Social Media Marketing and Branding in Creating Willingness to Pay Premium Prices: A Study of Home Brand Tea Products
DOI:
https://doi.org/10.14414/jebav.v27i3.4744Keywords:
social media marketing, branding, willingness to pay premium prices, home brandsAbstract
Gambyong, Kemuning Mbok Karti, and Gondang Sari are small and medium-sized enterprise (SME) tea brands that have established themselves as high-quality and well-recognized brands. As a result, they can charge premium prices for their prod-ucts and effectively market them through social media platforms. This study inves-tigates the impact of social media marketing and branding on consumers' willing-ness to pay premium prices for home-brand tea products. The research sample con-sisted of 159 customers of Gambyong Tea, Kemuning Mbok Karti Tea, and Gondang Sari Tea, selected using purposive sampling techniques. Data were collected through a structured questionnaire, and the analysis was conducted using Partial Least Squares Structural Equation Modeling (PLS-SEM). The findings reveal that social media marketing directly influences brand identity, brand awareness, and brand im-age. Furthermore, brand awareness significantly impacts both brand preference and consumers' willingness to pay premium prices. Similarly, brand image has a signif-icant effect on brand preference, which, in turn, strongly influences willingness to pay premium prices. This study offers a novel contribution by developing a model that highlights the role of social media marketing in shaping branding and driving consumer willingness to purchase home-brand products at premium prices. The findings have important implications for SMEs, emphasizing the strategic use of social media to enhance branding efforts and boost sales of premium products.
References
Akturan, U. (2020). Pay-premium for green brands: evidence from an emerging country. Journal of Global Responsibility, 11(3), 219–232. https://doi.org/10.1108/JGR-03-2019-0034
Aljumah, A., Nuseir, M. T., & Alshurideh, M. T. (2021). The Impact of Social Media Marketing Communications on Consumer Response During the COVID-19: Does the Brand Equity of a University Matter? In Studies in Systems, Decision and Control (Vol. 334, Issue April). Springer International Publishing. https://doi.org/10.1007/978-3-030-67151-8_21
Anselmsson, J., Bondesson, N. V., & Johansson, U. (2014a). Brand image and customers’ willingness to pay a price premium for food brands. Journal of Product and Brand Management, 23(2), 90–102. https://doi.org/10.1108/JPBM-10-2013-0414
Anselmsson, J., Bondesson, N. V., & Johansson, U. (2014b). Brand image and customers’ willingness to pay a price premium for food brands. Journal of Product and Brand Management, 23(2), 90–102. https://doi.org/10.1108/JPBM-10-2013-0414
Ashley, C., & Tuten, T. (2015). Creative Strategies in Social Media Marketing: An Exploratory Study of Branded Social Content and Consumer Engagement. Psychology & Marketing, 32(1), 15–27. https://doi.org/10.1002/mar
Asmawati, A., Ahmad, I., Suwarni, E., Alita, D., & Hasrina, C. D. (2024). Online Marketing Readiness of MSMEs in Indonesia : A Perspective of Technology Organizational Environmental Framework. Journal of Economics, Business, and Accountancy Ventura, 27(1), 145–155. https://doi.org/10.14414/jebav.v27i1.3399
Augusto, M., & Torres, P. (2018). Effects of brand attitude and eWOM on consumers’ willingness to pay in the banking industry: Mediating role of consumer-brand identification and brand equity. Journal of Retailing and Consumer Services, 42(December 2017), 1–10. https://doi.org/10.1016/j.jretconser.2018.01.005
Barreda, A. A., Nusair, K., Wang, Y., Okumus, F., & Bilgihan, A. (2020). The impact of social media activities on brand image and emotional attachment: A case in the travel context. Journal of Hospitality and Tourism Technology, 11(1), 109–135. https://doi.org/10.1108/JHTT-02-2018-0016
