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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
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    References listed on IDEAS

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    1. 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.
    2. 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.
    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.
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    More about this item

    Keywords

    brand trust; brand loyalty; brand preference; price sensitivity; luxury brand;
    All these 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

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