RRBM Honor Roll

The RRBM Honor Roll publications have been selected as examples of research that is both rigorous and relevant. The listing below offers credible insights for society.

These publications have been selected for the RRBM Honor Roll by the Selection Board with the exception of 2019 articles selected by a pre-test review panel.

 

Nature of the publicationJournal article
Title of the publication“Expected Socioeconomic-Status-Based Discrimination Reduces Price Sensitivity Among the Poor”
Journal name/Book publisherJournal of Market Research
DOIsagepub.com
Abstract

Low-socioeconomic-status (SES) consumers tend to be more price sensitive than their high-SES counterparts. Nonetheless, various economic-related burdens, such as mobility costs and lack of information, often hinder their ability to attend to scarcity—a phenomenon called “ghetto tax.” The current research moves a step further to show that even when very poor con- sumers can exert price sensitivity and are fully informed, a “psychological ghetto tax” often discourages them from doing so. Across five studies, the authors demonstrate that, relative to (1) high-SES consumers or (2) contexts of intragroup interaction, low-SES consumers are willing to pay higher prices and to accept lower-value rewards to avoid commercial settings that require intergroup interaction (e.g., poor consumers in a high-end shopping mall). This effect is driven by the poor consumers’ heightened expectations of discrimination in upscale commercial settings, a concern virtually nonexistent among wealthy consumers. Companies’ inclusion statements emphasizing customer equality and/or customer diversity can serve as safety cues against stigmatized identities and increase low-SES consumers’ price sensitivity

Author #1Jorge Jacob
Affiliation Author #1IESEG School of Management
Author #2Yan Vieites
Affiliation Author #2FGV/EBAPE
Author #3Rafael Goldszmidt
Affiliation Author #3FGV EBAPE
Author #4Eduardo Andrade
Affiliation Author #4Imperial College