IDEAS home Printed from https://ideas.repec.org/a/pal/jorapm/v21y2022i1d10.1057_s41272-021-00289-z.html
   My bibliography  Save this article

You paid what!? Understanding price-related word-of-mouth and price perception among opinion leaders and innovators

Author

Listed:
  • Sebastian Schneider

    (Johannes Gutenberg University)

  • Frank Huber

    (Johannes Gutenberg University)

Abstract

Although prices are the most discussed topic in consumer conversations, research has mostly neglected the field of price-related word-of-mouth (WOM). The present study picks up this research gap by analyzing the effects of price-WOM valence and price change communicated by WOM on consumer price perception. While a WOM sender’s opinion is a stronger predictor of the recipient’s perceived price fairness, a price change communicated by WOM has a stronger effect on price expensiveness perceptions. Innovators are found to be more positive with their price fairness judgment compared to imitators, and opinion leaders are more prone to price-WOM than non-opinion leaders.

Suggested Citation

  • Sebastian Schneider & Frank Huber, 2022. "You paid what!? Understanding price-related word-of-mouth and price perception among opinion leaders and innovators," Journal of Revenue and Pricing Management, Palgrave Macmillan, vol. 21(1), pages 64-80, February.
    • Handle: RePEc:pal:jorapm:v:21:y:2022:i:1:d:10.1057_s41272-021-00289-z
    DOI: 10.1057/s41272-021-00289-z
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1057/s41272-021-00289-z
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1057/s41272-021-00289-z?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Lynch, John G, Jr & Marmorstein, Howard & Weigold, Michael F, 1988. "Choices from Sets Including Remembered Brands: Use of Recalled Attributes and Prior Overall Evaluations," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 15(2), pages 169-184, September.
    2. Ritu Agarwal & Jayesh Prasad, 1998. "A Conceptual and Operational Definition of Personal Innovativeness in the Domain of Information Technology," Information Systems Research, INFORMS, vol. 9(2), pages 204-215, June.
    3. Hirschman, Elizabeth C., 1984. "Experience seeking: A subjectivist perspective of consumption," Journal of Business Research, Elsevier, vol. 12(1), pages 115-136, March.
    4. David Godes & Dina Mayzlin, 2009. "Firm-Created Word-of-Mouth Communication: Evidence from a Field Test," Marketing Science, INFORMS, vol. 28(4), pages 721-739, 07-08.
    5. John G. Lynch Jr., 2006. "Accessibility-Diagnosticity and the Multiple Pathway Anchoring and Adjustment Model," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 33(1), pages 25-27, June.
    6. Nicole Koschate-Fischer & Wayne D. Hoyer & Nicola E. Stokburger-Sauer & Jan Engling, 2018. "Do life events always lead to change in purchase? The mediating role of change in consumer innovativeness, the variety seeking tendency, and price consciousness," Journal of the Academy of Marketing Science, Springer, vol. 46(3), pages 516-536, May.
    7. Midgley, David F & Dowling, Grahame R, 1978. "Innovativeness: The Concept and Its Measurement," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 4(4), pages 229-242, March.
    8. Herr, Paul M & Kardes, Frank R & Kim, John, 1991. "Effects of Word-of-Mouth and Product-Attribute Information on Persuasion: An Accessibility-Diagnosticity Perspective," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 17(4), pages 454-462, March.
    9. Kristine de Valck & Roberts V. Kozinets & Andrea C. Wojnicki & Sarah J.S. Wilner, 2010. "Networked Narratives: Understanding Word-of-Mouth Marketing in Online Communities," Post-Print hal-00458424, HAL.
    10. Jean-Pierre I. Rest & Alan M. Sears & Li Miao & Lorna Wang, 2020. "A note on the future of personalized pricing: cause for concern," Journal of Revenue and Pricing Management, Palgrave Macmillan, vol. 19(2), pages 113-118, April.
    11. Andrew E. Wilson & Michael D. Giebelhausen & Michael K. Brady, 2017. "Negative word of mouth can be a positive for consumers connected to the brand," Journal of the Academy of Marketing Science, Springer, vol. 45(4), pages 534-547, July.
    12. David Godes & Dina Mayzlin, 2004. "Using Online Conversations to Study Word-of-Mouth Communication," Marketing Science, INFORMS, vol. 23(4), pages 545-560, June.
    13. Grant Packard & Andrew D. Gershoff & David B. Wooten, 2016. "When Boastful Word of Mouth Helps versus Hurts Social Perceptions and Persuasion," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 43(1), pages 26-43.
