Investigating Relationship between Brand Image, Price Discount and Purchase Intention

Abstract

Brand management has become increasingly important, given the rapid change of the global market and elevation of competition. Effective brand management creates clear product differentiation, consumer preference and loyalty, resulting in broadening market share. Most of previous studies either take product knowledge as a moderator, or involve varying degree of product knowledge on the consumers’ perceived evaluation as an influential factor. It is rare to come across research that discusses how both brand image and product knowledge affect purchase intention. Thus, this research has chosen both an intrinsic and extrinsic product cue brand image and product knowledge as independent variables while using price discount as a moderator and conducted research on purchase intention. The results show that There are significant differences within correlations between brand image and purchase intention, product knowledge and purchase intention, product knowledge and purchase intention and Price discounts contribute no interference to the correlation between product knowledge and purchase intention. Keywords: Brand Image, Price Discount, Purchase Intention, Product Knowledge

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