The Effects of Brand-self Connection on the Willingness to Pay a Price Premium: A New Look at the Consumer–brand Relationship in the Chinese Luxury Market

Yiwei Ni; Yujia Mu; Mengyu Lu; Jingwen Wang; Zhiyi Chen

doi:10.54254/2754-1169/82/20230667

Research Article

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Published on 21 May 2024

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Ni,Y.;Mu,Y.;Lu,M.;Wang,J.;Chen,Z. (2024). The Effects of Brand-self Connection on the Willingness to Pay a Price Premium: A New Look at the Consumer–brand Relationship in the Chinese Luxury Market. Advances in Economics, Management and Political Sciences,82,12-27.

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The Effects of Brand-self Connection on the Willingness to Pay a Price Premium: A New Look at the Consumer–brand Relationship in the Chinese Luxury Market

Yiwei Ni *^,1, Yujia Mu ², Mengyu Lu ³, Jingwen Wang ⁴, Zhiyi Chen ⁵

¹ Xi’an Jiaotong-Liverpool University, Suzhou, 215028, China
² Zhejiang University of Technology, Hangzhou, 310014, China
³ Soochow University, Suzhou, 215031, China
⁴ Durham University, Durham, DH1 3LE, United Kingdom
⁵ Macau University of Science and Technology, Macau, 999078, China

* Author to whom correspondence should be addressed.

https://doi.org/10.54254/2754-1169/82/20230667

Abstract

Exploring brand-self connection as a tool for driving profitability is gaining traction among scholars and industry professionals. This study introduces and validates a conceptual model aimed at discerning the influence of brand-self connection on luxury consumers’ willingness to pay (WTP) a price premium. Based on survey data from 270 Chinese luxury consumers and analysis via SPSS 27.0, the results reveal that brand-self connection not only directly augments consumers’ WTP a price premium but also exerts an indirect influence through the mediating roles of brand experience and brand loyalty. Interestingly, though brand-related social media engagement emerges as a moderating factor in this relationship, its impact remains marginal within the luxury market context. Together, these findings illuminate the complex nuances of luxury consumer behavior, enriching brand management, consumer-brand relationships, and pricing strategy. Practitioners can harness these insights for strategic decision-making in the luxury market arena.

Keywords

Brand-self connection, Brand experience, Brand loyalty, Willingness-to-pay a price premium, Brand-related social media engagement

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