THE MODERATING ROLE OF PERCEIVED PRICE ON CONSUMER BUYING PREFERENCES: A CASE OF BEAUTY PRODUCTS IN THAILAND

This study appraises a theoretical model that relates perceived quality, brand image, price, brand trust, and brand preference in cosmetic and beauty product industry setting. Data was collected through questionnaires from 633 customers from Thailand by employing convenience sampling and SPSS was used to analyze the data. The results revealed that perceived quality was positively related to brand image, and brand image in turn was positively related to brand trust and brand preference. It was further found that the outcomes associated with brand image was moderated by perceived price such that low price would strengthen the brand image-outcomes relationships. These results highlight the importance of perceived quality and price in building brand image and trust and thus increasing chances of brand preference over competitors. The findings of this study contribute to the brand preference literature by establishing a link between perceived quality and brand image. It further construes price as a subjective variable based on the perceiver rather than an objective characteristic of brand preference decisions. Price was found to weaken the relationships between brand image and brand trust and brand image and brand preference. The limitations are also presented in the last section.