The mediating role of price sensitivity in the effect of trust and loyalty to luxury brands on the brand preference

Abstract

In the age of consumption, customers prefer high-quality and exclusively designed luxury brands. This trend is based on a variety of reasons, such as the manifestation of status and wealth, as well as positive emotions and symbolic power created by these brands. The study aims to examine the variables of trust and loyalty to luxury brands, brand preference and price sensitivity, and to determine whether there is a meaningful relationship between these variables. If there is, to investigate the mediating role of price sensitivity in the effect of consumer trust and loyalty to luxury brands on brand preference. The methodological framework of the research includes planned behaviour theory to predict customers’ intentions and behaviours towards luxury brands. The information base of the research includes data from the online survey of 563 respondents from Turkey. Among the main research methods applied in the study are descriptive statistics and correlation analysis. SPSS 22.0 and AMOS software, as well as the principles of structural equation modeling are used to analyze the data. In the research, we could not determine the mediating role of price sensitivity in the effect of brand trust and loyalty on brand preference. A statistically significant, positive, and healthy relationship exists between brand trust and brand loyalty and brand preference. The study shows that the effect of price sensitivity and brand trust on brand preference is weak. The theoretical and practical importance of the study is to support companies in developing successful luxury branding strategies and to contribute to the luxury brand literature.

Glamour & Faith: How Korean Idol Brand Ambassador and Religiosity influence Luxury Goods Purchase Intentions?

“…This research shows that price sensitivity does not weaken respondents' attitudes towards their intention to buy luxury goods with t-values of 1,400, so H3 is not accepted. These results are in line with research from Aziz et al, (2015); Pir & Derinözlü (2021);and Reynaldy et al, (2020). Although theoretically, price sensitivity should reduce someone's purchasing intentions.…”

Why are Customers Still Lolay to Islamic Banks?

“…The results of this study support the research of Zhang et al, (2023); Kania & Salsabila, (2023); Ramadhan et al, (2022); Pir & Derinözlü, (2021); Visza Adha & Utami, (2021) that trust has a significant positive effect on loyalty.…”

The Influence and Mitigation of Consumer’s Price Sensitivity on the Pricing of Luxury Brands & Two Case Studies

“…It is essential to know the impact of price sensitivity so that luxury merchants can make relevant adjustments to their pricing strategy. Price sensitivity has the impact of mediation on the effect of trust and loyalty to luxury brands [3]. Moreover, lots of factors that attribute the occurrence of price sensitivity has been founded, including consumption occasion, social context, and income, advertisement [4][5][6].…”