Understanding The Influence of Brand Jealousy, Brand Love and Materialism Towards Willingness to Pay Premium: Study On Coach's Handbag

Abstract

This paper aim to analyze how brand jealousy, brand love, and materialism affect customers’ motivation to buy luxury brand at premium prices. A survey was conducted online in three Indonesian cities: Jabodetabek, Surabaya, and Makassar. The focus brand of this research is Coach. The potential customers are those who desire the Coach brand because of being envious of others with the brand. Structural Equation Modelling were used to data analyzed from 413 respondents and verify five hypotheses. The findings reveal that all antecedents could enhance consumers’ willingness to pay premium. It provide contribution to practitioners, how important to enhance jealousy and also materialistic values. It is important to influence customers’ willingness to pay premium prices. Keywords—brand love, materialism, willingness to pay premium, brand jealousy