Brand Awareness through Pricing Strategy

Abstract

This case study examined brand awareness by using one-price business model as a proxy. Prior literature looks at brand awareness in context of products and their origin; we assert that a business model may be the source of brand and brand awareness. This paper answers two questions: (i) can pricing strategy, such as one price business model create brand awareness, and (ii) what is the role of seller’s ethics in brand created through pricing strategy? The data came from 132 written surveys conveniently sampled. The dependent variable is brand awareness. The independent variables include: perceived innovation, price, user friendliness, technology, quality, and seller’s ethics. Following SEM approach, relationships among variables were identified through correlation matrix. We identified multiple regression as the testing model. The result of fitness tests showed that GFI, NFI, and RFI were significantly high. The fitness indices for IFI, TLI and CFI were 0.85, respectively. We found that brand could be created by a business model and seller’s ethics is significant for brand recognition (p < 0.00). Our findings show that there is an alternative source of brand creation. This case study demonstrated that pricing strategy for one-price business may be a source of brand creation. Our finding on seller’s ethics as a relevant factor for brand perception and loyalty implies that firm’s good governance is important for operational success.