IDEAS home Printed from https://ideas.repec.org/a/pal/jobman/v25y2018i6d10.1057_s41262-018-0114-4.html
   My bibliography  Save this article

The influence of perceived strength of brand origin on willingness to pay more for luxury goods

Author

Listed:
  • Shir-Way Siew

    (University of Texas Rio Grande Valley)

  • Michael S. Minor

    (University of Texas Rio Grande Valley)

  • Reto Felix

    (University of Texas Rio Grande Valley)

Abstract

Drawing on dual processing theory (Loewenstein et al. in Decision 2(2):55–81, 2015), this paper investigates how the perceived strength of brand origin (PSBO) influences brand love and the willingness to pay more (WTPM) for luxury brands. Participants for two studies were recruited through the consumer panel of a professional survey service provider (Qualtrics). Mediation analysis based on Hayes’ (Behav Res Methods 40(3):879–891, 2013) process macro showed that brand love mediates the influence of PSBO on WTPM. This mediating effect through brand love (a highly emotional route) was substantially stronger than the alternative mediating effect through the quality-related aspects of brand luxuriousness (a more cognitive route of processing). Moderation analysis further showed that status consumption has a negative (i.e., attenuating) effect on the relationship between PSBO and brand love. Specifically, the results suggest that whereas consumers low on status consumption use PSBO as an important cue for how much they love the brand, consumers high on status consumption show relatively high levels of brand love, no matter whether PSBO is low or high. The findings make an important contribution to current research on brand origin and brand love, and provide marketing practitioners with options to manage luxury products more effectively.

