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Many multinational companies employ a premium price strategy, especially in Asian markets. Literature indicates that this is possibly due to Asian consumers’ higher face concerns (concern for self-image and/or status earned in a social network) than Western consumers. That is, Asian consumers perceive that a high price signals face. This study investigates the impact of product tangibility (watch vs. musical) and social presence (stranger vs. acquaintance vs. close friend) on the relationship between face concerns and purchase intentions for high-priced options. We classify high versus low face concern using nationality (Chinese vs. Dutch) as a proxy as literature suggests. The results show that on average, Chinese consumers are more likely to buy a high-priced product than Dutch consumers, but they do not differ with regard to high (versus low) product tangibility and social presence. The findings of this research are highly relevant for international marketers.
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- Face Concerns and Purchase Intentions: A Cross-Cultural Perspective
Jenny van Doorn
Peter S. H. Leeflang
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