An extension of the theory of planned behavior towards brand equity and premium price

Abstract

The research is undertaken to investigate the impact of brand equity on consumer willingness to pay the premium price by using an extended model of the theory of planned behavior. Role of consumer attitude, subjective norms, and perceived behavioral controls in shaping consumer intention towards paying a premium price for a brand are explored. The theory is further extended to demonstrate the role of brand equity towards consumer intention to pay a premium price. This research is conducted explicitly in Pakistan. The data was analyzed statistically by performing regression analysis with SPSS. The findings indicate that there is a significant impact of brand equity, attitude, subjective norms, and perceived behavioral controls on consumer intention to pay a premium price for the brand. The research findings depict that consumers are willing to pay a premium price for a brand if the high brand equity is established.