A Study of Premium Price Brands with Special Reference to Willingness of Customer to Pay

Use of premium price has become much gainful among brands for making unique and differentiate product among existing homogeneous product in the market. This marketing tool has gained key importance for the marketing research and global marketing. So using premium price for attracting the higher income customer has become a powerful tool in marketing. Premium price products are products which not differentiated in price but also in quality and comfort. Present study was conducted at big stores and malls in Lahore and Faisalabad. There were 220 respondent taken randomly and interweaved by asking a set of well-prepared questionnaire. The objective of the study were to find out the correlation among brand association and premium brands, the association between brand identity and premium brand, relationship between brand image and premium brand and to find the price association with premium brand. Result of the study explored that respondents income, brand equity and brand association are the significant determinants which affects consumers behavior regarding the purchase of premium brands and these factors contribute while decision making by consumers and they always take these factors into account. Results of the study also suggested that there is significant association between the both hypothesis which states the preference for the premium brand and the buying of premium brand.