ARE CONSUMERS WILLING TO PAY A PRICE PREMIUM TO SHOP LOCALLY?

Tom DeNardin

Henry S. Cole

Kenneth E. Clow

University of Louisiana at Monroe

ABSTRACT

This study examines the price premium individuals are willing to pay to support locally-

owned clothing boutiques. Consumers’ level of local shopping loyalty, impulsive buyer behavior,

materialism, and attitude towards boutiques were included in the examination of this study. A

convenience sample was employed included college students at a public university in the mid-south

of the United States, their family members, and friends. The amount of price premium consumers

would pay to support local merchants was found to have a significant relationship with local

shopping loyalty, impulsive buyer behavior, and attitude towards boutiques. Especially significant

was the relationship between a person’s attitude towards boutique clothing stores and their

willingness to pay more for merchandise at local stores. Marketing strategies from these findings

are discussed.