Introduction At times one may purchase a product over a differently branded one, regardless
of its price or how difficult it was to acquire. Perhaps the marketing communications were
memorable, or the brand’s quality reputation resonated. This preferred product enjoys a
higher brand equity. Brand equity is composed of intangible assets and liabilities of a brand
and impacts a consumer’s opinions, loyalties, associations, and perceptions of quality
(Luzuriaga, 2018). Brand equity motivates consumers to react more favorably to a product,
its price, its promotions, and distribution than they would to an unnamed, unknown, or
fictitiously named similar item (Keller, 1993). Building strong brand equity is important
because a brand with a higher value can prompt positive behavior that includes repeat
purchases, aiding promotion through word-of-mouth advertising, and a willingness to pay
(WTP) higher prices than a similar product with less or no brand equity (Kim & Hyun, 2011).
The fast-food industry is increasingly competitive (Esmaeilpour et al., 2016; Hanaysha, 2016;
Harrington et al., 2017; Lopez, 2018; Richardson et al., 2019), and strong brand equity allows
the firm to gain economic and sustainability advantages over competitors (Kim & Hyun,
2011). Brand equity begins with differentiation. Differentiation sets brands apart and is the
foundation of a strong brand (Khan, 2009).
Differentiation can be branded or unbranded, but branded differentiation can add credibility
to the claims it makes (Aaker, 2003). Branded differentiation can come in the forms of
services, features, programs, or ingredients (Aaker, 2003). A method of branded ingredient
differentiation available for fast-food restaurants is through the type of beef used, and some
are using Angus beef. 2 Research on beef branding and WTP found that consumers had a
higher quality impression and WTP of Angus beef than unbranded beef; however, the price
was still an important factor in decision-making, and additional research should be completed
with respect to the purchase location (Meyerding et al., 2018), such as fast-food. Tran et al.
(2018) completed a study of introducing branded beef into the marketplace and concluded
that while premium branded beef creates differentiation, this differentiation may only be
relevant to niche markets. Further investigation was needed to determine if this exists in other
marketing scenarios, including fast-food. Australian consumers placed a significantly positive
WTP on Angus beef in the grocery segment; however, this may not be the case in the United
States (U.S), and further research should be completed to identify strategies to target
consumers in other segments, which would include fast-food (Ardeshiri & Rose, 2018).
The purpose of this quantitative correlational-predictive study was to examine if the four
pillars of brand equity (Differentiation, Relevance, Esteem, and Knowledge) predicted
consumer willingness to pay higher prices for Angus beef in fast-food restaurants in the
United States. Angus beef has been used to differentiate from unbranded beef in groceries,
traditional restaurants, and some fast-food restaurants. However, a review of research and
further research recommendations concluded that it was not known if this was the case in the
fast-food industry segment. This study was important because while the decision to serve a
higher quality product seems intuitive, higher quality ingredients cost more, which increased
the cost of materials, potentially prompting a decision to raise prices. Prior research showed
there was a limit to what 3 consumers would pay for differentiated products (Henchion et al.,
2017; Meyerding et al., 2018). This research will add to the current body of knowledge by
correlating Angus Beef, brand equity, and WTP; research may identify specific approaches
that can be used by restaurants to add Angus Beef to their menu most effectively to increase
brand equity and WTP. Without this knowledge, firms may pursue a strategy that does not
produce acceptable returns on investment. This research could lead the way to other
meaningful differentiator research, such as the impact of plant-based, organic, or grass-fed
branding that can increase competitive advantage through brand equity and a higher WTP.
, Gaining a competitive advantage can produce stronger financial returns (Aries, 2016).
Effective communication and marketing methods as they relate to the use of Angus beef on a
fastfood menu are also discussed. These models are extended through the lens of Angus beef
as a differentiated and relevant product point of difference. The methodology for this study
was quantitative. The planned research design was correlational-predictive. This
methodology and research design was used to determine if the brand equity of Angus beef
predict WTP higher prices in fast-food restaurants. Correlational-predictive research can
forecast the criterion variable based on the predictor variables (Curtis et al., 2016; Seeram,
2019). The predictor variables were the four pillars of the Brand Asset Valuator model. The
criterion variable was WTP higher prices for Angus beef in fast-food restaurants. Chapter 1
introduces the background of the study and why it was important to the fast-food industry and
academia. Terms used throughout this study are defined, and 4 anticipated limitations are
stated. The researcher also provided a summary and the organization of the remainder of the
study. Background of the Study Various studies have shown that Angus beef contributed to
increased brand equity and willingness to pay (Ardeshiri & Rose, 2018; Meyerding et al.,
2018; Morrison & Eastburn, 2006; Schulz et al., 2012).
