Journal of Wellbeing Management and Applied Psychology (웰빙융합연구)

Korea Wellbeing Convergence Association (한국웰빙융합학회)
권호 표지
DOI QR코드

DOI QR Code

How Brand Equity Factors Shapes Smartphone Purchase Intentions Among Millennials in Nepal

  • Received : 2024.03.13
  • Accepted : 2024.03.19
  • Published : 2024.03.30
Download PDF
⟨ Previous Next ⟩

Abstract

Purpose: This study explores the factors affecting purchase intention of smartphones among millennials. The study incorporates factors of brand equity, specifically brand awareness, brand loyalty, perceived quality and their mediation effect in purchase intention. Research design, data, and methodology: This study evaluates the role of brand equity factors in influencing purchase intentions by using structural equation modeling to analyze 197 respondents. Results: The findings indicate that brand loyalty, followed by brand awareness, and perceived quality are significant factors in determining customer purchase intention. Further, brand loyalty mediates the relationship between perceived quality and purchase intention, as well as between brand awareness and purchase intention significantly. Additionally, perceived quality mediates the relationship between brand awareness and purchase intention significantly. Finally, the serial mediation of perceived quality and brand loyalty significantly affects the relationship between brand awareness and purchase intention. Conclusions: This research has provided valuable insights into the relationship between brand equity and purchase intention among millennials supporting the Aaker's Model. Useful theoretical and managerial implications also have been provided.

