Why do consumers pay more? Research finds the surprising effect of consumer local identity
Tuesday, October 25, 2016 - 15:31
in Mathematics & Economics
New research by a Rice University marketing professor debunks a long-held belief by companies that they could charge more for locally produced goods and services because of consumers' sense of attachment to their community. The study, published in the Journal of Marketing, determined consumers with a local identity will pay more than consumers with a global identity even when a product's country of origin is unknown.