Effects of country image on consumer willingness to pay more: A mediated-moderated analysis in high-end design furniture context.

The study proposes and tests a mediated-moderated model that examines: (1) American consumers’ willingness to pay more for a made-in-Italy luxury design item-furnishing glass vase- and (2) how this relationship is mediated by brand attitude and moderated by product knowledge/familiarity and attitude towards advertising. Findings from the survey on 254 Americans demonstrate that country image positively and significantly influences brand attitude, which, in turn, positively affects willingness to pay more for Italian high-end design furniture, thereby revealing a full, complementary mediating effect of brand attitude on the focal relationship. Moreover, while we find significant support for the moderating effect of advertising attitude between brand attitude and willingness to pay more, we did not find support for the moderating effect of product knowledge/familiarity between country image and brand attitude. The study culminates with the theoretical and managerial implications of these findings.