Causal Factors Affecting Willingness of Thai Consumers to Pay More: A Case Study of a Thai Cosmetic Brand
Keywords:
Willingness to pay, Thai consumers, Higher prices, Thai brand cosmeticsAbstract
The objectives of this research were to: (1) study Thai consumers' willingness to pay a higher price for a Thai brand of cosmetics, and (2) study the causal factors of brand image brand loyalty, brand equity, and purchase decisions towards Thai consumers' willingness to pay higher prices. of a Thai brand of cosmetics. This research is quantitative research by using a survey as well as distributing online questionnaires via Google Form to collect data via the Instagram inbox of a sample group of consumers. The sample of 400 customers of purposive sampling has purchased and is followers of a Thai cosmetic brand on the brand's official Instagram platform. The statistics used in the research consist of descriptive statistics, including frequency, percentage, mean, and standard deviation, and structural model analysis consistent
with empirical data. The data collection period was from March to May 2024. The research results found that (1) Thai consumers are willing to pay a higher price for a Thai cosmetic brand, and (2) the structural model analysis was consistent with the empirical data with a weight of 0.27 – 0.67 (Chi-Square = 467.964, DF = 241, CMIN/DF = 1.942, RMSEA = 0.049, RMR = 0.034, GFI = 0.912, CFI = 0.932, IFI = 933 and TLI = 0.922). The relationship among the variables was found brand image to brand loyalty and purchase decisions (β= 0.650, 0.454), brand loyalty to brand equity (β = 0.992) and brand equity to purchase decisions and the
willingness to pay a higher price (β = 0.563, 0.840). from the result of study, Thai cosmetic brand should use the strategy of creating a brand image that looks good, modern, safe and reflects good taste to create brand value for the brand, which will result in consumers being willing to pay a higher price.
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