Advanced

Which Brand Personality Traits Make Consumers Pay a Price Premium?

Hoffmann, Ann-Christin LU and Suppin, Anna-Caroline LU (2012) BUSN29 20121
Department of Business Administration
Abstract
Thesis purpose: The purpose of this thesis is to increase the understanding regarding the influence of brand personality on the consumers’ willingness to pay a price premium. Thereby it is of central interest to find out which brand personality traits make consumers pay a price premium. Additionally, it is investigated whether it is the same traits that induce consumers to pay more compared to those which make them to buy a brand and if the impact of brand personality with regard to price premium depends on whether the brand is a product or service brand.

Methodology: A cross-sectional quantitative study was conducted. The respondents were convenience sampled in Germany, which resulted in 639 usable cases across the two brand categories... (More)
Thesis purpose: The purpose of this thesis is to increase the understanding regarding the influence of brand personality on the consumers’ willingness to pay a price premium. Thereby it is of central interest to find out which brand personality traits make consumers pay a price premium. Additionally, it is investigated whether it is the same traits that induce consumers to pay more compared to those which make them to buy a brand and if the impact of brand personality with regard to price premium depends on whether the brand is a product or service brand.

Methodology: A cross-sectional quantitative study was conducted. The respondents were convenience sampled in Germany, which resulted in 639 usable cases across the two brand categories chosen within this study, namely airlines and consumer electronics. The generated data was analysed using multiple regression and correlation analyses in order to investigate the research propositions.

Theoretical perspective: This study is based upon the existing brand personality literature and focuses on the brand personality conceptualisation as proposed by Geuens et al. (2009). Furthermore, the brand equity literature provides a basis for linking brand personality with the two consequences of interest.

Empirical data: The needed data was gathered via an online survey.

Conclusion: In the present study the brand personality traits associated with the two dimensions ‘Responsibility’ and ‘Activity’, namely ‘Stable’, ‘Responsible’, ‘Down to Earth’, ‘Innovative’, ‘Dynamic’ and ‘Active’ emerged as the drivers of price premium. Furthermore, it was found that overall it is the same traits that make consumers pay a price premium as those which make them buy a brand. Moreover, it could be seen that with regards to price premium brand personality had a stronger impact in a service brand context. However, this was not found with regard to purchase intention. Overall it appears that brand personality is an important concept for both product and service brands concerning consumers’ behavioural intentions. With these findings, the present study contributes to the existing literature by providing a more refined understanding of brand personality’s influence on price premium in general and in specific by providing first insights on the importance of brand personality for the two different brand types investigated in this study, which altogether is the basis for the deduced interesting theoretical and managerial implications as well as the implications for further research. (Less)
Please use this url to cite or link to this publication:
author
Hoffmann, Ann-Christin LU and Suppin, Anna-Caroline LU
supervisor
organization
alternative title
An Empirical Investigation of the Influence of Brand Personality on the Willingness to Pay a Price Premium and a Comparison to Purchase Intention
course
BUSN29 20121
year
type
H1 - Master's Degree (One Year)
subject
keywords
Brand Personality, Price Premium, Purchase Intention, Brand Equity
language
English
id
2701840
date added to LUP
2012-06-21 11:43:30
date last changed
2012-06-21 11:43:30
@misc{2701840,
  abstract     = {Thesis purpose: The purpose of this thesis is to increase the understanding regarding the influence of brand personality on the consumers’ willingness to pay a price premium. Thereby it is of central interest to find out which brand personality traits make consumers pay a price premium. Additionally, it is investigated whether it is the same traits that induce consumers to pay more compared to those which make them to buy a brand and if the impact of brand personality with regard to price premium depends on whether the brand is a product or service brand.

Methodology: A cross-sectional quantitative study was conducted. The respondents were convenience sampled in Germany, which resulted in 639 usable cases across the two brand categories chosen within this study, namely airlines and consumer electronics. The generated data was analysed using multiple regression and correlation analyses in order to investigate the research propositions.

Theoretical perspective: This study is based upon the existing brand personality literature and focuses on the brand personality conceptualisation as proposed by Geuens et al. (2009). Furthermore, the brand equity literature provides a basis for linking brand personality with the two consequences of interest.

Empirical data: The needed data was gathered via an online survey.

Conclusion: In the present study the brand personality traits associated with the two dimensions ‘Responsibility’ and ‘Activity’, namely ‘Stable’, ‘Responsible’, ‘Down to Earth’, ‘Innovative’, ‘Dynamic’ and ‘Active’ emerged as the drivers of price premium. Furthermore, it was found that overall it is the same traits that make consumers pay a price premium as those which make them buy a brand. Moreover, it could be seen that with regards to price premium brand personality had a stronger impact in a service brand context. However, this was not found with regard to purchase intention. Overall it appears that brand personality is an important concept for both product and service brands concerning consumers’ behavioural intentions. With these findings, the present study contributes to the existing literature by providing a more refined understanding of brand personality’s influence on price premium in general and in specific by providing first insights on the importance of brand personality for the two different brand types investigated in this study, which altogether is the basis for the deduced interesting theoretical and managerial implications as well as the implications for further research.},
  author       = {Hoffmann, Ann-Christin and Suppin, Anna-Caroline},
  keyword      = {Brand Personality,Price Premium,Purchase Intention,Brand Equity},
  language     = {eng},
  note         = {Student Paper},
  title        = {Which Brand Personality Traits Make Consumers Pay a Price Premium?},
  year         = {2012},
}