A Customer Perspective Theory on Retailers' Repurchase Intentions for Air Conditioning Products

Authors

DOI:

https://doi.org/10.61079/jkemi.v1i2.19

Keywords:

Customer Perspective Theory, Retailers' Repurchase, Air Conditioning Products

Abstract

This study used well-known air conditioning companies as case studies to examine how corporate reputation in Medan City retail outlets mediated the relationship between brand equity, product quality, and repurchase intentions. This study employed quantitative methods as part of its causal-descriptive design. Using PLS-SEM, the concept is empirically confirmed. Questions were asked to gather information. Out of the five retail companies in Indonesia that distribute AC items from different brands, Medan has 99 clients. Customer repurchase intention (R2 = 0.904) and customer-based company reputation (R2 = 0.877) are strong indicators of a well-fitting model. Even though factors like product quality, customer experience, and company reputation significantly impact consumers' intentions to repurchase, customer brand equity is still relatively small. A statistically significant correlation exists between a company's reputation among its customers and their propensity to buy from that company again. These findings will benefit sales, electronics companies (particularly those making air conditioners), and other interested parties.

References

Aaker, D. A. (1991a). Managing Brand Equity: Capitalizing on The Value of a Brand Name. In The Free Press (1st ed.). The Free Press.

Aaker, D. A. (1991b). Managing Brand Equity: Capitalizing on The Value of a Brand Name. In The Free Press (1st ed.). The Free Press.

Ahmad, Z., Jun, M., Khan, I., Abdullah, M., & Ghauri, T. A. (2016). Examining Mediating Role of Customer Loyalty for Influence of Brand Related Attributes on Customer Repurchase Intention. Journal of Northeast Agricultural University, 23(2), 89–96. https://doi.org/10.1016/S1006-8104(16)30052-6

Anderson, E. W., & Sullivan, M. W. (1993). The Antecedents and Consequences of Customer Satisfaction for Firms. Marketing Science, 12(2), 125–143. https://doi.org/10.1287/mksc.12.2.125

Aquinia, A., Soliha, E., Liana, L., & Wahyudi, D. (2021). The Role of Perceived Quality and Brand Loyalty Influencing Repurchase Intention. Proceedings of the 3rd International Conference on Banking, Accounting, Management and Economics (ICOBAME 2020), 169(Icobame 2020), 381–384. https://doi.org/10.2991/aebmr.k.210311.076

Ariffin, S., Yusof, J. M., Putit, L., & Shah, M. A. I. (2016). Factors Influencing Perceived Quality and Repurchase Intention Towards Green Products. Procedia Economics and Finance, 37(16), 391–396. https://doi.org/10.1016/S2212-5671(16)30142-3

Astawa, I. G. B., & Rahanatha, G. (2021). The Influence of Brand Awareness on Repurchase Intention with Perceived Quality as Mediation Variable. American Journal of Humanities and Social Sciences Research, 5(4), 253–259.

Awang, Z. H., & Jusoff, K. (2009). The Effects of Corporate Reputation on the Competitiveness of Malaysian Telecommunication Service Providers. International Journal of Business and Management, 4(5), 173–178.

Bagozzi, R. P., Baumgartner, Hans., & Pieters, Rik. (1998). Goal-directed Emotions. Cognition and Emotion, 12(1), 1–26. https://doi.org/http://dx.doi.org/10.1080/026999398379754 PLEASE

Bennett, R., & Rundel-Thiele, S. (2005). The brand loyalty life cycle: Implications for marketers. Journal of Brand Management, 12(4), 250–263. https://doi.org/10.1057/palgrave.bm.2540221

Bianchi, E., Bruno, J. M., & Sarabia-Sanchez, F. J. (2019a). The impact of perceived CSR on corporate reputation and purchase intention. European Journal of Management and Business Economics, 28(3), 206–221. https://doi.org/10.1108/EJMBE-12-2017-0068

Bianchi, E., Bruno, J. M., & Sarabia-Sanchez, F. J. (2019b). The impact of perceived CSR on corporate reputation and purchase intention. European Journal of Management and Business Economics, 28(3), 206–221. https://doi.org/10.1108/EJMBE-12-2017-0068

Bojei, J., & Chee Hoo, W. (2012). Brand Equity and Current Use as The New Horizon for Repurchase Intention of Smartphone. International Journal of Business and Society, 13(1), 33–48.

BPS Medan. (2022). Kota Medan dalam Angka 2022. In Badan Pusat Statistik Kota Medan (1st ed.).

Carman, James. M. (1990). Consumer Perceptions of Service Quality An Assasment of the SERVQUAL Dimensions. Journal of Retailing, 66(1), 33–35.

