Impact of Brand Equity on Purchase Intention of Smart Phones

  • Received : 2018.02.28
  • Accepted : 2018.03.28
  • Published : 2018.03.30

Abstract

This study aimed to examine the effect of brand equity dimensions measuring the impact of brand equity on purchase intension of smart phones in Kathmandu. Descriptive and causal research design was used for the study. Structured questionnaires were administered for collecting data. Structured equation modeling was applied for validating the proposed model and measuring the influence of brand equity dimensions on purchase intentions of smart phones. Independent sample t-test and ANOVA was used to test the effect of moderating variables on purchase intention. The research fount brand loyalty and brand awareness were the influential factors for purchase intention of smart phones. Females performed significantly more than males in purchase intention. Qualification had no significant differences on purchase intention of smart phones. The findings of this study add values to the literature and its applicability of brand equity, brand awareness and purchase intensions which helps to formulate polices and strategies.

Keywords

References

  1. Aaker, D. A. (1996), Building Strong Brand. New York: Free Press.
  2. Aaker, D. A. (1991), Managing brand equity: Capitalizing on the value of a brand name. New York: The Free Press.
  3. Ajzen, I., & M. Fishbein (1980), Understanding attitudes and predicting social behavior. New Jersey: Prentice-Hall.
  4. Armstrong, J. S., V. G. Morwitz, & V. Kumar (2000), Sales forecasts for existing consumer products and services: Do purchase intentions contribute to accuracy? International Journal of Forecasting, 16, 383-397. https://doi.org/10.1016/S0169-2070(00)00058-3
  5. Byrne, B. M. (2001), Structural equation modeling with AMOS: Basic concepts, applications, and programming (2nd ed.). New Delhi: Routledge/Taylor & Francis Group.
  6. Chaudhuri, A., & M. B. Holbrook (2001), The chain of effect from brand trust and brand effect to brand performance: The role of brand loyalty. Journal of Marketing, 65(2), 81-93. https://doi.org/10.1509/jmkg.65.2.81.18255
  7. Cobb-Walgren, K. J., C. A. Ruble, & N. Donthu (1995), Brand equity, brand preference, and purchase intent, 24(3), 25-41. https://doi.org/10.1080/00913367.1995.10673481
  8. Cohen, J. (1988), Statistical power analysis for the behavioral sciences (2nd ed.). Hillsdale, NJ: Lawrence Earlbaum Associates.
  9. Day, G. S. (1969), A two-dimensional concept of brand loyalty. Journal of Advertising Research, 9(3), 29-35.
  10. Dodds, W. & K. B. Monroe (1985), The effect of brand and price information on subjective product evaluations. Advance in Consumer Research, 2, E.C. Hirschman and M.B Holbrook, (Eds.), Provo, UT: Association for Consumer Research, 85-90.
  11. Dodds, W. B., K. B. Monroe & D. Grewal (1991), Effects of price, brand, and store information on buyers' product evaluation. Journal of Marketing Research, 28(3), 307-319. https://doi.org/10.2307/3172866
  12. Ercis, A., S. Unal, F. B. Candan, & H. Yildrinm (2012), The effect of brand satisfaction, trust and brand commitment on loyalty and repurchase intentions. Procedia Social and Behavioral Sciences, 58, 1395-1404. https://doi.org/10.1016/j.sbspro.2012.09.1124
  13. Farquhar, P. H. (1989), Managing brand equity. Marketing research, 1(3), 24-33.
  14. Fianto, A. Y. A. & D. Hadiwidjojo, S. Aisjah & A. Solimun (2014), The influence of brand image on purchase behaviour through brand trust. Business Management and Strategy, 5(2), 58-76 https://doi.org/10.5296/bms.v5i2.6003
  15. Fishbein, M. & I. Ajzen (1975), Belief, attitude, intention, and behavior: An introduction to theory and research. Addison-Wesley Publishing Company. MA.
  16. Fornell, C. & D. F. Larcker (1981), Evaluating structural equation models with unobservable variables and measurement error. Journal of Marketing Research, 18(2), 39-50. https://doi.org/10.1177/002224378101800104
  17. Gil, R., E. Bravo, A. Fraj & M. M. Salinas (2007), Family as a source of consumer-based brand equity. Journal of Product & Brand Management, 16(3), 188-199. https://doi.org/10.1108/10610420710751564
  18. Hair, J.F., R. E. Anderson, R. L. Tatham & W. C. Black (1998), Multivariate data analysis (5th ed.). Upper Saddle River, NJ: Prentice Hall.
  19. Jalilvand, M. R., N. Samiei & S. H. Mahdavinia (2011), The effect of brand equity components on purchase intention: An application of Aaker's model in the automobile industry. International Business and Management, 2(2), 149-158.
  20. Joreskog, K. & D. Sorbom (1993), LISREL 8: Structural equation modeling with the IMPLIS command language. Chicago: Scientific Software International (SSI).
  21. Kapferer, J. N. (2008), The new strategic brand management, creating and sustaining brand equity long term. London: Kogan Pag.
  22. Keller, K. L. (1993), Conceptualizing, Measuring and Managing Customer-Based Brand Equity. Journal of Marketing, 57(1) 1-22. https://doi.org/10.1177/002224299305700401
  23. Keller, K. L. & D. R. Lehmann (2003), How do brands create value? Marketing Management, 5/6, 26-31.
  24. Keller, K. L., T. Aperia & M. Georgson (2008), Strategic brand management: A European perspective. Pearson Education, Prentice Hall.
  25. Keller, K. L. (2008), Strategic brand management, building, measuring and managing brand equity. Upper Saddle River, NJ: Prentice Hall.
