Building Brand Image Through Price: An Effective Strategy To Enhance Purchasing Decisions
Keywords:
Price, Brand Image, Promotion, Purchasing Decision
Abstract
This study examines the relationship between pricing and customer purchase decisions and brand perception, as well as the role that promotion plays as a mediator. Using a quantitative, cross-sectional methodology, 100 marketplace users were given an online survey to complete in order to gather data. The measuring model and the structural relationships between the constructs—price, brand image, promotion, and purchasing decision—were assessed using partial least squares structural equation modeling, or PLS-SEM. The results demonstrate that price directly affects purchasing decisions and greatly enhances brand image. Brand image plays a significant role in influencing decisions about what to buy and somewhat mediates the relationship between pricing and buying decisions. Promotion improved brand image, which helped it indirectly even though it had no discernible direct impact on purchasing decisions. These results emphasize how price plays a strategic role in influencing consumer attitudes and behavior, and they also show how important brand image is as a mediator in this process. The study's cross-sectional design and narrow focus on just two marketing mix components limit how far the findings may be applied. Future studies should take into account longitudinal designs to record shifts in consumer views over time, as well as other variables like product quality and customer loyalty. By elucidating the mediating function of brand image in connecting pricing and promotion with purchase decisions, this study advances marketing theory. For practitioners looking to maximize price and promotional tactics to improve customer purchasing behavior, the conclusions drawn have useful ramifications.
References
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Severi, E., Ling, K. C., & Nasermoadeli, A. (2014). The impact of electronic word of mouth on brand equity in the context of social media. International Journal of Business and Management , 9(8) , 84–96.
Sinha, S. K., & Verma, P. (2020). Impact of sales promotion's benefits on perceived value: Does product category moderate the results? Journal of Retailing and Consumer Services , 52 (December 2017), 101887. https://doi.org/10.1016/j.jretconser.2019.101887
Suhaily, L., & Darmoyo, S. (2017). Effect on product quality, perceived price and brand image on purchase decision mediated by consumers trust. Journal of Management , 21(2) , 179–194.
Supardin, L. (2022). The Role of Brand Image as a Mediation of the Effect of Advertising and Sales Promotion on Customer Purchase Decision. Journal of Economics and Sustainable Development , August . https://doi.org/10.7176/jesd/13-8-09
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Toubes, DR, Vila, NA, & Fraiz Brea, JA (2021). Changes in consumption patterns and tourist promotion after the covid-19 pandemic. Journal of Theoretical and Applied Electronic Commerce Research , 16 (5), 1332–1352. https://doi.org/10.3390/jtaer16050075
Wang, H., Gurnani, H. and Erkoc, M. (2016). Entry deterrence of capacitated competition using price and non-price strategies. Production and Operations Management , Vol. 25 , N , 205–211.
Wang, Y.-H., & Chen, L.-Y. (2016). An empirical study of the effect of perceived price on purchase intention evidence from low cost carriers. International Journal of Business and Social Science , 7(4) , 97–107.
Wang, Y. H., & Tsai, C. F. (2014). The relationship between brand image and purchase intention: Evidence from award winning mutual funds. The International Journal of Business and Finance Research , 8(2) , 27–40.
Benhardy, KA, Hardiyansyah, Putranto, A., & Ronadi, M. (2020). Brand image and price perceptions impact on purchase intentions: Mediating brand trust. Management Science Letters , 10 (14), 3425–3432. https://doi.org/10.5267/j.msl.2020.5.035
Emari, H., Jafari, A., & Mogaddam, M. (2012). The mediatory impact of brand loyalty and brand image on brand equity. African Journal of Business Management , 6(17) .
Gecti, F. (2014). The journal of international management studies among its dimensions via structural equation modeling: A research on Turkish Consumers. British Journal of Marketing Studies , 2(1) , 1–11.
Gorji, M., & Siami, S. (2020). How sales promotion displays influence customer shopping intentions in retailers. International Journal of Retail and Distribution Management , 48 (12), 1337–1355. https://doi.org/10.1108/IJRDM-12-2019-0407
Gurleen, K. and Pooja, B. (2014). Customer satisfaction and factors influencing the purchase decisions of notebook computers in Punjab'. Journal of Research in Marketing , Vol. 2 , No. , 205–211.
Hanaysha, J.R. (2018). An examination of the factors influencing consumer's purchase decisions in the Malaysian retail market. PSU Res. Rev , 2 , 7–23. https://doi.org/https://doi.org/10.1108/prr-082017-0034
Joseph F. Hair, J., Ringle, GTMHCM, & Sarstedt, M. (2022). An Introduction to Partial Least Squares Structural Equation Modeling (PLS-SEM) (L. Fargotstein (ed.) No Title (Third). SAGE Publishing.
Kambiz, S. and Naimi, S.S. (2014). The impact of brand image on customer satisfaction and loyalty intention (case study: customers of hygiene products). International Journal of Engineering Innovation & Research , Vol. 3 , No. , 57–61.
Kotler, P., & Armstrong, G. (2018). Principles of marketing . Harlow: Pearson.
