Research Article
BRAND CHARACTERISTICS’ EFFECTS ON YEMENI COMPANIES’ WILLINGNESS TO PAY (WTP) A PRICE PREMIUM FOR AUDIT SERVICES
Abstract
Brand is considered as a profitability enhancing factor and an element that will make consumers willing to pay a price premium, but is this applicable for companies when consuming something? Is this applicable for companies operating in unstable country situation? This research is working on finding an answer for such question by studying the effects of Brand Characteristics (including Brand Repetition, Brand Predictability and Brand Competency) on consumer WTP a price premium mediated by Brand Credibility and Perceived Uniqueness for audit services comparing the companies’ attitude toward branded (Big 4) and non-branded audit services in Yemen which as an example of unstable situation a country with an as per the world bank evaluation 2018 - 2019. The data was collected from 200 company, that were audited in the last two years in Yemen, the structural equational modeling was used for analysis and results generating which revealed that: There are no direct effects of Brand characteristics (including Brand Repetition, Brand Predictability and Brand Competency) to the consumer WTP a price premium for audit services in Yemen, the mediating role of Brand Credibility was only between Brand Predictability and consumer WTP a price premium and the mediating role of Perceived Uniqueness was only between Brand Competency and consumer WTP a price premium. This research is combining the Brand filed and the Audit filed by studying the effect of some brand variables on consumer behavior in a specialized service industry which is Auditing industry and concentrates on Brand effect from the consumer side, it contributes to the field of brand management, pricing strategy and, audit firms’ management. It presents insight from a different point of view for audit firms’ managerial practice in an unstable country situation.
References
- Ajao, O. S., Olamide, J. O., & Temitope, A. A. (2016). Evolution and development of auditing. Unique Journal of Business Management Research, 3(1), 032-040. Ansary, A., & Hashim, N. M. (2018). Brand image and equity: the mediating role of brand equity drivers and moderating effects of product type and word of mouth. Review of Managerial Science, 12, 969–1002. Baker, W., Hutchinson, J. W., Moore, D., & Nedungadi, P. (1986). Brand Familiarity and Advertising: Effects on the Evoked Set and Brand Preference. Advances in Consumer Research, 13, 637-642. Belanche, D., Flavián, C., & Pérez-Rueda, A. (2017). Understanding Interactive Online Advertising: Congruence and Product Involvement in Highly and Lowly Arousing, Skippable Video Ads. Journal of Interactive Marketing, 37, 75–88. Bengtsson, A., Bardhi, F., & Venkatraman, M. (2010). International Marketing Review. How global brands travel with consumers: An examination of the relationship between brand consistency and meaning across national boundaries, 27(5), 519-540. Bhasin, H. (2018). What are Brand Characteristics? Retrieved November 27, 2018, from https://www.marketing91.com/what-are-brand-characteristics/ Byrne, B. M. (2010). Structural Equation Modeling with AMOS Basic Concepts, Applications, and Programming (2nd ed.). New York: Taylor and Francis Group, LLC. Byrne, B. M. (2012). Structural Equation Modeling with Mplus Basic Concepts, Applications, and Programming (2nd ed.). New York: Taylor & Francis Group, LLC. Byrne, B. M. (2016). Structural Equation Modeling with Amos: Basic Concepts, Applications, and Programming (3ed ed.). New York: Routledge. Campbell, J., DiPietro, R. B., & Remar, D. (2014). Local foods in a university setting: Price consciousness, productinvolvement, involvement, price/quality