The Influence of Premium Pricing Strategy and Marketing Value on Business Performance Through Brand Trust as a Mediating Variable: A Case Study of Chicecream in Shanghai, China

Abstract

This study examined the influence of premium pricing strategy and marketing value on business performance, with brand trust as a mediating variable, focusing on Chicecream (Zhongxuegao) in Shanghai, China. As China’s premium ice cream market underwent rapid structural transformation, understanding the mechanisms through which premium pricing and marketing value contributed to business performance became increasingly important for achieving sustainable competitive advantage. This research integrated signaling theory, relationship marketing theory, and service-dominant logic to develop an integrated framework consisting of two antecedent variables and one mediating variable. A quantitative, positivist research design was employed using a structured online questionnaire distributed to 400 respondents in Shanghai who were aware of and had recent experience with premium ice cream brands. The data were analyzed using two-stage structural equation modeling (SEM) with AMOS 28.0 and maximum likelihood estimation. The results indicated that premium pricing strategy (B = 0.184, t = 2.968, p = 0.003) and marketing value (B = 0.261, t = 4.499, p < 0.001) had significant positive direct effects on business performance. Furthermore, premium pricing strategy (B = 0.348, t = 6.444, p < 0.001) and marketing value (B = 0.412, t = 8.078, p < 0.001) significantly and positively influenced brand trust, which demonstrated the strongest direct effect on business performance in the model (B = 0.437, t = 8.245, p < 0.001). Bootstrapped mediation analysis using 5,000 resamples revealed an important difference in the mediation mechanisms: brand trust fully mediated the relationship between premium pricing strategy and business performance (indirect B = 0.152; direct effect became non-significant after including the mediator), whereas brand trust partially mediated the relationship between marketing value and business performance (indirect B = 0.180; direct effect remained significant). The integrated model explained 52.4% of the variance in brand trust and 61.8% of the variance in business performance. Theoretically, this study extended signaling theory by demonstrating that the performance contribution of premium pricing strategy depended entirely on brand trust, while also extending service-dominant logic by showing that marketing value maintained an independent pathway to business performance beyond brand trust. From a managerial perspective, the findings, illustrated by Chicecream’s rapid market expansion and subsequent 2025 bankruptcy, indicated that premium brands should consider brand trust as a critical strategic asset and prioritize authentic value delivery and quality assurance rather than relying solely on premium price positioning.