The Impact of Brand Experience on Factors Affecting Willingness to Pay a Price Premium and the Relationship of Price Premium to Purchase Intention

Year 2024, Volume: 32 Issue: 61, 243 - 264, 30.07.2024

Muhammed Furkan Taşcı , Nil Esra Dal

https://doi.org/10.17233/sosyoekonomi.2024.03.12

Abstract

This research aims to analyse the factors that affect the willingness to pay a price premium and the effect of brand experience on these factors. It also focuses on the relationship between price premium and online purchase intention. The research data were collected from 391 participants aged 18-25 using the online questionnaire technique with the convenience sampling method. Frequency analysis, normality test, correlation analysis, confirmatory factor analysis and path analysis were applied with appropriate statistical analysis programs. As a result of the research, it has been determined that brand experience affects perceived uniqueness, brand choice and brand reliability. In addition, the effect of brand reliability on willingness to pay price premiums and the relationship between price premiums and purchase intention are highlighted.

Keywords

Perceived Uniqueness, Brand Experience, Brand Credibility, Brand Choice, Willing-to-pay Price Premium, Purchase Intention

Fiyat Primi Ödeme İstekliliğini Etkileyen Unsurlar Üzerinde Marka Deneyiminin Etkisi ve Fiyat Priminin Satın Alma Niyeti ile İlişkisi

Abstract

Çalışmada, fiyat primi ödeme istekliliği üzerinde etkili olan unsurları ve bu unsurlar üzerinde marka deneyiminin etkisini analiz etmek ve fiyat primi ile satın alma niyeti arasındaki ilişkiyi incelemek amaçlanmıştır. Araştırmanın verileri, kolayda örnekleme metoduyla 18-25 yaş aralığındaki 391 katılımcıdan çevrimiçi anket tekniği kullanılarak toplanmıştır. Amaca uygun istatistiksel analiz programlarıyla frekans analizi, normallik testi, korelasyon analizi, doğrulayıcı faktör analizi ve yol analizi uygulanmıştır. Araştırmanın sonucunda marka deneyiminin algılanan benzersizlik, marka seçimi ve marka güvenilirliği üzerinde etkisi olduğu tespit edilmiştir. Ayrıca marka güvenilirliğinin fiyat primi ödeme istekliliği üzerindeki etkisine ve fiyat priminin satın alma niyeti ile var olan ilişkisine dikkat çekilmektedir.

Keywords

Algılanan Benzersizlik, Marka Deneyimi, Marka Güvenilirliği, Marka Seçimi, Fiyat Primi Ödeme İstekliliği, Satın Alma Niyeti

