The Narrative Premium: Explaining Why Consumers Pay More for Luxury Cosmetics

Abstract This study examines how digital storytelling is associated with consumers’ willingness to pay a premium price for luxury cosmetics by investigating the mediating roles of multisensory experience and brand advocacy and the moderating role of product involvement. Data were collected from 488 Vietnamese consumers with prior experience purchasing luxury cosmetics and analyzed using partial least squares structural equation modeling (PLS-SEM). The findings reveal that digital storytelling significantly is positively associated with willingness to pay a premium price both directly and indirectly through multisensory experience and brand advocacy. Product involvement significantly strengthens the positive relationship between multisensory experience and willingness to pay a premium price, but does not significantly moderate the relationships between digital storytelling or brand advocacy and willingness to pay a premium price. These findings extend consumer behavior research by explaining how digital narratives are related to consumer decision-making through experiential and relational mechanisms in digital marketplaces. The study also offers practical insights for luxury cosmetic brands seeking to enhance consumer value and support premium pricing through digital storytelling and multisensory experiences.