The influence of brand equity on customer intention to pay premium price of the fashion house brand

Abstract

Branded fashion clothing is developing expeditiously in Bangladesh. Bangladeshi local apparel fashion brand outlets are flourishing with positive customers' attitude. The aim of this research is to understand the effect of brand equity on customers' desire to spend on a premium price on a shopping store named Aarong. The research tries to discover different aspects of brand equity by analyzing the customers' manner and buying behavior. In this research, Aaker's brand equity model is used to examine the influence of brand equity on consumers' intention to pay for a premium cost. The necessary data for the study is collected from 100 respondents using the non-probability judgmental sampling technique. The collected data is analyzed by regression analysis so that the relationship can be examined, properly and the results support the proposed four hypotheses. It is found that among four brand equity variables, brand association maintained the most significant impact on creating positive customer intention to pay the premium price. Other variables such as brand recognition, discerned quality and brand faithfulness only slightly create positive influence on customer intention to pay the premium price. Thus, the results indicate that to ensure good performance and attract customers, Aarong must put more emphasis on improving all brand equity variables and maintain a suitable balance among them.

Conventional Market Brand Equity: How It Affects Visiting Intention

“…Brand is a tool that can be used by business organizations as a medium to build something of value based on perceptions, expectations of, and emotional ties with consumers [10]. Valuable brands are brands that have equity.…”

“…Conative loyalty is consumer behavior in markets whose indications are in the form of repeat purchases and a commitment to continue buying the brand again even if marketing efforts are carried out by competing brands [10,12]. Cognitive loyalty is the ability of a brand to appear first/first in the minds of consumers' minds.…”