Prost with craft beer! Do customer experience and price sensitivity affect product price image, perceived value and repurchase intention?

Abstract

PurposeThis paper aims to investigate the effect of product price image (PPI) on perceived value (PV) and repurchase intention (RI) of Brazilian customers' craft beer. Moreover, this research also verifies the moderating effect of customer experience (CE) and price sensitivity.Design/methodology/approachThe survey data analysis was performed using Smart-PLS 3.3.9 and Process 4.1 software with 329 customers.FindingsThe results show that PV is a full mediation variable in the relationship between PPI and RI. As a mediated moderation, lower CE and price sensitivity better explain the indirect effect of PPI on RI via PV.Practical implicationsThus, managers may reinforce the PV of low price sensitivity and low CE. These customers learn about companies' prices compared with higher price-sensitive customers and higher CE that already PV.Originality/valueThe article discusses the implications of PV as a mediator, low price sensitivity and low CE as moderators for craft beer.Highlights The world's most widely consumed alcoholic beverage, following water and tea, the third-most-popular drink on earth is beer;Managers should create strategies to reinforce the PV and consequently the RI by offering PPI and benefits (PV) for customers with low experience and low-price sensitivity about craft beer;Low customer experience and low-price sensitive's customers are learning about companies' prices compared to higher price sensitive, and higher customer experience that already PV, PL, PF, and PEs and NEs;Small producers craft beer that connotated the product's high quality and benefits; the higher may be the level of RI and consumption from customers.