IDEAS home Printed from https://ideas.repec.org/a/ist/ibsimj/v0y2020i88p127-143.html
   My bibliography  Save this article

Branding and Yemeni Organizations’ Willingness to Pay a Price Premium for Audit Services

Author

Listed:
  • Marwan GHALEB

    (Istanbul University, Institute of Social Sciences, Department of Business Administration, Istanbul, Turkey)

  • Burçin KAPLAN

    (Istanbul Aydin University, Institute of Social Sciences, Department of Business Administration, Istanbul, Turkey)

Abstract

Brand is considered as a profitability enhancing factor and an element that enhances the purchase intention and consumers’ willingness to pay a price premium. This research studies the effects of brand credibility, perceived uniqueness, and brand trust on consumers’ willingness to pay a price premium for audit services in Yemen. The research aims to understand the organizations’ attitude toward branded audit firms (big 4) in an unstable political and economic environment, taking Yemen as an example. Data were collected from 121 organizations that were audited in the last two years and analyzed using regression analysis. The analysis results revealed that the audit firms’ brand credibility and brand trust do not affect consumers’ willingness to pay a price premium, but their perceived uniqueness affects consumers’ willingness to pay a price premium for audit services in the Yemeni market. This research discusses the branding effect on the audit firms from the consumer point of view. It provides insights to the audit firms about the organizations’ attitude toward their audit fees, and their pricing strategies in an unstable environment.

Suggested Citation

  • Marwan GHALEB & Burçin KAPLAN, 2020. "Branding and Yemeni Organizations’ Willingness to Pay a Price Premium for Audit Services," Istanbul Management Journal, Istanbul University Business School, vol. 0(88), pages 127-143, June.
    • Handle: RePEc:ist:ibsimj:v:0:y:2020:i:88:p:127-143
    DOI: 10.26650/imj.2020.88.0005
    as

    Download full text from publisher

    File URL: https://dergipark.org.tr/tr/download/article-file/1179948
    Download Restriction: no
    File URL: https://dergipark.org.tr/tr/pub/imj/issue/55667/688180
    Download Restriction: no
    File URL: https://libkey.io/10.26650/imj.2020.88.0005?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Dwivedi, Abhishek & Nayeem, Tahmid & Murshed, Feisal, 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, Elsevier, vol. 44(C), pages 100-107.
    2. Craswell, Allen T. & Francis, Jere R. & Taylor, Stephen L., 1995. "Auditor brand name reputations and industry specializations," Journal of Accounting and Economics, Elsevier, vol. 20(3), pages 297-322, December.
    3. Sweeney, Jill & Swait, Joffre, 2008. "The effects of brand credibility on customer loyalty," Journal of Retailing and Consumer Services, Elsevier, vol. 15(3), pages 179-193.
    4. Rao, Akshay R & Monroe, Kent B, 1996. "Causes and Consequences of Price Premiums," The Journal of Business, University of Chicago Press, vol. 69(4), pages 511-535, October.
    5. Ying-Kai Liao, 2015. "The Role of Trust on Brand Loyalty and Brand Equity," Managing Intellectual Capital and Innovation for Sustainable and Inclusive Society: Managing Intellectual Capital and Innovation; Proceedings of the MakeLearn and TIIM Joint International Conference 2,, ToKnowPress.
    6. George E. Nogler, 2007. "Going concern modifications, CPA firm size, and the Enron effect," Managerial Auditing Journal, Emerald Group Publishing, vol. 23(1), pages 51-67, November.
    7. Winifred D. Scott & Willie E. Gist, 2013. "Forced auditor change, industry specialization and audit fees," Managerial Auditing Journal, Emerald Group Publishing, vol. 28(8), pages 708-734, August.
    8. Catherine Heyjung Sonu & Hyejin Ahn & Ahrum Choi, 2017. "Audit fee pressure and audit risk: evidence from the financial crisis of 2008," Asia-Pacific Journal of Accounting & Economics, Taylor & Francis Journals, vol. 24(1-2), pages 127-144, April.
    9. Casidy, Riza & Wymer, Walter, 2016. "A risk worth taking: Perceived risk as moderator of satisfaction, loyalty, and willingness-to-pay premium price," Journal of Retailing and Consumer Services, Elsevier, vol. 32(C), pages 189-197.
    10. Netemeyer, Richard G. & Krishnan, Balaji & Pullig, Chris & Wang, Guangping & Yagci, Mehmet & Dean, Dwane & Ricks, Joe & Wirth, Ferdinand, 2004. "Developing and validating measures of facets of customer-based brand equity," Journal of Business Research, Elsevier, vol. 57(2), pages 209-224, February.
    11. Jean-Noël Kapferer, 2004. "The New Strategic Brand Management," Post-Print hal-00786821, HAL.
    12. See Kwong Goh & Nan Jiang & Pei Leng Tee, 2016. "The Impact of Brand trust, Self-image Congruence and Usage Satisfaction toward Smartphone Repurchase Intention," International Review of Management and Marketing, Econjournals, vol. 6(3), pages 436-441.
    Full references (including those not matched with items on IDEAS)