Bougenvile, A., & Ruswanti, E. (2017). Brand Equity on Purchase Intention Consumers’ Willingness to Pay Premium Price Juice. IOSR Journal of Economics and Finance, 08(01), 12–18. https://doi.org/10.9790/5933-0801031218
Casidy, R., & Wymer, W. (2016). A risk worth taking: Perceived risk as moderator of satisfaction, loyalty, and willingness-to-pay premium price. Journal of Retailing and Consumer Services, 32, 189–197. https://doi.org/10.1016/j.jretconser.2016.06.014
Dash, G., Kiefer, K., & Paul, J. (2021). Marketing-to-Millennials: Marketing 4.0, customer satisfaction and purchase intention. Journal of Business Research, 122(October 2020), 608–620. https://doi.org/10.1016/j.jbusres.2020.10.016
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(March), 100–107. https://doi.org/10.1016/j.jretconser.2018.06.009
Estensoro, M., Larrea, M., Müller, J. M., & Sisti, E. (2022). A resource-based view on SMEs regarding the transition to more sophisticated stages of industry 4.0. European Management Journal, 40(5), 778–792. https://doi.org/10.1016/j.emj.2021.10.001
Faisol, F., Suhardi, S., Astuti, P., & Subagyo, S. (2022). the Adoption of Ict To Improve the Performance of Smes in Digital Era. 2n International Conference on Business & Social Sciences, March, 1128–1141. https://debian.stiesia.ac.id/index.php/icobuss1st/article/view/286%0Ahttps://debian.stiesia.ac.id/index.php/icobuss1st/article/download/286/255
Farzin, M., Sadeghi, M., Fattahi, M., & Eghbal, M. R. (2021). Effect of Social Media Marketing and eWOM on Willingness to Pay in the Etailing: Mediating Role of Brand Equity and Brand Identity. Business Perspectives and Research. https://doi.org/10.1177/22785337211024926
Godey, B., Manthiou, A., Pederzoli, D., Rokka, J., Aiello, G., Donvito, R., & Singh, R. (2016). Social media marketing efforts of luxury brands: Influence on brand equity and consumer behavior. Journal of Business Research, 69(12), 5833–5841. https://doi.org/10.1016/j.jbusres.2016.04.181
Hair, J. F. H., Risher, J. J., Sarstedt, M., & Ringle, C. M. (2018). When to use and how to report the results of PLS-SEMrmation. European Business Review, 31(1), 2–24.
Hughes, D. E., Richards, K. A., Calantone, R., Baldus, B., & Spreng, R. A. (2019). Driving In-Role and Extra-Role Brand Performance among Retail Frontline Salespeople: Antecedents and the Moderating Role of Customer Orientation. Journal of Retailing, 95(2), 130–143. https://doi.org/10.1016/j.jretai.2019.03.003
Kazmi, A., & Mehmood, Q. S. (2016). The effect of electronic word of mouth communication and brand image on purchase intention: A case of consumer electronics in Haripur, Pakistan. Management Science Letters, 6, 409–508. https://doi.org/10.5267/j.msl.2016.5.003
Keller, & Lane, K. (2013). Conceptualizing, measuring, and managing customer-based brand equity. Journal of Marketing, 57(1), 1–22.
Kumar, A., & C, K. (2017). Social eWOM: Does it Affect the Brand Attitude and Purchase Intention of Brands? Management Research Review, 36(7), 700–719.
Laroche, M., Habibi, M. R., & Richard, M. O. (2013). To be or not to be in social media: How brand loyalty is affected by social media? International Journal of Information Management, 33(1), 76–82. https://doi.org/10.1016/j.ijinfomgt.2012.07.003
Li, T. (Tina), Liu, F., & Soutar, G. N. (2021). Experiences, post-trip destination image, satisfaction and loyalty: A study in an ecotourism context. Journal of Destination Marketing and Management, 19(January), 100547. https://doi.org/10.1016/j.jdmm.2020.100547
Mainardes, E. W., Soares Júnior, A. P., & Andrade, D. M. (2020). Brand equity of commoditized products of famous brands. Marketing Intelligence and Planning, 38(3), 296–309. https://doi.org/10.1108/MIP-02-2019-0115
Malarvizhi, C. A., Al Mamun, A., Jayashree, S., Naznen, F., & Abir, T. (2022a). Modelling the significance of social media marketing activities, brand equity and loyalty to predict consumers’ willingness to pay premium price for portable tech gadgets. Heliyon, 8(8), e10145. https://doi.org/10.1016/j.heliyon.2022.e10145
