Disentangling the role of income level on premium brand perceived quality, awareness, association, and loyalty: A comparative study within Thailand and Indonesia

Komm Pechinthorn, Nico Irawan, Kyawt Shinn Thant Zin, Sineenat Suasungnern, Jirangrug Samarkjarn, Rahmawati Rahmawati

Abstract


The level of income is one of the specific consumer conditions that susceptible to influence their brand decision-making. Unfortunately, studies on the influence of income mainly focused on price without considering the relationship between brand and consumers. This study aims to examine how brand perceived quality, awareness, association, and loyalty related to the level of income in emerging countries like Thailand and Indonesia. Premium and high-class coffee chain brands choose as the object of this study as the exponential growth of the coffee culture in both countries. A total of 283 respondents have completed an online questionnaire and verified it to be processed into the analysis of variance (ANOVA) and LSD post hoc test for multiple comparison statistical analysis. The result of this study shows that although high-income and low-income consumers in Thailand tend to have the same perceived quality toward the premium coffee brand, in general, there is a significant difference in the mean of brand perceived quality, awareness, and association between various consumers income level in Thailand. Interestingly, this study found that there is no significant difference in the mean of premium coffee brand perceived quality, awareness, association, and loyalty within the group of income levels in Indonesia. This indicates that Indonesians tend to ignore how much money they have in their pocket when it comes to coffee as the coffee culture becoming a new habit and lifestyle.


Keywords


Brand Awareness; Brand Associations; Brand Loyalty; Perceived Quality; Income

Full Text:

PDF

References


Aaker, D. A. (1996). Measuring brand equity across products and markets. California Management Review, 38(3).

Abdellah-Kilani, F., & Zorai, R. (2019). Brand Origin Recall Accuracy (BORECA): a new measure of brand origin salience. International Marketing Review, 36(3), 464–482. https://doi.org/10.1108/IMR-03-2018-0087

Ahmed, R. R., VVeinhardi, J., & Streimikiene, D. (2017). Interactive digital media and impact of customer attitude and technology on brand awareness: Evidence from the South Aasian countries. Journal of Business Economics and Management, 18(6), 1115–1134. https://doi.org/10.3846/16111699.2017.1400460

Ahn, J., Park, J. K., & Hyun, H. (2018). Luxury product to service brand extension and brand equity transfer. Journal of Retailing and Consumer Services, 42, 22–28. https://doi.org/10.1016/j.jretconser.2018.01.009

Algharabat, R., Rana, N. P., Alalwan, A. A., Baabdullah, A., & Gupta, A. (2020). Investigating the antecedents of customer brand engagement and consumer-based brand equity in social media. Journal of Retailing and Consumer Services, 53, 101767. https://doi.org/10.1016/j.jretconser.2019.01.016

Ardiansyah, F., & Sarwoko, E. (2020). How social media marketing influences consumers purchase decision: A mediation analysis of brand awareness. JEMA: Jurnal Ilmiah Bidang Akuntansi dan Manajemen, 17(2), 156-168. http://dx.doi.org/10.31106/jema.v17i2.6916

Arunachalam, S., Bahadir, S. C., Bharadwaj, S. G., & Guesalaga, R. (2020). New product introductions for low-income consumers in emerging markets. Journal of the Academy of Marketing Science, 48(5), 914–940. https://doi.org/10.1007/s11747-019-00648-8

Baalbaki, S., & Guzmán, F. (2016). A consumer-perceived consumer-based brand equity scale. Journal of Brand Management, 23(3), 229–251. https://doi.org/10.1057/bm.2016.11

Bari, M. K., Zaman, M. H., Mahmud, A. G., & Ghosh, S. K. (2021). Assertiveness, corporate social responsibility and brand association in anti-globalization era. Int. J. Manag. Account, 3(1), 1–19.

