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Price Leverage of Brand: Experiments on Product Categories and Information Quantity Effects

Abstract
This study mainly investigated the changing of pricing leverage of brand among different situations, especially, among distinctive product categories and among various levels of product knowledge which consumers obtained. Firstly, the research tries to verify existence of the hypothesized pricing leverage of brand; that is to test (1) the influences of levels of brand awareness on consumers¡¦ price perception; and (2) the effect of brand awareness on consumers¡¦ tolerance over the price increasing. In addition, this research manipulates three other variables, namely: product category, product knowledge which consumer obtained, and consumers¡¦ involvement toward the product in interest, as to seek and explore the conditions on which the pricing leverage of brand can occur.
As experimentation is the method of this study, it utilizes a 3 ( brand awareness: high, middle, low) x 3 ( product category: convenience goods, shopping goods, specialty goods) x 2 ( product knowledge: much, little) x 2 (involvement: high, low) factorial design as its basic framework of experiment design. A focus group depth interview discussion, which participants were from target subject group, was held to collect the appropriate or suitable products, brands, pricing levels, product information, and product attributes, ... etc. The products eventually used in the experiments are six items: fresh milk, toilet tissue, hand-bag, leisure shoes, watch, and digital camera. According to the products chosen, the brand names are selected based on the levels of awareness in the markets in which the subject purchase. The subjects of the experiments are 144 students of National Sun Yat-sen University located in Kaohsiung, Taiwan. There are 815 entries of data obtained from the subject in the experiments.
Factor analysis, ANOVA, and MANOVA are used to analyze the data obtained from the experiment. The analysis findings support several propositional statements, including (1) the higher level of market awareness a brand enjoys, the higher price perception consumers acquire for it; (2) Among the difference product categories, the effect of price leverage of brand varies; (3) there is no influence from the magnitude of product knowledge which consumer obtained on the price leverage of brand.

Identiferoai:union.ndltd.org:NSYSU/oai:NSYSU:etd-0209104-112609
Date09 February 2004
CreatorsHuang, Hsin-i
ContributorsLi chun Huang, Albert Wenben Lai, Feng-yu Ni
PublisherNSYSU
Source SetsNSYSU Electronic Thesis and Dissertation Archive
LanguageCholon
Detected LanguageEnglish
Typetext
Formatapplication/pdf
Sourcehttp://etd.lib.nsysu.edu.tw/ETD-db/ETD-search/view_etd?URN=etd-0209104-112609
Rightsnot_available, Copyright information available at source archive

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