References

• Aaker, D.A. (1996), “Measuring brand equity across products and markets”, California Management Review, 38(3), 102-120.
• Agarwal, M.K. & V.R. Rao (1996), “An empirical comparison of consumer-based measures of brand equity”, Marketing Letters, 7(3), 237-247.
• Ailawadi, K.L. et al. (2003), “Revenue premium as an outcome measure of brand equity”, Journal of Marketing, 67(4), 1-17.
• Anselmsson, J. et al. (2007), “Understanding price premium for grocery products: a conceptual model of customer-based brand equity”, Journal of Product & Brand Management, 16(6), 401-414.
• Anselmsson, J. et al. (2014), “Brand image and customers’ willingness to pay a price premium for food brands”, Journal of Product & Brand Management, 23(2), 90-102.
• Baek, T.H. & K.W. King (2011), “Exploring the consequences of brand credibility in services”, Journal of Services Marketing, 25(4), 260-272.
• Bilgihan, A. et al. (2016), “Towards a unified customer experience in online shopping environments: Antecedents and outcomes”, International Journal of Quality and Service Sciences, 8(1), 102-119.
• Brakus, J.J. et al. (2009), “Brand experience: what is it? How is it measured? Does it affect loyalty?”, Journal of Marketing, 73(3), 52-68.
• Buil, I. et al. (2013), “The influence of brand equity on consumer responses”, Journal of Consumer Marketing, 30(1), 62-74.
• Bushara, M.A. et al. (2023), “Power of Social Media Marketing: How Perceived Value Mediates the Impact on Restaurant Followers’ Purchase Intention, Willingness to Pay a Premium Price, and E-WoM?”, Sustainability, 15(6), 5331.
• Carpenter, G.S. et al. (1994), “Meaningful brands from meaningless differentiation: The dependence on irrelevant attributes”, Journal of Marketing Research, 31(3), 339-350.
• Chow, W.S. & L.S. Chan (2008), “Social network, social trust and shared goals in organizational knowledge sharing”, Information & Management, 45(7), 458-465.
• Dasmohapatra, S. (2005), “Understanding customer value in the oriented strandboard industry”, Doctoral Dissertation, The Pennsylvania State University.
• Day, G.S. (1990), Market driven strategy, New York, NY: Free Press.
• Dewar, N. (2004), “What are brands good for?”, MIT Sloan Manag. Rev., 46(1), 86-94.
• Dhar, R. & S.J. Sherman (1996), “The effect of common and unique features in consumer choice”, Journal of Consumer Research, 23(3), 193-203.
• Dolan, R. et al. (2016), “Social media engagement behaviour: A uses and gratifications perspective”, Journal of Strategic Marketing, 24(3-4), 261-277.
• Doyle, P. (2001), “Shareholder-value-based brand strategies”, Journal of Brand Management, 9(1), 20-30.
• Dwivedi, A. et al. (2018), “Brand experience and consumers’ willingness-to-pay (WTP) a price premium: Mediating role of brand credibility and perceived uniqueness”, Journal of Retailing and Consumer Services, 44(1), 100-107.
• Ebrahim, R. et al. (2016), “A brand preference and repurchase intention model: the role of consumer experience”, J. Mark. Manag, 32(13-14), 1-30.
• Erdem, T. & J. Swait (1998), “Brand Equity as a signaling”, Journal of Consumer Psychology, 7(2), 131-157.
• Etikan, I. et al. (2016), “Comparison of convenience sampling and purposive sampling”, American Journal of Theoretical and Applied Statistics, 5(1), 1-4.
• Fatma, M. & I. Khan (2024), “Brand authenticity and consumers’ willingness to pay a premium price (WPP): The mediating role of brand identification”, Journal of Brand Management, 31(2), 1-13.
• Fishbein, M. & I. Ajzen (1977), “Belief, attitude, intention, and behavior: An introduction to theory and research”, Philosophy and Rhetoric, 10(2), 130-132.
• Fu, Y. & X. Chen (2023), “The Effect of Brand Attachment on Consumer Willingness to Pay Price Premiums Based on Cosmetic Products Insight”, Highlights in Business, Economics and Management, 17, 14-20.
• Garbarino, E. & M.S. Johnson (1999), “The different roles of satisfaction, trust, and commitment in customer relationships”, Journal of Marketing, 63(2), 70-87.
