ISSN: 2222-6990
Open access
In this era, competition among brands, especially in the fashion industry is high. However, other than the brand itself, price consciousness is also considered as a factor that is important for customers. This study aims to determine the influence of brand equity and price consciousness towards consumers’ brand purchase intention of Cotton On brand retail apparel. This study had utilized the Signalling Theory as well as price consciousness as the exogenous variables. This study applied quantitative design by distributing a questionnaire and obtained 163 valid responses who are the consumers of the Cotton On brand through purposive sampling technique. Based on the Partial Least Square Structural Equation Modeling (PLS-SEM) results, it indicated that brand awareness, brand association, and perceived quality of Cotton On brand have a positive and significant relationship with Cotton On brand purchase intention. Additionally, price consciousness has a negative, but significant relationship with Cotton On brand purchase intention. However, brand loyalty was not the factor that influence Cotton On brand purchase intention. The study contributes to the branding and marketing scholarship by incorporating price consciousness as a construct to further enhance the model through Signalling theory. Besides, it also provides strategies for marketers and brand managers to understand the brand equity elements that are perceived prominent in the fashion retail industry to strategies their consumer’s behavior initiatives. Conclusion, theoretical and managerial implications as well as suggestions for subsequent studies were also highlighted in this study.
Aaker, D. A. (1991). Managing brand equity; capitalizing on the value of a brand name. New York: The Free Press.
Aaker, D. A. (2009). Managing brand equity. USA: Simon and Schuster.
Aaker, D. A. (2012). Building strong brands. Simon and Schuster.
Aaker, J. L. (1997). Dimensions of brand personality. Journal of Marketing Research, 34(3), 347-356. https://doi.org/10.2307/3151897
Adam, M. A., & Akber, S. N. (2016). The impact of brand equity on consumer purchase decision of cell phones. European Journal of Business and Innovation Research, 4(4), 60-133.
Akhtar, N., Qurat-ul-ain, Siddiqi, U. I., Ashraf, A., & Latif, M. (2016). Impact of brand equity on consumer purchase decision in L'Oreal skincare products. International Review of Management and Business Research, 5(3), 808-816.
Alam, S. S., Che Senik, Z., Omar, N. A., & Ali, M. H. (2018). Consumer-based brand equity: Relationship between country of origin and brand equity dimension. Jurnal Pengurusan, 53, 147-157. https://doi.org/10.17576/pengurusan-2018-53-13
Bagozzi, R. P., & Yi, Y. (1988). On the evaluation of structural equation models. Journal of the Academy of Marketing Science, 16(1), 74–94. https://doi.org/10.1007/BF02723327
Bougenvile, A., & Ruswanti, E. (2017). Brand equity on purchase intention consumers’ willingness to pay premium price juice. IOSR Journal of Economics and Finance, 8(1), 12-18. https://doi.org/10.9790/5933-0801031218
Boyle, M. J. (2021). Top 25 Developed and Developing Countries. Retrieved April 2021, from Investopedia:https://www.investopedia.com/updates/top-developing countries/#:~:text=With%20a%20GDP%20per%20capita,an%20emerging%20and%20developing%20country.
Byrne, B. M. (2016). Structural equation modeling with AMOS: Basic concepts, applications, and programming. New York: Routledge
Chao, R., & Liao, P. (2016). The impact of brand image and discounted price on purchase intention in outlet mall: Consumer attitude as mediator. The Journal of Global Business Management, 12(2), 119-128.
Chen, H., Marmorstein, H., Tsiros, M., & Rao, A. R. (2012). When more is less: The impact of base value neglect on consumer preferences for bonus packs over price discounts. Journal of Marketing, 76(4), 64-77. https://doi.org/10.1509/jm.10.0443
Cohen, J. (1988). Statistical power analysis for the behavioral sciences (2nd ed.). Academic Press.
Etikan, I., Musa, S. A., & Alkassim, R. S. (2016). Comparison of convenience sampling and purposive sampling. American Journal of Theoretical and Applied Statistics, 5(1), 1-4. https://doi.org/10.11648/j.ajtas.20160501.11
Fintikasari, I., & Ardyan, E. (2018). Brand switching behaviour in the Generation Y: Empirical studies on smartphone users. Jurnal Management dan Kewirausahaan, 20(1), 23-30. doi: 10.9744/jmk.20.1.23–30
Fornell, C., & Larcker, D. F. (1981). Structural equation models with unobservable variables and measurement error: Algebra and statistics. Journal of Marketing Research, 18(3), 382-388. https://doi.org/10.1177/002224378101800313
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
Franke, G., & Sarstedt, M. (2019). Heuristics versus statistics in discriminant validity testing: A comparison of four procedures. Internet Research, 29(3), 430-447. https://doi.org/10.1108/IntR-12-2017-0515
Gautam, D. K., & Shrestha, S. K. (2018). Impact of brand equity on purchase intention of smartphones. Amity Journal of Strategic Management, 1(2), 28-40.
