Investigation on the Effect of Conspicuous Consumption and Brand Equity on the Purchasing Intention of Premium Branded Products

Abstract

Economic stability have a significant impact on consumer behavior. There are many studies in the literature showing that consumer behavior changes during economic instability. In addition, studies on the change in behavior towards premium branded products during these periods reveal that consumers’ demand for such products shifts to other products of the same brand. The study aims to examine the effect of perceived design value on brand value, brand prestige on conspicuous consumption, and conspicuous consumption and brand value on purchasing intention of premium branded products. In other words, Within the framework of consumer behavior towards premium branded products, this study examines the purchase intention of premium branded products during economic crises and also investigates the effect of conspicuous consumption and brand equity on this purchase intention. This study examines the purchase intention of premium branded products during economic crises and also investigates the effect of conspicuous consumption and brand equity on this purchase intention. Snowball sampling is used in sample selection, and data is collected using the survey method from 426 people. The results of the analysis show that there is a strong relationship between conspicuous consumption and the intention to pay high prices for premium branded products. A significant and positive direct relationship was found between brand equity and the intention to pay high pricess for premium branded products. In addition, a significant and positive relationship was found between brand prestige and conspicuous consumption. Finally, a significant and positive relationship was found between perceived design value and brand equity.