Cultural Influences on Dynamic Pricing and Consumer Price Sensitivity in FMCG Industry

Abstract

The fast-moving consumer goods (FMCG) industry in Spain faces increasing challenges in adapting to consumer preferences and competitive pressures through effective pricing strategies. This study examines the cultural influences on dynamic pricing and consumer price sensitivity within this context, focusing on the impact of cultural dimensions such as uncertainty avoidance and collectivism. Using a cross-sectional survey of 500 Spanish consumers, the research investigates how these cultural traits affect consumer perceptions of pricing fairness and their sensitivity to price changes. The findings reveal that high uncertainty avoidance is associated with increased price sensitivity and negative perceptions of dynamic pricing, emphasizing a preference for price stability. Collectivism also significantly influences consumer responses, highlighting the importance of fairness and social norms in shaping acceptance of pricing strategies. The study provides practical implications for FMCG companies to tailor their pricing approaches by integrating cultural insights, enhancing transparency, and fostering consumer trust. These insights contribute to a deeper understanding of how cultural factors can optimize dynamic pricing effectiveness and drive consumer loyalty in a competitive market environment.