Understanding Purchase Intention in FMCG Brand Extensions: The Influence of Price Consciousness

Abstract

This study examines whether price consciousness moderates the relationship between perceived value and purchase intention in the context of Fast-Moving Consumer Goods (FMCG) brand extensions. Drawing on the Stimulus-Organism-Response (S-O-R) theoretical model and categorization theory, the study develops and test four hypotheses explaining how perceived brand extension fit influences purchase intention directly and indirectly through perceived value, while also examining the moderating role of price consciousness. A quantitative research approach was employed through an online survey with a sample of 255 consumers. The proposed moderated mediation model was analyzed using PROCESS Macro version 4.2 Model 14 by Andrew F.Hayes. The findings reveal that perceived value fully mediates the relationship between perceived brand extension fit and purchase intention, while price consciousness was found to have no significant moderation effect on the relationship between perceived value and purchase intention. These findings contribute to the existing literature by suggesting that perceived value caused by perceived brand extension fit serve as the primary driver of purchase intention and is not influenced by consumers’ level of price consciousness. Furthermore, these findings suggest that brand fit and value communications are more effective strategic drivers than only price-based competition when launching FMCG brand extensions. This offers practical implications for companies aiming to successfully launch brand extension in the highly dynamic FMCG market.