HOW DO CUSTOMERS REACT TO PRICE CHANGES IN FASHION E-COMMERCE IN DIFFERENT COUNTIRES - A CROSS-CULTURAL APPROACH

摘要

This study empirically derives price elasticity figures by estimating demand functions of numerous fashion categories in six European countries. Therein, substantial variation between markets is apparent. Germany unfolds to be most price elastic followed by France, Netherlands, Austria, Belgium, and Sweden. Private brands show higher demand effect of price as compared to national brands. These estimates are related on dimensions of national culture in order to shed light on cross-cultural differences. Therein, countries high in cultural power distance, masculinity, and individualism involve more social status needs also translating to a less distinct price elasticity. In addition, cultures high in long-term orientation include a certain degree of thriftiness resulting in a more pronounced price elasticity.