Page 751 - MARSIUM'21 COMP OF PAPER

FYP

AHIBS UTM SKUDAI JAN 2022

THE INFLUENCE OF BRAND EQUITY ON CUSTOMER’S PURCHASE INTENTION:
A CASE STUDY OF KARISMA JAYA ENTERPRISE

RABIATUL ALYA NAJIHAH BINTI ZULFADZLI, DR. NOR ZAFIR BINTI MD. SALLEH

Azman Hashim International Business School, Universiti Teknologi Malaysia, Johor Bahru

*Corresponding author: alya1998@graduate.utm.my
Abstract
The purpose of this study is to investigate the influence of brand equity factors on purchase intention using Aaker's well-known conceptual framework in the
F&B industry. A model of customers' purchasing intentions is presented that encompasses the primary factors of brand equity such as brand awareness, brand
association, perceived quality, and brand loyalty. Because these connections have such a significant impact on marketing methods, brand equity dimensions
have become critical for micro-SME. According to the report, marketers should carefully evaluate the components of brand equity when developing their
branding strategies. Marketers must also adapt their branding strategies to each marketing environment and increase brand loyalty to avoid consumer
switching behaviour. In this study, a quantitative method will be used. A survey will be distributed to current customers who have a presence on WhatsApp’s
and social media sites in order to collect data. These specifics assist us in better understanding Karisma Jaya Enterprise's growth and brand equity.

Keywords: Brand equity, Purchase intention, Consumer behaviour, Micro SME

■ 1.0 INTRODUCTION

In this chapter, the topic will be discussed are the case study background, SWOT analysis, research background, problem statement, research
objective, research questions, significance of research, and scope of study. All these topics will be covered in depth throughout this
Chapter. For the significance of the study, two main points will be discussed which are theoretical contribution and practical contribution.

1.1 CASE STUDY BACKGROUND

Karisma Jaya Enterprise is a micro-SME owned by small entrepreneurs living in Kampung Kuala Kerdau, Temerloh. This business was
established in 2014 with assistance from Temerloh Agriculture Department to obtain a factory located in Kampung Carak Keladan, 28050
Kuala Krau, Pahang. Karisma Jaya Enterprise is a micro company that manufactures noodle products, specifically the 'Kasih Bonda Mee
Kuning' brand. In 2021, the factory is run by two full-time employees and one part-time employee. Karisma Jaya Enterprise is operating like
a Business-to-Business (B2B) company that will distribute these noodles to distributors such as supermarkets, grocery stores, and restaurants.
However, end customers can also buy direct to the factory itself to get noodles at a cheaper price. Until 2021, The number of distributors
owned by Karisma Jaya Enterprise are 20 distributors consisting of 8 supermarkets (TF, Tunas Manja, Mempaga Fresh, KS Walk and BS
Fresh Mart) and other 12 are from grocery stores & restaurants. Mee Kuning Bonda is marketed only in 3 districts in Pahang, which are
Temerloh, Mentakab and Jerantut.

The spreading of the COVID-19 outbreak in Malaysia is becoming more aggressive in early 2020. Business and small businesses are
struggling to survive after the implementation of Movement Control Order (MCO). As for Karisma Jaya Enterprise, sales of Kasih Bonda
Mee Kuning have declined after the implementation of Movement Control Order (MCO), affecting the company's profitability. In addition,
the increasing involvement of large companies in Malaysia's noodle market also has rendered micro, small and medium-sized businesses,
such as Karisma Jaya Enterprise. Micro enterprises cannot compete with the products of large corporate companies because customers are
more attracted to well-known brands and customers always believe the products produced by those companies are of higher quality, resulting
in a drop-in sale for Karisma Jaya Enterprise However, Karisma Jaya Enterprise's products are superior to those of its competitors, but this
fact has not been communicated to consumers. There is lack of promotion activities held by 'Kasih Bonda Mee Kuning', this is highlighted
by the owner 'Kasih Bonda Mee Kuning' that he admitted that he doesn’t make many promotion activities. The 'Kasih Bonda Mee Kuning'
brand is less well-known among their target customers due to a lack of promotion. The owner of the 'Kasih Bonda Mee Kuning' brand hopes
that his brand's purchase intention will be on par with brands from large corporations such as Nu Mee by gardenia, Cap Kunci Mee, Cap
Jumbo Mee, Muslim Mee Kuning, and many others.

Pembentangan Projek Sarjana Muda 2022, Sekolah Perniagaan Antarabangsa Azman Hashim UTM JB

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