IDEAS home Printed from https://ideas.repec.org/a/hur/ijarbs/v7y2017i7p619-639.html
   My bibliography  Save this article

A Study of Premium Price Brands with Special Reference to Willingness of Customer to Pay

Author

Listed:
  • Sheikh Farhan Ashraf
  • Cai Li
  • Babak Mehmood

Abstract

Use of premium price has become much gainful among brands for making unique and differentiate product among existing homogeneous product in the market. This marketing tool has gained key importance for the marketing research and global marketing. So using premium price for attracting the higher income customer has become a powerful tool in marketing. Premium price products are products which not differentiated in price but also in quality and comfort. Present study was conducted at big stores and malls in Lahore and Faisalabad. There were 220 respondent taken randomly and interweaved by asking a set of well-prepared questionnaire. The objective of the study were to find out the correlation among brand association and premium brands, the association between brand identity and premium brand, relationship between brand image and premium brand and to find the price association with premium brand. Result of the study explored that respondents income, brand equity and brand association are the significant determinants which affects consumers behavior regarding the purchase of premium brands and these factors contribute while decision making by consumers and they always take these factors into account. Results of the study also suggested that there is significant association between the both hypothesis which states the preference for the premium brand and the buying of premium brand.

Suggested Citation

  • Sheikh Farhan Ashraf & Cai Li & Babak Mehmood, 2017. "A Study of Premium Price Brands with Special Reference to Willingness of Customer to Pay," International Journal of Academic Research in Business and Social Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Business and Social Sciences, vol. 7(7), pages 619-639, July.
    • Handle: RePEc:hur:ijarbs:v:7:y:2017:i:7:p:619-639
    as

