The Research On The Influence Factors Of Consumer Price Tolerance

Price tolerance is an important construct for pricing strategies. Understanding consumer price sensitivity and affordability accurately can help company make its pricing and marketing strategies. The main object of this paper is give some benefit suggest and provide an accurate pricing tool for company pricing strategies by the research of customer price tolerance influence factors from the perspective of consumer psychology.Price tolerance is the maximum price which consumers are willing to pay. Previous research of price tolerance influence factors is scattered and lacked of system, most of their only researched on the relationship between customer satisfaction and price tolerance. In order to explore the influence factors more comprehensively, we proposed six major influence factors for price tolerance——customer satisfaction, attitudinal brand loyalty, consumer innovativeness, brand parity, perceived price fairness, conspicuous consumption. Then a conceptual model of factors influencing the level of price tolerance is proposed and empirically tested with the use of date collected from mobile phone by a research firm.There are totally 400 questionnaires collected from for Chinese Cities by the research firm. We discovered that consumer innovativeness and conspicuous consumption have notable effect on price tolerance; each of their path coefficients was 0.549 and 0.349. Our results suggest that: Attitudinal brand loyalty, consumer innovativeness, customer satisfaction and conspicuous consumption have positive effect on price tolerance; Perceived price fairness and brand parity have negative effect on price tolerance, this is different from previous research result; Conspicuous consumption has positive effect on perceived price fairness and consumer innovativeness, and though this effect it influence the price tolerance indirectly; Consumer innovativeness has negative effect on attitudinal brand loyalty, and positive effect on brand parity, though this effect, consumer innovativeness influence the price tolerance indirectly. This result is differ from the previous research; Customer satisfaction and perceived price fairness have positive effect on attitudinal brand loyalty, and though this effect they influence the price tolerance indirectly. At last, the author analyzed and discussed the results we suggested which different from other researchers.Based on pre-researchers results, we suggest some different conclusions, such as perceived price fairness has negative effects on price tolerance. These conclusions complement and test if the results of other researchers'could use in mobile phone industry, and further abundant the theoretical study of customer price tolerance.According to the research conclusion, we provide managers with the following suggestions: Enterprise should jump out "on sale" circles, combined with the influence factors of price tolerance to formulate the reasonable price strategy; Based on the quality and service, highlighting innovation; Capture the conspicuous consumption difference accurately among different customer levels, meeting consumer physical and psychological demand effects, making consumers perceived more price fairness.