  26. Khan, N., S. H. R. Rahmani, H. Y. Hoe & T. B. Chen (2015), Causal relationships among dimensions of consumer-based brand equity and purchase intention: Fashion industry. International Journal of Business and Management, 10(1), 172-181.
  27. Kim, K. H., K. S. Kim, D. U. Kim, J. H. Kim & S. H. Kang (2008), Brand equity in hospital marketing. Journal of Business Research, 61, 75-82. https://doi.org/10.1016/j.jbusres.2006.05.010
  28. Kumar, S. P. (2013), Prediction of consumer purchase decision using demographic variables: A study with reference to premium car. IOSR Journal of Business and Management, 12(5), 117-120. https://doi.org/10.9790/487X-125117120
  29. Laheri, V. K. (2017), Impact of demographic variables for purchase of green products. Indian Journal of Commerce & Management Studies, 8(1), 69-76.
  30. Latwal, G. S. & R. K. Sharma (2012), The effect of brand equity on purchase intention: An empirical investigation with special reference to car owner in West Delhi. BVIMR Management Edge, 10(1), 1-24. Retrieved from SSRN:http://ssrn.com/abstract=2425556
  31. Lee, Y. K., K. J. Back & J. Y. Kim (2009), Family restaurant brand personality and its impact on customer's emotion, satisfaction, and brand loyalty. Journal of Hospitality and Tourism Research, 33(3), 305-328. https://doi.org/10.1177/1096348009338511
  32. Malik, M. E., & M. M. Ghafoor (2013), Importance of brand awareness and brand loyalty in assessing purchase intentions of consumer. International Journal of Business and Social Science, 4(5), 167-171.
  33. Mela, C., S. Gupta & D. Lehman (1997), The Long-term Impact of Promotion and Advertising on Consumer Brand Choice. Journal of Marketing Research, 34(2), 248-261. https://doi.org/10.1177/002224379703400205
  34. Meyers, L. S., G. C. Gamst & A. J. Guarino (2015), Performing data analysis using IBM SPSS. New Delhi, Daryaganj, Ansari Road: Wiley India Pvt. Ltd.
  35. Mueller, R.O. (1996), Basic principles of structural equation modeling: An introduction to LISREL and EQS. New York: Springer Texts in Statistics.
  36. Naeini, A. B., P. R. Azali, K. S. Tamaddoni (2015), Impact of brand equity on purchase intention and development, brand preference and customer willingness to pay higher prices. Management and Administrative Sciences Review, 4(3), 616-626.
  37. Naing, K. W., & S. Chaipoopirutana (2014, August), The factors affecting purchase intention of a smart phone in Yangon, Myanmar. International Conference on Trends in Economics, Humanities and Management (ICT EHM), 190-194. Retrieved from http://icehm.org/upload/5343ED0814095.pdf
  38. Oliver, R. L. (1997), A behavioral perspective on the consumer. New York, NY: McGraw-Hill.
  39. Oliver, R. L. & W. O. Bearden (1985), Crossover effects in the theory of reasoned action: a moderating influence attempt. Journal of Consumer Research, 12(3), 324-340. https://doi.org/10.1086/208519
  40. Omar, N. A., M. A. Nazri, L. H. Osman & M. S. Ahmad (2016), The effect of demographic factors on consumer intention to purchase organic products in the Klang Valley: An empirical study. Malaysian Journal of Society and Space, 12(2), 68-82.
  41. Pappu, R., P. G. Quester & R. W. Cooksey (2005), Consumer-Based Brand Equity: Improving the Measurement - Empirical Evidence. Journal of Product & Brand Management. 14(3), 143-154. https://doi.org/10.1108/10610420510601012
  42. Porter, M. E. (1974), Consumer behavior, retailer power and market performance in consumer goods industries. Review on Economics and Statistics, 56(4): 419 436. https://doi.org/10.2307/1924458
  43. Rajayogan, K. & S. Muthumani (2015), The impact of demographic variables based on buying behavior intention towards e-store in India. Journal of Theoretical and Applied Information Technology, 75(1), 62-66.
  44. Schiffman, L. G. & L. L. Kanuk (2007), Consumer behavior (9thed.). NJ: Prentice-Hall.Inc.
  45. Schumaker, R. E. & R. G. Lomax (1996), A beginner's guide to structural equation modeling. Mahwah, NJ: Erlbaum.
  46. Shrestha, S. K. (1012b), Measuring brand equity and marketing mix of noodles markets in Nepal. The Nepalese Management Review, 15(1), 82-94.
  47. Shrestha, S. K. (2012a), Determinants of consumer-based brand equity in Nepalese dairy milk sector. International Conference on Operation Research [Proceeding Book], 236-349.
  48. Teuminen, P. (2000), Customer based brand equity: delivering value for the firm, trade and customer. Turku school of Economics and Business Administration. Series A-2000. Turko, 305-316.
  49. Vinh, T. T. & L. V. Huy (2016), The relationships among brand equity, brand preference and purchase intention: Empirical evidence from the motorbike market in Vietnam. International Journal of Economics and Finance, 8(3), 75-84.
  50. Yoo, B. & N. Donthu (2001), Developing and validating multidimensional consumer-based brand equity scale. Journal of Business Research, 52, 1-14. https://doi.org/10.1016/S0148-2963(99)00098-3
  51. Yoo, B., N. Donthu & S. Lee (2000), An examination of selected marketing mix elements and brand equity. Journal of the Academy of Marketing Science, 28(2), 195-211. https://doi.org/10.1177/0092070300282002
  52. Zeithaml, V. A. (1988), Consumer perceptions of price, quality, and value: a means-end model and synthesis of evidence. Journal of Marketing, 52(3): 2-22. https://doi.org/10.1177/002224298805200302