Suggested Citation

  • Shir-Way Siew & Michael S. Minor & Reto Felix, 2018. "The influence of perceived strength of brand origin on willingness to pay more for luxury goods," Journal of Brand Management, Palgrave Macmillan, vol. 25(6), pages 591-605, November.
    • Handle: RePEc:pal:jobman:v:25:y:2018:i:6:d:10.1057_s41262-018-0114-4
    DOI: 10.1057/s41262-018-0114-4
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1057/s41262-018-0114-4
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1057/s41262-018-0114-4?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
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Noble, Stephanie M. & Haytko, Diana L. & Phillips, Joanna, 2009. "What drives college-age Generation Y consumers?," Journal of Business Research, Elsevier, vol. 62(6), pages 617-628, June.
    2. Kelly D. Martin & Ronald Paul Hill, 2012. "Life Satisfaction, Self-Determination, and Consumption Adequacy at the Bottom of the Pyramid," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 38(6), pages 1155-1168.
    3. Rik Pieters, 2017. "Meaningful Mediation Analysis: Plausible Causal Inference and Informative Communication," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 44(3), pages 692-716.
    4. Noel Albert & Dwight Merunka, 2013. "The role of brand love in consumer‐brand relationships," Post-Print hal-01822309, HAL.
    5. Fournier, Susan, 1998. "Consumers and Their Brands: Developing Relationship Theory in Consumer Research," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 24(4), pages 343-373, March.
    6. Bruno Godey & Daniele Pederzoli & Gaetano Aiello & Raffaele Donvito & Klaus-Peter Wiedmann, 2009. "An international perspective on luxury brand and country of origin effect," Post-Print hal-00565479, HAL.
    7. Noël Albert & Dwight Merunka & Pierre Valette-Florence, 2008. "When consumers love their brands: Exploring the concept and its dimensions," Post-Print hal-01822299, HAL.
    8. Aaron Ahuvia & Richard Bagozzi & Rajeev Batra, 2014. "Psychometric vs. C-OAR-SE measures of brand love: A reply to Rossiter," Marketing Letters, Springer, vol. 25(2), pages 235-243, June.
    9. Paul Chao, 1993. "Partitioning Country of Origin Effects: Consumer Evaluations of a Hybrid Product," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 24(2), pages 291-306, June.
    10. Smith, Scott M. & Roster, Catherine A. & Golden, Linda L. & Albaum, Gerald S., 2016. "A multi-group analysis of online survey respondent data quality: Comparing a regular USA consumer panel to MTurk samples," Journal of Business Research, Elsevier, vol. 69(8), pages 3139-3148.
    11. Leila Hamzaoui-Essoussi & Dwight Merunka & Boris Bartikowski, 2011. "Brand origin and country of manufacture influences on brand equity and the moderating role of brand typicality," Post-Print hal-01822305, HAL.
    12. Chandon, Jean-Louis & Laurent, Gilles & Valette-Florence, Pierre, 2016. "Pursuing the concept of luxury: Introduction to the JBR Special Issue on “Luxury Marketing from Tradition to Innovation”," Journal of Business Research, Elsevier, vol. 69(1), pages 299-303.
    13. Zachary S Johnson & Yichao Tian & Sangwon Lee, 2016. "Country-of-origin fit: When does a discrepancy between brand origin and country of manufacture reduce consumers’ product evaluations?," Journal of Brand Management, Palgrave Macmillan, vol. 23(4), pages 403-418, July.
    14. Jean-Louis Chandon & Gilles Laurent & Pierre Valette-Florence, 2016. "Pursuing the concept of luxury : Introduction to the JBR Special Issue on “Luxury Marketing from Tradition to Innovation”," Post-Print halshs-01374043, HAL.
    15. Albert, Noël & Merunka, Dwight & Valette-Florence, Pierre, 2008. "When consumers love their brands: Exploring the concept and its dimensions," Journal of Business Research, Elsevier, vol. 61(10), pages 1062-1075, October.
    16. Klaus-Peter Wiedmann & Nadine Hennigs, 2013. "Placing Luxury Marketing on the Research Agenda Not Only for the Sake of Luxury – An Introduction," Springer Books, in: Klaus-Peter Wiedmann & Nadine Hennigs (ed.), Luxury Marketing, edition 127, chapter 1, pages 3-17, Springer.
    17. John Rossiter, 2012. "A new C-OAR-SE-based content-valid and predictively valid measure that distinguishes brand love from brand liking," Marketing Letters, Springer, vol. 23(3), pages 905-916, September.
    18. Godey, Bruno & Pederzoli, Daniele & Aiello, Gaetano & Donvito, Raffaele & Chan, Priscilla & Oh, Hyunjoo & Singh, Rahul & Skorobogatykh, Irina I. & Tsuchiya, Junji & Weitz, Bart, 2012. "Brand and country-of-origin effect on consumers' decision to purchase luxury products," Journal of Business Research, Elsevier, vol. 65(10), pages 1461-1470.