    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. Kiattipoom Kiatkawsin & Ian Sutherland, 2020. "Examining Luxury Restaurant Dining Experience towards Sustainable Reputation of the Michelin Restaurant Guide," Sustainability, MDPI, vol. 12(5), pages 1-16, March.
    2. Leckie, Civilai & Dwivedi, Abhishek & Johnson, Lester W., 2023. "Credibility and price premium-based competitiveness for industrial brands," Journal of Retailing and Consumer Services, Elsevier, vol. 74(C).
    3. Anna Katarzyna Mazurek-Kusiak & Agata Kobyłka & Natalia Korcz & Andrzej Soroka, 2022. "Holidays Abroad and the Eating Behavior of the Inhabitants of Poland," IJERPH, MDPI, vol. 19(23), pages 1-13, November.
    4. Muhammad Waqar Rana & Faisal Mustafa & Muhammad Umer Quddoos & Rab Nawaz Lodhi, 2021. "How Brand Jealousy is an Antidote for Premium to Pay More in the Presence of Materialism and Brand Attachment?," iRASD Journal of Management, International Research Alliance for Sustainable Development (iRASD), vol. 3(1), pages 35-45, june.
    5. Anselmsson, Johan & Bondesson, Niklas, 2015. "Brand value chain in practise; the relationship between mindset and market performance metrics: A study of the Swedish market for FMCG," Journal of Retailing and Consumer Services, Elsevier, vol. 25(C), pages 58-70.
    6. Buil, Isabel & de Chernatony, Leslie & Martínez, Eva, 2013. "Examining the role of advertising and sales promotions in brand equity creation," Journal of Business Research, Elsevier, vol. 66(1), pages 115-122.
    7. Ghazal Shams & Mohsin Abdur Rehman & Sarminah Samad & Raouf Ahmad Rather, 2020. "The impact of the magnitude of service failure and complaint handling on satisfaction and brand credibility in the banking industry," Journal of Financial Services Marketing, Palgrave Macmillan, vol. 25(1), pages 25-34, June.
    8. Burmann, Christoph & Jost-Benz, Marc & Riley, Nicola, 2009. "Towards an identity-based brand equity model," Journal of Business Research, Elsevier, vol. 62(3), pages 390-397, March.
    9. Betül Çal & Mary Lambkin, 2017. "Brand equity of stock exchange as a mediator in financial decisions," Journal of Financial Services Marketing, Palgrave Macmillan, vol. 22(1), pages 14-23, March.
    10. Li-Jen He & Jianxiong Chen, 2021. "Does Mandatory Audit Partner Rotation Influence Auditor Selection Strategies?," Sustainability, MDPI, vol. 13(4), pages 1-21, February.
    11. Massoud Moslehpour & Ka Yin Chau & Alaleh Dadvari & Ben-Roy Do & Victoria Seitz, 2019. "What Killed HTC and Kept Apple Alive? Brand Sustainability Comparison of Two Asian Countries," Sustainability, MDPI, vol. 11(24), pages 1-22, December.
    12. Jain, Shilpi & Basu, Sriparna & Dwivedi, Yogesh K & Kaur, Sumeet, 2022. "Interactive voice assistants – Does brand credibility assuage privacy risks?," Journal of Business Research, Elsevier, vol. 139(C), pages 701-717.
    13. Dwivedi, Abhishek & Nayeem, Tahmid & Murshed, Feisal, 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, Elsevier, vol. 44(C), pages 100-107.
    14. Mónica Díaz-Bustamante & Sonia Carcelén & María Puelles, 2016. "Image of Luxury Brands," SAGE Open, , vol. 6(2), pages 21582440166, April.
    15. Anselmsson, Johan & Johansson, Ulf & Persson, Niklas, 2006. "A conceptual framework for understanding Customer-based brand equity and price premium in grocery categories," Working Paper Series 2006/4, Lund University, Institute of Economic Research.
    16. Lee, Eun-Jung, 2022. "Do tech products have a beauty premium? The effect of visual aesthetics of wearables on willingness-to-pay premium and the role of product category involvement," Journal of Retailing and Consumer Services, Elsevier, vol. 65(C).
    17. Li, Rong & Laroche, Michel & Richard, Marie-Odile & Cui, Xinyu, 2022. "More than a mere cup of coffee: When perceived luxuriousness triggers Chinese customers’ perceptions of quality and self-congruity," Journal of Retailing and Consumer Services, Elsevier, vol. 64(C).
    18. Mühlbacher, Hans & Raies, Karine & Grohs, Reinhard & Koll, Oliver, 2016. "Drivers of brand strength: Configural paths to strong cognitive brand equity," Journal of Business Research, Elsevier, vol. 69(8), pages 2774-2780.
    19. Laurence Kranich & Andrés Perea & Hans Peters, 2005. "Core Concepts For Dynamic Tu Games," International Game Theory Review (IGTR), World Scientific Publishing Co. Pte. Ltd., vol. 7(01), pages 43-61.
    20. Kanagaretnam, Kiridaran & Krishnan, Gopal V. & Lobo, Gerald J., 2009. "Is the market valuation of banks' loan loss provision conditional on auditor reputation?," Journal of Banking & Finance, Elsevier, vol. 33(6), pages 1039-1047, June.

    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:ist:ibsimj:v:0:y:2020:i:88:p:127-143. 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: Ertugrul YASAR (email available below). General contact details of provider: https://edirc.repec.org/data/isisttr.html .

    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.