The Effect of Exhibitors' Brand Equity on Visitors' Purchase Decision: Moderating Role of Exhibition's Competitive Intensity

Chao-Chih Hung,Wen-Long Zhuang,Min-Jiun Su

doi:10.22610/jebs.v8i3(j).1290

Abstract

This study explores the effect of exhibitors' brand equity on visitors' purchase intention, purchase postponement, and switching intention in an international industrial fair, as well as examines the moderating effect of competitive intensity on the above relationships. This study surveyed visitors of the famous International Woodworking Machine Fair in Jakarta, Indonesia. Of the 200 surveys distributed, 138 valid questionnaires were returned, representing a response rate of 69.00%. Analytical results show that higher exhibitors' brand equity is associated with visitors' higher purchase intention, more prevalent purchase postponement, and stronger switching intention. Also, in a high competitive intensity environment, the level of visitors' purchase postponement and switching intention of high brand equity products is similar. In a low competitive intensity exhibition, visitors are unlikely to postpone purchase of low brand equity products but are more likely to postpone purchase of high brand equity products. Lastly, in a low competitive intensity environment, visitors are less inclined to switch low brand equity suppliers but more likely to switch high brand equity suppliers. According to the research results, recommendations and limitations of this study are proposed.

Highlights

The exhibition industry is growing rapidly around the globe (Kim & Chon, 2009) and it helps business to accelerate contracts and promotions (McCabe, 2001)
While the above studies focus on the perspectives of exhibitors or organizers, this study examines the effect of exhibitors’ brand equity on buyers’ purchase decision and the moderating role of competitive intensity from the standpoint of visitors
Implications for Managerial Practice: This study discovered that the brand equity of international industrial fair exhibitors positively affects buyers’ purchase intention

Summary

Introduction

The exhibition industry is growing rapidly around the globe (Kim & Chon, 2009) and it helps business to accelerate contracts and promotions (McCabe, 2001). Since industrial trade shows are only opened to pre-qualified personnel, visitors are considered interested prospects for exhibitors. Sellers find exhibitions very attractive venues (Godar & O’Connor, 2001). Industrial buyers find that relative to posting advertisements in trade magazines, exhibitions are an important source of information (Jackson, Keith, & Burdick, 1987). The main purpose of exhibitors is to attract orders from potential or existing customers. The exhibitors’ goal should be in enhancing customers’ purchase intention. Since buyers have too many exhibitors to choose from in the fair, they may delay their purchase decision. If the buyers had purchased an unsuitable machine prior to the exhibition, they may intend to find a replacement in the industrial fair and this could result in switching intention

Methods

Discussion

Conclusion