    19. Liselot Hudders & Mario Pandelaere, 2013. "Indulging the Self Positive Consequences of Luxury Consumption," Springer Books, in: Klaus-Peter Wiedmann & Nadine Hennigs (ed.), Luxury Marketing, edition 127, chapter 7, pages 119-137, Springer.
    20. Wagner Kamakura, 2015. "Measure twice and cut once: the carpenter’s rule still applies," Marketing Letters, Springer, vol. 26(3), pages 237-243, September.
    21. Huachao Gao & Karen Page Winterich & Yinlong Zhang, 2016. "All That Glitters Is Not Gold: How Others’ Status Influences the Effect of Power Distance Belief on Status Consumption," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 43(2), pages 265-281.
    22. Fetscherin, Marc & Heinrich, Daniel, 2015. "Consumer brand relationships research: A bibliometric citation meta-analysis," Journal of Business Research, Elsevier, vol. 68(2), pages 380-390.
    23. Warren J Bilkey & Erik Nes, 1982. "Country-of-Origin Effects on Product Evaluations," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 13(1), pages 89-100, March.
    24. Hamzaoui-Essoussi, Leila & Merunka, Dwight & Bartikowski, Boris, 2011. "Brand origin and country of manufacture influences on brand equity and the moderating role of brand typicality," Journal of Business Research, Elsevier, vol. 64(9), pages 973-978, September.
    25. Li, Guoxin & Li, Guofeng & Kambele, Zephaniah, 2012. "Luxury fashion brand consumers in China: Perceived value, fashion lifestyle, and willingness to pay," Journal of Business Research, Elsevier, vol. 65(10), pages 1516-1522.
    26. 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.
    27. Barbara Carroll & Aaron Ahuvia, 2006. "Some antecedents and outcomes of brand love," Marketing Letters, Springer, vol. 17(2), pages 79-89, April.
    28. Tynan, Caroline & McKechnie, Sally & Chhuon, Celine, 2010. "Co-creating value for luxury brands," Journal of Business Research, Elsevier, vol. 63(11), pages 1156-1163, November.
    29. Shukla, Paurav & Purani, Keyoor, 2012. "Comparing the importance of luxury value perceptions in cross-national contexts," Journal of Business Research, Elsevier, vol. 65(10), pages 1417-1424.
    30. Moon, Hakil & Sprott, David E., 2016. "Ingredient branding for a luxury brand: The role of brand and product fit," Journal of Business Research, Elsevier, vol. 69(12), pages 5768-5774.
    31. Jean-Louis Chandon & Gilles Laurent & Pierre Valette-Florence, 2016. "Pursuing the concept of luxury: Introduction to the JBR Special Issue on “Luxury Marketing from Tradition to Innovation”," Post-Print hal-01796016, HAL.
    32. Lars Bergkvist, 2015. "Appropriate use of single-item measures is here to stay," Marketing Letters, Springer, vol. 26(3), pages 245-255, September.
    33. Shukla, Paurav, 2011. "Impact of interpersonal influences, brand origin and brand image on luxury purchase intentions: Measuring interfunctional interactions and a cross-national comparison," Journal of World Business, Elsevier, vol. 46(2), pages 242-252, April.
    34. Jean-Louis Chandon & Gilles Laurent & Pierre Valette-Florence, 2016. "Pursuing the concept of luxury: Introduction to the JBR Special Issue on “Luxury Marketing from Tradition to Innovation”," Post-Print hal-01998198, HAL.
    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. Diamantopoulos, Adamantios & Matarazzo, Michela & Montanari, Maria Gabriela & Petrychenko, Anastasiya, 2021. "The “Pricing Footprint” of Country-of-Origin: Conceptualization and Empirical Assessment," Journal of Business Research, Elsevier, vol. 135(C), pages 749-757.
    2. Huda Khan & Richard Lee, 2020. "A sociolinguistic perspective of the effects of packaging in bilingual markets," Journal of Brand Management, Palgrave Macmillan, vol. 27(2), pages 130-142, March.
    3. Lai, Yufeng & Yue, Chengyan & Watkins, Eric & Barnes, Mike, 2023. "Investigating the Efficacy of Government Rebates: A Case of the Smart Irrigation System," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 48(3), September.
    4. Zengrui Xiao & Ying Wang & Dongjie Guo, 2022. "Will Greenwashing Result in Brand Avoidance? A Moderated Mediation Model," Sustainability, MDPI, vol. 14(12), pages 1-15, June.
    5. Vesna Babić-Hodović & Alisa Mujkić & Maja Arslanagić-Kalajdžić, 2023. "We need both brand love and emotional attachment: a serial mediation framework toward addictive buying and loyalty," Journal of Brand Management, Palgrave Macmillan, vol. 30(1), pages 9-33, January.
    6. Shaun M. Powell, 2018. "Journal of Brand Management: year end review 2018," Journal of Brand Management, Palgrave Macmillan, vol. 25(6), pages 494-499, November.

