The effect of brand equity on Malaysian youth`s intention to purchase local automobiles

Abstract

The goal of this study is to investigate the influence of customer-based brand equity dimensions on young Malaysian’s (also known as belia) intention to purchase local brand automobiles. The research proposes a conceptual model based on Aaker’s (1991) theory of customer-based brand equity (CBBE) as well as Ahmad and Butt’s (2012) which examines the relationships among brand awareness, perceived quality, brand association and after sales services on young Malaysian’s intention to purchase local brand automobile’s, namely Proton and Perodua. Data extracted was collected from 215 young Malaysian’s via a structured questionnaire which employed a convenient sampling method of online survey by way of Google Forms. The targeted population were expected to reside mainly in the Klang Valley area; however the online nature of the sampling enabled belia from all over Malaysia to participate. The empirical findings of the research supported two of the four proposed hypotheses. The two dimensions that showed a positive and statistically significant influence on young Malaysian’s purchase intention of local brand automobiles were perceived quality and brand association, with perceived quality holding the most influence. Unexpectedly, brand awareness showed a negative relationship with purchase intention, contrary to the evidence in the literature, and after sales services proved to be statistically insignificant. The study supports Aaker’s (1991) customer-based brand equity theory that states brand equity in an automobile industry context is multidimensional with perceived quality as the most influential dimension. From a local automobile brand marketing manager’s perspective, the findings provide insight into the key aspects to focus on in brand building among young Malaysian’s. The key area of focus is to boost the perceptions of quality towards local brand automobiles and instil confidence that local brand automobiles are able to deliver on customer expectations. Marketing campaigns should also aim to boost positive brand associations in order to create favourable brand links in young Malaysian’s minds. The implications of the findings show that, given the gradual effects of automobile market liberation in line with the National Auto Policy (NAP), local brands may not be able to fare as well in the future as the local automobile industry becomes more competitive. Efforts may need to be made at government level to boost the perception of young Malaysian’s towards local automobile brands in terms of product and service quality, local engineering expertise and value for money.