How Cultural Involvement in Different Brand Types Influences Willingness to Pay Premium: The Mediating Role of Brand Happiness.

Abstract

This study examines the impact of cultural involvement on brand enriching benefits and consumers' willingness to pay a premium (WPP). Additionally, it explores the underlying mechanisms behind this impact. A partial least squares structural equation model was used to analyze the data collected from a pretest (N = 70) and an online survey (N = 1053) conducted in China. The moderating effect of brand type was examined using a multi-group analysis. The results indicate that cultural involvement has a significant and positive impact on brand enriching benefits, consequently enhancing consumers' WPP. Additionally, brand happiness mediates the relationship between brand enriching benefits and WPP. Through a multi-group analysis, the impact of brand culture on brand equity is found to be more pronounced in functional brands compared with symbolic brands. Additionally, high perceived quality facilitates the transformation of brand enriching benefits into WPP. Managers value the ability of a brand culture to create brand equity and implement differentiation strategies based on different brand types. It is critical for managers to use a culture and its rich benefits wisely and to consider consumer happiness in the brand experience. Although brand culture and its impact on brands are crucial, previous studies have only focused on qualitative analyses, while empirical research on the direct link between brand culture and equity has been lacking. This study empirically tests a conceptual model that elucidates the relationship between brand cultural involvement, brand enriching benefits, brand happiness, WPP, brand type, and perceived quality. It extends previous research and offers suggestions for academics and brand managers interested in effectively leveraging brand culture for brand building.