• Gupta, V. et al. (2024), “How the consumers’ intentions to pay a price premium are influenced in luxury fine dining restaurants?”, Journal of Foodservice Business Research, 27(2), 196-225.
• Gürbüz, S. & F. Şahin (2016), Sosyal bilimlerde araştırma yöntemleri felsefe-yöntem-analiz, Seçkin Kitabevi, Ankara.
• Hair, J.F. et al. (2014), Multivariate data analysis, Pearson Education Limited.
• Hamzah, Z.L. et al. (2014), “Designing corporate brand experience in an online context: A qualitative insight”, Journal of Business Research, 67(11), 2299-2310.
• Ho, K.F.X. et al. (2024), “A closer look at geographical indicators: how food labels influence product values, authenticity and willingness to pay premium prices”, Asia Pacific Journal of Marketing and Logistics, 36(4), 837-861.
• Hovland, C. et al. (1953), Communication and persuasion, New Haven, GT: Yale University Press.
• Hsu, C.H. et al. (2012), “A customer-based brand equity model for upscale hotels”, Journal of Travel Research, 51(1), 81-93.
• Hsu, C.L. & J.C.C. Lin (2008), “Acceptance of blog usage: The roles of technology acceptance, social influence and knowledge sharing motivation”, Information & Management, 45(1), 65-74.
• Hultén, B. (2011), “Sensory marketing: the multi‐sensory brand‐experience concept”, European Business Review, 23(3), 256-273.
• Hutter, K. et al. (2013), “The impact of user interactions in social media on brand awareness and purchase intention: the case of MINI on Facebook”, Journal of Product & Brand Management, 22(1), 91-105.
• Ittefaq, M. et al. (2023), “Opioids in satirical news shows: exploring topics, sentiments, and engagement in last week tonight on YouTube”, Journal of Health Communication, 28(1), 53-63.
• Janiszewski, C. & S.M. Van Osselaer (2000), “A connectionist model of brand-quality associations”, Journal of Marketing Research, 37(3), 331-350.
• Jaruzelski, B. et al. (2011), “The global innovation 1000: why culture is key”, Strategy Bus, 65(4), 30-45.
• Kahri, S.P. (2021), “Environmental attitudes of golf tourists and their willingness to pay a premium: Towards a more sustainable future of golf”, Doctoral Dissertation, Instituto Politecnico de Leiria, Portugal.
• Kalra, A. & R.C. Goodstein (1998), “The impact of advertising positioning strategies on consumer price sensitivity”, Journal of Marketing Research, 35(2), 210-224.
• Keller, K.L. & V. Swaminathan (2019), Strategic brand management: Building, measuring, and managing brand equity, London: Pearson.
• Keller, K.L. (1993), “Conceptualizing, measuring, and managing customer-based brand equity”, Journal of Marketing, 57(1), 1-22.
• Khalifa, A.S. (2004), “Customer value: A review of recent literature and an integrative configuration”, Management Decision, 42(5), 645-666.
• Khan, I. & Z. Rahman (2015), “Brand experience anatomy in retailing: An interpretive structural modeling approach”, Journal of Retailing and Consumer Services, 24(2), 60-69.
• Klein, J.F. et al. (2016), “Linking pop-up brand stores to brand experience and word of mouth: The case of luxury retail”, Journal of Business Research, 69(12), 5761-5767.
• Kuo, Y.F. & L.H. Feng (2013), “Relationships among community interaction characteristics, perceived benefits, community commitment, and oppositional brand loyalty in online brand communities”, International Journal of Information Management, 33(6), 948-962.
• Lee, J.L. (2015), “Assessing sport brand value through use of the contingent valuation method”, Journal of Economic & Financial Studies, 3(06), 33-44.
• Miller, L. (2021), Consumer preferences and associated price premiums for agricultural traits in Maine markets, The University of Maine.
• Morgan-Thomas, A. & C. Veloutsou (2013), “Beyond technology acceptance: Brand relationships and online brand experience”, Journal of Business Research, 66(1), 21-27.
• Nepomuceno, M.V. et al. (2014), “How to reduce perceived risk when buying online: The interactions between intangibility, product knowledge, brand familiarity, privacy and security concerns”, Journal of Retailing and Consumer Services, 21(4), 619-629.
