IJIMT 2017 Vol.8(5): 413-417 ISSN: 2010-0248
doi: 10.18178/ijimt.2017.8.5.763

Willingness to Pay Premium for Luxurious Fashion Brands in Indonesia: Is It Love

Nita Sofiani Djohan and Ritzky Karina Brahmana
Abstract— Fashion industry is significantly increasing at emerging market (such as Indonesia) especially for luxurious fashion brand. The high-end fashion companies grasp this opportunity and doing an intense behavioral marketing for it. Many people (especially upper class social communities) who really care how they look that will express who themselves. The uniqueness of their selves brought them the ideas to find the style that not common or not many people can have it. This phenomenon brought fashion especially the luxurious fashion brand into the next level and being promising for some luxurious fashion brands to offer what they have and fulfilled the customer needs. Many of competition in this industry, requires a mandatory relationship between brands and consumers. Consumers determine their relationship with various brands, brands that instill in the minds of consumers. However, the interesting matter is why many people really want to buy something that costly. The behavior of the customer and how they attract to the brand and develop their self concept with brand (Brand Congruity) and their loves to the brand will influence the willingness to pay premium will be analyzed in this research. This research will be the pre-elimenary research about the effect of brand love. This model is rooted in the causal approach. The data in this study were processed using data analysis techniques Structural Equation Modelling (SEM) through Smart- PLS. The samples used in this study were 200 respondents that from 5 big cities in Indonesia which are Medan, Bandung, Jakarta, Surabaya and Makassar.

Index Terms— Brand congruity, brand love, brand commitment, willingness to pay premium, luxury fashion, luxury brands, behavioral marketing, Indonesia.

Nita Sofiani Djohan Ritzky and Karina Brahmana are with the Universitas Kristen Petra Surabaya, Siwalankerto, 60236, Indonesia (email: sofianidjohan@gmail.com, karina@peter.petra.ac.id).

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Cite: Nita Sofiani Djohan and Ritzky Karina Brahmana, " Willingness to Pay Premium for Luxurious Fashion Brands in Indonesia: Is It Love," International Journal of Innovation, Management and Technology vol. 8, no. 5, pp. 413-417, 2017.

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