The Effect of Customer Experience, Customer Satisfaction, and Customer Loyalty on Brand Power and Willingness to Pay a Price Premium

Abstract

Products have a special value for customers and brand owners, and becoming a favorite is the aim of many brands. Therefore, this research used a causal quantitative design with a deductive approach to determine the influence of customer experience, satisfaction, and loyalty on brand power and willingness to pay a price premium. The data were obtained from primary sources via a questionnaire, while the population and unit of analysis were determined using the non-probability sampling technique with the criteria of Apple product customers aged at least 17 years old in Indonesia. A total of 280 respondents were achieved from August to December 2021 using the purposive sampling technique. The data were analyzed using SPSS 26 software (factor analysis) and Lisrel 10.2 with SEM (Structural Equation Modeling). Subsequently, the results indicated a positive influence of customer experience, satisfaction, and loyalty on brand power and willingness to pay a price premium. The research also suggested that maintaining and improving product quality, alongside continuous innovation, strengthened customer loyalty and brand power as well as increased their willingness to pay a price premium.