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Most marketing practices assume that consumers will buy when prices are low. This assumption, however, may not always hold true. Employing equity theory and Veblen’s theory of the leisure class, this study tested two moderating effects to ascertain the relationship between perceived price and purchase intention. The purpose of this paper is threefold: first, to examine the relationship between perceived price and willingness to purchase; second, to discover the effects of two moderators (perceived price fairness and vanity) on this relationship; and third, to compare how these moderating effects differ by consumers’ brand familiarity.

A total of 287 usable data sets were collected from college students in the southeastern region of the USA.

The findings showed no negative relationship between perceived price and willingness to purchase. Only perceived price fairness was found to moderate the perceived price–purchase intention relationship. Furthermore, the moderating effect of price fairness was only confirmed in the high brand familiarity group, while the moderating effect of vanity was only confirmed in the low brand familiarity group.

Generalization of the findings is cautioned because findings may vary by demographic backgrounds.

Since purchase intention increases when price is fair even though price is high, marketers should put efforts into promoting and creating the perception of fair price of their products and brands.

This study extends price perception research by incorporating two theories (equity theory and Veblen’s theory of the leisure class) that help further elaborate the relationship between perceived price and willingness to purchase.

The purposes of this study are to empirically test the differences among three major cities in India by their affluence level, selected factors related to consumer purchase behaviors, and to examine the regional differences in purchase behaviors.

A total of 652 usable data were collected from consumers of age 18 years or older residing in Mumbai, New Delhi, and Bangalore, India via mall intercept surveys.

Overall, the findings confirmed that affluence level in each region explains the variances in region's values, attitudes, lifestyles, and consumption patterns of foreign branded goods. That is, Mumbai (i.e. the highest GDP among the three cities) showed individualistic characteristics (i.e. lower levels of face saving and group conformity). Attitude toward economizing was found to be inversely related to a city's affluence level with Bangalore (least affluent) having the highest attitude toward economizing and Mumbai (most affluent) having the lowest attitude toward economizing. Mumbai and New Delhi consumers purchased significantly more foreign jeans than Bangalore consumers. In purchasing foreign brand goods, social attributes (i.e. brand name and latest fashion) were more prominent in Bangalore consumers who are the most collectivistic in this study.

The findings of this study convey a clear message: assuming Indian consumers are the same across regions is a mistake and a localization approach should be considered to market to each region.

This study is one of the first attempts to examine regional differences in the Indian market. This study adds empirical evidence that differing economic affluence levels are critical in estimating consumption differences by region.

This study aims to understand Indian consumers' purchase behaviors of foreign brand goods as a way to help US companies to explore India's market potential. To this end, the study seeks to propose an integrated behavioral intention model incorporating the two modified Fishbein models (Lee's modified Fishbein model and Ajzen's theory of planned behavior) and empirically test the model.

Data from a total of 210 usable surveys were collected from Indian college students at four universities in Bangalore, India.

The results revealed that attitude toward foreign brand jeans and perceived behavioral control (PBC) had greater influence on Indian consumers' purchase intentions toward foreign brand jeans than did normative influences (i.e. subjective norm and face saving).

Generalization of the findings is cautioned because findings may vary by regions and by demographic backgrounds.

Since attitude toward foreign brand jeans and PBC were the first and second significant factors influencing purchase intention, US companies need to create a positive attitude toward US brand goods, and should target consumers with resources (i.e. time and money).

This study is one of the first research attempts to integrate two behavioral intention models to study the purchase intention of Indian consumers toward foreign brand goods.