How Valuable is a Well-Crafted Design and Name Brand?

Recognition and Willingness to Pay

Tore Kristensen, Gorm Gabrielsen, Judith Zaichkowsky

Research output: Contribution to journalJournal articleResearchpeer-review

Abstract

Preferences for similarly designed consumer products, evaluated blind and branded and also with and without prices, were tested in a consumer setting. The consumer's perceptual experience led to preference of the well-crafted high-priced option. This preference was enhanced by priming consumers with background information about the brand, perhaps causing the subjects to guess which choice was the well-known brand before evaluation. Preferences for that choice increased again when brand names were visible during evaluation. When actual prices were added to the evaluations, preferences for the well-known brand were very robust to high prices, indicating the strength of the brand name. Using the least preferred option and the lowest price as an anchor, the consumers' price threshold to pay for the preferred design and the brand name was computed. Attempts to explain and predict individual differences of choices using measures of inherent design acumen, prior experience, and purchasing behavior were largely unsuccessful.
Original languageEnglish
JournalJournal of Consumer Behaviour
Volume11
Issue number1
Pages (from-to)44-55
Number of pages12
ISSN1472-0817
DOIs
Publication statusPublished - 2012

Keywords

  • Brand Name
  • Design Acumen
  • Quality
  • Price
  • Design

Cite this

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How Valuable is a Well-Crafted Design and Name Brand? Recognition and Willingness to Pay. / Kristensen, Tore; Gabrielsen, Gorm; Zaichkowsky, Judith.

In: Journal of Consumer Behaviour, Vol. 11, No. 1, 2012, p. 44-55.

Research output: Contribution to journalJournal articleResearchpeer-review

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AU - Kristensen, Tore

AU - Gabrielsen, Gorm

AU - Zaichkowsky, Judith

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AB - Preferences for similarly designed consumer products, evaluated blind and branded and also with and without prices, were tested in a consumer setting. The consumer's perceptual experience led to preference of the well-crafted high-priced option. This preference was enhanced by priming consumers with background information about the brand, perhaps causing the subjects to guess which choice was the well-known brand before evaluation. Preferences for that choice increased again when brand names were visible during evaluation. When actual prices were added to the evaluations, preferences for the well-known brand were very robust to high prices, indicating the strength of the brand name. Using the least preferred option and the lowest price as an anchor, the consumers' price threshold to pay for the preferred design and the brand name was computed. Attempts to explain and predict individual differences of choices using measures of inherent design acumen, prior experience, and purchasing behavior were largely unsuccessful.

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