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Brand equity is one of the most important intangible assets that may give businesses a competitive advantage in a variety of ways (Suhaini
et al., 2016). Companies that have built a strong brand will be able to benefit from successful product extensions, resistance to promotional
pressures from competitors, and the establishment of obstacles to competitive entrance (Jumiati & Norazah, 2015 cited in Suhaini et al.,
2016).
The food industries are important. Even during a downturn in the economy, this business remains a substantial contributor to global growth.
Food industries are a major contributor to Malaysia's national exports, which totalled RM16.56 billion in 2014 (MITI, 2014 cited in Suhaini
et al., 2016).
1.4 PROBLEM STATEMENT
The spreading of COVID 19 became more aggressive in early 2020, forcing Malaysia to implement the Movement Control Order (MCO).
Because of Movement Control Order (MCO), many firms, particularly small business owners, are struggling to sustain and protect their
operations. Similarly did to Karisma Jaya Enterprise, which nearly went out of business when the Movement Control Order (MCO) was
implemented. During Movement Control Order (MCO), Kasih Bonda Mee Kuning sales declined, affecting the company's profitability. In
addition, "Since Gardenia introduced noodle goods, sales of 'Kasih Bonda Mee Kuning' have decreased, and the entrance of MUSLIM Mee
noodle products, which is known for the trademark “Mee MUSLIM”, has also impacted the sale of ‘Kasih Bonda Mee Kuning' in this area,"
stated Karisma Jaya Enterprise's founder. According to his statement, the introduction of noodles from a large company into supermarkets
and grocery stores in the Temerloh, Mentakab, and Jerantut districts reduced sales of 'Kasih Bonda Mee Kuning'. These large corporations
are able to attract customers because of strong marketing activities. The owner highlighted that 'Kasih Bonda Mee Kuning' has higher quality
compared to its competitors. This is because 'Kasih Bonda Mee Kuning' did not use food preservatives in their production. However, these
unique features are not promoted well to customers and stiff competition make the situation worst.
Brand is a company's most asset, and it has long been recognised as an important factor in consumer choice. It serves as a tool for consumers
to assess product differentiation and uniqueness, while also enhancing consumers' trust and confidence in the decision-making process,
alleviating some of the problems associated with their experience and credence qualities (Jalilvand et al., 2011). If the consumers have more
faith in a particular brand than in competitors' brands, it will increases brand loyalty and readiness to pay a higher price for it (Suki, 2014).
In other words, companies with significant brand equity acquire a competitive advantage and have more opportunities for successful
extensions, resistance to promotional demands from competitors, and the establishment of barriers to entrance (Ling, 2013 stated in Suki,
2014). To raise the rate of customer’s purchase intention towards their products, it seems important for Karisma Jaya Enterprise to pay
attention to the elements of brand equity in their business, such as brand awareness, brand association, perceived quality, and brand loyalty.
Brand equity refers to the additional utility or value that a product receives because of its brand name. In addition, it is commonly thought to
benefit a company's long-term profitability.
The purpose of this study is to investigate the relationship between Karisma Jaya Enterprise's brand equity elements (brand awareness, brand
association, perceived quality, and brand loyalty) and prospective consumers' purchase intention. Due to the low customer purchase intention
compared to other competitors in this market, this study will test the hypothesis either brand equity elements have a significant impact on
consumer purchase intention or not. If the hypothesis constructed is accepted, then it can be proven that the brand equity elements have a
significant effect to consumer purchase intention. Furthermore, the study's findings can be used to determine whether Karisma Jaya Enterprise
lacks brand awareness, brand association, perceived quality, and brand loyalty. This study will contribute to Karisma Jaya Enterprise and
microbusiness in increasing customer’s purchase intention through determining brand equity elements.
1.5 RESEARCH OBJECTIVE
i. To investigate the effect of brand awareness on customer’s purchase intention.
ii. To investigate the effect of brand association on towards customer’s purchase intention.
iii. To investigate the effect of perceived quality on customer’s purchase intention.
iv. To investigate the effect of brand loyalty on customer’s purchase intention.
1.6 RESEARCH QUESTIONS
i. Does brand awareness affect customer’s purchase intention?
ii. Does brand association affect customer’s purchase intention?
iii. Does perceived quality affect customer’s purchase intention?
iv. Does brand loyalty affect customer’s purchase intention?
1.7 SIGNIFICANCE OF RESEARCH
Many businesses have a strong brand, and customers are more likely to choose a brand that they can recall, remember, and recognise (K
Eismann et al., 2016). Brands that can elicit emotions and feelings in their clients are more likely to succeed. As a result, raising brand
awareness, brand association, perceived quality and brand loyalty is a key part of marketing. The importance of brand equity and customer’s
purchase intention has been the focus of attention in today's corporate sector. This research will investigate the role of brand
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