Low-cost green car purchase intention : measuring the role of brand image on perceived price and quality

Abstract

Purpose: The study tests a rhombus model. A rhombus model refers to a rhombus-shaped research model consisting of three predictor variables including brand image, perceived price, and perceived quality that is used to predict purchase intention. This study aims to predict a person’s purchase intention relating to Low-Cost Green Cars (LCGC). In Indonesia market, this type of passenger vehicle is targeted towards lower income consumers and those who are concerned with the environment. Design/Methodology/Approach: Data was collected using a questionnaire in a shopping centre in Jakarta close to a year-round car exhibition. In total, 200 participants completed the questionnaire. Data were analysed using exploratory factor analysis and structural equation modeling. Findings: The study found that in the case of Toyota Agya, brand image has a significant impact on perceived price and perceived quality. Also, perceived price has a significant impact on purchase intention. There are slightly different results in the case of Daihatsu Ayla. Practical Implications: Results can be used by managerial administration adjusting its strategy to attract more costumers. Originality/Value: It is an original research with prospective buyers for a known product, the brand name of the cars were known to participants in the research.