Journal of Marketing Behavior > Vol 4 > Issue 2-4

Dual Entitlement Revisited: Cultural Differences in Asymmetric Pricing

Haipeng (Allan) Chen, The University of Kentucky, USA, allanchen@uky.edu , Lisa E. Bolton, The Pennsylvania State University, USA, boltonle@psu.edu , Sharon Ng, Nanyang Technological University, Singapore, angsl@ntu.edu.sg , Dian Wang, The University of Texas at San Antonio, USA, dian.wang@utsa.edu
 
Suggested Citation
Haipeng (Allan) Chen, Lisa E. Bolton, Sharon Ng and Dian Wang (2020), "Dual Entitlement Revisited: Cultural Differences in Asymmetric Pricing", Journal of Marketing Behavior: Vol. 4: No. 2-4, pp 213-225. http://dx.doi.org/10.1561/107.00000065

Publication Date: 21 Dec 2020
© 2020 H. Chen et al.
 
Subjects
Behavioral Decision Making
 

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In this article:
Replicating the Cultural Difference with Managers' Pricing Decisions 
Identifying Boundary Conditions for the Cultural Differences in Price Fairness 
Study 1: Asymmetric Pricing Decisions by Managers 
Study 2: Tactics to Mitigate Consumer Unfairness Perceptions 
Study 3: Extending Study 2 to Collectivist (vs. Individualist) Consumers 
General Discussion 
References 

Abstract

Asymmetric pricing is less prevalent, and perceived as less fair, in collectivist (vs. individualist) cultures because it violates communal norms (Chen et al. 2018). We replicate this cultural difference by directly measuring managers' asymmetric pricing decisions and by priming self-construal among individual consumers as well as using country as a proxy for culture. In addition, we identify tactics that managers can employ to mitigate consumer unfairness perceptions. Together, these findings replicate, generalize, and extend the results in Chen et al. (2018), thereby shedding light on the generalizability of the principle of dual entitlement (Kahneman et al. 1986a, 1986b), a cornerstone of behavioral pricing.

DOI:10.1561/107.00000065