AN EMPIRICAL STUDY ON BRAND IMAGE AND CUSTOMERS’ WILLINGNESS TO PAY A PRICE PREMIUM FOR PACKAGED FOOD BRANDS

Abstract

Purpose: Basic purpose of conducting this research is to get to know about the willingness or unwillingness of customers to pay premium price for packaged food brands and helping out the companies to use more convincing marketing tools to charge premium price.

Methodology: This article is based on quantitative survey of packaged food brands people are using and quite familiar with and its influence on loyalty as well as customers’ willingness to pay a price premium for packaged food brand.

Findings: The survey shows that “origin” plays an important role to allow the packaged brand companies to charge premium price.

Practical implications: The results help brand managers to recognize the importance of incorporating price premium and to develop a better understanding of what drives price premium.