“The Effect of Brand Equity on Purchase Intention Mitsubishi X-Pander (Study of Consumer in Malang City)”
By:
Laskhar Muhammad Sindaru
Supervisor:
Rila Anggraeni S.E. M.M.
ABSTRAK
Perkembangan industri otomotif saat ini tumbuh cepat, sehingga menimbulkan persaingan yang sangat ketat di antara industri otomotif.. Tujuan dari penelitian ini adalah untuk mengetahui apakah ekuitas merek yang dimiliki Mitsubishi Xpander yang didalamnya terdapat brand awareness, perceived quality, brand association, dan brand loyalty dapat menimbulkan minat beli pada calon konsumen Mitsubishi Xpander yang ada di kota Malang.
Penelitian ini merupakan penelitian kuantitatif dengan variabel yang digunakan adalah brand awareness (X1), perceived quality (X2), brand association (X3), brand loyalty (X4) dan purchase intention (Y). Populasi dalam penelitian ini adalah calon konsumen Mitsubishi Xpander yang ada di kota Malang. Sampel pada penelitian ini berjumlah 100 orang dengan teknik sampling yaitu proportionate random sampling. Jenis data yang digunakan adalah data kuantitatif, dengan instrumen berupa kuesioner, kemudian diolah menggunakan program SPSS 25.0 for Windows. Metode analisis yang digunakan dalam penelitian ini yaitu analisis regresi berganda.
Hasil penelitian menunjukkan bahwa: (1) terdapat pengaruh positif dan signifikan brand awareness terhadap purchase intention, (2) terdapat pengaruh positif dan signifikan perceived quality terhadap purchase intention, (3) terdapat pengaruh positif dan signifikan brand association terhadap purchase intention dengan nilai koefisien sebesar, (4) terdapat pengaruh positif dan signifikan brand loyalty terhadap purchase intention, (5) ekuitas merek berpengaruh terhadap purchase intention.
Kata Kunci: Brand Awareness, Perceived Quality, Brand Association, Brand Loyalty, Purchase Intention
"The Effect of Brand Equity on Purchase Intention Mitsubishi X-Pander (Study of Consumer in Malang City)"
By:
Laskhar Muhammad Sindaru
Supervisor:
Rila Anggraeni S.E. M.M.
ABSTRACT
The development of the automotive industry is currently growing fast, giving rise to very tight competition among the automotive industry. The purpose of this research is to find out whether brand equity owned by Mitsubishi Xpander which includes brand awareness, perceived quality, brand association, and brand loyalty can affect the interest in purchse intention Mitsubishi Xpander consumers in Malang.
This research is a quantitative research involving brand awareness (X1), perceived quality (X2), brand association (X3), brand loyalty (X4) and purchase intention (Y) as its variables. The population in this research were prospective consumers of Mitsubishi Xpander in Malang. The sample in this research reached 100 people with a sampling technique namely proportionate random sampling.
The type of data used is quantitative data, with instruments in the form of questionnaires, then processed using the SPSS 25.0 for Windows program. The analytical method used in this research is multiple regression analysis.
The results showed that: (1) there was a positive and significant influence of brand awareness on purchase intention, (2) there is a positive and significant effect of perceived quality on purchase intention, (3) there is a positive and significant influence of brand association on purchase intention, (4) there is a positive and significant influence of brand loyalty on purchase intention, (5) brand equity affects the purchase intention.
Keywords: Brand Awareness, Perceived Quality, Brand Association, Brand Loyalty, Purchase Intention
CHAPTER I INTRODUCTION
Nowadays the transportation service has become a very important tool in people's lives. Transportation is used by people in the community to facilitate their daily activities, such as working, going to school, travelling, or other activities. The more various types of transportation services along with their various brands offered, the more selective the consumers in decision-making processes. Companies must also make efforts in attracting consumers to buy and use their services.