Beneke, J., & Carter, S. (2015). The development of a consumer value proposition of private label brands and the application thereof in a South African retail context. Journal of Retailing and Consumer Services, 25, 22–35. https://doi.org/10.1016/j.jretconser.2015.03.002

Chanwitkan, N., & Intuluck, W. (2020). (2020). Marketing mix factors on consumer’s perspectives and brand equity affecting brand loyalty of Thai franchise coffee consumers in Bangkok. Dusit Thani College Journa, 14(3), 526–547.

Chen, H. C., & Green, R. D. (2011). Brand equity, marketing strategy, and consumer income: A hypermarket study. Journal of Management and Marketing Research, 8(1).

Chiguvi, D., & Guruwo, P. T. (2017). Impact of customer satisfaction on customer loyalty in the banking sector. International Journal of Scientific Engineering and Research (IJSER), 5(2), 55–63.

Costa Filho, M. C., Falcao, R. P. Q., & Motta, P. C. de M. (2021). Brand loyalty among low-income consumers? Qualitative Market Research: An International Journal, 24(2), 260–280. https://doi.org/10.1108/QMR-07-2019-0080

Ding, C. G., & Tseng, T. H. (2015). On the relationships among brand experience, hedonic emotions, and brand equity. European Journal of Marketing, 49(7/8), 994–1015. https://doi.org/10.1108/EJM-04-2013-0200

Esser, F., & Vliegenthart, R. (2017). Comparative Research Methods. In The International Encyclopedia of Communication Research Methods (pp. 1–22). Wiley. https://doi.org/10.1002/9781118901731.iecrm0035

Foroudi, P. (2019). Influence of brand signature, brand awareness, brand attitude, brand reputation on hotel industry’s brand performance. International Journal of Hospitality Management, 76, 271–285. https://doi.org/10.1016/j.ijhm.2018.05.016

Foroudi, P., Jin, Z., Gupta, S., Foroudi, M. M., & Kitchen, P. J. (2018). Perceptional components of brand equity: Configuring the Symmetrical and Asymmetrical Paths to brand loyalty and brand purchase intention. Journal of Business Research, 89, 462–474. https://doi.org/10.1016/j.jbusres.2018.01.031

Gallarza, M. G., Gil-Saura, I., & Holbrook, M. B. (2011). The value of value: Further excursions on the meaning and role of customer value. Journal of Consumer Behaviour, 10(4), 179–191. https://doi.org/10.1002/cb.328

González-Mansilla, Ó., Berenguer-Contrí, G., & Serra-Cantallops, A. (2019). The impact of value co-creation on hotel brand equity and customer satisfaction. Tourism Management, 75, 51–65. https://doi.org/10.1016/j.tourman.2019.04.024

Han, H., Nguyen, H. N., Song, H., Chua, B.-L., Lee, S., & Kim, W. (2018). Drivers of brand loyalty in the chain coffee shop industry. International Journal of Hospitality Management, 72, 86–97. https://doi.org/10.1016/j.ijhm.2017.12.011

Hatch, M. J., & Schultz, M. (2010). Toward a theory of brand co-creation with implications for brand governance. Journal of Brand Management, 17(8), 590–604. https://doi.org/10.1057/bm.2010.14

Hossien Emari. (2012). The mediatory impact of brand loyalty and brand image on brand equity. AFRICAN JOURNAL OF BUSINESS MANAGEMENT, 6(17). https://doi.org/10.5897/AJBM11.788

Huaman-Ramirez, R., & Merunka, D. (2019). Brand experience effects on brand attachment: the role of brand trust, age, and income. European Business Review, 31(5), 610–645. https://doi.org/10.1108/EBR-02-2017-0039

Keller, K. L., & Brexendorf, T. O. (2019). Measuring Brand Equity (pp. 1409–1439). https://doi.org/10.1007/978-3-658-13342-9_72

Laksamana, P. (2018). Impact of social media marketing on purchase intention and brand loyalty: Evidence from Indonesia’s banking industry. International Review of Management and Marketing, 8(1), 13–18.

