IDEAS home Printed from https://ideas.repec.org/a/url/upravl/v11y2020i6p70-84.html

The mediating role of price sensitivity in the effect of trust and loyalty to luxury brands on the brand preference

Author

Listed:
  • Esra Ozkan Pir

    (Erzincan Binali Y?ld?r?m University, Erzincan, Turkey)

  • Evrim Derinozlu

    (Erzincan Binali Y?ld?r?m University, Erzincan, Turkey)

Abstract

In the age of consumption, customers prefer high-quality and exclusively designed luxury brands. This trend is based on a variety of reasons, such as the manifestation of status and wealth, as well as positive emotions and symbolic power created by these brands. The study aims to examine the variables of trust and loyalty to luxury brands, brand preference and price sensitivity, and to determine whether there is a meaningful relationship between these variables. If there is, to investigate the mediating role of price sensitivity in the effect of consumer trust and loyalty to luxury brands on brand preference. The methodological framework of the research includes planned behaviour theory to predict customers’ intentions and behaviours towards luxury brands. The information base of the research includes data from the online survey of 563 respondents from Turkey. Among the main research methods applied in the study are descriptive statistics and correlation analysis. SPSS 22.0 and AMOS software, as well as the principles of structural equation modeling are used to analyze the data. In the research, we could not determine the mediating role of price sensitivity in the effect of brand trust and loyalty on brand preference. A statistically significant, positive, and healthy relationship exists between brand trust and brand loyalty and brand preference. The study shows that the effect of price sensitivity and brand trust on brand preference is weak. The theoretical and practical importance of the study is to support companies in developing successful luxury branding strategies and to contribute to the luxury brand literature.

Suggested Citation

  • Esra Ozkan Pir & Evrim Derinozlu, 2020. "The mediating role of price sensitivity in the effect of trust and loyalty to luxury brands on the brand preference," Upravlenets, Ural State University of Economics, vol. 11(6), pages 70-84, December.
    • Handle: RePEc:url:upravl:v:11:y:2020:i:6:p:70-84
    DOI: 10.29141/2218-5003-2020-11-6-6
    as

