The Impact of Consumer Currency Perception on Price Sensitivity Print

Customers are increasingly confronting with foreign market through internet and tourism. So they are challenged to evaluate prices in different currencies. They are familiar with the product price but they are engaged in a perceptual process while they are evaluating prices in different currencies. In this research customer currency perception and the price sensitivity is considered. The customer price sensitivity in different currencies would be measured through a pricing model. Questionnaire was applied as data gathering tool. The result showed customers experience perceptual bias when evaluating prices same in real value and different in nominal value and nominal value affects the customer purchase attitude. This bias reflects as the customer price sensitivity is less in low denomination currency. Findings have important implications for pricing in regional markets, internet market and also in tourism industry for customers and international companies.