The Differential Effect of Local-Global Identity Among Males and Females: The Case of Price Sensitivity

The authors propose the effect of local-global identity on price sensitivity is moderated by gender. Specifically, when the two are inconsistent with each other (i.e., female with global identity or male with local identity), consumers tend to experience identity incongruence, which depletes their cognitive resources and facilitates a sacrifice mindset leading to lower price sensitivity. Consistent results emerge in six studies, including a field study in China using real consumption data, one field survey, and four more experiments. Across studies, we tested our hypotheses with divergent operationalizations of the independent and dependent variables, different product categories, and diverse samples. Furthermore, building on the process explanation of sacrifice mindset, we demonstrate self-focus and social class as theoretically relevant moderators, such that the interactive effect on price sensitivity is attenuated when consumers are self-focused or perceive themselves as having lower social class. This research not only extends marketing literatures such as consumer identity and price sensitivity, but also offers useful guidelines for pricing strategies.