A hierarchical model of values, price perception, ongoing search and shopping behaviors: A cross-cultural comparison

Abstract

A considerable degree of cross-cultural research has recognized the impact of cultural values of individualism and collectivism on individuals' consumption behavior. Recently, the impact of international market expansion and modernization may have helped transform values of materialism among Asians. It is evident that values have a hierarchical influence on consumption behavior through higher-order cognition (e.g., perceptions and attitudes). In this study, we argue that materialism, individualism, and collectivism have an impact on consumers' ongoing search and shopping behaviors through consumers' perceived two different roles of price: symbolic and functional. The symbolic role reflects a person's self-enhancement, role position, and self-image, whereas the functional role implies the motivational aspect of an individual's consumption. This current paper is comprised of two studies. In study one, we attempt to establish the overall hierarchical flow of the cultural values of materialism, individualism, and collectivism with regard to consumers' perceived symbolic and functional roles of price, which in turn affect their ongoing search and mall shopping behavior for apparel products based on the combined sample from two cultures, American and Korean. In study two, we focus on establishing a cross-cultural validation of the hierarchical model of values-price perception-ongoing search-shopping behaviors in four countries (the United States, Canada, Thailand, and China). Additionally, study two extends study one by incorporating both horizontal versus vertical individualism and collectivism and the role of the Internet as informational and transactional sources into the hierarchical model. The final sample is comprised of 806 college students. Of these, 192 are Americans, 158 are Canadian, 248 are Thai, and 208 are Chinese. The present findings illustrate that cross-cultural validation using the hierarchical model of values-price perception-ongoing search-shopping behavior is established. However, the underlying constructs explaining such flow differ considerably across cultures. Using a culture (i.e., region) and an individual (i.e., country) level of analysis, we further found that there are differences and similarities related to materialism; as well, the impact of horizontal versus vertical individualism and collectivism and the interrelationships among these constructs are examined. Implications for future theoretical and practitioner research are provided. Limitations and future research directions are also acknowledged.