The Relationships of Reputation, Advertisement Attractiveness, Community Effect with Customer Value and Positive Words of Mouth of Bear Brand Milk Consumers in Malang

Anung Nugroho and Karunia Suroto

International Journal of Management, Accounting and Economics, 2015, vol. 2, issue 7, 620-630

Abstract: One of the marketing activities undertaken by PT Nestle Indonesia to communicate Bear Brand milk in the market is by Words of Mouth marketing. However, Bear Brand Milk is only superior in several regions in Indonesia. The purpose of this study were to analyze the influence of reputation, influence of advertisement attractiveness, and community effect to customer value of Bear Brand Milk in Malang, and to analyze the influence of customer value of positive words of mouth on consumers of Bear Brand Milk in City Malang. The primary data were obtained from questionnaires spread to Bear Brand Milk consumers in Malang. The sampling technique used was accidental sampling. The analysis technique used in this study was Structural Equation Model which was operated by AMOS program 16. The variables measured were reputation, advertisement attractiveness, community effect, customer value, and word-of-mouth. Results of the study showed that reputation is an important first element in implementing customer value. The reputation effect of positive words of mouth begins with how reputation can give dominant strategic effects on increasing customer value. The advertisement attractiveness was the second variable affecting the realization of positive words of mouth. Community effect is the third important element in implementing positive words of mouth. In order to create positive words of mouth, improvement of customer value can be realized through reputation, advertisement attractiveness, and community effects.

Keywords: Marketing; Structural Equation Model; Word of mouth (search for similar items in EconPapers)
Date: 2015
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Persistent link: https://EconPapers.repec.org/RePEc:air:journl:v:2:y:2015:i:7:p:620

DOI: 10.5281/zenodo.17285735

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