Among various types of cars, there is one type of car that is most in demand by consumers, namely MPV vehicles. MPV stands for "Multi Purpose Vehicle", MPV cars are also commonly called Minivans or Minibuses. MPV is a type of car that is commonly used for many purposes, transport capacity or passenger capacity is a priority so it is suitable for family cars. MPV cars have comfort and handling as almost the same as the comfort of a sedan car or station wagon. Users of MPV type cars are increasing along with the technological developments in the automotive world and changes in people's lifestyles, so it is not surprising that competition in the automotive business, especially MPV type cars is very tight and the prices offered are competitive.
In Indonesia, one of the automotive companies that produce MPV type cars is Mitsubishi. Products issued by Mitsubishi are known to have a powerful, tough, and powerful engine to face all types of terrain. In addition, the technology and features contained in Mitsubishi products are very sophisticated and high quality. Mitsubishi products are in line with the wishes of consumers in Indonesia,
so Mitsubishi products are in very much demanded by the Indonesian people for both private cars and commercial cars (https://www.otomaniac.com/ on access January 2018). Mitsubishi Xpander is a new MPV type Mitsubishi output released in 2017 in the GIIAS (GAIKINDO Indonesia International Auto Show) 2017 on August 10-20 2017 at ICE BSD, South Tangerang.
Mitsubishi Indonesia issued several models and variants for the Mitsubishi Xpander, namely ultimate, sport, exceed, gls, and glx which include manual and automatic transmissions and a choice of several attractive colors. Of course, as predicted by many, the SUV-style low MPV named the Mitsubishi Xpander will be the toughest competitor for some other low MPVs, for examples Avanza, Xenia, Ertiga, Livina and Mobilio which are known one of the best-selling low MPV. In addition, at its launch, the Mitsubishi Xpander has a perfect shape, having charming and stunning exterior body contours. Based on the figure above, it is known that on July Xpander outperformed its competitors. It can be interpreted that the sales of Mitsubishi Xpander are very high, which is around 7,570 units only during July 2018. (https://autonetmagz.com/ on access September 2018)
According to (Mackay, 2001) Brand equity is thus referred to as consumer-based brand equity clearly as the value of correlating consumers through brands as imitated in brand loyalty, brand awareness, perceived quality, and brand association. In relation to this topic, it is still not known whether the Mitsubishi Xpander has a major influence on prospective buyers in the poor city who are eager to buy the Mitsubishi Xpander. With the explanation above, is there a relationship with purchase intention.
CHAPTER II
THEORETICAL FRAMEWORK
The American Marketing Association (AMA) in Tjiptono (2005: 2) emphasizes brand as an identifier and differentiator. This means that brand is a name, term, sign, symbol, design, or combination of these things, which is intended to identify the goods or services of a person or group of sellers and to distinguish them from competing products. Brands are actually the promise of sellers to consistently provide certain privileges, benefits, and services to buyers.
The best brands provide quality assurance.
Brand equity is the totality of brand perceptions, including the relative quality of products and services, financial performance, customer loyalty, satisfaction and overall brand respect, all of which consumers, customers, employees, and all stakeholders feel about brands (Knapp, 2001 : 3).
According to Kotler (2003: 422) brand equity is an asset, as a different positive effect about the knowledge of a brand name that is in the customer's response to the product or service. Brand according to Nicolino (2004: 75) is a phrase that quickly moves into the mainstream after spending all his life in the walls of the marketing department. Equity is the total amount of different values that people attach to a brand, which can consist of a mixture of emotional and practical factors. A brand equity is something that the senses cannot really perceive, only exists in people's minds, even though it has the power to make money.
According to Aaker in Tjiptono (2005: 39), brand equity is a series of assets and liabilities associated with a brand. It name and symbol can increase or
decrease the value of a product or service to a company and / or customer having it. This definition implies that brand equity can be valued for the company (company based brand equity) and for consumers (customer based brand equity).
