The Impact of Brand Equity on Brand Preference and Purchase Intention of IndiHome Product

Abstract

The reduction of market share of fixed broadband PT Telkom was caused by purchase intention of Indihome product was lower than purchaseintention of product from the other competitor. Based on the literature study on the previous research, the variables that had influence topurchase intention were brand equity and brand preference. This research used the model that stated brand equity and brand preference had apositive influence to purchase intention. The data collected byhaving questionnaire that distributed to to the candidate customer through on line(using google form and SMS). There were 403 respondents. The data analyzed in descriptive and verificative with variance basedSEM withSmartPLS 3.0 software. Based on the result of descriptive analysis, the respondents had given the moderate evaluation to the variables, i.e:brand equity (67.04%), brand preference (60.55%), and purchaseintention (64,37%). The result of verificative analysis with Partial LeastSquare, showed that brand equity had a significant positive influence to brand preference, brand equity had a significant positive influence topurchase intention, brand preference had a significant positive influence to purchase intention, also brand equity had a significant positiveinfluence to brand preference and purchase intention direct andindirect. The suggestions that could be proposed were Telkom had to enhancedthe dimension of brand equity that had positive effect on brandpreference and purchase intention, also the need of adding another variable thathad effect on purchase intention for the future research.