THE EFFECT OF BRAND IMAGE, TRUST, PERCEIVED PRICE, PERCEIVED QUALITY, AND PERCEIVED VALUE ON STAR HOTEL’S PURCHASE INTENTION IN GREATER JAKARTA

Abstract

Purpose – The purpose of this study is to identify the customer purchase intention in the star hotel in Greater Jakarta based on brand image, perceived price, and perceived quality mediated by trust and perceived value. Design/methodology/approach – This study used a quantitative method that applied Structural Equation Modelling (SEM). The primary data was collected from 306 customers who filled questionnaires that consist of 6 variables with 30 measurement items and demographic profiles of gender, age, monthly income, and occupation. In this study, populations needed are Indonesian people who had ever purchased a star hotel room in Greater Jakarta in the last six months. Confirmatory factor analysis was employed to confirm the attributes of each factor and to assess the validity and reliability, average variance extracted and composite reliability was applied. Findings – The result shows that perceived value affected by trust, perceived price, and perceived quality. It was found that brand image did not influence on perceived value. In comparison, perceived value plays a significant role in customer’s star hotel purchase intention. Originality/value – This is the first study that integrates brand image, trust, perceived price, perceived quality, and perceived value to study customer’s star hotel purchase intention in Greater Jakarta.