    Download full text from publisher

    File URL: http://hrmars.com/hrmars_papers/A_Study_of_Premium_Price_Brands_with_Special_Reference_to_Willingness_of_Customer_to_Pay.pdf
    Download Restriction: no
    File URL: http://hrmars.com/hrmars_papers/A_Study_of_Premium_Price_Brands_with_Special_Reference_to_Willingness_of_Customer_to_Pay.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Woolf, Jules, 2008. "Competitive Advantage in the Health and Fitness Industry: Developing Service Bundles," Sport Management Review, Elsevier, vol. 11(1), pages 51-75, May.
    2. Raj Sethuraman, 2009. "Assessing the External Validity of Analytical Results from National Brand and Store Brand Competition Models," Marketing Science, INFORMS, vol. 28(4), pages 759-781, 07-08.
    3. Bearden, William O & Netemeyer, Richard G & Teel, Jesse E, 1989. "Measurement of Consumer Susceptibility to Interpersonal Influence," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 15(4), pages 473-481, March.
    4. Jules Woolf, 2008. "Competitive Advantage in the Health and Fitness Industry: Developing Service Bundles," Sport Management Review, Taylor & Francis Journals, vol. 11(1), pages 51-75, January.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Ingrid R. Epezagne Assamala & Wenyuan Li & Sheikh Farhan Ashraf & Nausheen Syed & He Di & Mehrab Nazir, 2022. "Mediation-Moderation Model: An Empirical Examination of Sustainable Women Entrepreneurial Performance towards Agricultural SMEs in Ivory Coast," Sustainability, MDPI, vol. 14(10), pages 1-21, May.
    2. Aleem Ahmad Qader & Jingwei Zhang & Sheikh Farhan Ashraf & Nausheen Syed & Khaoula Omhand & Mehrab Nazir, 2022. "Capabilities and Opportunities: Linking Knowledge Management Practices of Textile-Based SMEs on Sustainable Entrepreneurship and Organizational Performance in China," Sustainability, MDPI, vol. 14(4), pages 1-26, February.
    3. K.J.M. Surantha Sanjaya, 2024. "Review Study About Marketing Strategies Implemented During Covid -19 Pandemic in Both Global and Sri Lankan Context," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 8(4), pages 2922-2933, April.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ardvin Kester S. Ong & Yogi Tri Prasetyo & Kerr Lorenzo Picazo & Kim Aaron Salvador & Bobby Ardiansyah Miraja & Yoshiki B. Kurata & Thanatorn Chuenyindee & Reny Nadlifatin & Anak Agung Ngurah Perwira , 2021. "Gym-Goers Preference Analysis of Fitness Centers during the COVID-19 Pandemic: A Conjoint Analysis Approach for Business Sustainability," Sustainability, MDPI, vol. 13(18), pages 1-17, September.
    2. Tsai, Pei-Hsuan, 2020. "Strategic evaluation criteria to assess competitiveness of the service industry in Taiwan," Journal of Policy Modeling, Elsevier, vol. 42(6), pages 1287-1309.
    3. Manuel Jesús Baena-Arroyo & Jerónimo García-Fernández & Pablo Gálvez-Ruiz & Moisés Grimaldi-Puyana, 2020. "Analyzing Consumer Loyalty through Service Experience and Service Convenience: Differences between Instructor Fitness Classes and Virtual Fitness Classes," Sustainability, MDPI, vol. 12(3), pages 1-16, January.
    4. Yuanfei Guo & Mary FitzPatrick & Roy Larke, 2017. "Use of Digital Technologies in Consumer Fitness Practices: Insights from Service-Dominant Logic," International Conference on Marketing and Business Development Journal, The Bucharest University of Economic Studies, vol. 1(1), pages 8-14, July.
    5. Vera Pedragosa & Salvador Angosto & Celina Gonçalves, 2022. "Validity and Reliability of a Wearable Fitness Technology Scale in Portugal," IJERPH, MDPI, vol. 19(10), pages 1-13, May.
    6. Pengji Wang & Adrian T. H. Kuah & Qinye Lu & Caroline Wong & K. Thirumaran & Emmanuel Adegbite & Wesley Kendall, 2021. "The impact of value perceptions on purchase intention of sustainable luxury brands in China and the UK," Journal of Brand Management, Palgrave Macmillan, vol. 28(3), pages 325-346, May.
    7. Neringa Ivanauskiene & Vilte Auruškeviciene & Vida Skudiene & Sarunas Nedzinskas, 2012. "Customer perceptions of value: case of retail banking," Organizations and Markets in Emerging Economies, Faculty of Economics, Vilnius University, vol. 3(1).
    8. ter Braak, Anne & Geyskens, Inge & Dekimpe, Marnik G., 2014. "Taking private labels upmarket: Empirical generalizations on category drivers of premium private label introductions," Journal of Retailing, Elsevier, vol. 90(2), pages 125-140.
    9. Franke, Nikolaus & von Hippel, Eric & Schreier, Martin, 2005. "Finding commercially attractive user innovations: A test of lead user theory," Working papers 4536-05, Massachusetts Institute of Technology (MIT), Sloan School of Management.
    10. Ruvio, Ayalla A. & Shoham, Aviv, 2016. "Consumer arrogance: Scale development and validation," Journal of Business Research, Elsevier, vol. 69(10), pages 3989-3997.
    11. Zhang, Jing & Chen, Mingliang & Xie, Zhaohan & Zhuang, Jingyi, 2022. "Don't fall into exquisite poverty: The impact of mismatch between consumers and luxury brands on happiness," Journal of Business Research, Elsevier, vol. 151(C), pages 298-309.
    12. Bangwool Han & Minho Kim, 2019. "Hofstede’s Collectivistic Values and Sustainable Growth of Online Group Buying," Sustainability, MDPI, vol. 11(4), pages 1-15, February.
    13. Yadav, Manjit S. & de Valck, Kristine & Hennig-Thurau, Thorsten & Hoffman, Donna L. & Spann, Martin, 2013. "Social Commerce: A Contingency Framework for Assessing Marketing Potential," Journal of Interactive Marketing, Elsevier, vol. 27(4), pages 311-323.
    14. Yingjue Zhou & Tieming Liu & Gangshu Cai, 2019. "Impact of In-Store Promotion and Spillover Effect on Private Label Introduction," Service Science, INFORMS, vol. 11(2), pages 96-112, June.
    15. Ostovan, Nima & Khalili Nasr, Arash, 2022. "The manifestation of luxury value dimensions in brand engagement in self-concept," Journal of Retailing and Consumer Services, Elsevier, vol. 66(C).
    16. Zongsheng Huang & Peijie Bai, 2024. "Dynamic Cooperative Promotion in the Presence of Private Brand Introduction and Retailer Myopic Behavior," Dynamic Games and Applications, Springer, vol. 14(5), pages 1131-1159, November.
    17. Liselot Hudders & Mario Pandelaere, 2012. "The Silver Lining of Materialism: The Impact of Luxury Consumption on Subjective Well-Being," Journal of Happiness Studies, Springer, vol. 13(3), pages 411-437, June.
    18. Sebastian Pyka & Pia Furchheim, 2017. "Experimentelle Marktforschung – Eine Einführung in die sozialwissenschaftliche Experimentalforschung," Chemnitz Economic Papers 014, Department of Economics, Chemnitz University of Technology.
    19. Lacroix, Caroline & Jolibert, Alain, 2017. "Mediational role of perceived personal legacy value between consumer agentic generativity and attitudes/buying intentions toward luxury brands," Journal of Business Research, Elsevier, vol. 77(C), pages 203-211.
    20. Mecking, Rebecca-Ariane & Roosen, Jutta, 2015. "Consumer empowerment in food retailing and the role of altruistic motives: an application of the theory of planned behavior," 143rd Joint EAAE/AAEA Seminar, March 25-27, 2015, Naples, Italy 202698, European Association of Agricultural Economists.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hur:ijarbs:v:7:y:2017:i:7:p:619-639. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Hassan Danial Aslam (email available below). General contact details of provider: http://hrmars.com/index.php/pages/detail/IJARBSS .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.