Consumer evaluations of price discounts in foreign currencies

Today’s consumers are becoming increasingly exposed to foreign markets through travel or via the Internet. They are facing new challenges in these less familiar shopping environments. One such challenge is the comparison of prices in a foreign currency. This issue is addressed by examining how consumers from different countries evaluate such price discounts. Hypotheses are developed regarding the impact of currency denomination familiarity on consumers’ attitudinal response to changes in prices. The results of an experimental study conducted in Italy and the USA support the proposition that consumers who are more familiar with the foreign currency’s denomination will be more influenced by price differentials than those consumers who are less familiar with the foreign currency’s denomination. The implications of the findings for pricing strategies in regional trade zones, international tourism, and global e‐marketing are discussed.