    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. Farhad Aliyev & Taylan Urkmez & Ralf Wagner, 2019. "A comprehensive look at luxury brand marketing research from 2000 to 2016: a bibliometric study and content analysis," Management Review Quarterly, Springer, vol. 69(3), pages 233-264, September.
    2. Chandon, Jean-Louis & Laurent, Gilles & Lambert-Pandraud, Raphaëlle, 2022. "Battling for consumer memory: Assessing brand exclusiveness and brand dominance from citation-list," Journal of Business Research, Elsevier, vol. 145(C), pages 468-481.
    3. Debra Grace & Mitchell Ross & Ceridwyn King, 2018. "Brand fidelity: a relationship maintenance perspective," Journal of Brand Management, Palgrave Macmillan, vol. 25(6), pages 577-590, November.
    4. Pillai, Kishore Gopalakrishna & Nair, Smitha R., 2021. "The effect of social comparison orientation on luxury purchase intentions," Journal of Business Research, Elsevier, vol. 134(C), pages 89-100.
    5. Renée Rahman & Tobias Langner & Dirk Temme, 2021. "Brand love: conceptual and empirical investigation of a holistic causal model," Journal of Brand Management, Palgrave Macmillan, vol. 28(6), pages 609-642, November.
    6. Rosendo-Rios, Veronica & Shukla, Paurav, 2023. "When luxury democratizes: Exploring the effects of luxury democratization, hedonic value and instrumental self-presentation on traditional luxury consumers’ behavioral intentions," Journal of Business Research, Elsevier, vol. 155(PB).
    7. Song, Lei & Meng, Yan & Chang, Hua & Li, Wenjing & Tan (Frank), Kang, 2021. "How counterfeit dominance affects luxury fashion brand owners’ perceptions: A cross-cultural examination," Journal of Business Research, Elsevier, vol. 130(C), pages 1-13.
    8. Nobre, Helena & Simões, Cláudia, 2019. "NewLux Brand Relationship Scale: Capturing the scope of mass-consumed luxury brand relationships," Journal of Business Research, Elsevier, vol. 102(C), pages 328-338.
    9. Maria Kostritsa & Hildegard Liebl & Rupert Beinhauer & Jana Turčínková, 2020. "Consumer Brand Love for Luxury Brands in India," Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, Mendel University Press, vol. 68(1), pages 189-197.
    10. Vesna Babić-Hodović & Alisa Mujkić & Maja Arslanagić-Kalajdžić, 2023. "We need both brand love and emotional attachment: a serial mediation framework toward addictive buying and loyalty," Journal of Brand Management, Palgrave Macmillan, vol. 30(1), pages 9-33, January.
    11. Hemonnet-Goujot, Aurélie & Valette-Florence, Pierre, 2022. "“All you need is love” from product design value perception to luxury brand love: An integrated framework," Journal of Business Research, Elsevier, vol. 139(C), pages 1463-1475.
    12. Sindy Liu & Patsy Perry & Gregory Gadzinski, 2019. "The implications of digital marketing on WeChat for luxury fashion brands in China," Journal of Brand Management, Palgrave Macmillan, vol. 26(4), pages 395-409, July.
    13. Ferreira Pedro & Rodrigues Paula & Rodrigues Pedro, 2019. "Brand Love as Mediator of the Brand Experience-Satisfaction-Loyalty Relationship in a Retail Fashion Brand," Management & Marketing, Sciendo, vol. 14(3), pages 278-291, September.
    14. Alvarez, Claudio & David, Meredith E. & George, Morris, 2023. "Types of Consumer-Brand Relationships: A systematic review and future research agenda," Journal of Business Research, Elsevier, vol. 160(C).
    15. Jahanvi, Jahanvi & Sharma, Meenakshi, 2021. "Brand respect: Conceptualization, scale development and validation," Journal of Business Research, Elsevier, vol. 132(C), pages 115-123.
    16. Jacob, Isaac & Khanna, Monica & Rai, Krupa A., 2020. "Attribution analysis of luxury brands: An investigation into consumer-brand congruence through conspicuous consumption," Journal of Business Research, Elsevier, vol. 116(C), pages 597-607.
    17. Hatice AYDIN, 2017. "Marka Guveni, Farkindaligi ve Benlik Imaj Uyumunun Marka Bagliligina Etkisinde Marka Askinin Aracilik Rolu," Ege Academic Review, Ege University Faculty of Economics and Administrative Sciences, vol. 17(2), pages 281-294.
    18. Francisco J. Conejo & Lawrence F. Cunningham & Clifford E. Young, 2020. "Revisiting the Brand Luxury Index: new empirical evidence and future directions," Journal of Brand Management, Palgrave Macmillan, vol. 27(1), pages 108-122, January.
    19. Sharma, Amalesh & Soni, Mauli & Borah, Sourav Bikash & Haque, Tanjum, 2022. "From silos to synergies: A systematic review of luxury in marketing research," Journal of Business Research, Elsevier, vol. 139(C), pages 893-907.
    20. Gurzki, Hannes & Woisetschläger, David M., 2017. "Mapping the luxury research landscape: A bibliometric citation analysis," Journal of Business Research, Elsevier, vol. 77(C), pages 147-166.

    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:pal:jobman:v:25:y:2018:i:6:d:10.1057_s41262-018-0114-4. 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.palgrave.com .

    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.