First, brand equity provides value to companies by strengthening the efficiency and effectiveness of marketing programs, brand loyalty, price / profit, brand expansion, increased trade and competitive advantage. Second, brand equity provides value to customers by strengthening information interpretations / processes, confidence in purchasing, and achieving customer satisfaction.
Brand Equity
Brand awareness is the ability of a buyer to recognize or recall that a brand is part of a particular category or product. Part of a product category needs to be emphasized because there is a relationship between the product category and the brand involved.
According to Aaker (1991) the impression of quality is: "Customer's perception of the overall quality or superiority of a product or service with respect to its intended purpose, relatives to alternatives". The impression of quality is objective. Impression of quality is the customer's perception of attributes that are considered important to him. Customer perception is an assessment, which is certainly not always the same between customers and each other. Positive quality impressions can be built through efforts to identify the dimensions of quality that are considered important by the customer (target market segment), and build perceptions of quality on the important dimensions of the brand Aaker (1997).
Brand associations are all things that arise and are related to consumer memories about a brand. Brand association reflects the image of a brand towards a
certain impression in relation to habits, lifestyle, benefits, attributes, products, geography, prices, competitors, celebrities, etc. (Durianto, et. 2001: 69).
Brand loyalty is a measure of the customer's closeness to a brand.
According to Mirsha and Datta (2011) pointed that the brand loyalty must improved for growing brand equity. According to Aaker (1997) named brand loyalty as “the attachment that a customer has to a brand”. According to Keller (1993) divided brand loyalty into two stages first one is behavioral loyalty and the second one is cognitive loyalty. Consumers who are loyal in general will continue to use the brand even though they are faced with many alternative competing product brands that offer superior product characteristics.
Purchase Intention
It is a behavior that appears as a response to an object. Purchase Intention is also an interest in repurchasing which shows the customer's desire to repurchase (Assael, 1998) in Tony Wijaya (2005). There are so many factors that can affect consumers to repurchase a product that has been consumed. The most prominent factor is the satisfaction factor which does not only come from the good quality of the product but is also influenced by other factors such as service during and after purchase, payment methods, and others.
Based on a review of previous researches and theory studies the conceptual framework of the research can be described as follows:
Figure 1 Conceptual Framework
Information:
= Partial effect
= Simultaneous effect
Source : Researcher (2019) Brand Equity
Brand Awareness
(X1) H1
H2 Brand Association
(X2) H5
Purchase Intention
(Y) H3
Perceived Quality
(X3) H4
Brand Loyalty (X4)
CHAPTER III RESEARCH METHOD
This type of research is explorative research. Explorative research is research that aims to develop knowledge or allegations that are still new and to provide direction for future research. The main purpose of this type of research is to identify the research situation and specific objectives or data needed for further research. Explorative research is very useful for providing better understanding of the situation and / or identifying alternative decisions. (Kuncoro: 2003.72)
According to Sekaran (2006, p.133), sample describes as a number of population‟s member but not every population‟s member can be defined as sample. A census involves a complete count of each element in a population. On the other hand, a sample is a subgroup of the population (Malhotra and Peterson, 2006,p.71). Thus, the sample of this study 100 peoples in Malang City who have intention to purchase Mitsubishi Xpander.
The data collection technique used in this research was a questionnaire.
Questionnaire according to Arikunto (2002:128) questionnaire is a number of written questions that are used to obtain information from the respondent in the sense of reports about his person, or things he knows. This data collection technique is done by giving or distributing a list of questions related to research problems to the respondents.
The operational variable definition is an element of research that provides the way to measure a variable. In other words, operational variables are a kind of guidance to how to measure variables. Singarimbun and Effendi, (2002: 56). The followings are the operational variable definitions used in this research.
1. Brand Equity (X) is a set of assets or elements related to a brand, which increases or decreases the value given by an item or service to consumers.