    Download full text from publisher

    File URL: http://upravlenets.usue.ru/images/88/6.pdf
    Download Restriction: no
    File URL: http://upravlenets.usue.ru/ru/-2020/723
    Download Restriction: no
    File URL: https://libkey.io/10.29141/2218-5003-2020-11-6-6?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. Johanna Gummerus & Veronica Liljander & Emil Weman & Minna Pihlström, 2012. "Customer engagement in a Facebook brand community," Management Research Review, Emerald Group Publishing Limited, vol. 35(9), pages 857-877, August.
    2. Gheorghe ORZAN & Otilia-Elena PLATON & Cristian Dragos STEFĂNESCU & Mihai ORZAN, 2016. "Conceptual Model Regarding The Influence Of Social Media Marketing Communication On Brand Trust, Brand Affect And Brand Loyalty," ECONOMIC COMPUTATION AND ECONOMIC CYBERNETICS STUDIES AND RESEARCH, Faculty of Economic Cybernetics, Statistics and Informatics, vol. 50(1), pages 141-156.
    3. Hollebeek, Linda D. & Glynn, Mark S. & Brodie, Roderick J., 2014. "Consumer Brand Engagement in Social Media: Conceptualization, Scale Development and Validation," Journal of Interactive Marketing, Elsevier, vol. 28(2), pages 149-165.
    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. Tunmin Catherine Jai & Xiao Tong & Hsiangting Shatina Chen, 2022. "Building brand loyalty on social media: theories, measurements, antecedents, and consequences," Journal of Brand Management, Palgrave Macmillan, vol. 29(1), pages 35-57, January.
    2. Husain, Rehan & Paul, Justin & Koles, Bernadett, 2022. "The role of brand experience, brand resonance and brand trust in luxury consumption," Journal of Retailing and Consumer Services, Elsevier, vol. 66(C).
    3. Dessart, Laurence & Pitardi, Valentina, 2019. "How stories generate consumer engagement: An exploratory study," Journal of Business Research, Elsevier, vol. 104(C), pages 183-195.
    4. Fujita, Momoko & Harrigan, Paul & Soutar, Geoffrey N. & Kumar Roy, Sanjit & Roy, Rajat, 2020. "Enhancing member-institution relationships through social media: The role of other-user engagement behavior and similarity perceptions," Journal of Business Research, Elsevier, vol. 121(C), pages 642-654.
    5. Thomas Wozniak & Brigitte Stangl & Roland Schegg & Andreas Liebrich, 2017. "The return on tourism organizations’ social media investments: preliminary evidence from Belgium, France, and Switzerland," Information Technology & Tourism, Springer, vol. 17(1), pages 75-100, March.
    6. Harrigan, Paul & Evers, Uwana & Miles, Morgan P. & Daly, Tim, 2018. "Customer engagement and the relationship between involvement, engagement, self-brand connection and brand usage intent," Journal of Business Research, Elsevier, vol. 88(C), pages 388-396.
    7. Aqib Habib & Muhammad Irfan & Mohsin Shahzad, 2022. "Modeling the enablers of online consumer engagement and platform preference in online food delivery platforms during COVID-19," Future Business Journal, Springer, vol. 8(1), pages 1-18, December.
    8. Lim, Weng Marc & Rasul, Tareq & Kumar, Satish & Ala, Mamun, 2022. "Past, present, and future of customer engagement," Journal of Business Research, Elsevier, vol. 140(C), pages 439-458.
    9. Carsten D. Schultz, 2016. "Insights from consumer interactions on a social networking site: Findings from six apparel retail brands," Electronic Markets, Springer;IIM University of St. Gallen, vol. 26(3), pages 203-217, August.
    10. Ludovica Moi & Moreno Frau & Francesca Cabiddu, 2018. "Exploring the Role of NVivo Software in Marketing Research," MERCATI & COMPETITIVIT?, FrancoAngeli Editore, vol. 2018(4), pages 65-86.
    11. Busalim, Abdelsalam H. & Ghabban, Fahad & Hussin, Ab Razak Che, 2021. "Customer engagement behaviour on social commerce platforms: An empirical study," Technology in Society, Elsevier, vol. 64(C).
    12. Nadeem, Waqar & Tan, Teck Ming & Tajvidi, Mina & Hajli, Nick, 2021. "How do experiences enhance brand relationship performance and value co-creation in social commerce? The role of consumer engagement and self brand-connection," Technological Forecasting and Social Change, Elsevier, vol. 171(C).
    13. Muhammad Sarmad & Naeem Ahmad & Muhammad Khan & Muhammad Irfan & Hajira Atta, 2020. "Investigating the Moderating Role of Trust between Social Media Capabilities and Consumer Brand Engagement Across Textile Sector of Pakistan," International Review of Management and Marketing, Econjournals, vol. 10(4), pages 53-62.
    14. Marius GERU & Angela Eliza MICU & Alexandru CAPATINA & Adrian MICU, 2018. "Using Artificial Intelligence on Social Media’s User Generated Content for Disruptive Marketing Strategies in eCommerce Abstract. This study examines how user-generated content on social media can act as a marketing research instrument in identifying," Economics and Applied Informatics, "Dunarea de Jos" University of Galati, Faculty of Economics and Business Administration, issue 3, pages 5-11.
    15. Thomas Wozniak & Brigitte Stangl & Roland Schegg & Andreas Liebrich, 0. "The return on tourism organizations’ social media investments: preliminary evidence from Belgium, France, and Switzerland," Information Technology & Tourism, Springer, vol. 0, pages 1-26.
    16. Shahbaznezhad, Hamidreza & Dolan, Rebecca & Rashidirad, Mona, 2021. "The Role of Social Media Content Format and Platform in Users' Engagement Behavior," Journal of Interactive Marketing, Elsevier, vol. 53(C), pages 47-65.
    17. Andrea Moretta Tartaglione & Ylenia Cavacece & Giuseppe Russo & Giuseppe Granata, 2019. "A Systematic Mapping Study on Customer Loyalty and Brand Management," Administrative Sciences, MDPI, vol. 9(1), pages 1-21, January.
    18. Vishwas G. Raichur & Dinesh Sharma & Arti D. Kalro, 2025. "Customer engagement in firm-initiated and consumer-initiated online brand communities: an exploratory study," Information Systems and e-Business Management, Springer, vol. 23(1), pages 169-207, March.
    19. Algharabat, Raed & Rana, Nripendra P. & Alalwan, Ali Abdallah & Baabdullah, Abdullah & Gupta, Ashish, 2020. "Investigating the antecedents of customer brand engagement and consumer-based brand equity in social media," Journal of Retailing and Consumer Services, Elsevier, vol. 53(C).
    20. Zhan Wang, 2021. "Social media brand posts and customer engagement," Journal of Brand Management, Palgrave Macmillan, vol. 28(6), pages 685-699, November.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    JEL classification:

    • M31 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Marketing
    • E21 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Consumption; Saving; Wealth
    • D11 - Microeconomics - - Household Behavior - - - Consumer Economics: Theory

    Statistics

    Access and download statistics

    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:url:upravl:v:11:y:2020:i:6:p:70-84. 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: Victor Blaginin (email available below). General contact details of provider: https://edirc.repec.org/data/usueeru.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.