inference and consumer’swillingness-to-pay. International Journal of Hospitality Management, 42, 39–49. Carvalho, J., & Chima, F. O. (2014). Applications of Structural Equation Modeling in Social Sciences Research. American International Journal of Contemporary Research, 4(1), 6-11. Chaffey, D. (2015). Digital Business and E-Commerce Management (6th ed.). United Kingdom: Pearson Education Limited. Craswell, A. T., Francis, J. R., & Taylor, S. L. (1995). Auditor brand name reputations and industry Specializations. Journal of Accounting and Economics , 20, 297-322. Deloitte . (2016). Code of Ethics and Professional Conduct The power of shared values. UK: Deloitte Development LLC. Dharmesti, M. D., & Nugroho, S. S. (2012). The Antecedents of Online Customer Satisfaction and Customer Loyalty. The Business & Management Review, 3(1), 37-42. Drossos, D. A., Kokkinaki, F., Giaglis, G. M., & Fouskas, K. G. (2014). The effects of product involvement and impulse buying on purchase intentions in mobile text advertising. Electronic Commerce Research and Applications, 13, 423–430. Dwivedi, A., Nayeem, T., & Murshed, F. (2018). Brand experience and consumers’ willingness-to-pay (WTP) a price premium: Mediating role of brand credibility and perceived uniqueness. Journal of Retailing and Consumer Services, 44, 100-107. Etikan, I., Musa, S. A., & Alkassim, R. S. (2016). Comparison of Convenience Sampling and Purposive Sampling. American Journal of Theoretical and Applied Statistics, 5(1), 1-4. EY. (2013). Building a better working world. International: EYGM Limited. Gaskin, J. (2017, July 11). Data screening. Retrieved February 21, 2019, from http://statwiki.kolobkreations.com/index.php?title=Data_screening#Linearity Gaskin, J. (2018). Structural Equation Modeling. Retrieved February 26, 2019, from http://statwiki.kolobkreations.com/index.php?title=Structural_Equation_Modeling Gefen , D., & Straub , D. (2005). A Practical Guide To Factorial Validity Using PLSGraph: Tutorial And Annotated Example. Communications of the Association for Information Systems, 16(5), 91-109. Hair Jr, J. F., Black, W. C., Babin, B. J., & Anderson, R. E. (2014). Multivariate Data Analysis (7th ed.). England: Pearson Education Limited. Hooper, D., Coughlan, J., & Mullen, M. R. (2008). Structural Equation Modelling: Guidelines for Determining Model Fit. Electronic Journal of Business Research Methods, 6(1), 53-60. Hox, J. J., & Bechger , T. M. (1999). An Introduction to Structural Equation Modeling. Family Science Review, 11, 354-373. Hu, L.-t., & Bentler, P. M. (1999). Cutoff Criteria for Fit Indexes in Covariance Structure Analysis: Conventional Criteria Versus New Alternatives. Structural Equation Modeling: A Multidisciplinary Journal, 5(1), 1-55. Hung, H. J., O'Neill, R. T., Bauer, P., & Kohne, K. (1997). The Behavior of the P-Value When the Alternative Hypothesis is True. Biometrics, 53(1), 11-22. Ilieva, J., Baron, S., & Healey, N. M. (2002). Online surveys in marketing research: pros and cons. International Journal of Market Research, 44(3), 361-376. Kapferer, J.-N. (2008). The New Strategic Brand Management (4th ed.). London and Philadelphia: Kogan Page Limited. Keller, K. L. (1993). Conceptualizing, Measuring, and Managing Customer-Based Brand Equity. Journal of Marketing, 57(1), 1-22. Keller, K. L. (2013). Strategic Brand Management (4th Global ed.). London: Pearson Education Limited. Kim, S., & Chung, H. (2012). The impacts of perceived fit, brand familiarity, and status consciousness on fashion brand extension evaluation. International Journal of Fashion Design, 5(3), 203-211. Kline, R. B. (2011). Principles and Practice of Structural Equation Modeling (3ed ed.). New York: THE GUILFORD