Keywords

References

  1. Aaker, D. A. (1992). The Value of Brand Equity. Journal of Business Strategy, 13(4), 27-32. https://doi.org/10.1108/eb039503
  2. Aaker, D. A. (1996). Resisting temptations to change a brand position/execution: The power of consistency over time. Journal of Brand Management, 3(4), 251-258. https://doi.org/10.1057/bm.1996.5
  3. Aaker, D. A., Biel, A. L., & Biel, A. (2013). Brand equity & advertising: advertising's role in building strong brands. Psychology Press.
  4. Akkucuk, U., & Esmaeili, J. (2016). The impact of brands on consumer buying behavior: An empirical study on smartphone buyers. International Journal of Research in Business and Social Science (2147-4478), 5(4), 1-16. https://doi.org/10.20525/ijrbs.v5i4.551
  5. Putra, A.S., Alimin, E., Eddy, E., Leonardi, F., & Siahaan, B.N. (2023). The Impact of Brand Awareness and Brand Perceived Quality towards Purchase Decision. Jurnal Ilmiah Hospitality, 11(2), 1445-1456.
  6. Amelia, S. (2018). The Effect of Perceived Quality, Brand Awareness, and Brand Loyalty towards Brand Equity of Beer Bintang in Surabaya. Calyptra, 7(1), 899-918.
  7. Anderson, J., & Rainie, L. (2018, July 1). Stories From Experts About the Impact of Digital Life Pew Research Center. Pew Research Center. https://www.pewresearch.org/internet/2018/07/03/thepositives-of-digital-life/
  8. Aydin, S., & Ozer, G. (2005). The analysis of antecedents of customer loyalty in the Turkish mobile telecommunication market. European Journal of Marketing, 39(7-8), 910-925. https://doi.org/10.1108/03090560510601833
  9. Barreda, A. A., Bilgihan, A., & Kageyama, Y. (2015). The Role of Trust in Creating Positive Word of Mouth and Behavioral Intentions: The Case of Online Social Networks. Journal of Relationship Marketing, 14(1), 16-36. https://doi.org/10.1080/15332667.2015.1006002
  10. Bido, D., da Silva, D., & Ringle, C. (2014). Structural Equation Modeling with the Smartpls. Brazilian Journal of Marketing, 13(2).
  11. Chi, H., Yeh, H.R., Chien, S., & Yang, Y.T. (2009). The impact of brand awareness on consumer purchase intention: The mediating effect of perceived quality and brand loyalty. The Journal of International Management Studies, 4(1), 135-144.
  12. Clark, C. R., Doraszelski, U., & Draganska, M. (2009). The effect of advertising on brand awareness and perceived quality: An empirical investigation using panel data. Quantitative Marketing and Economics, 7(2), 207-236. https://doi.org/10.1007/s11129-009-9066-z
  13. Cole, D. A., & Preacher, K. J. (2014). Manifest variable path analysis: Potentially serious and misleading consequences due to uncorrected measurement error. Psychological Methods, 19(2), 300-315. https://doi.org/10.1037/a0033805
  14. Dash, G., Kiefer, K., & Paul, J. (2021). Marketing-to-Millennials: Marketing 4.0, customer satisfaction and purchase intention. Journal of Business Research, 122, 608-620. https://doi.org/10.1016/j.jbusres.2020.10.016
  15. Ene, S., & Ozkaya, B. (2016). A Study Regarding the Relationship between the Consumer Expectations Regarding Packaging and Brand Awareness. International Business Research 9(6). 102-111 https://doi.org/10.5539/ibr.v9n6p102
  16. Fornell, C., & Larcker, D. F. (1981). Evaluating Structural Equation Models with Unobservable Variables and Measurement Error. Journal of Marketing Research, 18(1), 39-50. https://doi.org/10.1177/002224378101800104
  17. Frost & Sullivan. (2019). Mega Trends in Nepal, Forecast to 2025 - Research and Markets. https://www.researchandmarkets.com/research/szcdw7/mega
  18. Gautam, D., & Shrestha, S. (2018). Impact of brand equity on purchase intention of smart phones. Asia-Pacific Journal of Business, 9(1), 1-18. https://doi.org/10.32599/apjb.9.1.201803.1
  19. Haenlein, M., & Kaplan, A. M. (2004). A beginner's guide to partial least squares analysis. Understanding Statistics, 3(4), 283-297. https://doi.org/10.1207/s15328031us0304_4
  20. Hair Jr, J. F., Hult, G. T. M., Ringle, C. M., Sarstedt, M., Danks, N. P., Ray, S., ... & Ray, S. (2021). An introduction to structural equation modeling. Partial least squares structural equation modeling (PLS-SEM) using R: a workbook, 1-29.
  21. Hair, J. F., Sarstedt, M., Hopkins, L., & Kuppelwieser, V. G. (2014). Partial least squares structural equation modeling (PLS-SEM): An emerging tool in business research. European Business Review, 26(2), 106-121. https://doi.org/10.1108/EBR-10-2013-0128
  22. Hair, J. F., Sarstedt, M., Matthews, L. M., & Ringle, C. M. (2016). Identifying and treating unobserved heterogeneity with FIMIX-PLS: part I - method. European Business Review, 28(1), 63-76.