However, the majority of existing research completed to date focused on beef steak cuts, in
the grocery segment, or controlled environments (Ardeshiri & Rose, 2018; Meyerding et al.,
2018; Morrison & Eastburn, 2006), with recommendations for further research in other
consumer segments such as fast-food (Ardeshiri & Rose, 2018; Meyerding et al., 2018;
Morrison & Eastburn, 2006; Schulz et al., 2012). Quantitative research demonstrated that
Angus beef branding had a significant impact on perceived quality and WTP for Angus beef
over unbranded steaks (Meyerding et al., 2018). Price and “certificates, labels, brands,
information” were the strongest of 22 search, experience, and credence attributes in a
systematic review (Henchion et al., 2017, p. 4). Even though some fast-food chains have
offered Angus beef on their menus, for example, Arby’s, Hardee’s, Carl’s Jr., and Backyard
Burger, a review of research shows no evidence that this practice increased brand equity or
WTP. Many studies noted price as a material element of Angus beef purchase intent
(Ardeshiri & Rose, 2018; Giacomazzi et al., 2017; Henchion et al., 2017; Meyerding et al.,
2018; Morrison & Eastburn, 2006). These fast-food brands may be supporting a branding
strategy that does not create a return on the investment for the marketing and raw material
costs involved. 5 Consumers look for certain attributes when choosing a fast-food restaurant.
Of 18 attributes examined, the initial reason customers visited a fast-food restaurant was food
quality, followed by the restaurant ambiance (Kotni, 2016). The least essential attribute noted
was price in the Kotni (2016) study, which was inconsistent with other similar studies and
counter-intuitive to the general fast-food model.
A limitation of this study that may have contributed to the atypical price findings was that it
was completed only in Visakhapatnam, India. Additional fast-food research included the
impact of service quality and food quality on customer satisfaction and retention. Findings
were that food quality had a significant positive impact on customer satisfaction, with 66.4%
of customer satisfaction explained through this variable (Al-Tit, 2015). The Problem Space
Henchion et al. (2017) noted in his study of beef attribute rankings that placed “certificates,
labels, brands, information” as the top search, experience, and credence attributes (p. 4) that
over time the relative rankings could change and additional research with more recent data
should be conducted on their accuracy. This recommendation may support the Giacomazzi et
al. (2017) study that showed no benefit from branded beef. Meyerding et al. (2018)
concluded there was a higher preference and WTP for Angus beef than unbranded beef;
however, price was still an important factor in decisionmaking. Additional research should be
of its price or how difficult it was to acquire. Perhaps the marketing communications were
memorable, or the brand’s quality reputation resonated. This preferred product enjoys a
higher brand equity. Brand equity is composed of intangible assets and liabilities of a brand
and impacts a consumer’s opinions, loyalties, associations, and perceptions of quality
(Luzuriaga, 2018). Brand equity motivates consumers to react more favorably to a product,
its price, its promotions, and distribution than they would to an unnamed, unknown, or
fictitiously named similar item (Keller, 1993). Building strong brand equity is important
because a brand with a higher value can prompt positive behavior that includes repeat
purchases, aiding promotion through word-of-mouth advertising, and a willingness to pay
(WTP) higher prices than a similar product with less or no brand equity (Kim & Hyun, 2011).
The fast-food industry is increasingly competitive (Esmaeilpour et al., 2016; Hanaysha, 2016;
Harrington et al., 2017; Lopez, 2018; Richardson et al., 2019), and strong brand equity allows
the firm to gain economic and sustainability advantages over competitors (Kim & Hyun,
2011). Brand equity begins with differentiation. Differentiation sets brands apart and is the
foundation of a strong brand (Khan, 2009).
Differentiation can be branded or unbranded, but branded differentiation can add credibility
to the claims it makes (Aaker, 2003). Branded differentiation can come in the forms of
services, features, programs, or ingredients (Aaker, 2003). A method of branded ingredient
differentiation available for fast-food restaurants is through the type of beef used, and some
are using Angus beef. 2 Research on beef branding and WTP found that consumers had a
higher quality impression and WTP of Angus beef than unbranded beef; however, the price
was still an important factor in decision-making, and additional research should be completed
with respect to the purchase location (Meyerding et al., 2018), such as fast-food. Tran et al.
(2018) completed a study of introducing branded beef into the marketplace and concluded
that while premium branded beef creates differentiation, this differentiation may only be
relevant to niche markets. Further investigation was needed to determine if this exists in other
marketing scenarios, including fast-food. Australian consumers placed a significantly positive
WTP on Angus beef in the grocery segment; however, this may not be the case in the United
States (U.S), and further research should be completed to identify strategies to target
consumers in other segments, which would include fast-food (Ardeshiri & Rose, 2018).