Marakanon, L., & Panjakajornsak, V. (2017). Perceived quality, perceived risk and customer trust affecting customer loyalty of environmentally friendly electronics products. Kasetsart Journal of Social Sciences, 38(1), 24–30. https://doi.org/10.1016/j.kjss.2016.08.012

María Rosa‐Díaz, I. (2004). Price knowledge: effects of consumers’ attitudes towards prices, demographics, and socio‐cultural characteristics. Journal of Product & Brand Management, 13(6), 406–428. https://doi.org/10.1108/10610420410560307

Masuda, K., & Kushiro, S. (2018). Influence of brand equity on the price premium for private labels in fresh produce: A contingent valuation survey. Agribusiness, 34(2), 338–350. https://doi.org/10.1002/agr.21498

Mohd Yusof, Y. L., Wan Jusoh, W. J., & Maulan, S. (2021). Perceived quality association as determinant to re-patronise Shariah-compliant brand restaurants. Journal of Islamic Marketing, 12(2), 302–315. https://doi.org/10.1108/JIMA-10-2018-0190

Sari, R. K., Soediro, A., & Rochman, F. (2018). The truth behind the decision of consumers in buying counterfeit cosmetics product: A qualitative phenomenological research. JEMA: Jurnal Ilmiah Bidang Akuntansi dan Manajemen, 15(2), 108-122. http://dx.doi.org/10.31106/jema.v15i2.954

Saritas, A., & Penez, S. (2017). Factors of purchasing decision and measuring brand loyalty: An empirical study of automotive sector. Journal of Marketing and Management, 8(1), 8.

Shahid, Z., Hussain, T., & Zafar, F. (2017). The impact of brand awareness on the consumers’ purchase intention. Journal of Marketing and Consumer Research, 33(3), 34–38.

Shankar, A., & Jebarajakirthy, C. (2019). The influence of e-banking service quality on customer loyalty. International Journal of Bank Marketing, 37(5), 1119–1142. https://doi.org/10.1108/IJBM-03-2018-0063

Sharma, R., Ahuja, V., & Alavi, S. (2020). Developing a Research Instrument to Study the Impact of Consumer Brand Perception, Consumer Brand Relationship and Consumer Buying Behaviour on Online Apparel Shopping (pp. 67–81). https://doi.org/10.1007/978-3-030-24374-6_5

Sheth, J. N. (2011). Impact of Emerging Markets on Marketing: Rethinking Existing Perspectives and Practices. Journal of Marketing, 75(4), 166–182. https://doi.org/10.1509/jmkg.75.4.166

Slama, M. E., & Tashchian, A. (1985). Selected Socioeconomic and Demographic Characteristics Associated with Purchasing Involvement. Journal of Marketing, 49(1), 72–82. https://doi.org/10.1177/002224298504900107

Stojanovic, I., Andreu, L., & Curras-Perez, R. (2018). Effects of the intensity of use of social media on brand equity. European Journal of Management and Business Economics, 27(1), 83–100. https://doi.org/10.1108/EJMBE-11-2017-0049

Stokburger-Sauer, N. E., & Teichmann, K. (2013). Is luxury just a female thing? The role of gender in luxury brand consumption. Journal of Business Research, 66(7), 889–896. https://doi.org/10.1016/j.jbusres.2011.12.007

Stylidis, K., Wickman, C., & Söderberg, R. (2020). Perceived quality of products: a framework and attributes ranking method. Journal of Engineering Design, 31(1), 37–67. https://doi.org/10.1080/09544828.2019.1669769

Susanty, A., & Kenny, E. (2015). The relationship between brand equity, customer satisfaction, and brand loyalty on coffee shop: Study of Excelso and Starbucks. ASEAN Marketing Journal, 7(1), 14–27. https://doi.org/10.21002/amj.v7i1.4481

Świtała, M., Gamrot, W., Reformat, B., & Bilińska-Reformat, K. (2018). The influence of brand awareness and brand image on brand equity–an empirical study of logistics service providers. Journal of Economics & Management, 33(96), 119.

