You paid what!? Understanding price-related word-of-mouth and price perception among opinion leaders and innovators

Abstract

Although prices are the most discussed topic in consumer conversations, research has mostly neglected the field of price-related word-of-mouth (WOM). The present study picks up this research gap by analyzing the effects of price-WOM valence and price change communicated by WOM on consumer price perception. While a WOM sender’s opinion is a stronger predictor of the recipient’s perceived price fairness, a price change communicated by WOM has a stronger effect on price expensiveness perceptions. Innovators are found to be more positive with their price fairness judgment compared to imitators, and opinion leaders are more prone to price-WOM than non-opinion leaders.