The Influence Of Brand Equity To The Customers' Purchase Decision

Abstract

Brand equity is significantly important for a company's existences.In a study of 96 respondents measured the strength of simPATl pre-paid card that has equity on its brand.sim.PATI pre-paid card is a brand name from Telkomsel as a leading mobile network and service provider,and also one of the best operator in Asia. (http://www.sinarharapan.co .id/ekonomi/promarketing/2004/011 13/prom5.html,September 30th,2004).This research was conducted in order to obtain the influence of brand equity to the customers' purchase decision and to identify the factors that dominantly influence the purchase decision of the customers of simPATI pre-paid card.This research tested five elements of brand equity,namely,brand loyalty,perceived quality,brand awareness, brand association,and other proprietary brand assets.Of those attributes,brand loyalty had the strongest effect on customers' purchase decision,while brand awareness has the least effect. simPATI pre-paid card has been able to enhanced customers' purchase decision,when the average score of customers' purchase decision exceeds 30.2083.Simultaneously,the influence of Brand Loyalty (X1),Perceived Quality (X2),Brand Awareness (X3),Brand Association (X4),and Other Proprietary Brand Assets (X5) to Customers' Purchase Decision (Y) through Multiple Regression (R² = 0.165) had been proved statistically.Here,by comparing the score of Beta coefficient,the coefficient score of Brand Loyalty (X5) 0.229 is the dominant factor influencing customers' purchase decision (Y). One other contrary finding is that although brand equity comprises all five factors being tested, brand awareness showed the smallest effect on brand equity,far eclipsed by brand loyalty and perceived quality.Thus,brand awareness on simPATI pre-paid card should be given more attention in order to reach the consumers' alertness.Even tough brand loyalty has the highest score in this research it still needs further study.