.

Keywords

Price roles, Retailing, Store brands, Store formats

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