Are Consumers Really Willing to Pay More for Favorable Brand Associations The Moderating Role of Product Value and Product Risk Level

Despite the prolific research on the effect of brand associations on consumer product evaluations, the price-related consequences remain neglected. This study seeks to explain the effect of brand associations on consumers’ willingness to pay (WTP) a price premium. Moreover, it attempts to explain whether this effect is moderated by product value and product risk level. Utilizing data from both US and Turkey, this study shows that brand associations significantly and positively influence consumers’ WTP. It suggests that favorable brand associations also have price-related consequences. Furthermore, the results suggest that consumers are willing to pay a price premium for favorable brands more for products that have high value and risk level.