The influence of brand innovativeness and quality affect consumer perceived value

Abstract

This study aims to analyze the effects of two functional brand qualities, innovativeness, and quality, on the perceived value of the consumers, through the mediating role of two symbolic brand qualities, namely brand experience and brand personality. This research is quantitative by using a purposive sampling technique on a population of undergraduate students from all Universities in Indonesia. The number samples were 200 respondents who are the consumers of Indonesian local brand beauty product “Somethinc”, which was taken through an online questionnaire. The data analysis technique used to test the hypotheses in this study is Structural Equation Modeling (SEM) method by relying on the AMOS program (IBM SPSS AMOS version 24.0). The main findings of the study demonstrate that there is a positive and significant influence of brand innovativeness on brand personality, perceived quality on brand experience, perceived quality on brand personality, perceived quality on perceived value, brand experience to perceived value, and brand personality to perceived value. From the proposed model, there are two hypotheses that are not accepted, including the relationship between brand innovativeness with brand experience and brand innovativeness with perceived value. Based on the research results, the rejected hypothesis can occur due to the differences in how individuals perceive the benefits of innovation provided by the company. This study also demonstrates that there is a positive role of two symbolic brand qualities in mediating the relationship between brand innovativeness and perceived quality on consumer perceived value.