Enduring brand trust, credibility, value and equity are essential drivers of customers’ willingness to pay a high price for a brand which can engender a higher profit margin. The role of brand trust, credibility, value and equity in strengthening customers` willingness to pay a price premium has been extensively studied of late. However, studies on the effect of brand trust, credibility and value on willingness to pay more through the intervening role of brand equity, particularly in the herbal industry are relatively scarce. As a result, this paper`s goal was to investigate the brand equity effect on the relationship between trust, credibility, value and willingness to pay a price premium in the herbal industry. Survey questionnaires were employed to gather information from 265 samples of customers through a systematic sampling strategy. The research propositions were tested using structural equation modelling. The study established that brand equity fully mediates the effect of brand credibility and perceived value on willingness to pay a price premium but partially mediates the path between brand trust and willingness to pay more in the herbal industry. The research, therefore, recommends that brand managers need to consider brand credibility, trust, value, and equity in strengthening customers` willingness to pay a price premium for medicinal herbal products in the industry.
scite is a Brooklyn-based organization that helps researchers better discover and understand research articles through Smart Citations–citations that display the context of the citation and describe whether the article provides supporting or contrasting evidence. scite is used by students and researchers from around the world and is funded in part by the National Science Foundation and the National Institute on Drug Abuse of the National Institutes of Health.
hi@scite.ai
10624 S. Eastern Ave., Ste. A-614
Henderson, NV 89052, USA
Copyright © 2024 scite LLC. All rights reserved.
Made with 💙 for researchers
Part of the Research Solutions Family.