Page 937 - MARSIUM'21 COMP OF PAPER

FYP PROPOSAL

AHIBS UTM SKUDAI JAN 2022

THE IMPACT OF BRAND EQUITY ON REPURCHASE INTENTION TOWARD
HERMS C ENTERPRISE

TEO KAR QING, DR. ADAVIAH MAS'OD

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

*Corresponding author: kqteo@graduate.utm.my
Abstract
The evolution of web2.0 enables people to interact and generate content in video, photo, audio, text, etc., which change the way companies communicate to
their customers. Instagram has made it incredibly easy for the business to market and advertise the products. In recent years, the activewear business is
expanding as it is a new trend that attracted the eye of people in Malaysia. Since activewear has become a popular trend in Malaysia, a number of domestic
companies start activewear businesses in Malaysia, yet the industries face intense competition in the market due to there has a different brand of activewear
in the market. The purpose of this research examines the effect of e-WOM and brand equity on customers' repurchase intention toward HERMS C Enterprise.
Literature reviews were conducted before analyzing the research topic in order to have a better understanding of how social media dimensions create e-WOM
and have future knowledge on e-WOM and brand equity influence customers' repurchase intention of activewear brands on Instagram. A set of online
questionnaire had distributed to 140 respondents via Instagram. 9 outliers in the questionnaire and had eliminated from this research. Results generated by
using Smart PLS and SPSS software. This study also provides an overview on the respondents' demographics. Theoretical and practical ramifications of the
findings in this study have been addressed.

Keywords: e-WOM, Brand Equity, Repurchase Intention, Activewear, Instagram

■ 1.0 INTRODUCTION

HERMS C Enterprise is an activewear brand company in Malaysia. This company was founded by Hermione Goh and the business is entirely
conducted through the Internet, where HERMS C Enterprise utilizes social media to promote and sell its brand to the public. It has a wide
range of product lines such as sports bras, tops and t-shirt, bottoms and leggings, combat sets, loungewear, swimwear, and accessories in
order to satisfy customers and enhance customers' shopping experiences. In Malaysia, the activewear market is in a unique situation since it
is still growing. Activewear has been a popular trend among teenagers and young adults because it associates them with a more comfortable
and relaxed lifestyle and better mobility. This has encouraged international companies such as Adidas and Nike to expand their businesses
in Asia, especially Malaysia, because the region has high potential to provide them with a greater sales revenue volume. Malaysia is a
multicultural country with more than 30 million residents, including Malays, Chinese, Indians, and other ethnic groups living side by side
(Khaliq & Selim, 2013). Therefore, the activewear business has a lot of potential in the marketplace because of the growing popularity of
athletic activities in Malaysia.

As the outbreak of Covid-19, Malaysian have to work from home, and for students, the class would be conducted online throughout the year.
The usage of the Internet and social media had increased dramatically. According to Digital 2021: Malaysia had achieved 28 million social
media users in 2021. In order to get in the current trend, companies started to build a strong relationship with the Internet users and provide
all information regarding their brand to the public. Many businesses are increasingly utilizing social media to promote their brands and
sustain a positive relationship with their consumers (Saravanakumar & Lakshmi, 2012). As there are various competitors, the brand needs to
catch customers' repurchase intention to compete in the market.

■ 1.1 PROBLEM STATEMENT

Since activewear has become a popular trend in Malaysia, a number of domestic companies start activewear businesses in Malaysia, yet the
industries face intense competition in the market due to there has a different brand of activewear in the market. Branding aims to attract
customers' attention to particular brands in order to identify the brand and retrieve information from memory about it (Leighton, 2012).
International brands with strong brand equity, such as Nike and Adidas, expanded their businesses, and the market became more competitive
in Malaysia. This has affected the clothing industry to face large-scale competitiveness, especially in activewear brands. The international
activewear business is very competitive and one of the most heavily brand-named apparel industry divisions (Tong and Hawley, 2009). As
a result of the increased competition in the market, customers' buying behaviours and decision-making processes have evolved. The company
needs to elevate its brand, but it also needs to build strong positive brand equity in the market. Therefore, brand equity is essential for every
company to succeed in the marketplace.

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