What Killed HTC and Kept Apple Alive? Brand Sustainability Comparison of Two Asian Countries

Abstract

Although brand sustainability is found essential for brand survival, establishing it has remained challenging. Brand sustainability requires a strong association between brand equity and consumer values. The current study attempts to discover critical components involved that may influence Indonesian and Taiwanese consumers to purchase smartphones such as Apple and High-Tech Computer Corporation (HTC). Primary data collection was conducted to gather data through an online field survey. Following a quantitative approach, structural equation modeling (SEM) was used to examine the link between research constructs and the proposed hypotheses based on two samples of 202 and 217 respondents in Taiwan and Indonesia, respectively. Results represent significant and non-significant direct influences underlining the significance of perceived quality and brand preferences when testing brand equity effects on how consumers value different brands. While price premium is found to be the most influential factor that shapes the formation of purchase intention for Apple brands among both Taiwanese and Indonesian consumers, perceived quality is also affecting Taiwanese brand preference for HTC. Furthermore, prestige value is revealed to be a predictor of brand preference among Indonesian HTC consumers. Research findings have important implications for decision-makers to motivate purchase intentions of smartphone users toward specific brands. The insights provided by the findings will assist marketers in developing brand strategies that influence Taiwanese and Indonesian consumers’ purchases of Apple or HTC products.