Chen, H., Chen, H., & Tian, X. (2022). The dual-process model of product information and habit in influencing consumers’ purchase intention: The role of live streaming features. Electronic Commerce Research and Applications, 53, 101150. https://doi.org/https://doi.org/10.1016/j.elerap.2022.101150

Das Guru, R. R., & Paulssen, M. (2020a). Customers’ experienced product quality: scale development and validation. European Journal of Marketing, 54(4), 645–670. https://doi.org/10.1108/EJM-03-2018-0156

Das Guru, R. R., & Paulssen, M. (2020b). Customers’ experienced product quality: scale development and validation. European Journal of Marketing, 54(4), 645–670. https://doi.org/10.1108/EJM-03-2018-0156

Davis, L. W., & Gertler, P. J. (2015). Contribution of air conditioning adoption to future energy use under global warming. Proceedings of the National Academy of Sciences of the United States of America, 112(19), 5962–5967. https://doi.org/10.1073/pnas.1423558112

Dierickx, I., & Cool, K. (1987). Asset Stock Accumulation and the Sustainability of Competitive Advantage. Management Science, 35(12), 1–10. https://doi.org/10.1287/mnsc.35.12.1514

Farquhar, P. H., Han, J. Y., & Ijiri, Y. (1991). Recognizing and measuring brand assets. In Marketing Science Institute.

Fombrun, C. J., & Riel, C. B. M. Van. (2004a). Fame and Fortune: How the World’s Top Companies Develop Winning Reputations (Pearson, Ed.; 1st editio). Pearson Education Limited.

Fombrun, C. J., & Riel, C. B. M. Van. (2004b). Fame and Fortune: How the World’s Top Companies Develop Winning Reputations (Pearson, Ed.; 1st editio). Pearson Education Limited.

Garvin, D. A. (1988). Managing Quality: The Strategic and Competitive Edge. The Free Press.

Gatti, L., Caruana, A., & Snehota, I. (2012). The role of corporate social responsibility , perceived quality and corporate reputation on purchase intention : Implications for brand management. Journal of Brand Management, 20(1), 65–76. https://doi.org/10.1057/bm.2012.2

Grewal, D., Roggeveen, A. L., & Tsiros, M. (2008). The Effect of Compensation on Repurchase Intentions in Service Recovery. Journal of Retailing, 84(4), 424–434. https://doi.org/10.1016/j.jretai.2008.06.002

Gul, R. (2014). The Relationship between Reputation, Customer Satisfaction, Trust, and Loyalty. Journal of Public Administration and Governance, 4(3), 368. https://doi.org/10.5296/jpag.v4i3.6678

Hair, J. F. J., Hult, G. T. M., Ringle, C. M., & Sarstedt, M. (2017a). A Primer on Partial Least Squares Structural Equation Modeling (PLS-SEM) (2nd ed.). London: Sage Publications, Inc.

Hair, J. F. J., Hult, G. T. M., Ringle, C. M., & Sarstedt, M. (2017b). A Primer on Partial Least Squares Structural Equation Modeling (PLS-SEM) (Gillian Dickens Typesetter:, Ed.; 2nd ed.). Sage Publications, Inc.

Heinberg, M., Ozkaya, H., & Taube, M. (2018). Do corporate image and reputation drive brand equity in India and China? - Similarities and differences. Journal of Business Research, 259–268.

Hellier, P. K., Geursen, G. M., Carr, R. A., & Rickard, J. A. (2003). Customer repurchase intention: a general structural equation model. European Journal of Marketing, 37(11), 1762–1800. https://doi.org/10.1108/03090560310495456

Huang, C.-C., Yen, S.-W., Liu, C.-Y., & Chang, T.-P. (2014). The Relationship Among Brand Equity, Customer Satisfaction, and Brand Resonance To Repurchase Intention of Cultural and Creative Industries in Taiwan. International Journal of Organization Innovation, 6(3), 106–121. http://www.ijoi-online.org/attachments/article/38/FINAL_ISSUE_VOL_6_NUM_3_JANUARY_2014.pdf#page=106

Huang, Y.-C., & Liu, C.-H. (2022). Creating the customer-based brand equity through the viewpoints of technology inspiration and functional attitude theory. Journal of Destination Marketing & Management, 25, 100720. https://doi.org/https://doi.org/10.1016/j.jdmm.2022.100720

Hyun, H., Park, J., Hawkins, M. A., & Kim, D. (2022). How luxury brands build customer-based brand equity through physical experience. Journal of Strategic Marketing, 1–25. https://doi.org/https://doi.org/10.1080/0965254X.2022.2052937