    14. Vaidyanathan, Rajiv & Aggarwal, Praveen, 2003. "Who is the fairest of them all? An attributional approach to price fairness perceptions," Journal of Business Research, Elsevier, vol. 56(6), pages 453-463, June.
    15. Xiaoling Zhang & Shibo Li & Raymond R. Burke, 2018. "Modeling the effects of dynamic group influence on shopper zone choice, purchase conversion, and spending," Journal of the Academy of Marketing Science, Springer, vol. 46(6), pages 1089-1107, November.
    16. Bartels, Jos & Reinders, Machiel J., 2011. "Consumer innovativeness and its correlates: A propositional inventory for future research," Journal of Business Research, Elsevier, vol. 64(6), pages 601-609, June.
    17. Midgley, David F, 1976. "A Simple Mathematical Theory of Innovative Behavior," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 3(1), pages 31-41, June.
    18. Folkes, Valerie S & Patrick, Vanessa M, 2003. "The Positivity Effect in Perceptions of Services: Seen One, Seen Them All?," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 30(1), pages 125-137, June.
    19. Uzunoğlu, Ebru & Misci Kip, Sema, 2014. "Brand communication through digital influencers: Leveraging blogger engagement," International Journal of Information Management, Elsevier, vol. 34(5), pages 592-602.
    20. Verena Huettl & Heribert Gierl, 2012. "Visual art in advertising: The effects of utilitarian vs. hedonic product positioning and price information," Marketing Letters, Springer, vol. 23(3), pages 893-904, September.
    21. Gupta, Sunil & Cooper, Lee G, 1992. "The Discounting of Discounts and Promotion Thresholds," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 19(3), pages 401-411, December.
    22. Frank M. Bass, 1969. "A New Product Growth for Model Consumer Durables," Management Science, INFORMS, vol. 15(5), pages 215-227, January.
    23. Kelly L. Haws & William O. Bearden, 2006. "Dynamic Pricing and Consumer Fairness Perceptions," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 33(3), pages 304-311, October.
    24. Thakur, Ramendra & Angriawan, Arifin & Summey, John H., 2016. "Technological opinion leadership: The role of personal innovativeness, gadget love, and technological innovativeness," Journal of Business Research, Elsevier, vol. 69(8), pages 2764-2773.
    25. Bone, Paula Fitzgerald, 1995. "Word-of-mouth effects on short-term and long-term product judgments," Journal of Business Research, Elsevier, vol. 32(3), pages 213-223, March.
    26. John Hauser & Gerard J. Tellis & Abbie Griffin, 2006. "Research on Innovation: A Review and Agenda for," Marketing Science, INFORMS, vol. 25(6), pages 687-717, 11-12.
    27. East, Robert & Hammond, Kathy & Lomax, Wendy, 2008. "Measuring the impact of positive and negative word of mouth on brand purchase probability," International Journal of Research in Marketing, Elsevier, vol. 25(3), pages 215-224.
    28. Christophe Van den Bulte & Yogesh V. Joshi, 2007. "New Product Diffusion with Influentials and Imitators," Marketing Science, INFORMS, vol. 26(3), pages 400-421, 05-06.
    29. Rogers, Everett M, 1976. "New Product Adoption and Diffusion," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 2(4), pages 290-301, March.
    30. Yang, Zhiyong & Laroche, Michel, 2011. "Parental responsiveness and adolescent susceptibility to peer influence: A cross-cultural investigation," Journal of Business Research, Elsevier, vol. 64(9), pages 979-987, September.
    31. Leonard-Barton, Dorothy, 1985. "Experts as Negative Opinion Leaders in the Diffusion of a Technological Innovation," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 11(4), pages 914-926, March.
    32. Brown, Jacqueline Johnson & Reingen, Peter H, 1987. "Social Ties and Word-of-Mouth Referral Behavior," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 14(3), pages 350-362, December.
    33. Lisa E. Bolton & Joseph W. Alba, 2006. "Price Fairness: Good and Service Differences and the Role of Vendor Costs," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 33(2), pages 258-265, July.
    34. Hirschman, Elizabeth C, 1980. "Innovativeness, Novelty Seeking, and Consumer Creativity," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 7(3), pages 283-295, December.
    35. Hervas-Drane, Andres, 2015. "Recommended for you: The effect of word of mouth on sales concentration," International Journal of Research in Marketing, Elsevier, vol. 32(2), pages 207-218.
    36. Duncan J. Watts & Peter Sheridan Dodds, 2007. "Influentials, Networks, and Public Opinion Formation," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 34(4), pages 441-458, May.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Sebastian Schneider, 2022. "Price-related consumer discussions in China and the United States: a cross-cultural study investigating price perceptions and word-of-mouth transmission," Journal of Revenue and Pricing Management, Palgrave Macmillan, vol. 21(3), pages 274-290, June.
