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

Massoud Moslehpour (), Ka Yin Chau, Alaleh Dadvari, Ben-Roy Do and Victoria Seitz
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Ka Yin Chau: Faculty of International Tourism and Management, City University of Macau, Macau, China
Alaleh Dadvari: Department of Business Administration, National Central University, Taoyuan 32001, Taiwan
Ben-Roy Do: Department of Business Administration, National Central University, Taoyuan 32001, Taiwan
Victoria Seitz: Department of Marketing, California State University, San Bernardino, CA 92407, USA

Sustainability, 2019, vol. 11, issue 24, 1-22

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.

Keywords: brand equity; brand awareness; perceived quality; brand preference; price premium; purchase intention (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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