What drives car buyers to accept a rejuvenated brand? the mediating effects of value and pricing in a consumer-brand relationship

Abstract

ABSTRACT This study aims to model the direct effects of brand equity elements (affective brand experience, brand personality, trust, and perceived quality) on consumers’ purchase intention, and the indirect effect of perceived value on the outcome, via perceived price fairness. A quantitative survey was conducted with potential buyers of a rejuvenating Malaysian national automotive brand, in which the market share and sales had substantially eroded over the past two decades. Data were collected in two different time phases, separated by the official market launch of a new mid-size SUV that would eventually become the brand’s flagship model. The findings indicate that almost all of the antecedents positively influence perceived value and price fairness. Furthermore, it is shown that perceived price fairness mediates the effect of perceived value on purchase intention. From a brand equity perspective, this research provides a unique outcome that depicts the consumers’ mindset of a struggling car brand.