Consumer Expectations of Preferential Pricing in The US versus China

Abstract

This paper empirically examines consumer normative expectations of preferential pricing (price discount) in the US versus China. It was found that merit and personal relationship have a significant impact on expected discount in both countries, the impact of merit on expected discount is stronger in the US than in China, and that in China personal relationship has a stronger effect than merit on expected discount. Findings demonstrate both the similarities and differences in consumer expectations of preferential treatment in the US versus China and have implications for preferential treatment practices in these two countries.