A Comparison Between the Application of Brand Functional Value and Brand Experiential Value Toward Consumer Evaluation on Local - Foreign Branding: An Experimental Study

Abstract

Considering the growing number of local products in Indonesia, as well as the increasing number of media types to market the products, it is important for local businessperson and organization to understand the strategy in managing their brands to compete with local and foreign brands. Hence, this study discusses the comparison between the application of brand functional value and brand experiential value toward consumer evaluation in the context of local branding and foreign branding strategy. Consumer evaluation is represented by perceived quality, attitude toward the brand, purchase intention, and word of mouth. The research method used is experimental research with 2x2 factorial design using fictitious brand as test object. The finding shows that there are differences in value application effect toward consumer evaluation in local and foreign branding context. The combination of foreign branding strategy and experiential value produces the highest perceived quality, attitude toward the brand, and purchase intention, while the combination of foreign branding strategy and functional value yields the highest word of mouth. Type of paper: Empirical