Jin, B., Park, J. Y., & Kim, J. (2007). Cross-cultural examination of the relationships among firm and e-loyalty. International Marketing Review, 25(3), 324–337. https://doi.org/10.1108/02651330810877243

Jung, N. Y., & Seock, Y. K. (2016). The impact of corporate reputation on brand attitude and purchase intention. Fashion and Textiles, 3(1). https://doi.org/10.1186/s40691-016-0072-y

Kalesaran, M. R., Lapian, S. L. H. V. J., & Saerang, R. T. (2019). Analyzing the dimension of brand equity toward repurchase intention of kopi kulo in manado. Jurnal EMBA, 7(4), 5713–5722.

Kandampully, J., & Suhartanto, D. (2000). Customer loyalty in the hotel industry: The role of customer satisfaction and image. International Journal of Contemporary Hospitality Management, 12(6), 346–351. https://doi.org/10.1108/09596110010342559

Keh, H. T., & Xie, Y. (2009a). Corporate reputation and customer behavioral intentions: The roles of trust, identification and commitment. Industrial Marketing Management, 38(7), 732–742. https://doi.org/10.1016/j.indmarman.2008.02.005

Keh, H. T., & Xie, Y. (2009b). Corporate reputation and customer behavioral intentions: The roles of trust, identification and commitment. Industrial Marketing Management, 38(7), 732–742. https://doi.org/10.1016/j.indmarman.2008.02.005

Keller, K. L. (1993). Conceptualizing, Measuring, and Managing Customer-Based Brand Equity. Journal of Marketing, 57(1), 1–22.

Keller, K. L. (2013). Strategic Brand Management: Building, Measuring, and Managing Brand Equity. In S. Wall (Ed.), Pearson (4th ed., Vol. 4). Pearson Education Limited.

Kim, C., Galliers, R. D., Shin, N., Ryoo, J. H., & Kim, J. (2012). Factors influencing Internet shopping value and customer repurchase intention. Electronic Commerce Research and Applications, 11(4), 374–387. https://doi.org/10.1016/j.elerap.2012.04.002

Kim, S. B., & Kim, D. Y. (2016). The influence of corporate social responsibility, ability, reputation, and transparency on hotel customer loyalty in the U.S.: a gender-based approach. SpringerPlus, 5(1), 1537. https://doi.org/10.1186/s40064-016-3220-3

Kircova, I., & Esen, E. (2018). The Effect of Corporate Reputation on Consumer Behaviour and Purchase Intentions. Management Research and Practice, 10(4), 21–32.

Kotler, P., Armstrong, G., & Opresnik, M. O. (2016). Marketing: An Introduction 13 (13th ed.). Pearson. https://catalogue.pearsoned.co.uk/educator/product/Marketing-An-Introduction-Global- Edition/9781292146508.page

Kwon, Y.-G., & Kim, Y.-J. (2016). The Effects of Customer-Based Brand Equity(CBBE) for Stock Farm Products Brand on Brand Trust, Customer Satisfaction and Repurchase Intentions - Focus on Hoengsung Hanwoo Brand -. Culinary Science & Hospitality Research, 22(3), 224–239.

Lai, C. S., Chiu, C. J., Yang, C. F., & Pai, D. C. (2010). The Effects Of Corporate Social Responsibility On Brand Performance: The Mediating Effect Of Industrial Brand Equity And Corporate Reputation. Journal of Business Ethics, 95(3), 457–469. https://doi.org/10.1007/s10551-010-0433-1

Langga, A., Kusumawati, A., & Alhabsji, T. (2019). Intensive distribution and sales promotion for improving customer-based brand equity (CBBE), re-purchase intention and word-of-mouth (WOM). Journal of Economic and Administrative Sciences, 37(4), 577–595. https://doi.org/10.1108/jeas-03-2019-0041

Manjunath, S. J., & Aluregowda. (2014). Brand Equity and Customer Satisfaction: A Study of LG Air Conditioner in Mysore. International Journal of Management Research and Review, 4(2), 207–214.

