LITERATURE REVIEW
Luxury Brand Image
The luxury brand image is the result of building a well-known brand, good image, and also protected by the exclusive nature of their consumers (Wirayanthy & Santoso, 2019). Luxury brand image are the ability to make or create a prestige brand image, which often to rely on brand- consumer communication (Fei, Hoo, Ng, & Yew, 2019). The image of a luxury brand is defined as having a brand that has a high value and prestige, therefore people's use of luxury brands aims to increase their self-image (Kusumastuti & Djoko Setyabudi, 2018). So, it can be concluded, the luxury brand image comes directly from the luxury value that a brand has, with exclusivity and consideration someone feels more satisfied using an item.
According to Ku & Lin (2018) the following are Luxury brand image indicators;
1. Functional Image; refers to the advantages of iPhone that we can feel it after using this smartphone
2. Experiential Image; refers to the experience that we get from using an iPhone 3. Symbolic Image; refers to images within artistic work of an iPhone
Perceived Price
Price perception is generated from the sense of satisfaction that the consumer thinks he will feel, so price is not a major problem in purchasing (Savitr & Wardana, 2018). Price perception can also be defined as a description of the product itself; with the features it offers (Senggetang, Mandey, & Moniharapon, 2019). Perceived price is defined as a supporting factor that influences consumer purchases of these goods (Retnowulan, 2017)In conclusion, price perception arises from the meaning that is obtained or felt, so that no matter how cheap or expensive the item is, if someone wants it, they will still buy the item.
According to Suhud et al. (2022) the following are perceived price indicators;
1. The price of an item following its brand image; refers to the price of iPhone is accordance their brand image
2. The price of an item is very reasonable; refers to the price of iPhone is re
3. An item delivers more benefits than (the money) I would spend; iPhone will bring more benefit than the cost itself
4. Buying an item, albeit at a higher price; refers to I would buy iPhone at its higher price
5. Buying an item can provide more significant benefit than that which would be paid;
refers to iPhone will bring significant benefit to the users
6. The price of an item is worth to buy; refers to iPhone price is worth to buy
Perceived Quality
A person's perception of the quality of a product has the potential to overpower their view of other brands or competitors (Oktavenia & Ardani, 2019). Perceived quality is also defined as a global assessment of the product on the core of the quality of goods (Rivai & Wahyudi, 2017).
The perception of quality is formed from the value and overall features of the product; besides that, it also includes the accuracy and ease of operation of the product (Faizal & Nurjanah, 2019).
From the several studies above, the perception of quality can be formed from consumer thinking about the ability of the quality that the goods can produce or provide to users.
According to Gök & Gülmüs (2019) the following are perceived quality indicators;
1. The product is reliable; refers to iPhone is reliable smartphone
2. The product is a high-quality product; refers to iPhone is a high-quality product 3. The workmanship of the product is good; refers to iPhone is from good
workmanship
Purchase Intention
Purchase intention comes from person perception and also their purchase behavioral to evaluate and see some specific product that they want or get interested is (Vahidreza, Hamid, &
Hamid, 2018). Purchase intentions is made from the feeling that will have through desired some of the benefits, it can be functional from the item and also emotional (Petraviˇciut¯e, Šeinauskiené, Rutelion¯e, & Krukowski, 2021). Purchase Intention can also be defined by evoking from psychological response in each people and subsequent cognitive evaluation its refers to value for money in each people perception (Cheng-Xi Aw, Huie-Wen Chuah, Sabri, & Basha, 2021). Other studies also been defined that purchase intention is come from each people self-identity on consuming some product especially from luxury product, so the purchase intention can be also defined have different perspective in each people (Salem & Salem, 2018). Purchase intentions refer to consumer’s perception on the specific brand value from some specific product (Ku & Lin, 2018). From some of the definitions above, it can be concluded as follows, purchase intentions come from the consumer itself on how they evaluate their own psychological feeling and also looking each economic situation.
