Brand Equity’s Impact on Consumer Willingness to Pay Premium Price: An extension to Theory of Planned Behavior

Abstract

The research is undertaken to investigate the impact of brand equity on consumer willingness to pay premium price by using an extended model of theory of planned behavior where the role of consumer attitude, subjective norms and perceived behavioral controls in shaping consumer intension towards paying premium price for a brand is explored and this theory is further extended to demonstrate the role of brand equity towards consumer intension to pay premium price. Moreover this research is specifically conducted in reference to Pakistan’s middle class behavior towards apparel brands and undergoes to deeply investigate middle class consumer behavior towards paying premium price for the brand. The study was carried put particularly in two cities of Punjab (Lahore and Gujranwala). Quantitative research design has been used. Data consists of a sample of 237 respondents taken by convenience sampling technique. The data was analyzed statistically by conducting regression analysis with SPSS. The findings indicate that there is significant impact of brand equity, attitude, subjective norms and perceived behavioral controls on consumer intension to pay premium price for the brand. The research findings depict that despite limited resources of income middle class is willing to pay premium price for a brand if the strong brand equity is established and efforts are made to make positives customer’s attitude subjective norms and perceived behavioral controls towards brand, because ultimately middle class is willing to pay premium price for the brand if it helps to boost their social status.