Journal Press India®

DELHI BUSINESS REVIEW
Vol 9 , Issue 2 , July - December 2008 | Pages: 17-25 | Research Paper

Impact of Price on Brand Loyalty Sensitivity

Author Details ( * ) denotes Corresponding author

1. Hotniar Siringoringo, Doctoral Student, Faculty of Economics, Gunadarma University, JI. Margonda Raya No. 100 Depok 16424, West Java Indonesia
2. Trini Saptariani, Doctoral Student, Faculty of Economics, Gunadarma University, JI. Margonda Raya No. 100 Depok 16424, West Java Indonesia
3. * Emmy Indrayani, Doctoral Student, Faculty of Economics, Gunadarma University, JI. Margonda Raya No. 100 Depok 16424, West Java Indonesia (emmy@staff.gunadarma.ac.id)

Purpose: The present research attempts to analyze brand loyalty sensitivity due to price changes. Design/Methodology/Approach: The methodological approach of this research study is a questionnaire. Questionnaire developed based on last brand bought and limited to detergent consumption. Findings: The analysis shows that the Consumers switch brand when the price rises. The tendencies will be greater when the price level change from 1 per cent to 2 per cent, 4 per cent to 5 per cent, 5 per cent to 6 per cent, and from 9 per cent to 10 per cent. The significance of brand switching due to price level fluctuation is very strong. Research Limitations: The main limitation of the study was that the data was collected from limited sample. Managerial Implications: This research implies any rise in price, even a smaller one, will result in brand switching. It’s concluded that there is difference in brand loyalty among different brands. Originality/Value: This study showcased the original work of the authors to analyze brand extension, relationship between price and quality perception, etc

