What Are Consumers Really Paying For? Explaining Premium Headphone Consumption Among Gen Z

Abstract

Rapid internet penetration and digital entertainment have made audio a pervasive part of Indonesian Gen Z’s daily life, while market reports show a “trading up” shift from low-priced devices to mass-premium headphones. Existing studies on willingness to pay premium largely focus on sustainable or fashion products and seldom examine premium headphones or integrate brand-based constructs with self-expressive motives. This conceptual paper proposes a framework explaining why Gen Z are willing to pay premium prices for headphones beyond sound quality, integrating customer-based brand equity, emotional brand attachment and loyalty, need for uniqueness, emotional value, and willingness-to-pay constructs. The model posits brand strength, brand attachment, brand loyalty, need for uniqueness, and emotional value jointly shape willingness to pay premium, which in turn drives purchase intention for premium headphones.