Articlediamond2019

Low-Cost Green Car Purchase Intention: Measuring the Role of Brand Image on Perceived Price and Quality

30 citations0/0 files storedInternational Journal of Economics and Business Administration

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Consumer Behavior and Marketing Influence Environmental Sustainability in Business Consumer Behavior in Brand Consumption and Identification

Abstract

Purpose: The study tests a rhombus model.A rhombus model refers to a rhombus-shaped research model consisting of three predictor variables including brand image, perceived price, and perceived quality that is used to predict purchase intention.This study aims to predict a person's purchase intention relating to Low-Cost Green Cars (LCGC).In Indonesia market, this type of passenger vehicle is targeted towards lower income consumers and those who are concerned with the environment.Design/Methodology/Approach: Data was collected using a questionnaire in a shopping centre in Jakarta close to a year-round car exhibition.In total, 200 participants completed the questionnaire.Data were analysed using exploratory factor analysis and structural equation modeling.Findings: The study found that in the case of Toyota Agya, brand image has a significant impact on perceived price and perceived quality.Also, perceived price has a significant impact on purchase intention.There are slightly different results in the case of Daihatsu Ayla.Practical Implications: Results can be used by managerial administration adjusting its strategy to attract more costumers.Originality/Value: It is an original research with prospective buyers for a known product, the brand name of the cars were known to participants in the research.

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References

1999Cutoff criteria for fit indexes in covariance structure analysis: Conventional criteria versus new alternatives 1988Consumer Perceptions of Price, Quality, and Value: A Means-End Model and Synthesis of Evidence 1993Conceptualizing, Measuring, and Managing Customer-Based Brand Equity 2003Evaluating the Fit of Structural Equation Models: Tests of Significance and Descriptive Goodness-of-Fit Measures 1993Price Perceptions and Consumer Shopping Behavior: A Field Study 2011Consumer attitude and purchase intention toward green energy brands: The roles of psychological benefits and environmental concern 2005Green branding effects on attitude: functional versus emotional positioning strategies 2015Online hotel booking: The effects of brand image, price, trust and value on purchase intentions

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