JED, Vol. 20, No.1, April 2018, pp. 97-112
The Effect of Prestige Sensitivity on Price Acceptance in Vietnam’s Mobile Phone Market
Abstract:The purpose of this study is to examine the effect of prestige sensitivity on mobile phone
customer’s price acceptance in Vietnam and the mediating role of product knowledge and price
mavenism on this relationship. We used the convenience sampling method for data collection via
questionnaires with a sample of 605 consumers who purchased mobile phones. The collected
data was analysed by applying a structural equation modelling method. The result indicates that
prestige sensitivity has both direct and indirect effects on price acceptance via product knowledge
and price mavenism. The findings suggest that prestige sensitivity can be used as a market
segmentation criterion for mobile phones when making price decisions and providing customers
with adequate information could improve price acceptance.
Keywords:Mobile phone; prestige sensitivity; price acceptance; price mavenism; product knowledge.