The cool identity: mediating roles of luxury brand currency and preference in willingness to pay more

Purpose This study aims to examine how brand coolness functions as a driver of young consumers' willingness to pay more for luxury products. Specifically, it investigates the mediating roles of luxury brand currency and luxury brand preference in this relationship. Design/methodology/approach Data were collected from 296 young consumers (aged 18–35) with recent luxury purchases. Partial least squares structural equation modelling was used to test the hypothesized relationships, and combined importance–performance map analysis (cIPMA) was applied to identify key performance priorities for brand managers. Findings The results show that brand coolness significantly increases willingness to pay more, both directly and indirectly via luxury brand currency and brand preference. The mediation results further indicate that these two mechanisms help explain how brand coolness translates into premium willingness among young consumers. cIPMA analysis highlights the strategic importance of prioritizing brand coolness as a performance dimension in luxury brand management. Originality/value The study advances luxury marketing research by positioning brand coolness as a multidimensional antecedent of premium pricing and loyalty among younger consumers. It contributes to theory by linking signaling and assemblage perspectives with consumer-based relational mechanisms. For practitioners, the findings provide actionable insights into how coolness can be leveraged to sustain competitiveness, enhance consumer engagement, and cultivate loyalty in the evolving luxury landscape.