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

Abstract

The authors examine how gender identity and local–global identity—two important consumer identities and segmentation bases—affect consumer price sensitivity. These identities may be associated with similar behavioral norms such that a female identity and a local identity are associated with the norms of small groups and intimate relationships, whereas a male identity and a global identity are associated with the norms of large groups and broad relationships. Thus, a female identity and a global (vs. local) identity, as is the case with a male identity and a local (vs. global) identity, results in identity incongruence (vs. congruence). The authors argue that identity incongruence depletes cognitive resources and induces affective processing, which in turn activates a sacrifice mindset and results in lower price sensitivity. Five studies with different research designs, divergent measures of key constructs, and diverse samples support the theories and identify boundary conditions of the focal relationship. The findings expand the literature on multiple consumer identities and price sensitivity and provide useful guidelines for global companies’ pricing strategies.