How Does Brand Affects
Consumer Price Perception
An expanded concept of price in which the element of price is considered as a multidimensional creation that comprises more than just the real retail price has not been suggested and implemented in the study of consumer buying behavior. In this paper we strive to discuss how the consumers gain price information to support their decisions for buying a particular product and the implication of brand on their price perceptions. This information supplements the overall standards of decisions that create the response of consumer to market price guided by the strength of brand. Particularly we shall try to assess the response of consumer that is dependent not only price but how comparison is made with the overall reservation price or evoked price along with the implication of brand on it.
Consumers use the element of price they anticipate to pay for a specific brand on a given occasion of purchase as a reference in establishing price assessment. This notion of anticipated price is quite dissimilar to the price limits notion that is related with the price range consumers are willing to make payment for a product. We shall use the term ‘price perception’ in this paper to convey the concept that consumers use information they have about past prices and consider also the different contextual variables such as environment of store and expectations of prices in future for making buying decisions.
Brand is a distinctive symbol or name created with the intention to identify and recognize the goods or services of one seller or a particular group of sellers. Another purpose is to differentiate such goods or services from its competitors. As such a brand signals to its customers the specific source of product and attempts to protect both the producer and customer from competitors who ultimately endeavor to provide products that seems to be...