Brand quality in the sphere of transportation and expedition services development in a corporation

Abstract

The XYZ Corporation is a state-owned company in the field of freight, expedition, and transportation services in Indonesia. The company’s main competitors are PT JNE, J&T, and TIKI. Even though XYZ Corporation started operations earlier, it is less competitive than its rivals. Therefore, this study analyses the relationship between brand loyalty, perceived quality, brand awareness, brand equity and brand associations on purchasing decisions for freight forwarding services at XYZ Corporation. We applied a quantitative descriptive method, and the data was obtained in 2022 using a questionnaire, namely online and offline. We examined four exogenous variables (perceived quality, brand association, brand loyalty, and brand awareness) and their relation to the five endogenous variables (brand equity, need recognition, information seeking, evaluation of alternatives, and purchase decisions). The measurement scale used in this questionnaire is a Likert scale (1-5). Data processing in the form of validity, significance, regression weight, reliability, and goodness of fit models were done. Data was then analyzed using the SEM model. The results show that brand loyalty, perceived quality, brand awareness, equity, and brand associations influence purchasing decisions. This means that the decision to use expedition services is determined by brand loyalty, perceived quality, brand awareness, and brand associations. This research implies that XYZ Corporation should change its service and business procedures to be better, or at least equivalent to some other services, to become the main focus in providing services.