Four brand assets here are:
a. Brand Awareness (X1), is the ability of consumers to recognize or remember a brand.
b. Brand Loyalty (X2), is a consumer's attachment to a brand.
c. Perceived Quality (X3), is a consumer's perception of the quality of a product.
d. Brand Association (X4), is associating or imaging certain impressions of a brand.
2. Purchase intention (Y) is the tendency to buy a brand and in general based on the suitability between buying motives with attributes or characteristics of brands that can be considered (Belch, 2004). According to Busler (2000), purchase intention can be measured through the dimensions of the possibility that the consumer purchase plan for a product, definitely would refer to the certainty of consumers in a product, and probable refers to the possibility of consumers in buying a product.
CHAPTER IV
RESULT AND DISCUSSION Validity Test
Table 1 The Result of Validity Testing Item Rcount R table Note Brand Awarreness
AW_1 0.799 0.195 Valid AW_2 0.783 0.195 Valid AW_3 0.786 0.195 Valid AW_4 0.804 0.195 Valid AW_5 0.764 0.195 Valid AW_6 0.774 0.195 Valid Brand Association
AS_1 0.789 0.195 Valid AS_2 0.825 0.195 Valid AS_3 0.840 0.195 Valid AS_4 0.843 0.195 Valid Perceived Quality
QU_1 0.817 0.195 Valid QU_2 0.772 0.195 Valid QU_3 0.771 0.195 Valid QU_4 0.765 0.195 Valid QU_5 0.787 0.195 Valid QU_6 0.787 0.195 Valid Brand Loyalty
LY_1 0.687 0.195 Valid LY_2 0.693 0.195 Valid LY_3 0.722 0.195 Valid LY_4 0.643 0.195 Valid
LY_5 0.686 0.195 Valid LY_6 0.678 0.195 Valid Purchase Intention
PI_1 0.566 0.195 Valid PI_2 0.741 0.195 Valid PI_3 0.754 0.195 Valid PI_4 0.721 0.195 Valid PI_5 0.710 0.195 Valid PI_6 0.637 0.195 Valid
Source: Primary Data Processed (2019)
Based on table 1, it can be seen that the result of Pearson product moment test obtained shows that the overall research variables are valid and feasible to use to obtain research data. The findings of this research are proven by the results of the test
rhitung > r tabel.
Reliability Test
Table 2 The Result of Reliability Testing
No Variable cronbach Note
1 Brand Awarreness 0.875 Reliable 2 Brand Association 0.841 Reliable 3 Perceived Quality 0.874 Reliable 4 Brand Loyality 0.773 Reliable 5 Purcase Intention 0.779 Reliable
Source: Primary Data Processed (2019)
The research instrument is said to be reliable if the cronbach alpha test results are> 0.6. Based on table 2 above, the overall research instruments iare
considered reliable. This is proven by the results of the cronbach test which is greater than 0.6.
Descriptive Statistics Testing
Figure 2 The Result of Descriptive Statistics
Source: Primary Data Processed (2019)
1. The output of figure 4.1 above shows the value of N or the amount of data to be examined totaling 100 samples. Brand awareness has a mean value or an average of 20,900, which means that on average respondents have awareness of the Mitsubishi Xpander brand with a maximum value of 28% and a minimum value of 10%. With a standard deviation of 5.84566 which means that the maximum increase in the average brand awareness variable is +5.84566.
2. Brand Association variable regarding the average respondents' answers on a minimum value of 7.00 and a maximum of 20.00 shows an average of 13,8400. This shows that brand associations from consumers in the city of Malang have an average of 13.8400 which is fairly low of all variables which means that this brand is actually well-known but there are still many other brands that are no less famous.
3. Brand quality variable has a total of 100 and it has a mean value or an average of 20.7500. The maximum value is 28.00. the minimum value is 10.00. With a
standard deviation of 5.67535 then this means that the consumer's perception of product quality is high.
4. For the fourth variable, namely brand loyalty variable it shows an average of 20,0300. This shows that consumer loyalty to this product is greater than the brand association itself. The standard deviation in this variable is 4.36343.
