The Effect of Power Distance Belief on the Evaluation of Experiential and Material Purchases

Abstract

Depending on the level of power distance belief (PDB), individuals have different motivations to compare themselves with other people. This study suggests that the relationship between purchase type (material versus experiential) and purchase evaluation is moderated by PDB. Furthermore, the effect of purchase type and PDB on purchase evaluation is mediated through comparison motivation. To investigate the effect of PDB on the evaluation, we conducted two experiments by manipulating a 2 (purchase type: material vs. experiential purchase) x 2 (PDB: low vs. high) between-subjects design. In the case of experiential purchases, individuals with high PDB exhibit lower purchase evaluations than those with low PDB, as they are more inclined to compare these with other experiential goods (study 1). Conversely, under material purchases, the impact of PDB on purchase evaluation does not differ as material purchases already motivate individuals to compare other material goods (study 1). Additionally, individuals with high PDB are more motivated to compare purchases due to their greater need for structure (study 2). Our findings provide guidelines for the development of advertising strategy with social networking services and live-streaming commerce platforms.