Malarvizhi, C. A., Al Mamun, A., Jayashree, S., Naznen, F., & Abir, T. (2022b). Modelling the significance of social media marketing activities, brand equity and loyalty to predict consumers’ willingness to pay premium price for portable tech gadgets. Heliyon, 8(8), 118159. https://doi.org/10.1016/j.heliyon.2022.e10145
Momen, M. A., Sultana, S., & Haque, A. K. M. A. (2020). Web-based marketing communication to develop brand image and brand equity of higher educational institutions: A structural equation modelling approach. Global Knowledge, Memory and Communication, 69(3), 151–169. https://doi.org/10.1108/GKMC-10-2018-0088
Murtiasih, S., Hermana, B., & Febriani, W. (2021). The Effect of Marketing Communication on Brand Equity with Brand Image, Brand Trust, and Brand Loyalty as the Intervening Variables. Journal of International Business Research and Marketing, 7(1), 7–16. https://doi.org/10.18775/jibrm.1849-8558.2015.71.3001
Nyadzayo, M. W., & Khajehzadeh, S. (2016). The antecedents of customer loyalty: A moderated mediation model of customer relationship management quality and brand image. Journal of Retailing and Consumer Services, 30, 262–270. https://doi.org/10.1016/j.jretconser.2016.02.002
Ogbeibu, S., & Gaskin, J. (2023). Back from the Future: Mediation and Prediction of Events Uncertainty through Event-Driven Models (EDMs). FIIB Business Review, 12(1), 10–19. https://doi.org/10.1177/23197145221121084
Pourazad, N., Stocchi, L., & Pare, V. (2020). The power of brand passion in sports apparel brands. Journal of Product and Brand Management, 29(5), 547–568. https://doi.org/10.1108/JPBM-12-2018-2164
Rodrigues, P., & Martins, F. V. (2016). Perceptual and behavioural dimensions: measuring brand equity consumer based. Journal of Fashion Marketing and Management, 20(4), 507–519. https://doi.org/10.1108/JFMM-03-2016-0019
Sääksjärvi, M., & Samiee, S. (2011). Relationships among Brand Identity, Brand Image and Brand Preference: Differences between Cyber and Extension Retail Brands over Time. Journal of Interactive Marketing, 25(3), 169–177. https://doi.org/10.1016/j.intmar.2011.04.002
Santos, M., & Schlesinger, W. (2021). When love matters. Experience and brand love as antecedents of loyalty and willingness to pay a premium price in streaming services. Spanish Journal of Marketing - ESIC, 25(3), 374–391. https://doi.org/10.1108/SJME-11-2020-0201
Seo, E. J., & Park, J. W. (2018). A study on the effects of social media marketing activities on brand equity and customer response in the airline industry. Journal of Air Transport Management, 66(August 2017), 36–41. https://doi.org/10.1016/j.jairtraman.2017.09.014
Yadav, M., & Rahman, Z. (2018). The influence of social media marketing activities on customer loyalty: a study of e-commerce industry. Benchmarking: An International Journal.
Yodpram, S., & Intalar, N. (2020). Conceptualizing eWOM, Brand Image, and Brand Attitude on Consumer’s Willingness to Pay in the Low-Cost Airline Industry in Thailand. Proceedings 2019, 39(27). https://doi.org/10.3390/proceedings2019039027
Zarei, A., Farjoo, H., & Bagheri Garabollagh, H. (2022). How Social Media Marketing Activities (SMMAs) and Brand Equity Affect the Customer’s Response: Does Overall Flow Moderate It? Journal of Internet Commerce, 21(2), 160–182. https://doi.org/10.1080/15332861.2021.1955461
Zhang, B., Fu, Z., Huang, J., Wang, J., Xu, S., & Zhang, L. (2018). Consumers’ perceptions, purchase intention, and willingness to pay a premium price for safe vegetables: A case study of Beijing, China. Journal of Cleaner Production, 197, 1498–1507. https://doi.org/10.1016/j.jclepro.2018.06.273
Zollo, L., Filieri, R., Rialti, R., & Yoon, S. (2020). Unpacking the relationship between social media marketing and brand equity: The mediating role of consumers’ benefits and experience. Journal of Business Research, 117(May), 256–267. https://doi.org/10.1016/j.jbusres.2020.05.001
Downloads
Published
Issue
Section
License
Copyright (c) 2025 Journal of Economics, Business, and Accountancy Ventura
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
