Abstract

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.

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