PRESS. Kotler, P., & Keller, K. L. (2016). Marketing Management (15th Global ed.). London: Pearson Education Limited. Kotler, P., & Pfoertsch, W. (2006). B2B Brand Management (1st ed.). Heidelberg: Springer Berlin. Landau, S., & Everitt, B. S. (2004). A Handbook of Statistical Analyses using SPSS (1st ed.). London: Chapman & Hall/CRC Press LLC. Lanseng, E. J., & Olsen, L. E. (2012). Brand alliances: the role of brand concept consistency. European Journal of Marketing, 46(9), 1108-1126. Lau, G. T., & Lee, S. H. (1999). Consumers’ Trust in a Brand and the Link to Brand Loyalty. Journal of Market-Focused Managment, 4, 341-370. Liang a, Y.-P. (2012). The Relationship between Consumer Product Involvement, Product Knowledge and Impulsive Buying Behavior. Procedia - Social and Behavioral Sciences, 57, 325 – 330. Muijs, D. (2004). Doing Quantitative Research in Education with SPSS (1st ed.). London: Sage Publications. Ogba, I.‐E., & Tan, Z. (2009). Exploring the impact of brand image on customer loyalty and commitment in China. Journal of Technology Management in China, 4(2), 132-144. Park, S. C., & Keil, M. (2017). The Moderating Effects of Product Involvement on Escalation Behavior. Journal of Computer Information Systems, 57, 1-15. Rahmat, M. M., & Iskandar, T. M. (2004). Audit fee premiums from brand name, industry specialization and industry leadership: A study of the post Big 6 merger in Malaysia". Asian Review of Accounting, 12(2), 1-24. Roy, D., & Banerjee, S. (2014). Identification and measurement of brand identity and image gap: a quantitative approach. Journal of Product & Brand Management, 23(3), 207-219. Saunders, M., Lewis, P., & Thornhill, A. (2009). Research methods for business students (5th ed.). Harlow: Pearson Education Limited. Schumacker, R. E., & Lomax, R. G. (2010). A Beginner’s Guide to Structural Equation Modeling (3rd ed.). New York: Taylor and Francis Group, LLC. Sheau-Fen, Y., Sun-May, L., & Yu-Ghee, W. (2012). Store brand proneness: Effects of perceived risks, quality and familiarity. Australasian Marketing Journal, 20, 48–58. Soltani, B. (2007). AUDITING: An International Approach (1st ed.). England: Pearson Education Limited. Till, B. D., Baack, D., & Waterman, B. (2011). Strategic brand association maps: developing brand insight. Journal of Product & Brand Management, 20(2), 92–100. Vaidyanathan, R. (2000). The Role of Brand Familiarity in Internal Reference Price Formation: An Accessibility-Diagnosticity Perspective. Journal of Business and Psychology, 14(4), 605-624. Varoquaux, G. (2018). Cross-validation failure: Small sample sizes lead to large error bars. NeuroImage, 180, 68–77.
Year 2019,
Volume: 5 Issue: 14, 878 - 889, 15.09.2019
Abstract
References
- Ajao, O. S., Olamide, J. O., & Temitope, A. A. (2016). Evolution and development of auditing. Unique Journal of Business Management Research, 3(1), 032-040. Ansary, A., & Hashim, N. M. (2018). Brand image and equity: the mediating role of brand equity drivers and moderating effects of product type and word of mouth. Review of Managerial Science, 12, 969–1002. Baker, W., Hutchinson, J. W., Moore, D., & Nedungadi, P. (1986). Brand Familiarity and Advertising: Effects on the Evoked Set and Brand Preference. Advances in Consumer Research, 13, 637-642. Belanche, D., Flavián, C., & Pérez-Rueda, A. (2017). Understanding Interactive Online Advertising: Congruence and Product Involvement in Highly and Lowly Arousing, Skippable Video Ads. Journal of Interactive Marketing, 37, 75–88. Bengtsson, A., Bardhi, F., & Venkatraman, M. (2010). International Marketing Review. How global brands travel with consumers: An examination of the relationship between brand consistency and meaning across national boundaries, 