This study attempts to investigate the mediating effect of the consumers’ brand loyalty in consumers’ brand identification-willingness to pay premium, and consumers’ brand satisfaction-willingness to pay premium. The data in the form of self-completion survey are collected in Indonesia, and 215 questionnaires are used for data analysis. The structural equation modelling was used to test the research hypotheses. The findings reveal that consumers’ brand loyalty mediated the relation between consumers’ brand identification-willingness to pay premium, and consumers’ brand satisfaction-willingness to pay premium. Furthermore, the consumers’ brand identification is also influenced by consumers’ brand satisfaction positively and significantly.
|Keywords:||Social Identity Theory, Branding, Brand Identification, Loyalty, Satisfaction, Willingness to Pay Premium|
PhD student in Business Administration NCU Taiwan and Lecturer, Department of Management, Faculty of Economics and Business, Universitas Gadjah Mada, Jogjakarta, Indonesia
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