The purpose of this quantitative correlational-predictive study was to examine if the four
pillars of brand equity (Differentiation, Relevance, Esteem, and Knowledge) predicted
consumer willingness to pay higher prices for Angus beef in fast-food restaurants in the
United States. Angus beef has been used to differentiate from unbranded beef in groceries,
traditional restaurants, and some fast-food restaurants. However, a review of research and
further research recommendations concluded that it was not known if this was the case in the
fast-food industry segment. This study was important because while the decision to serve a
higher quality product seems intuitive, higher quality ingredients cost more, which increased
the cost of materials, potentially prompting a decision to raise prices. Prior research showed
there was a limit to what 3 consumers would pay for differentiated products (Henchion et al.,
2017; Meyerding et al., 2018). This research will add to the current body of knowledge by
correlating Angus Beef, brand equity, and WTP; research may identify specific approaches
that can be used by restaurants to add Angus Beef to their menu most effectively to increase
brand equity and WTP. Without this knowledge, firms may pursue a strategy that does not
produce acceptable returns on investment. This research could lead the way to other
meaningful differentiator research, such as the impact of plant-based, organic, or grass-fed
branding that can increase competitive advantage through brand equity and a higher WTP.
, Gaining a competitive advantage can produce stronger financial returns (Aries, 2016).
Effective communication and marketing methods as they relate to the use of Angus beef on a
fastfood menu are also discussed. These models are extended through the lens of Angus beef
as a differentiated and relevant product point of difference. The methodology for this study
was quantitative. The planned research design was correlational-predictive. This
methodology and research design was used to determine if the brand equity of Angus beef
predict WTP higher prices in fast-food restaurants. Correlational-predictive research can
forecast the criterion variable based on the predictor variables (Curtis et al., 2016; Seeram,
2019). The predictor variables were the four pillars of the Brand Asset Valuator model. The
criterion variable was WTP higher prices for Angus beef in fast-food restaurants. Chapter 1
introduces the background of the study and why it was important to the fast-food industry and
academia. Terms used throughout this study are defined, and 4 anticipated limitations are
stated. The researcher also provided a summary and the organization of the remainder of the
study. Background of the Study Various studies have shown that Angus beef contributed to
increased brand equity and willingness to pay (Ardeshiri & Rose, 2018; Meyerding et al.,
2018; Morrison & Eastburn, 2006; Schulz et al., 2012).
However, the majority of existing research completed to date focused on beef steak cuts, in
the grocery segment, or controlled environments (Ardeshiri & Rose, 2018; Meyerding et al.,
2018; Morrison & Eastburn, 2006), with recommendations for further research in other
consumer segments such as fast-food (Ardeshiri & Rose, 2018; Meyerding et al., 2018;
Morrison & Eastburn, 2006; Schulz et al., 2012). Quantitative research demonstrated that
Angus beef branding had a significant impact on perceived quality and WTP for Angus beef
over unbranded steaks (Meyerding et al., 2018). Price and “certificates, labels, brands,
information” were the strongest of 22 search, experience, and credence attributes in a
systematic review (Henchion et al., 2017, p. 4). Even though some fast-food chains have
offered Angus beef on their menus, for example, Arby’s, Hardee’s, Carl’s Jr., and Backyard
Burger, a review of research shows no evidence that this practice increased brand equity or
WTP. Many studies noted price as a material element of Angus beef purchase intent
(Ardeshiri & Rose, 2018; Giacomazzi et al., 2017; Henchion et al., 2017; Meyerding et al.,
2018; Morrison & Eastburn, 2006). These fast-food brands may be supporting a branding
strategy that does not create a return on the investment for the marketing and raw material
costs involved. 5 Consumers look for certain attributes when choosing a fast-food restaurant.
Of 18 attributes examined, the initial reason customers visited a fast-food restaurant was food
quality, followed by the restaurant ambiance (Kotni, 2016). The least essential attribute noted
was price in the Kotni (2016) study, which was inconsistent with other similar studies and
counter-intuitive to the general fast-food model.
A limitation of this study that may have contributed to the atypical price findings was that it
was completed only in Visakhapatnam, India. Additional fast-food research included the
impact of service quality and food quality on customer satisfaction and retention. Findings
were that food quality had a significant positive impact on customer satisfaction, with 66.4%
of customer satisfaction explained through this variable (Al-Tit, 2015). The Problem Space
Henchion et al. (2017) noted in his study of beef attribute rankings that placed “certificates,
labels, brands, information” as the top search, experience, and credence attributes (p. 4) that
over time the relative rankings could change and additional research with more recent data
should be conducted on their accuracy. This recommendation may support the Giacomazzi et
al. (2017) study that showed no benefit from branded beef. Meyerding et al. (2018)
concluded there was a higher preference and WTP for Angus beef than unbranded beef;
however, price was still an important factor in decisionmaking. Additional research should be
