The Rational Consumer: Studying the Impact of Consumer Cognitive Measures on Purchase Intention through SOR Model

Abstract

This study investigated the mediating role of price perception in the relationship of three brand related cognitive stimuli – Brand Familiarity, Perceived Value and Perceived quality on consumer purchase intentions for English language services. Grounded in stimulus-Organism- Response (SOR) theory, price perceptions are reconceptualized as mediator instead of external stimuli, addressing a theoretical gap on credence based educational service context. A survey experiment of between subject design was conducted to test high vs. low price perceptions of two language institutes on 173 qualified respondents consisting of GenY and Gen Z, living in major urban centers of Pakistan. Participants were randomly assigned to one of the four experimental conditions. After the manipulation checks, the analysis on Smartpls 4.0 revealed that cognitive factors had a significant impact on price perception and purchase intention. Specifically, high perceived quality, value, and familiarity with the institute are more likely to have a positive price perception and purchase intention. Additionally, the price sensitivity was higher when consumers were faced with a price increase. This study advances SOR theory by empirically examining the mediating role of price perception with significant implications for service dominant as well as credence service context of developing economies where consumer behavior is increasingly driven by price sensitivity. Price perception central organismic role is significant to translate brand related stimuli cues into behavioral responses. These findings establish price perceptions as critical lever in planning brand building investments to influence purchase intention, challenging direct effect models, offering nuanced pathway for future consumer behavior research in developing economies. By understanding the role of cognitive factors in the consumer purchase decision process, marketers can develop more effective marketing strategies that are more likely to influence consumer purchase intention.