Journal of Marketing Science ›› 2022, Vol. 2 ›› Issue (4): 18-36.

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Domestic Currency vs. Foreign Currency?  A Study of the Influence of Currency Type on Price-Quality Judgment

Duan Shen, Liu Fengjun, Meng Lu   

  1. Duan Shen, School of Business, Renmin University of China Liu Fengjun, School of Business, Renmin University of China Meng Lu, School of Business, Renmin University of China
  • Online:2022-10-16 Published:2023-03-22

Abstract:  Based on the money illusion theory, this paper explored the influences of different money clues ( presented by local currency versus foreign currency) on consumer's price-quality judgment.  The exploratory experiment and Experiment I verified that the individual's price-quality judgment tendency was higher when facing foreign money clues compared with when facing domestic money clues.  Experiment II changed the foreign currency type and added a control group on the basis of Experiment I. Laboratory experiments were carried out to test the mediating effect of structural need on the relationship between money clue and price-quality judgment.  Experiment III explored the boundary condition for the existence of this effect, i. e., the conversion task. This study indicated that this effect only existed when individuals did not take the conversion task (i. e., the avoidance strategy) , and that the different effect of money clues on price-quality judgment disappeared when individuals took the conversion tasks (i. e., the calculation strategy) .  This research expands the theoretical framework of money clues and price-quality judgment, and also provides practical guidances for merchants to effectively utilize the ubiquitous money clues in the consumption situation.

Key words: money clues , price-quality judgment , structural need , conversion task