Tasci, A. D. A. (2018). Testing the cross-brand and cross-market validity of a consumer-based brand equity (CBBE) model for destination brands. Tourism Management, 65, 143–159. https://doi.org/10.1016/j.tourman.2017.09.020

Tasci, A. D. A. (2021). A critical review and reconstruction of perceptual brand equity. International Journal of Contemporary Hospitality Management, 33(1), 166–198. https://doi.org/10.1108/IJCHM-03-2020-0186

Tran, V. T., Nguyen, N. P., Tran, P. T. K., Tran, T. N., & Huynh, T. T. P. (2019). Brand equity in a tourism destination: a case study of domestic tourists in Hoi An city, Vietnam. Tourism Review, 74(3), 704–720. https://doi.org/10.1108/TR-08-2017-0130

Udomkit, N., & Mathews, P. (2015). The analysis of Bangkok coffee chain’s consumers and the influence of brand personalities on their purchasing decision. Global Business Review, 16(3), 415–424. https://doi.org/10.1177/0972150915569929

Valentini, C., Romenti, S., Murtarelli, G., & Pizzetti, M. (2018). Digital visual engagement: influencing purchase intentions on Instagram. Journal of Communication Management, 22(4), 362–381. https://doi.org/10.1108/JCOM-01-2018-0005

Vaux Halliday, S., & Astafyeva, A. (2014). Millennial cultural consumers: co-creating value through brand communities. Arts Marketing: An International Journal, 4(1/2), 119–135. https://doi.org/10.1108/AM-01-2014-0003

Wahyuni, S., & Fitriani, N. (2017). Brand religiosity aura and brand loyalty in Indonesia Islamic banking. Journal of Islamic Marketing, 8(3), 361–372. https://doi.org/10.1108/JIMA-06-2015-0044

Whaley, J., Lee, J., & Kim, Y.-K. (2019). Do tipping motivations predict loyalty to the server in a restaurant? International Hospitality Review, 33(2), 91–105. https://doi.org/10.1108/IHR-01-2019-0001

Wu, M.-S. S., Chen, C.-H. S., & Nguyen, B. (2015). Luxury brand purchases and the extended self. Asia-Pacific Journal of Business Administration, 7(3), 153–173. https://doi.org/10.1108/APJBA-05-2015-0046

Yoo, B., & Donthu, N. (2002). Testing cross‐cultural invariance of the brand equity creation process. Journal of Product & Brand Management, 11(6), 380–398. https://doi.org/10.1108/10610420210445505

Yu, S., Hudders, L., & Cauberghe, V. (2018). Selling luxury products online: The effect of a quality label on risk perception, purchase intention and attitude toward the brand. Journal of Electronic Commerce Research, 19(1), 16–35.

Yulianti, Y., & Deliana, Y. (2018). Gaya hidup kaitannya dengan keputusan konsumen dalam membeli minuman kopi. Jurnal AGRISEP, 17(1), 39–50. https://doi.org/10.31186/jagrisep.17.1.39-50




DOI: http://dx.doi.org/10.31106/jema.v18i1.10208

Refbacks

  • There are currently no refbacks.


Copyright (c) 2021 JEMA: Jurnal Ilmiah Bidang Akuntansi dan Manajemen

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.

JEMA: Jurnal Ilmiah Bidang Akuntansi dan Manajemen is indexed by:

        

JEMA: Jurnal Ilmiah Bidang Akuntansi dan Manajemen also registered in ICI (Index Copernicus International) as N/I Journal

 

Creative Commons License
JEMA: Jurnal Ilmiah Bidang Akuntansi dan Manajemen is licensed under a Creative Commons Attribution 4.0 International License