The Relationship Between Brand Awareness and Price Levels Toward Purchase Intention: An Experiment with Luxury Perfumes

• Main Authors: Deonir De Toni, Vinícius de Vargas Bacichetto, Gabriel Sperandio Milan, Fabiano Larentis
• Format: Article
• Language: Portuguese
• Published: Universidade Nove de Julho 2014-08-01
• Series: REMark: Revista Brasileira de Marketing
• Subjects: Conhecimento da marca; Níveis de preço; Intenção de compra; Qualidade Percebida; Valor Percebido.
• Online Access: http://www.revistabrasileiramarketing.org/ojs-2.2.4/index.php/remark/article/view/2546

Luxury products carry with them different and complementary meanings. However, the symbolic meanings, manifested through its extrinsic attributes such as brand and price, are strongly related to their image and often outperform intrinsic attributes. This study aims to understand the role of brand and price on purchase intention, perception of quality and value in luxury goods. From an experiment with factorial design of order 2 (brand: known, unknown) x 2 (price: high, low), it was found that purchase intention both in situations of low prices as high prices is significantly higher for luxury perfume known brands; the perception of quality for perfume known brands is significantly greater than that for unknown brands, regardless of the price level. Other findings indicate that the relationship between brand awareness and purchase intention is mediated by perceived quality and the relationship between price perception and purchase intention is mediated by perceived value. Thus, the study results allow a better understanding of the role of brand and price in the consumption of luxury products.