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.