Crafting Robust Brands for Premium Pricing: Understanding the Synergy of Brand Strength, Loyalty, and Attachment

Abstract

Consumers’ willingness to pay a price premium is pivotal for assessing brand value and competitive advantage. Yet, limited and scattered research has focused on how combining brand emotion, strength, and brand loyalty can influence consumers’ willingness to accept a price premium. The present study examines the role of brand attachment, brand strength, and brand loyalty in determining consumers’ willingness to pay a price premium and explores their interplay using a serial mediation model within a unified framework, specifically focusing on home appliance brands. Data from 323 valid questionnaires collected from Algerian households were analyzed using PLS-SEM. Results demonstrate that consumers’ willingness to pay a price premium is significantly and positively influenced by brand strength, brand attachment, and brand loyalty. Furthermore, the relationship between brand strength and consumers’ willingness to pay a price premium is mediated positively by brand attachment and brand loyalty. Grounded on various theories and addressing gaps captured in previous studies, this research is considered pioneering in this field. This study significantly advances our understanding of how brand emotional bonds, brand relationships, and brand strength interplay to influence consumers’ willingness to pay a premium. The findings highlight the importance for brand managers to sustain robust brands to stimulate consumers’ opening to pay extra, thereby achieving and maintaining long-term success in a competitive market.