Minh Ha, N., Quoc Phong, L., Kiem Viet Thang, T., Luong Tam, H., Hai Dang, T., & Thi Mai Hoa, N. (2022). Mediating role of corporate reputation in the relationship between corporate social responsibility and repurchase intention: A case study of McDonald’s fast food restaurant chain. Economics and Business Administration, 13(2), 3–20. https://doi.org/10.46223/HCMCOUJS

Netemeyer, R. G., Krishnan, B., Pullig, C., Wang, G., Yagci, M., Dean, D., Ricks, J., & Wirth, F. (2004). Developing and validating measures of facets of customer-based brand equity. Journal of Business Research, 57(2), 209–224. https://doi.org/10.1016/S0148-2963(01)00303-4

Nguyen-Viet, B. (2023). The impact of green marketing mix elements on green customer based brand equity in an emerging market. Asia-Pacific Journal of Business Administration, 15(1), 96–116. https://doi.org/https://doi.org/10.1108/APJBA-08-2021-0398

Noyan, F., & Simsek, G. G. (2012a). A partial least squares path model of repurchase intention of supermarket customers. Procedia - Social and Behavioral Sciences, 62, 921–926. https://doi.org/10.1016/j.sbspro.2012.09.156

Noyan, F., & Simsek, G. G. (2012b). A partial least squares path model of repurchase intention of supermarket customers. Procedia - Social and Behavioral Sciences, 62, 921–926. https://doi.org/10.1016/j.sbspro.2012.09.156

Octarina, D. T., Iizuka, S., & Takatori, C. (2022). Impacts of Future Global Warming and Urban Heat Island on the Thermal Environments Under Hot-Humid and Hot-Dry Climate Conditions in Jakarta, Indonesia. SSRN Electronic Journal, 01–32. https://doi.org/http://dx.doi.org/10.2139/ssrn.4172105

Parasuraman, A., Zeithaml, V. a, & Berry, L. L. (1988). SERQUAL: A Multiple-Item scale for Measuring Consumer Perceptions of Service Quality. Journal of Retailing, 64(1), 12–40. https://doi.org/10.1016/S0148-2963(99)00084-3

Park, C. I., & Namkung, Y. (2022). The Effects of Instagram Marketing Activities on Customer-Based Brand Equity in the Coffee Industry. Sustainability (Switzerland), 14(3), 1657. https://doi.org/10.3390/su14031657

Park, C., & Lee, T. M. (2009). Information direction , website reputation and eWOM effect : A moderating role of product type. Journal of Business Research, 62(1), 61–67. https://doi.org/10.1016/j.jbusres.2007.11.017

Roberts, P. W., & Dowling, G. R. (2002). Corporate reputation and sustained superior financial performance. Strategic Management Journal, 23(12), 1077–1093. https://doi.org/10.1002/smj.274

Roscoe, J. T. (1975). Fundamental Research Statistics For The Behavioral Sciences. New York : Holt, Rinehart and Winston.

Shalehah, A., Moslehpour, M., & Trsino, I. L. O. (2019). The Effect of Korean Beauty Product Characteristics on Brand Loyalty and Customer Repurchase Intention in Indonesia. 2019 16th International Conference on Service Systems and Service Management (ICSSSM), July, 1–5. https://doi.org/10.1109/ICSSSM.2019.8887676

Shenkar, O., & Yuchtman-Yaar, E. (1997). Reputation, Image, Prestige, and Goodwill. Human Relations, 50(11), 1361–1381.

Shocker, A. D., Srivastava, R. K., & Ruekert, R. W. (1994). Institutional Knowledge at Singapore Management University Challenges and Opportunities Facing Brand Management : An Introduction to the Special Issue. Journal of Marketing Research, 31(2), 149–158.

Silverman, S. N., Sprott, D. E., & Pascal, V. J. (1999). Relating Consumer-Based Sources of Brand Equity to Market Outcomes. In E. J. A. Scott & L. M. (Eds.), Advances in Consumer Research Volume 26 (pp. 352–358). Association for Consumer Research.

Simon, C. J., & Sullivan, M. W. (1993). The Measurement and Determinants of Brand Equity: A Financial Approach. Marketing Science, 12(1), 28–52. https://doi.org/10.1287/mksc.12.1.28

Singh, S., & Alok, S. (2022). Drivers of Repurchase Intention of Organic Food in India : Role of Perceived Drivers of Repurchase Intention of Organic Food in India : Role of Perceived Consumer Social Responsibility , Price , Value , and Quality. Journal of International Food & Agribusiness Marketing, 34(3), 246–268. https://doi.org/10.1080/08974438.2020.1869135

Suwarno, B., Prassetyawan, A., & Abbas, M. (2023). Customer-Based Brand Equity, Company Reputation and Product Quality Effect on Customer Loyalty: Air Conditioner Retail Market in Medan. International Journal of Science, Technology & Management, 4(1), 44–53. https://doi.org/10.46729/ijstm.v4i1.697

Tong, C., & Wong, A. (2015a). The Influences of Corporate Social Responsibility to Customer Repurchases Intentions, Customer Word-of- Mouth Intentions and Customer Perceived Food Quality of Fast-Food Restaurants in Hong Kong and the Mediating Effects of Corporate Reputation. Oxford Journal of Scientific Research, 1(9), 45–74.