Geisser, S. (1974). A predictive approach to the random effect model. Biometrika, 61(1), 101-107. https://doi.org/10.1093/biomet/61.1.101
Gonzalez-Rodrigues, A. (2020). Fashion companies rise 21 percent in brand value despite coronavirus pandemic. Retrieved November 2020, from Fashion United: https://fashionunited.uk/news/business/fashion-companies-rise-21-percent-in-brand-value-despite-the-coronavirus-pandemic/2020070749737
García-Sánchez, I. M., & García-Sánchez, A. (2020). Corporate social responsibility during COVID-19 pandemic. Journal of Open Innovation: Technology, Market and Complexity, 6, 126. doi:10.3390/joitmc6040126
Gunawardane, N. R. (2015). Impact of brand equity towards purchasing decision: A situation on mobile telecommunication services of Sri Lanka. Journal of Marketing Management, 3(1), 100-117. http://dx.doi.org/10.15640/jmm.v3n1a10
Gupta, K., Kaur, J., & Duggal, V. (2020). Private brands waiting to be purchased-the store image story. Asian Journal of Marketing, 14(1), 1-9. https://doi.org/10.3923/ajm.2020.1.9
Hair, J. F. (2020). Next-generation prediction metrics for composite-based PLS-SEM. Industrial Management & Data Systems, 121(1), 5-11. https://doi.org/10.1108/IMDS-08-2020-0505
Hair, J. F., Hult, G., Tomas, M., Ringle, C. M., & Sarstedt, M. (2017). A primer on Partial Least Squares Structural Equation Modeling (PLS-SEM). SAGE Publications, Incorporated.
Hair, J., Risher, J., Sarstedt, M., & Ringle, C. (2019). When to use and how to report the results of PLS-SEM. European Business Review, 31(1), 2-24. https://doi.org/10.1108/EBR-11-2018-0203
Hashim, S., & Mohd Yasin, N. (2012). Exploring the mediating effect of brand relationship quality in the service brand equity and brand resonance linkage. Jurnal Pengurusan, 36, 123-134.
Henseler, J., Ringle, C. M., & Sarstedt, M. (2015). A new criterion for assessing discriminant validity in variance-based structural equation modeling. Journal of the Academy of Marketing Science, 43(1), 115-135. https://doi.org/10.1007/s11747-014-0403-8
Henseler, J., Ringle, C. M., & Sinkovics, R. R. (2009). The use of partial least squares path modeling in international marketing. Advances in International Marketing, 20, 277-319. https://doi.org/10.1108/s1474-7979(2009)0000020014
Hinson, R. E., Osabutey, E., Kosiba, J. P., & Asiedu, F. O. (2020). Internationalization and branding strategy. Qualitative Market Research, 23(4), 747-766. https://doi.org/10.1108/QMR-12-2017-0188
Katt, F., & Meixner, O. (2020). Is it all about the price? An analysis of the purchase intention for organic food in a discount setting by means of Structural Equation Modeling. Foods, 9(4), 458. https://doi.org/10.3390/foods9040458
Keller, K. L. (2009). Strategic brand management. Pearson Education.
Kirmani, A., & Rao, A. R. (2000). No pain, no gain: A critical review of the literature on signaling unobservable product quality. Journal of Marketing, 64(2), 66-79. https://doi.org/10.1509/jmkg.64.2.66.18000
Kock, N. (2014). Advanced mediating effects tests, multi-group analyses, and measurement model assessments in PLS-based SEM. International Journal of e-Collaboration, 10(3), 1-13.
Koliby, I. S., & Rahman, M. (2018). Influence dimensions of brand equity on purchase intention toward smartphone in Malaysia. VFAST Transactions on Education and Social Sciences, 15(1), 7-19.
Memon, M. A., Ting, H., Cheah, J.-H., Thurasamy, R., Chuah, F., & Cham, T. H. (2020). Sample size for survey research: Review and recommendations. Journal of Applied Structural Equation Modeling, 4(2), i-xx
Naeem, M., & Sami, A. (2020). Product brand loyalty and purchase decision: A comparative study of automobile industry of Pakistan. International Journal of Entrepreneurial Research, 3(3), 76-87. https://doi.org/10.31580/ijer.v3i3.1504
New Strait Times. (2020). Zara to close 1,200 retail stores worldwide. Retrieved November 2020, from https://www.nst.com.my/world/world/2020/06/600195/zara-close-1200-retail-stores-worldwide
Ong, E. (2020, December 9). 10 Businesses In Malaysia That Are Shutting Down Due To COVID-19 Pressures. Retrieved March 2021, from Klook: https://www.klook.com/en-MY/blog/malaysia-business-closures/
Otero, M., & Giraldo, W. (2019). Brand equity as a determinant of product purchase and repurchase intention. Revista Espacios, 40(35).