Prior to buying a product or using a service, consumers have their own consideration attitude towards the product and the appreciation of the product (Naseri et al, 2021). Therefore, it is necessary for companies to ensure their products and services are viewed positively by their consumers, since purchase intention arises from the formation or a specific preference out of all available brand choices (Kotler, Keller, Brady, & Hanser, 2016)
According to Vinh & Phuong (2020) the following are purchase intention indicators;
1. I have a great interest to buy an item in the future 2. I’m willing to pay money to buy an item someday
3. There is a significant possibility that I would buy an item 4. I have a firm intention to buy an item
5. I would recommended an item e to my friends if I had bought 6. I have desire to buy and item in the future
7. I have desire to buy a kind of an item than others
HYPOTHESIS FORMULATION
The Relationship Between Luxury Brand Image and Purchase Intention
The concept of luxury has been associated with wealth, exclusivity and strength, as well as the satisfaction of non-basic needs (Brun & Castelli, 2013). Luxury brands tend to be considered as costly, rare, and unique (Costello & Taylor, 2017) & (Velasco & Spence, 2019) and may signify something that is infrequent or uncommon. Park et al. (1986) and Hung et al. (2011) in (Ku & Lin, 2018) stated that the concept of luxury brand image includes functional image (referring to the actual benefits), experiential image (referring to sensory pleasure and happiness), and symbolic images (referring to the satisfaction of consumer’s inner needs). Those elements encourage the desire to own a certain product. The stronger the luxury brand image in consumer’s mind, the bigger the purchase intention. Thus, the first hypothesis is formulated as follows:
H1: Luxury brand image influences purchase intention of iPhone among young generation
The Relationship Between Perceived Price and Purchase Intention
Price is the amount of value exchanged by consumers for the benefit of owning a product or using a service (Kotler, Keller, Brady, & Hanser, 2016). (Zeithaml, 1998) and (Zimmerman &
Beneke, 2014) explained that consumers generally tend to encode process in ways that are meaningful to them. In other words, consumers consider the price of a certain product to be cheap, reasonable, or expensive based on the internal reference price (Zeithaml, 1998). The better the price is being perceived by the consumers, the bigger the purchase intention. Thus, the second hypothesis is formulated as follows:
H2: Perceived price influences purchase intention of iPhone among young generation The Relationship Between Perceived Product Quality and Purchase Intention
According to (Zeithaml, 1998) quality means the actual superiority of product/services, whereas perceived product quality signifies both the intangible and tangible perception of consumers towards a product or service. Further, someone’s perception of the quality of a product has the potential to overpower their view of other brands or competitor’s brand (Riadi, 2021). In other words, perceived product quality is a kind of consumer’s judgment about a product’s overall excellence or superiority (Schiffman and Kanuk, 2004). Positive judgement or good perception of product quality will lead to purchase intention. The better the product quality meets consumers’
expectation, the bigger the purchase intention. Thus, the third hypothesis is formulated as follows:
H3: Perceived product quality influences purchase intention of iPhone among young generation
Additionally, the three hypotheses above predict that luxury brand image, perceived price, and perceived product quality affect purchase intention. Consequently, the third hypotheses predict the simultaneous effect of all variables on purchase intention. Hence, the fourth hypotheses are:
H4: luxury brand image, perceived price, and perceived product quality simultaneously influences purchase intention of iPhone among young generation
Conceptual Framework
v
Figure 3. Conceptual Framework
Source: (Aranca, 2020) Modified by Researcher (2023)
The multiple linear regression equation for the above research model is as follows:
Y = α + β1 X1 + β2 X2 + β3 X3 + ε where:
Y = Purchase Intention X1 = Luxury Brand Image X2 = Perceived Price
X3 = Perceived Product Quality α = Constant Value
β1 = Luxury Brand Image regression coefficient β2 = Perceived Price regression coefficient β3 = Perceived Product Quality coefficient
Luxury Brand Image
X1 X
Variable X1
H1
H2
H3
Purchase Intention Y
Perceived Price
X2
Perceived Quality
X3 Variable X3
H4
