IMPACT OF BRAND EQUITY TOWARD THE PURCHASING DECISION ( A CASE STUDY OF IM3 OOREDOO IN JABABEKA )

Abstract

IM3 Ooredoo is a leading provider of telecommunication services in Indonesia. In its existence in the telecommunication services, IM3 Ooredoo has given the customers an experience of having telecommunication services. However, the existence of IM3 Ooredoo telecommunication services has seen a declining market share percentage start from 2013 to 2015. This research was conducted in finding the impact of brand equity toward purchasing decision. According to the theory, brand equity that consists of perceived quality, brand awareness, brand association, and brand loyalty are the factors that impact purchasing decision. In analyzing these problems, the researcher uses quantitative method utilizing the multiple linear regressions. The population of this research is the customers of IM3 Ooredoo who have used IM3 Ooredoo as their telecommunication services in Jababeka. The researcher has conducted the questionnaire by spread it in Jababeka, with the total respondent of 100 people as the sample size. The data obtained was processed using the statistical software which is SPSS 16.0 and the result shows the R Squared value of 0.628; which means that 62.8% customer purchasing decision can be represented by the variable of brand equity. The researcher also found out that among the 4 factors, all variables (perceived quality, brand awareness, brand association, and brand loyalty) show significant impact toward purchasing decision. Because all variables are significant, these factors are useful consideration tools for IM3 Ooredoo to make a strategy to improve its brand equity, so that the market share could grow in the future.