This study empirically derives price elasticity estimates in fashion e-commerce in six European countries and explores their relationship within the given cultural context using Hofstede’s cultural dimensions theory. The authors use a novel data set consisting of more than two million actual sales transactions provided by a leading European fashion e-commerce company for regression analysis and find considerable cross-country differences in price elasticity. Furthermore, cultural dimensions power distance, individualism, and masculinity relate to a less distinct price elasticity whereas long-term orientation pertains to the opposite. Lastly, the study analyzes profit implications for multinational corporations employing cross-country price discrimination.
Kemper, Jan, "CROSS-CULTURAL DIFFERENCES IN ONLINE PRICE ELASTICITY" (2018). Research Papers. 176.