27(5), 519-540. Bhasin, H. (2018). What are Brand Characteristics? Retrieved November 27, 2018, from https://www.marketing91.com/what-are-brand-characteristics/ Byrne, B. M. (2010). Structural Equation Modeling with AMOS Basic Concepts, Applications, and Programming (2nd ed.). New York: Taylor and Francis Group, LLC. Byrne, B. M. (2012). Structural Equation Modeling with Mplus Basic Concepts, Applications, and Programming (2nd ed.). New York: Taylor & Francis Group, LLC. Byrne, B. M. (2016). Structural Equation Modeling with Amos: Basic Concepts, Applications, and Programming (3ed ed.). New York: Routledge. Campbell, J., DiPietro, R. B., & Remar, D. (2014). Local foods in a university setting: Price consciousness, productinvolvement, involvement, price/quality inference and consumer’swillingness-to-pay. International Journal of Hospitality Management, 42, 39–49. Carvalho, J., & Chima, F. O. (2014). Applications of Structural Equation Modeling in Social Sciences Research. American International Journal of Contemporary Research, 4(1), 6-11. Chaffey, D. (2015). Digital Business and E-Commerce Management (6th ed.). United Kingdom: Pearson Education Limited. Craswell, A. T., Francis, J. R., & Taylor, S. L. (1995). Auditor brand name reputations and industry Specializations. Journal of Accounting and Economics , 20, 297-322. Deloitte . (2016). Code of Ethics and Professional Conduct The power of shared values. UK: Deloitte Development LLC. Dharmesti, M. D., & Nugroho, S. S. (2012). The Antecedents of Online Customer Satisfaction and Customer Loyalty. The Business & Management Review, 3(1), 37-42. Drossos, D. A., Kokkinaki, F., Giaglis, G. M., & Fouskas, K. G. (2014). The effects of product involvement and impulse buying on purchase intentions in mobile text advertising. Electronic Commerce Research and Applications, 13, 423–430. Dwivedi, A., Nayeem, T., & Murshed, F. (2018). Brand experience and consumers’ willingness-to-pay (WTP) a price premium: Mediating role of brand credibility and perceived uniqueness. Journal of Retailing and Consumer Services, 44, 100-107. Etikan, I., Musa, S. A., & Alkassim, R. S. (2016). Comparison of Convenience Sampling and Purposive Sampling. American Journal of Theoretical and Applied Statistics, 5(1), 1-4. EY. (2013). Building a better working world. International: EYGM Limited. Gaskin, J. (2017, July 11). Data screening. Retrieved February 21, 2019, from http://statwiki.kolobkreations.com/index.php?title=Data_screening#Linearity Gaskin, J. (2018). Structural Equation Modeling. Retrieved February 26, 2019, from http://statwiki.kolobkreations.com/index.php?title=Structural_Equation_Modeling Gefen , D., & Straub , D. (2005). A Practical Guide To Factorial Validity Using PLSGraph: Tutorial And Annotated Example. Communications of the Association for Information Systems, 16(5), 91-109. Hair Jr, J. F., Black, W. C., Babin, B. J., & Anderson, R. E. (2014). Multivariate Data Analysis (7th ed.). England: Pearson Education Limited. Hooper, D., Coughlan, J., & Mullen, M. R. (2008). Structural Equation Modelling: Guidelines for Determining Model Fit. Electronic Journal of Business Research Methods, 6(1), 53-60. Hox, J. J., & Bechger , T. M. (1999). An Introduction to Structural Equation Modeling. Family Science Review, 11, 354-373. Hu, L.-t., & Bentler, P. M. (1999). Cutoff Criteria for Fit Indexes in Covariance Structure Analysis: Conventional Criteria Versus New Alternatives. Structural Equation Modeling: A Multidisciplinary Journal, 5(1), 1-55. Hung, H. J., O'Neill, R. T., Bauer, P., & Kohne, K. (1997). The Behavior of the P-Value When the Alternative Hypothesis is True. Biometrics, 53(1), 11-22. Ilieva, J., Baron, S., & Healey, N. M. (2002). Online surveys in marketing research: pros and cons. International Journal of Market Research, 44(3), 361-376. Kapferer, J.