Author:
Ho Kenneth Fu Xian,Tarabashkina Liudmila,Liu Fang
Abstract
Purpose
Building on associative priming, anthropomorphism and biophilia theories, this study aims to explain that a natural–organic (that shows a natural object) and an anthropomorphised natural–organic logo (that shows an anthropomorphised natural object) both act as primes and imbue specific product value perceptions, which subsequently influence willingness to pay a premium price when products have not been used by or are unfamiliar to consumers.
Design/methodology/approach
Two between-subjects experiments were conducted with different products (one with real, but unfamiliar to consumers brand and another with a fictitious brand). Structural equation modelling was used to test the hypotheses.
Findings
Experimental studies showed that natural–organic logos evoked stronger utilitarian (functional and economic) value perceptions, which triggered greater willingness to pay a premium price compared to anthropomorphised natural–organic logos. The effect of hedonic (emotional and novelty) values on willingness to pay a premium price was stronger when an anthropomorphised natural–organic logo was used.
Research limitations/implications
This research offers novel theoretical contributions highlighting the importance of careful logo design to imbue desired value perceptions when products have not been consumed or trialled.
Practical implications
Anthropomorphised natural–organic and natural–organic logos can provide different benefits to brand managers and can be used strategically to form desired value perceptions before products are consumed. Brands that wish to enhance premium pricing via hedonic values should consider using an anthropomorphised natural–organic logo. Natural–organic logos may be more suitable for brands that want to emphasise superior utilitarian values.
Originality/value
To the best of the authors’ knowledge, this research provides the first empirical assessment of the differential effects of the two forms of natural–organic logos on value perceptions and willingness to pay premium price.
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