The Role of Brand Equity in Purchasing Decisions

Oct 13, 2025 by talynt.org 93 views

Introduction

In the highly competitive motorcycle industry in Indonesia, PT Astra Honda Motor (AHM) has emerged as a pioneer with the iconic Honda brand. The company's success can be attributed to its strong brand equity, which plays a crucial role in influencing purchasing decisions among consumers. This study aims to analyze the effect of brand equity on Honda motorcycle purchasing decisions in the Pematangsiantar City community. By examining variables such as brand awareness, brand associations, quality perceptions, and brand loyalty, this research seeks to identify the extent to which each variable influences motorcycle purchasing decisions.

Methodology

This study employed associative explanatory research, which aims to determine the relationship between two or more variables. The destination population consisted of people from Pematangsiantar City who had purchased or were using a Honda motorcycle. An incidental sampling method was used, and the number of samples was determined to be 96 people based on the supramono formula. The data used in this study consisted of primary data, obtained directly from respondents, and secondary data obtained from other sources.

Data Analysis

The data analysis methods used in this study included descriptive analysis, classical assumption tests, multiple linear regression analysis, and hypothesis testing. The hypothesis test included a significant partial test (T test), a significant simultaneous test (F test) with a significant level of 5%, as well as the coefficient of determination (R²). The results showed that brand equity variables, including brand awareness, brand associations, quality perceptions, and brand loyalty, simultaneously influenced motorcycle purchasing decisions.

Results

The contribution of these four variables to the purchasing decision structure was found to be 48.8%, while the remaining 51.2% was influenced by other variables not examined in this study. In addition, each variable showed a significant effect on purchasing decisions, as evidenced by the T test value that showed significance for each variable.

Deeper Analysis

The Role of Brand Equity in Purchasing Decisions

Brand equity plays a significant role in purchasing decisions, especially in the automotive industry, which is highly competitive. High brand awareness makes consumers more recognize the brand, which can make it easier for them to choose products. The brand association provides a positive picture that forms consumer perceptions of the quality of Honda motorcycles. Good quality perception often relates directly to the desire of consumers to make purchases, because they believe that the products they choose are the best.

The Importance of Brand Loyalty

Brand loyalty is also a key factor in purchasing decisions. Consumers who already have positive experiences with Honda products tend to return to purchases and recommend to others, creating a positive positive effect on the brand. Thus, these four variables are interrelated and influence each other in forming motorcycle purchasing decisions.

Implications of the Study

In the context of Pematangsiantar, the results of this study are not only beneficial for PT Astra Honda Motor but also for other stakeholders in the automotive industry. Understanding the factors that influence purchasing decisions can help them in formulating more effective marketing strategies, increasing relations with consumers, and encouraging higher sales. Through this analysis, it is hoped that people can better understand the importance of brand equity in their purchasing decision making, and producers can be more focused in building strong brand equity.

Conclusion

In conclusion, this study has demonstrated the significant effect of brand equity on Honda motorcycle purchasing decisions in the Pematangsiantar City community. The results of this study have important implications for PT Astra Honda Motor and other stakeholders in the automotive industry. By understanding the factors that influence purchasing decisions, they can develop more effective marketing strategies and increase sales. Ultimately, this study highlights the importance of brand equity in the purchasing decision-making process and provides a framework for future research in this area.

Recommendations

Based on the findings of this study, the following recommendations are made:

PT Astra Honda Motor should continue to invest in building strong brand equity through effective marketing strategies and customer relationship management.
Other stakeholders in the automotive industry should also focus on building strong brand equity to increase sales and customer loyalty.
Future research should investigate the role of brand equity in other industries and its impact on consumer behavior.

Limitations of the Study

This study has several limitations that should be acknowledged. Firstly, the study was conducted in a specific region, Pematangsiantar City, and may not be generalizable to other regions. Secondly, the study only examined the effect of brand equity on motorcycle purchasing decisions and did not investigate other factors that may influence purchasing decisions. Finally, the study used a cross-sectional design, which may not capture the dynamic nature of consumer behavior.

Future Research Directions

Future research should investigate the following directions:

The role of brand equity in other industries and its impact on consumer behavior.
The effect of brand equity on consumer loyalty and retention.
The impact of digital marketing on brand equity and consumer behavior.

By exploring these research directions, we can gain a deeper understanding of the complex relationships between brand equity, consumer behavior, and marketing strategies.

Q: What is brand equity, and how does it affect purchasing decisions?

A: Brand equity refers to the value and reputation of a brand in the minds of consumers. It encompasses various aspects, including brand awareness, brand associations, quality perceptions, and brand loyalty. A strong brand equity can influence purchasing decisions by making consumers more likely to choose products from a particular brand.

Q: How does brand awareness contribute to purchasing decisions?

A: Brand awareness is the extent to which consumers recognize and remember a brand. A high level of brand awareness can make consumers more likely to choose products from a particular brand, as they are more familiar with the brand's values and offerings.

Q: What is the role of brand associations in purchasing decisions?

A: Brand associations refer to the positive or negative images that consumers associate with a brand. Positive brand associations can create a favorable perception of a brand, making consumers more likely to choose products from that brand.

Q: How does quality perception influence purchasing decisions?

A: Quality perception refers to the extent to which consumers believe that a brand's products meet their expectations in terms of quality. A high level of quality perception can make consumers more likely to choose products from a particular brand, as they believe that the products are of high quality.

Q: What is the significance of brand loyalty in purchasing decisions?

A: Brand loyalty refers to the extent to which consumers are committed to a particular brand and continue to purchase products from that brand over time. A high level of brand loyalty can make consumers more likely to choose products from a particular brand, as they have a positive experience with the brand.

Q: How can PT Astra Honda Motor use the findings of this study to improve its marketing strategies?

A: PT Astra Honda Motor can use the findings of this study to improve its marketing strategies by focusing on building strong brand equity through effective marketing campaigns, customer relationship management, and product quality improvement.

Q: What are the implications of this study for other stakeholders in the automotive industry?

A: The findings of this study have important implications for other stakeholders in the automotive industry, as they can use the insights gained from this study to develop more effective marketing strategies and increase sales.

Q: What are the limitations of this study, and how can they be addressed in future research?

A: This study has several limitations, including the use of a cross-sectional design and the focus on a specific region. Future research can address these limitations by using a longitudinal design and investigating the effect of brand equity on consumer behavior in other regions.

Q: What are the future research directions that can be explored based on the findings of this study?

A: Future research can explore the following directions:

The role of brand equity in other industries and its impact on consumer behavior.
The effect of brand equity on consumer loyalty and retention.
The impact of digital marketing on brand equity and consumer behavior.

By exploring these research directions, we can gain a deeper understanding of the complex relationships between brand equity, consumer behavior, and marketing strategies.