Brand Equity on Purchase Intention Consumers’ Willingness to Pay Premium Price Juice

Bougenvile, Ariesta; Ruswanti, Endang

doi:10.9790/5933-0801031218

Cited by 17 publications

(18 citation statements)

References 10 publications

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“…Indonesian and Taiwanese consumers are aware of HTC and Apple smartphone qualities and are willing to pay a price premium for those brands. There is no surprise element in this finding as it supports previous finding vis-à-vis different products in different countries [69,73,75,76,113].…”

Section: Discussionsupporting

confidence: 90%

“…Results show that the relationship between perceived prestige value and price premium for Apple is significant in Taiwan (β = 0.21, p < 0.05) and Indonesia (β = −0.25, p < 0.01). This finding is also supported by several researchers in previous studies [75,114]. However, in Indonesia, prestige value negatively influences price premium as consumers are not willing to pay for prestige.…”

Section: Discussionsupporting

confidence: 85%

“…Perceived quality in the proposed model is one of the important factors that influence both Taiwanese and Indonesian smartphone consumer willingness to pay a premium price for Apple and HTC smartphones. Therefore, no matter what product, and no matter where the product is sold, quality is always on consumers' minds [69,[73][74][75][76]113].…”

Section: Discussionmentioning

confidence: 99%

“…Prior research has indicated that in business markets, a brand can create price premium [73,75,76], especially when the brand has high brand awareness, perceived quality, and perceived prestige value. Thus, even though there is a price increase, consumer's responses towards the brand will stay the same or more elastic.…”

Section: Price Premium (Pp)mentioning

confidence: 99%

“…Previous research indicates that brand equity, such as brand awareness, perceived quality, and perceived prestige value, significantly affect consumer's purchase intention [75,91]. Moreover, brands that have high value and strong brand equity generate greater purchase intention [7,92] than those that do not.…”

Section: Purchase Intention (Pi)mentioning

confidence: 99%

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What Killed HTC and Kept Apple Alive? Brand Sustainability Comparison of Two Asian Countries

et al. 2019

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Although brand sustainability is found essential for brand survival, establishing it has remained challenging. Brand sustainability requires a strong association between brand equity and consumer values. The current study attempts to discover critical components involved that may influence Indonesian and Taiwanese consumers to purchase smartphones such as Apple and High-Tech Computer Corporation (HTC). Primary data collection was conducted to gather data through an online field survey. Following a quantitative approach, structural equation modeling (SEM) was used to examine the link between research constructs and the proposed hypotheses based on two samples of 202 and 217 respondents in Taiwan and Indonesia, respectively. Results represent significant and non-significant direct influences underlining the significance of perceived quality and brand preferences when testing brand equity effects on how consumers value different brands. While price premium is found to be the most influential factor that shapes the formation of purchase intention for Apple brands among both Taiwanese and Indonesian consumers, perceived quality is also affecting Taiwanese brand preference for HTC. Furthermore, prestige value is revealed to be a predictor of brand preference among Indonesian HTC consumers. Research findings have important implications for decision-makers to motivate purchase intentions of smartphone users toward specific brands. The insights provided by the findings will assist marketers in developing brand strategies that influence Taiwanese and Indonesian consumers’ purchases of Apple or HTC products.

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