Keywords

Price Changing, Brand Switching, Intention

  1. Aaker, David A., and Keller, Kevin L. (1990), “Consumer Evaluations of Brand Extensions”, Journal of Marketing, Vol.54, No.1, pp.27-42.
  2. Baltas, G. (1997), “Determinants of Store Brand Choice: A Behavioural Analysis”, Journal of Product and Brand Management, Vol.6, No.5, pp.315-24.
  3. Biswas, Abhijit and Sherrell, Daniel L. (1993), “The Influence of Product Knowledge and Brand Name on Internal Price Standards and Confidence, Psychology and Marketing”, Vol.10, No.1, pp.31-46, http://www3.interscience.wiley.com/cgi- bin/jhome/112749104).
  4. Biswas and Blair (1991) in Jameszewski, Chris and Lichtenstein, Donald R. (March 1999), “A Range Theory Account of Price Perception”, Journal of Consumer Research, Vol.25.
  5. Bottomley, Paul A. and Doyle, John R. (1996), “The Formalization of Attitudes Toward Brand Extensions: Testing and Generalizing Aaker and Keller’s Model”, International Journal of Research in Marketing, Vol.13, No.4, pp.365-377.
  6. Bousch, David M. and Loken, Barbara (1991), “A Process-Tracing Study of Brand Extension Evaluation”, Journal of Marketing Research, Vol.28, No.1, pp.16-29.
  7. Doyle, Peter (1990), “Building Successful Brands: The Strategic Options”, Journal of Consumer Marketing, Vol.7, No.2, pp.5-21.
  8. Gabor and Granger (1966) quoted in Rao, Vithala R. (1972), “Marginal Salience of Price in Brand Evaluations” Proceedings of the Third Annual Conference of the Association for Consumer Research, pp.125-144.
  9. Gardener, (1971) quoted in Rao, Vithala R. (1972), “Marginal Salience of Price in Brand Evaluations, Proceedings of the Third Annual Conference of the Association for Consumer Research”, pp.125-144.
  10. Hislop, Molly (2001), “Dynamic Logic’s Branding 101: An Overview of Branding and Brand Measurement for Online Marketers”, (March), Dynamic Logic.
  11. Hoch, Stephen J., Kim, Byung D., Montgomery, Alan L., and Rossi, Peter E. (1995), “Determinant of Store-Level”, Journal of Marketing Research, Vol.32, (Feb.), pp.17-29.
  12. Jacoby  (1970) quoted in Rao, Vithala R. (1972), “Marginal Salience of Price in Brand Evaluations”, Proceedings of the Third Annual Conference of the Association for Consumer Research, pp.125-144.
  13. Janiszewski, Chris and Lichtenstein, Donald R. (1999), “A Range Theory Account of Price Perception” Journal of Consumer Research, Vol. 25, (March).
  14. Kalyanaram, Gurumurthy and Little, John D.C. (1994), “An Empirical Analysis of Latitude of Price Acceptance in Consumer Package Goods, Journal of Consumer Research, Vol.21, (Dec.), pp.408-418.
  15. Keller, Kevin L. and Aaker, David A. (1992), “The Effects of Sequential Introduction of Brand Extensions”, Journal of Marketing Research, Vol.29, No.1, pp.35-51.
  16. Krishnamurthi, L., Mazumdar, T. and Raj, S.P. (1992), “Asymmetric Response to Price in Consumer Brand Choice and Purchase Quantity Decisions”, Journal of Consumer Research, Vol.19, No.3, pp.387-400.
  17. Krishnamurthi, L., Raj, S.P. (1991), “A Empirical Analysis of the Relationship between Brand Loyalty and Consumer Price Elasticity”, Marketing Science, Vol.10, No.2, pp.172-183.
  18. Lassar, Walfried, Mittal, Banwari, and Sharma, Arun (1995), “Measuring Customer-Based Brand Equity”, Journal of Consumer Marketing, Vol.12, No.4, pp.1-65.
  19. Leavitt (1954) quoted in Rao, Vithala R. (1972), “Marginal Salience of Price in Brand Evaluations” Proceedings of the Third Annual Conference of the Association for Consumer Research, pp.125-144.
  20. McConnell (1968a) quoted in Rao, Vithala R. (1972), “Marginal Salience of Price in Brand Evaluations” Proceedings of the Third Annual Conference of the Association for Consumer Research, pp.125-144.
  21. McConnell (1968b) quoted in Rao, Vithala R. (1972), “Marginal Salience of Price in Brand Evaluations” Proceedings of the Third Annual Conference of the Association for Consumer Research, pp.125-144.
  22. Monroe, Kent B. (1976), “The Influence of Price Differences and Brand Familiority or Band Preferences”, Journal of Consumer Research: An Interdesciplinary Quarterly, Vol.3, No.1, pp.42-49.
  23. Monroe, Kent B. (1984), “Theoretical and Methodological Developments in Pricing”, Advances in Consumer Research Vol.11, pp.636-637.
  24. Moore, David J. and Olshavsky, Richard W. (2006), “Brand Choice and Deep Price Discounts”, Psychology and Marketing, Vol.6, No.3, pp.181-196.
  25. Park, C. Whan, Jaworski, Bernard J. and MacInnis, Deborah J. (1986), “Strategic Brand Concept/Image Management”, Journal of Marketing, Vol.50 (Oct.), pp.135-145.
  26. Park, C. Wahn, Milberg, Sandra and Lawson, Robert (1991), “Evaluation of Brand Extensions: The Role of Product Feature Similarity and Brand Concept Consistency”, Journal of Consumer Research, Vol.18 (Sept.), pp.185-193.
  27. Peterson (1970) quoted in Rao, Vithala R. (1972), “Marginal Salience of Price in Brand Evaluations”, Proceedings of the Third Annual Conference of the Association for Consumer Research, pp.125-144.
  28. Pitta, Dennis A. and Katsanis, Lea Prevel (1995), “Understanding Brand Equity for Successful Brand Extension”, Journal of Consumer Marketing, Vol.12, No.4, pp.51-65.
  29. Rao, Vithala R. (1972), “Marginal Salience of Price in Brand Evaluations”, Proceedings of the Third Annual Conference of the Association for Consumer Research, pp.125-144.
  30. Rotemberg, Julio J. (2003), “Customer Anger at Price Increases, Changes in the Frequency of Price Adjustment and Monetary Policy”.
  31. Smith, Daniel C. and Park, C. Whan (1992), “The Effects of Brand Extensions on Market Share and Advertising Efficiency”, Journal of Marketing Research, Vol.29, No.3, pp.296-314.
  32. Sullivan, Mary W. (1992), “Brand Extensions: When to Use Them”, Marketing Science, Vol.38, No.6, pp.793-806. Sunde, Lorraine and Brodie, Roderick J. (1993), “Consumer Evaluations of Brand Extensions: Further Empirical Results”, International Journal of Research in Marketing, Vol.10, No.1, pp.47-54.
  33. Taylor, Valerie A. and Bearden, William O. (2002), “The Effects of Price on Brand Extension Evaluations: The Moderating Role of Extension Similarity”, Journal of the Academy of Marketing Science, Vol.30 (Spring), pp.131-140.
  34. Tull, Boring and Gonsoir (1964) quoted in Rao, Vithala R. (1972), “Marginal Salience of Price in Brand Evaluations” Proceedings of the Third Annual Conference of the Association for Consumer Research, pp.125-144.
  35. Siringoringo, Hotniar and Anacostia, Kowanda (2007), “Predicting Shopping Intention Based on Past Behaviour of Modern Retail Consumer” Proceeding of 2nd IIMA Conference on Research in Marketing, pp.327.
  36. Zeithaml, V. (1988), “Consumer Perceptions of Price, Quality, and Value: A Means-end Model and Synthesis of the Evidence”, Journal of Marketing, Vol.52, No.3, pp.2-22.
Abstract Views: 1
PDF Views: 14

By continuing to use this website, you consent to the use of cookies in accordance with our Cookie Policy.