Factors Motivating Consumers to Pay Higher Prices for Better Brand Value

This study aims to analyze factors that motivate consumers towards paying of higher prices for better brand value. The study will investigate social, psychological, cultural, and personal factors that influence consumer purchase decisions related to higher brand value products.

An Investigation of factors motivating
consumers to pay higher prices for better
brand value
Student Name: Student ID:
Subject Name: Research in Business Student ID: BUSN20016
Date Due: Professor Name:
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Executive Summary
Consumer Behaviour analysis is a complex domain for marketers to analyse especially in
case of luxury products. Consumers are often made to pay higher prices for better brand value
offering. Though this concept can be clearly understood it requires complex analysis to establish
the same. The scope of this study understand price related sensitiveness that consumers are
willing to pay for better brand value.
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Table of Contents
Executive Summary.........................................................................................................................2
1.0 Introduction................................................................................................................................4
2.0 Research Aims and Objectives..................................................................................................5
3.0 Problem Investigation................................................................................................................6
4.0 Methodology..............................................................................................................................6
5.0 Reference Lists..........................................................................................................................8
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1.0 Introduction
Consumer’s purchase behaviour is analysed in order to arrive at conclusive decision
related to their brand preference (Subrahmanyan 2008). Consumer preferences vary and so does
their decision for purchase in relation to luxury good and essential goods. When companies
market brand value products, then marketing strategies, pricing strategies along with other
factors differ significantly hence charges higher prices for such brand values (Han 2010). The
scope of this analysis deals with analysis of factors that motivate consumers towards paying of
higher prices for better brand value.
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2.0 Research Aims and Objectives
In order to attain goals of this study, the following research aims and objectives needs to
be arrived at.
 Research Aim and Objective 1: To analyse factors that influence consumer purchase
decisions related to higher brand value
products Research Aim and Objective 2: To understand the social factors that influence
customers into paying higher price for a
brand value
 Research Aim and Objective 3: To analyse psychological factors that influences
consumers for paying higher prices towards
brand value
 Research Aim and Objective 4: To analyse cultural factors that influences
consumers for paying higher prices towards brand
value
 Research Aim and Objective 5: To analyse personal factors that influences
consumers for paying higher prices towards brand
value
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3.0 Problem Investigation
Consumer behaviour is a well-researched integral domain where marketers analyses
various factors related to purchase decisions. In the current scope of study various factors that
influences consumer behaviour towards higher brand value products are analysed in order to
establish a suitable connect with prices they pay (Grunert 2014). While multiple research are
present that analyses factors motivating consumer purchase decision making relative to products.
Very few literatures are present that offer suitable understanding of their connectivity to price
sensitivity. Though there can be varied factors arrived at that can motivate consumers into
paying higher prices, these factors might vary across products (Husic 2009). This leads to
complexity of analysis in the current domain as it is often cumbersome to analyse various factors
that motivate consumers towards their decision making process. This study hence will evaluate
literature gap prevalent in the domain to understand purchase behaviour relative to price
sensitiveness.
4.0 Methodology
Research methodology is the most crucial aspect for undertaking any type of study. In
this study scholar will attempt mostly data collection from primary and secondary source of
qualitative and quantitative nature will be undertaken. Post collection of suitable data, scholar
will undertake statistical analysis of such data in order to arrive at suitable research findings for
the study. The scholar will collect prices of 3 higher brand value products and then analyse their
pricing strategies or price related responsiveness to consumer behaviour (Pickett-Baker 2008).
Other data collected will be durability, features and other data related to the product. For this
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purpose a data clustering, mixed ANOVA analysis and sensitivity analysis using SPSS will be
conducted. In case information regarding sample is available then parametric test otherwise non-
parametric tests will be used (Steenkamp 2010). Each data collected will be checked for validity
and reliability. Every data will be collected using ethical procedures by the scholar.
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5.0 Reference Lists
Grunert, K. G., Hieke, S., & Wills, J. (2014). Sustainability labels on food products: Consumer
motivation, understanding and use. Food Policy, 44, 177-189.
Han, Y. J., Nunes, J. C., & Drèze, X. (2010). Signaling status with luxury goods: The role of
brand prominence. Journal of Marketing, 74(4), 15-30.
Husic, M., & Cicic, M. (2009). Luxury consumption factors. Journal of Fashion Marketing and
Management: an international journal, 13(2), 231-245.
Pickett-Baker, J., & Ozaki, R. (2008). Pro-environmental products: marketing influence on
consumer purchase decision. Journal of consumer marketing, 25(5), 281-293.
Steenkamp, J. B. E., Van Heerde, H. J., & Geyskens, I. (2010). What makes consumers willing
to pay a price premium for national brands over private labels?. Journal of Marketing
Research, 47(6), 1011-1024.
Subrahmanyan, S., & Tomas Gomez-Arias, J. (2008). Integrated approach to understanding
consumer behavior at bottom of pyramid. Journal of Consumer Marketing, 25(7), 402-
412.
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