• Netemeyer, R.G. et al. (2004), “Developing and validating measures of facets of customer-based brand equity”, Journal of Business Research, 57(2), 209-224.
• Nysveen, H. et al. (2013), “Brand experiences in service organizations: Exploring the individual effects of brand experience dimensions”, Journal of Brand Management, 20(5), 404-423.
• Preston, C.C. & A.M. Colman (2000), “Optimal number of response categories in rating scales: Reliability, validity, discriminating power, and respondent preferences”, Acta Psychologica, 104(1), 1-15.
• Raju, J.K. & A. Asifulla (2013), “Rural consumers brand choice behavior for mobiles”, Zenith International Journal of Business Economics & Management Research, 3(6), 193-201.
• Rao, A.R. & K.B. Monroe (1996), “Causes and consequences of price premiums”, Journal of Business, 69(4), 511-535.
• Rao, A.R. & M.E. Bergen (1992), “Price premium variations as a consequence of buyers’ lack of information”, Journal of Consumer Research, 19(3), 412-423.
• Sahni, N.S. & H.S. Nair (2019), “Does advertising serve as a signal? Evidence from a field experiment in mobile search”, The Review of Economic Studies, 87(3), 1529-1564.
• Schermelleh-Engel, K. et al. (2003), “Evaluating the fit of structural equation models: Tests of significance and descriptive goodness-of-fit measures”, Methods of Psychological Research Online, 8(2), 23-74.
• Schmidt, J. & T.H.A. Bijmolt (2020), “Accurately measuring willingness to pay for consumer goods: A meta-analysis of the hypothetical bias”, Journal of the Academy of Marketing Science, 48(3), 499-518.
• Sethuraman, R. & C. Cole (1999), “Factors influencing the price premiums that consumers pay for national brands over store brands”, Journal of Product & Brand Management, 8(4), 340- 351.
• Sethuraman, R. (2001), “What makes consumers pay more for national brands than for store brands-image or quality?”, Review of Marketing Science WP, 3(18), 1-40.
• Shiau, W.L. & M.M. Luo (2012), “Factors affecting online group buying intention and satisfaction: A social exchange theory perspective”, Computers in Human Behavior, 28(6), 2431-2444.
• STATISTA (2022), <https://www.statista.com/statistics/1344265/youtube-paying-subscribers/>, 02.03.2023.
• Tabachnick, B.G. & L.S. Fidell (2013), Using Multivariate Statistics, 6th ed., Pearson, Boston.
• Tavakol, M. & R. Dennick (2011), “Making sense of Cronbach’s alpha”, International Journal of Medical Education, 2(1), 53-55.
• Taylor, G.J. et al. (2003), “The 20-Item Toronto alexithymia scale: IV reliability and factorial validity in different languages and cultures”, Journal of Psychosomatic Research, 55(3), 277-283.
• Thomas, M.J. et al. (2019), “Determinants of online review credibility and its impact on consumers’ purchase intention”, Journal of Electronic Commerce Research, 20(1), 1-20.
• TÜİK (2022), <https://data.tuik.gov.tr/Bulten/Index?p=Hanehalki-Bilisim-Teknolojileri-(BT)-Kullanim-Arastirmasi-2022-45587>, 02.03.2023.
• Tynan, C. et al. (2014), “Interpreting value in the customer service experience using customer-dominant logic”, J. Mark. Manag, 30(9-10), 1058-1081.
• VARIETY (2022), <https://variety.com/2022/music/news/youtube-music-premium-80-million-paying-subscribers-1235427016/>, 02.03.2023.
• Verhoef, P.C. et al. (2009), “Customer experience creation: Determinants, dynamics and management strategies”, Journal of Retailing, 85(1), 31-41.
• Yang, M. et al. (2024), “Modeling the intention to consume and willingness to pay premium price for 3D-printed food in an emerging economy”, Humanities and Social Sciences Communications, 11(1), 1-14.
• Yang, Z. et al. (2003), “Services quality dimensions of internet retailing: an exploratory analysis”, Journal of Services Marketing, 17(7), 685-700.
• Ye, B.H. et al. (2019), “Website interactivity and brand development of online travel agencies in China: The moderating role of age”, Journal of Business Research, 99(1), 382-389.
• Yoon, D. & S. Youn (2016), “Brand experience on the website: its mediating role between perceived interactivity and relationship quality”, Journal of Interactive Advertising, 16(1), 1-15.