5. Purchase Intention has a mean value or an average of 20.4100 which means that on average respondents have a high buying interest in the Mitsubishi Xpander brand with a maximum value of 28%. Minimum value of 11% along with a standard deviation of 4.52623.
Hypothesis Testing 1. Partial Test
Figure 3 Multiple Regression Analysis Results
Source: Primary Data Processed (2019)
Based on the results of the hypothesis test presented above, the following research findings are obtained:
a. Brand Awarreness brand has a significant and positive effect as evidenced by sig = 0.005 <0.05 and the coefficient of calculation thitung = 2.885.
b. Brand Association has a significant and positive effect as evidenced by sig = 0,000 <0.05 and the coefficient of calculation thitung = 3,906.
c. Perceived Quality has a significant and positive effect as evidenced by sig = 0.016 <0.05 and the coefficient of calculation thitung = 2.445.
d. Brand Loyalty has a significant and positive effect as evidenced by sig = 0.009 <0.05 and the coefficient of calculation thitung = 2.656.
2. Simultaneous Test
Figure 4 Simultaneous Test Results
Source: Primary Data Processed (2019)
Based on the results of the F test, the research findings show that the independent variables used in this research have a significant and simultaneous effect as evidenced by the sig coefficient = 0.000 <0.05
3. Coefficient Determinant Test
Figure 5 Coefficient Determinant
Source: Primary Data Processed (2019)
Based on the test results of the coefficient of determination, the research findings show that the independent variables used in this study have an effect of 71%, while the rest are influenced by variables outside the research variable.
CHAPTER V
CONCLUSIONS AND SUGGESTIONS
Based on the results of research and discussion, the conclusions of this research are stated as follows:
1. Based on the results of the descriptive analysis it can be seen the description of brand awareness, brand association, perceived quality, brand loyalty, and purchase interest are as follows:
a. Respondents considered brand awareness of Mitsubishi Xpander products is very high. In this case, Mitsubishi's level of consciousness was in Top Of Mind because respondents had known Mitsubishi since a long time ago and Mitsubishi was a brand that appeared in the respondent's mind when buying a private vehicle.
b. Respondents considered the Mitsubishi association appropriate, Respondents acknowledged the uniqueness of Mitsubishi Xpander products and Mitsubishi Xpander products had very high prestige because respondents agreed to answer the price paid was commensurate with the value they earned.
c. Respondents considered the quality perception of Mitsubishi Xpander is right. The quality provided by Mitsubishi Xpander products is proportional to the price paid. The advantages provided by Mitsubishi Xpander products give a distinctive impression for respondents to distinguish the quality of Mitsubishi Xpander products with the quality of other MPV cars.
Respondents considered that the quality provided by the Mitsubishi Xpander was very good.
d. Respondents consider brand loyalty in Mitsubishi Xpander products is good.
Mitsubishi product brand loyalty is seen in respondents who answered agree. Even though the price of the Mitsubishi Xpander price item is relatively expensive, respondents still buy Mitsubishi Xpander products.
Respondents of Mitsubishi Xpander products in making purchases have considered the product choices, brand choices, channel choices, and time of purchase.
Based on the results of this research, the suggestions that researcher can give are stated as follows:
1. The suggestion given in relation to the brand equity consisting of 4 dimensions discussed in the previous chapter is Mitsubishi must create a car that is in accordance to its market area. Furthermore, it is suggested that mitsubishi increases its sales promotions so that consumers are more familiar with Mitsubishi Xpander products. Furthermore, mitsubishi can also build good relationships with consumers for example creating Mitsubishi users community for the purpose of creating and fostering loyalty among its users.
2. Regarding the perceived quality, Mitsubishi is believed to have undoubted quality by consumers, but in this case consumers feel that maintenance costs and spare parts prices are relatively expensive, even though the price is quite friendly for MPV type cars.
