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THE EFFECT OF BRAND ASSOCIATIONS TOWARD BRAND EQUITY AND BRAND LOYALTY AS INTERVENING VARIABLE OF HONDA MOTORCYCLE IN JAMBI CITY


Anaseputri Jamira; Ade Oktavia; Junaidi Junaidi

Faculty of Economics and Business, University of Jambi,
(This paper was presented at the Malaysia Indonesia International Conference on Economics, Management and Accounting (MIICEMA); Jambi-Indonesia, 24 – 25 October 2016)

Abstract. The purpose of this study is to examine the relationship between brand associations, brand loyalty, and brand equity of Honda motorcycle in Jambi City. Previous researches have shown controversial result on how the relationship of brand associations on brand equity and the role of brand loyalty on it. To analyze brand loyalty as mediating or intervening variable, SEM with SmartPLS software is used to confirm the relationship between variables. There are 100 respondents who are as Honda motorcycle user and decision maker of buying it in Jambi City, that participated in this research by fulfill questionnaires. The results show that brand associations and brand loyalty are important variables which each variable has a strong influence on brand equity, and brand loyalty acts
as a mediating variable that strengthen the effect of brand associations to the brand equity. The manager of Honda motorcycle is expected to more focus on resources and marketing activities to build and increase brand associations of Honda which is as basic of purchasing decision and brand loyalty of consumers. This study uses more specifics model of Aaker Brand Equity Model, so that in the future research the complex model can be used, and the researcher can develop with compare more than one category and brand of product or services.
Keywords: brand equity, brand associations, brand loyalty

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