Kuncoro, HADP, & Kusumawati, N. (2021). a Study of Customer Preference, Customer Perceived Value, Sales Promotion, and Social Media Marketing Towards Purchase Decision of Sleeping Products in Generation Z. Advanced International Journal of Business, Entrepreneurship and SMEs , 3 (9), 265–276. https://doi.org/10.35631/aijbes.39018
Li, C.-P. (2017). Effects of brand image, perceived price, perceived quality, and perceived value on the purchase intention towards sports and tourism products of the 2016 Taichung. The Journal of International Management Studies , 12(2) , 97–107.
Liang, S. Z., Xu, J. L., & Huang, E. (2024). Comprehensive Analysis of the Effect of Social Influence and Brand Image on Purchase Intention. SAGE Open , 14 (1), 1–13. https://doi.org/10.1177/21582440231218771
Liu, Z., Wang, H. and Li, P. (2018). The antecedents of green information systems and impact on environmental performance'. International Journal of Service, Economics and Management , 9 No. 2 , 111–124.
Mao, Y., Lai, Y., Luo, Y., Liu, S., Du, Y., Zhou, J., Ma, J., Bonaiuto, F., & Bonaiuto, M. (2020). Apple or Huawei: Understanding flow, brand image, brand identity, brand personality and purchase intention of smartphones. Sustainability (Switzerland) , 12 (8), 1–22. https://doi.org/10.3390/SU12083391
Mappesona, H., Ikhsani, K., & Ali, H. (2020). Customer purchase decision model, supply chain management and customer satisfaction: Product quality and promotion analysis. International Journal of Supply Chain Management , 9 (1), 592–600.
Neupane, R. (2015). The effects of brand image on customer satisfaction and loyalty intention in UK retail super market chains. International Journal of Social Science and Management , Vol. 2 , Nos , 9–26.
Oledepo, O.I. and Odunlami, S.A. (2015). he influence of brand image and promotional mix on customer purchasing decisions: a study of beverage customers in Lagos State, Nigeria. British Journal of Marketing Studies , Vol. 3 , No. , 97–109.
Olson, E.M., Slater, S.F., Hult, G.T.M., & Olson, K.M. (2018). No Title The application of human resource management policies within the marketing organization: The impact on business and marketing strategy implementation. Industrial Marketing Management , 69 , 62–73.
Prasad, Shantanu, Garg, A., Prasad, S. (2019). Purchase decisions of generation Y in an online environment (pp. 372–385). Mark. Intel. Plans. https://doi.org/https://doi.org/10.1108/MIP-02-20180070
Rachmawati, D., Shukri, S., Ferdous Azam, SM, & Khatibi, A. (2019). Factors influencing customers' purchase decision of residential property in Selangor, Malaysia. Management Science Letters , 9 (9), 1341–1348. https://doi.org/10.5267/j.msl.2019.5.016
Sari Dewi, LGP, Edyanto, N., & Siagian, H. (2020). The Effect of Brand Ambassador, Brand Image, and Brand Awareness on Purchase Decision of Pantene Shampoo in Surabaya, Indonesia. SHS Web of Conferences , 76 , 01023. https://doi.org/10.1051/shsconf/20207601023
Septa Diana Nabella. (2021). Improve Consumer Purchasing Decisions Through Quality of Service, Promotion And Quality of Information At PT. Ng Tech Supplies. International Journal of Science, Technology & Management , 2 (3), 880–889. https://doi.org/10.46729/ijstm.v2i3.210
Severi, E., Ling, K. C., & Nasermoadeli, A. (2014). The impact of electronic word of mouth on brand equity in the context of social media. International Journal of Business and Management , 9(8) , 84–96.
Sinha, S. K., & Verma, P. (2020). Impact of sales promotion's benefits on perceived value: Does product category moderate the results? Journal of Retailing and Consumer Services , 52 (December 2017), 101887. https://doi.org/10.1016/j.jretconser.2019.101887
Suhaily, L., & Darmoyo, S. (2017). Effect on product quality, perceived price and brand image on purchase decision mediated by consumers trust. Journal of Management , 21(2) , 179–194.
Supardin, L. (2022). The Role of Brand Image as a Mediation of the Effect of Advertising and Sales Promotion on Customer Purchase Decision. Journal of Economics and Sustainable Development , August . https://doi.org/10.7176/jesd/13-8-09
Tjiptono, F. (2018). Strategic marketing (4th ed). Andi Publisher.
Toubes, DR, Vila, NA, & Fraiz Brea, JA (2021). Changes in consumption patterns and tourist promotion after the covid-19 pandemic. Journal of Theoretical and Applied Electronic Commerce Research , 16 (5), 1332–1352. https://doi.org/10.3390/jtaer16050075
Wang, H., Gurnani, H. and Erkoc, M. (2016). Entry deterrence of capacitated competition using price and non-price strategies. Production and Operations Management , Vol. 25 , N , 205–211.
Wang, Y.-H., & Chen, L.-Y. (2016). An empirical study of the effect of perceived price on purchase intention evidence from low cost carriers. International Journal of Business and Social Science , 7(4) , 97–107.
Wang, Y. H., & Tsai, C. F. (2014). The relationship between brand image and purchase intention: Evidence from award winning mutual funds. The International Journal of Business and Finance Research , 8(2) , 27–40.