Tong, C., & Wong, A. (2015b). The Influences of Corporate Social Responsibility to Customer Repurchases Intentions, Customer Word-of- Mouth Intentions and Customer Perceived Food Quality of Fast-Food Restaurants in Hong Kong and the Mediating Effects of Corporate Reputation. Oxford Journal of Scientific Research, 1(9), 45–74.

Trivedi, S. K., & Yadav, M. (2020). Repurchase intentions in Y generation : mediation of trust and e-satisfaction. Marketing Intelligence & Planning, 38(4), 401–415. https://doi.org/10.1108/MIP-02-2019-0072

Tsiotsou, R. (2006). The role of perceived product quality and overall satisfaction on purchase intentions. International Journal of Consumer Studies, 30(2), 207–217. https://doi.org/10.1111/j.1470-6431.2005.00477.x

Walsh, G., Bartikowski, B., & Beatty, S. E. (2012). Impact of Customer-based Corporate Reputation on Non-monetary and Monetary Outcomes : The Roles of Commitment and Service Context Risk. British Journal of Management, 25(2), 166–185. https://doi.org/10.1111/j.1467-8551.2012.00845.x

Walsh, G., & Beatty, S. E. (2007). Customer-based corporate reputation of a service firm: Scale development and validation. Journal of the Academy of Marketing Science, 35(1), 127–143. https://doi.org/10.1007/s11747-007-0015-7

Walsh, G., Schaarschmidt, M., & Ivens, S. (2017a). Effects of Customer-Based Corporate Reputation on Perceived Risk and Relational Outcomes : Empirical Evidence from Gender Moderation in Fashion Retailing. Journal of Product & Brand Management, 26(3). https://doi.org/10.1108/JPBM-07-2016-1267

Walsh, G., Schaarschmidt, M., & Ivens, S. (2017b). Effects of Customer-Based Corporate Reputation on Perceived Risk and Relational Outcomes : Empirical Evidence from Gender Moderation in Fashion Retailing. Journal of Product & Brand Management, 26(3). https://doi.org/10.1108/JPBM-07-2016-1267

Wang, Y., Kandampully, J. A., Lo, H.-P., & Shi, G. (2006). The Roles of Brand Equity and Corporate Reputation in CRM : A Chinese Study. 9(3), 179–197. https://doi.org/10.1057/palgrave.crr.1550027

Wartick, S. L. (2002). Measuring Corporate Reputation: Definition and Data. Business & Society, 41(4), 371–392. https://doi.org/10.1177/0007650302238774

Weiss, A. M., Anderson, E., & MacInnis, D. J. (1999). Reputation management as a motivation for sales structure decisions. Journal of Marketing, 63(4), 74–89. https://doi.org/10.2307/1251975

Wikipedia. (2022). Air Conditioning. Wikipedia. https://en.wikipedia.org/wiki/Air_conditioning

Wu, J., Wu, T., & Schlegelmilch, B. B. (2020). Seize the Day : How Online Retailers Should Respond to Positive Reviews. Journal of Interactive Marketing, 52(July), 52–60. https://doi.org/10.1016/j.intmar.2020.04.008

Xu, C., Kohler, T. A., Lenton, T. M., Svenning, J. C., & Scheffer, M. (2020). Future of the human climate niche. Proceedings of the National Academy of Sciences of the United States of America, 117(21), 11350–11355. https://doi.org/10.1073/pnas.1910114117

Zeithhmal, V. A., Berry, L. L., & Parasuraman, A. P. (1996). The Behavioral Consequences of Service Quality. Journal of Marketing, 60(April), 31–46. https://doi.org/10.1177/002224299606000203

Zhang, T. C., Gu, H., & Jahromi, M. F. (2018). What Makes the Sharing Economy Successful? An Empirical Examination of Competitive Customer Value Propositions. Computers in Human Behavior. https://doi.org/10.1016/j.chb.2018.03.019

Downloads

Published

11/30/2023

How to Cite

Suwarno, B., Syaifuddin, & Matondang, S. (2023). A Customer Perspective Theory on Retailers’ Repurchase Intentions for Air Conditioning Products . Jurnal Kajian Ekonomi Dan Manajemen Indonesia (JKEMI), 1(2), 86–107. https://doi.org/10.61079/jkemi.v1i2.19

License

Copyright (c) 2023 Jurnal Kajian Ekonomi dan Manajemen Indonesia (JKEMI)

Creative Commons License

This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.