Price
conformity is the extent to which the price of a product is similar to the
market price. There is a gap in research about how price conformity affects how
the consumer perceives it. Does a higher price highlight exclusivity or deter
potential customers? Three different studies about different types of luxury clothing consumers are
analyzed alongside studies performed about conformity in the social context.
These topics will be analyzed alongside each other and used to draw conclusions about consumer reactions to price
conformity. From this, it is found that status seeking individuals may be more
likely to see a much higher price as more unique and more desirable. Meanwhile,
conformity seeking individuals may be prone to stick to the status quo. The
outlier is that patricians may not have a reaction to price conformity or
nonconformity because pricing is not significant to them. These conclusions
provide insight for new firms and marketing managers into their specific
consumer demographic and how they can change their strategies accordingly.
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