Palazon, M., & Ballester, E. (2009). The moderating role of price consciousness on the effectiveness of price discounts and premium promotions. Journal of Product & Brand Management, 18(4), 306-312. https://doi.org/10.1108/10610420910972837
Phan, T. A., & Mai, P. H. (2016). Determinants impacting consumers' purchase intention: Case of fast food in Malaysia. International Journal of Marketing Studies, 8(5), 56-68. https://doi.org/10.5539/ijms.v8n5p56
Podsakoff, P. M., MacKenzie, S. B., Lee, J. Y., & Podsakoff, N. P. (2003). Common method biases in behavioral research: A critical review of the literature and recommended remedies. Journal of Applied Psychology, 88(5), 879-903. https://doi.org/10.1037/0021-9010.88.5.879
Rahman, M., Rodríguez-Serrano, M. Á., & Lambkin, M. (2018). Brand management efficiency and firm value: An integrated resource-based and signaling theory perspective. Industrial Marketing Management, 72, 112-126.
https://doi.org/10.1016/j.indmarman.2018.04.007
Rungsrisawat, S., & Sirinapatpokin, S. (2019). Impact of brand equity on consumer purchase intent. Utopía y Praxis Latinoamericana, 24(6), 360-369.
Septiani, D. I., & Chaerudin, R. (2020). The effect of customers' price perception, perceived quality and brand image toward purchasing intention in Bandung Local Shoe Brand. KnE Social Sciences, 4(6), 1242-1254. https://doi.org/10.18502/kss.v4i6.6674
Shmueli, G., Sarstedt, M., Hair, J. F., Cheah, J. H., Ting, H., Vaithilingam, S., & Ringle, C. M. (2019). Predictive model assessment in PLS-SEM: Guidelines for using PLSpredict. European Journal of Marketing, 53(11), 2322-2347.
https://doi.org/10.1108/EJM-02-2019-0189
Spence, M. (1973). Job market signaling. The Quarterly Journal of Economics, 87(3), 355-374. https://doi.org/10.2307/1882010
Spence, M. (2002). Signaling in retrospect and the informational structure of markets. American Economic Review, 92(3), 434-459.
https://doi.org/10.1257/00028280260136200
Stone, M. (1974). Cross?validatory choice and assessment of statistical predictions. Journal of the Royal Statistical Society: Series B (Methodological), 36(2), 111-133. https://doi.org/10.1111/j.2517-6161.1974.tb00994.x
Su, J., & Chang, A. (2018). Factors affecting college students’ brand loyalty toward fast fashion: A consumer-based brand equity approach. International Journal of Retail & Distribution Management, 46(1), 90-107. doi: 10.1108/IJRDM-01-2016-0015
Susilowati, E., & Sari, A. N. (2020). The influence of brand awareness, brand association, and perceived quality towards consumer's purchase intention: A case of Richeese Factory, Jakarta. Independent Journal of Management & Production, 11(1), 39-53. https://doi.org/10.14807/ijmp.v11i1.981
Tee, P. K., Gharleghi, B., Chan, B., Samadi, B., & Balahmar, A. A. (2015). Purchase intention of international branded clothes fashion among younger's in Jakarta. International Journal of Business and Social Research, 5(8), 8-17. https://doi.org/10.18533/ijbsr.v5i8.784
Vagias, W. M. (2006). Likert-type scale response anchors. Clemson International Institute for Tourism & Research Development, Department of Parks, Recreation and Tourism Management. Clemson University.
Vuong, H. G., & Nguyen, M. T. (2018). Factors influencing millenials' purchase intention towards fast fashion product: A case study in Vietnam. International Journal of Social Science and Humanity, 8(8), 235-240. https://doi.org/10.18178/ijssh.2018.V8.967
Xiao, A., Yang, S., & Iqbal, Q. (2018). Factors affecting purchase intentions in generation Y: An empirical evidence from fast food industry in Malaysia. Administrative Sciences, 9(1), 4. https://doi.org/10.3390/admsci9010004
In-Text Citation: (Sari et al., 2022)
To Cite this Article: Sari, N. N., Chan, T. J., & Abd-Ghani, N. H. (2022). The Influence of Brand Equity and Price Consciousness on Consumers’ Brand Purchase Intention of Fashion Retail Apparel. International Journal of Academic Research in Business and Social Sciences, 12(1), 2296– 2314.
Copyright: © 2022 The Author(s)
Published by Human Resource Management Academic Research Society (www.hrmars.com)
This article is published under the Creative Commons Attribution (CC BY 4.0) license. Anyone may reproduce, distribute, translate and create derivative works of this article (for both commercial and non0-commercial purposes), subject to full attribution to the original publication and authors. The full terms of this license may be seen at: http://creativecommons.org/licences/by/4.0/legalcode