  23. Hew, J. J., Badaruddin, M. N. B. A., & Moorthy, M. K. (2017). Crafting a smartphone repurchase decision making process: Do brand attachment and gender matter? Telematics and Informatics, 34(4), 34-56. https://doi.org/10.1016/j.tele.2016.12.009
  24. Jacoby, J., & Kyner, D. B. (1973). Brand Loyalty vs. Repeat Purchasing Behavior. Journal of Marketing Research, 10(1), 1.
  25. Keller, K. L. (1993). Conceptualizing, Measuring, and Managing Customer-Based Brand Equity. Journal of Marketing 57(1), 1-22. https://doi.org/10.1177/002224299305700101
  26. Khan, N., Rahmani, S. H. R., Hoe, H. Y., & Chen, T. B. (2014). Causal Relationships among Dimensions of Consumer-Based Brand Equity and Purchase Intention: Fashion Industry. International Journal of Biometrics, 10(1).
  27. Kim, H. K., & Lee, T. J. (2018). Brand Equity of a Tourist Destination. Sustainability 2018, 10(2), 431. https://doi.org/10.3390/su10020431
  28. Kline, R. B. (2015). The Mediation Myth. Basic and Applied Social Psychology, 37(4), 202-213. https://doi.org/10.1080/01973533.2015.1049349
  29. Lau, G. T., & Lee, S. H. (1999). Consumers' Trust in a Brand and the Link to Brand Loyalty. Journal of Market-Focused Management, 4(4), 341-370.
  30. Macdonald, E. K., & Sharp, B. M. (2000). Brand Awareness Effects on Consumer Decision Making for a Common, Repeat Purchase Product: A Replication. Journal of Business Research, 48(1), 5-15. https://doi.org/10.1016/S0148-2963(98)00070-8
  31. Machi, L., Nemavhidi, P., Chuchu, T., Nyagadza, B., & Villiers, M. V. de. (2022). Exploring the impact of brand awareness, brand loyalty and brand attitude on purchase intention in online shopping. International Journal of Research in Business and Social Science (2147- 4478), 11(5), 176-187. https://doi.org/10.20525/ijrbs.v11i5.1841
  32. Marzocchi, G., Morandin, G., & Bergami, M. (2013). Brand communities: Loyal to the community or the brand? European Journal of Marketing, 47(1), 93-114. https://doi.org/10.1108/03090561311285475
  33. Mathew, V., & Thomas, S. (2018). Direct and indirect effect of brand experience on true brand loyalty: role of involvement. Asia Pacific Journal of Marketing and Logistics, 30(3), 725-748. https://doi.org/10.1108/APJML-08-2017-0189
  34. Moreira, A. C., Fortes, N., & Santiago, R. (2017). Influence of sensory stimuli on brand experience, brand equity and purchase intention. Journal of Business Economics and Management, 18(1), 68-83. https://doi.org/10.3846/16111699.2016.1252793
  35. Nielsen. (2016, November). Millennials Are Top Smartphone Users. Nielsen. https://www.nielsen.com/insights/2016/millennials-are-topsmartphone-users/
  36. Pandey, M., & Raju, J. K. (2009). Analyzing Relationship between Brand Perception and Customer Loyalty in Life Insurance Industry. The Journal Contemporary Management Research, 3(1).
  37. Rai, B., Dahal, R. K., & Ghimire, B. (2023). Factors affecting Consumer Behavior in Smartphone purchases in Nepal. Innovative Marketing, 19(3), 74-84. https://doi.org/10.21511/im.19(3).2023.07
  38. Roozy, E., Arastoo, M. A., & Vazifehdust, Hossein (2014). Effect of brand equity on consumer purchase intention. Indian J. Sci. Res, 6(1), 212-217.
  39. Shrestha, S. (2012a). Determinants of consumer-based brand equity in Nepalese dairy milk sector. International Conference on Operation Research, 236-349.
  40. Shrestha, S. (2012b). Measuring brand equity and marketing mix of noodles markets in Nepal. The Nepalese Management Review, 15(1), 82-94.
  41. Silva, K. C. de, Madhushani, A. A. L., & Jayalath, S. D. S. (2020). The Impact of Brand Loyalty on Customer Purchase Intention: An Empirical Study on Basketball Shoe Brands of Adidas, Nike, and Puma. Journal of Physical Education and Sports Management, 7(2).
  42. Tharmi, U., & Senthilnathan, S. (2012). The Relationship of Brand Equity to Purchase Intention. IUP Journal of Marketing Management.
  43. Yoo, P. (2017, May 10). How Mobile Millennials are Shaping the Future of the Telecommunications Industry. Techzone360. https://www.techzone360.com/topics/techzone/articles/2017/05/10/431950-how-mobile-millennials-shaping-future-thetelecommunications-industry.htm
  44. Weisstein, F.L, Asgari, M., & Siew, S. W. (2014). Price presentation effects on green purchase intentions. Journal of Product & Brand Management, 23(3), 230-239. https://doi.org/10.1108/JPBM-06-2013-0324
  45. Zahid, A., & Dastane, D. O. (2016). Factors affecting purchase intention of South East Asian (SEA) young adults towards global smartphone brands. ASEAN Marketing Journal, 8(1), 66-84
  46. Zhao, J., Butt, R. S., Murad, M., Mirza, F., & Saleh Al-Faryan, M. A. A. (2022). Untying the Influence of Advertisements on Consumers Buying Behavior and Brand Loyalty Through Brand Awareness: The Moderating Role of Perceived Quality. Frontiers in Psychology, 12, 803348.