How Brand Equity Changes Service Marketing: The Case of Indonesian Service Industry

Abstract

Purpose: The purpose of this research is to explain the gap between the change of service marketing and service industries in Indonesia, then to find a solution by adding the brand equity variable so that the service industry can increase. Design/Methodology/Approach: This study uses a quantitative approach so that it can explain how much influence the change of service marketing variable has on the service industry in Indonesia, by using a mediating variable, namely brand equity, which is a problem-solving solution in improving services in the industry. Samples were taken from 300 people from various industries in Jakarta. Data analysis techniques used SEM / PLS. Findings: The change of service marketing is not related to the service industry in Jakarta, while the change of service marketing is related to brand equity and in the end, brand equity can improve service industry. Thus, brand equity is a very important variable and becomes a problem-solving solution for the development of industrial services in Jakarta. Practical Implications: The expected final objective of this study is to define business sustainability using the correct marketing with long term orientation. The study can be used in service marketing where brand equity can positively influence the service industry for business sustainability. Originality/Value: The research resulted in important findings that can be applied for both as theory development and practical matter which can broadly impact the change of service marketing.