    2. Inyoung Chae & Andrew T. Stephen & Yakov Bart & Dai Yao, 2017. "Spillover Effects in Seeded Word-of-Mouth Marketing Campaigns," Marketing Science, INFORMS, vol. 36(1), pages 89-104, January.
    3. Florian Probst & Laura Grosswiele & Regina Pfleger, 2013. "Who will lead and who will follow: Identifying Influential Users in Online Social Networks," Business & Information Systems Engineering: The International Journal of WIRTSCHAFTSINFORMATIK, Springer;Gesellschaft für Informatik e.V. (GI), vol. 5(3), pages 179-193, June.
    4. Pescher, Christian & Reichhart, Philipp & Spann, Martin, 2014. "Consumer Decision-making Processes in Mobile Viral Marketing Campaigns," Journal of Interactive Marketing, Elsevier, vol. 28(1), pages 43-54.
    5. Pan, Yue & Zhang, Jason Q., 2011. "Born Unequal: A Study of the Helpfulness of User-Generated Product Reviews," Journal of Retailing, Elsevier, vol. 87(4), pages 598-612.
    6. Nejad, Mohammad G. & Amini, Mehdi & Babakus, Emin, 2015. "Success Factors in Product Seeding: The Role of Homophily," Journal of Retailing, Elsevier, vol. 91(1), pages 68-88.
    7. Martin, William C. & Lueg, Jason E., 2013. "Modeling word-of-mouth usage," Journal of Business Research, Elsevier, vol. 66(7), pages 801-808.
    8. Yucheng Zhang & Zhiling Wang & Lin Xiao & Lijun Wang & Pei Huang, 2023. "Discovering the evolution of online reviews: A bibliometric review," Electronic Markets, Springer;IIM University of St. Gallen, vol. 33(1), pages 1-22, December.
    9. Peres, Renana & Muller, Eitan & Mahajan, Vijay, 2010. "Innovation diffusion and new product growth models: A critical review and research directions," International Journal of Research in Marketing, Elsevier, vol. 27(2), pages 91-106.
    10. Hossein Nasiri Zarandi & Fereshteh Lotfizadeh, 2016. "The Influence of Cognitive Innovativeness on the Behavior and Style of Consumer Adoption: Implications for Electronic-Banking Service Adoption," International Journal of Marketing Studies, Canadian Center of Science and Education, vol. 8(5), pages 90-103, October.
    11. Claus, Bart & Geyskens, Kelly & Millet, Kobe & Dewitte, Siegfried, 2012. "The referral backfire effect: The identity-threatening nature of referral failure," International Journal of Research in Marketing, Elsevier, vol. 29(4), pages 370-379.
    12. Koji Ishida & Lisa Slevitch & Katia Siamionava, 2016. "The Effects of Traditional and Electronic Word-of-Mouth on Destination Image: A Case of Vacation Tourists Visiting Branson, Missouri," Administrative Sciences, MDPI, vol. 6(4), pages 1-17, September.
    13. Grant Miller & A. Mushfiq Mobarak, 2015. "Learning About New Technologies Through Social Networks: Experimental Evidence on Nontraditional Stoves in Bangladesh," Marketing Science, INFORMS, vol. 34(4), pages 480-499, July.
    14. Jing Wang & Anocha Aribarg & Yves F. Atchadé, 2013. "Modeling Choice Interdependence in a Social Network," Marketing Science, INFORMS, vol. 32(6), pages 977-997, November.
    15. Pranpreya Sriwannawit & Ulf Sandström, 2015. "Large-scale bibliometric review of diffusion research," Scientometrics, Springer;Akadémiai Kiadó, vol. 102(2), pages 1615-1645, February.
    16. Kick, Markus, 2015. "Social Media Research: A Narrative Review," EconStor Preprints 182506, ZBW - Leibniz Information Centre for Economics.
    17. Nejad, Mohammad G. & Amini, Mehdi & Sherrell, Daniel L., 2016. "The profit impact of revenue heterogeneity and assortativity in the presence of negative word-of-mouth," International Journal of Research in Marketing, Elsevier, vol. 33(3), pages 656-673.
    18. Akbari, Morteza & Foroudi, Pantea & Zaman Fashami, Rahime & Mahavarpour, Nasrin & Khodayari, Maryam, 2022. "Let us talk about something: The evolution of e-WOM from the past to the future," Journal of Business Research, Elsevier, vol. 149(C), pages 663-689.
    19. Muller, Eitan & Peres, Renana, 2019. "The effect of social networks structure on innovation performance: A review and directions for research," International Journal of Research in Marketing, Elsevier, vol. 36(1), pages 3-19.
    20. Tuan Q. Phan & David Godes, 2018. "The Evolution of Influence Through Endogenous Link Formation," Marketing Science, INFORMS, vol. 37(2), pages 259-278, March.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pal:jorapm:v:21:y:2022:i:1:d:10.1057_s41272-021-00289-z. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.palgrave.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.