-N. (2008). The New Strategic Brand Management (4th ed.). London and Philadelphia: Kogan Page Limited. Keller, K. L. (1993). Conceptualizing, Measuring, and Managing Customer-Based Brand Equity. Journal of Marketing, 57(1), 1-22. Keller, K. L. (2013). Strategic Brand Management (4th Global ed.). London: Pearson Education Limited. Kim, S., & Chung, H. (2012). The impacts of perceived fit, brand familiarity, and status consciousness on fashion brand extension evaluation. International Journal of Fashion Design, 5(3), 203-211. Kline, R. B. (2011). Principles and Practice of Structural Equation Modeling (3ed ed.). New York: THE GUILFORD PRESS. Kotler, P., & Keller, K. L. (2016). Marketing Management (15th Global ed.). London: Pearson Education Limited. Kotler, P., & Pfoertsch, W. (2006). B2B Brand Management (1st ed.). Heidelberg: Springer Berlin. Landau, S., & Everitt, B. S. (2004). A Handbook of Statistical Analyses using SPSS (1st ed.). London: Chapman & Hall/CRC Press LLC. Lanseng, E. J., & Olsen, L. E. (2012). Brand alliances: the role of brand concept consistency. European Journal of Marketing, 46(9), 1108-1126. Lau, G. T., & Lee, S. H. (1999). Consumers’ Trust in a Brand and the Link to Brand Loyalty. Journal of Market-Focused Managment, 4, 341-370. Liang a, Y.-P. (2012). The Relationship between Consumer Product Involvement, Product Knowledge and Impulsive Buying Behavior. Procedia - Social and Behavioral Sciences, 57, 325 – 330. Muijs, D. (2004). Doing Quantitative Research in Education with SPSS (1st ed.). London: Sage Publications. Ogba, I.‐E., & Tan, Z. (2009). Exploring the impact of brand image on customer loyalty and commitment in China. Journal of Technology Management in China, 4(2), 132-144. Park, S. C., & Keil, M. (2017). The Moderating Effects of Product Involvement on Escalation Behavior. Journal of Computer Information Systems, 57, 1-15. Rahmat, M. M., & Iskandar, T. M. (2004). Audit fee premiums from brand name, industry specialization and industry leadership: A study of the post Big 6 merger in Malaysia". Asian Review of Accounting, 12(2), 1-24. Roy, D., & Banerjee, S. (2014). Identification and measurement of brand identity and image gap: a quantitative approach. Journal of Product & Brand Management, 23(3), 207-219. Saunders, M., Lewis, P., & Thornhill, A. (2009). Research methods for business students (5th ed.). Harlow: Pearson Education Limited. Schumacker, R. E., & Lomax, R. G. (2010). A Beginner’s Guide to Structural Equation Modeling (3rd ed.). New York: Taylor and Francis Group, LLC. Sheau-Fen, Y., Sun-May, L., & Yu-Ghee, W. (2012). Store brand proneness: Effects of perceived risks, quality and familiarity. Australasian Marketing Journal, 20, 48–58. Soltani, B. (2007). AUDITING: An International Approach (1st ed.). England: Pearson Education Limited. Till, B. D., Baack, D., & Waterman, B. (2011). Strategic brand association maps: developing brand insight. Journal of Product & Brand Management, 20(2), 92–100. Vaidyanathan, R. (2000). The Role of Brand Familiarity in Internal Reference Price Formation: An Accessibility-Diagnosticity Perspective. Journal of Business and Psychology, 14(4), 605-624. Varoquaux, G. (2018). Cross-validation failure: Small sample sizes lead to large error bars. NeuroImage, 180, 68–77.
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Details
| Primary Language | English |
|---|---|
| Journal Section | Articles |
| Authors | |
| Publication Date | September 15, 2019 |
| Submission Date | July 16, 2019 |
| Published in Issue | Year 2019Volume: 5 Issue: 14 |
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