Mediating effect of brand trust in the relationship between marketing activities and purchase intention among the Malaysian made car owners: A Pls-Sem approach

Abstract

As a citizen of a country, there is a need to support any local industry that will enhance the country's economic situation. The execution of the country's first national project by Perusahaan AutomobilNasionalBerhad (PROTON) in 1985 and Perusahaan AutomobilKedua (Perodua) was an important step towards the improvement of the motor vehicle industry in Malaysia. However, local car manufacturers are struggling to sustain its sales and profit and the need to compete with the foreign made cars. Thus, this study aims to find out how Marketing Activities (i.e. Trendiness, Interaction, and Entertainment) could affect customers' Purchase Intention and also Brand Trust. A survey was employed to collect data from 253 respondents who owned local made cars or have intention to purchase local made cars around Klang Valley. Majority of the respondents were from Petaling Jaya and Shah Alam area where judgmental sampling was used. A questionnaire which was developed and adapted from previous studies was used to collect data from the respondents using self-administered and online survey method. Data was developed and analysed using structural equation model where results of this study showed that Marketing Activities and Brand Trust does affect Purchase Intention. The analysis also confirms that Brand Trust partially mediates the relationship between Entertainment and Interaction toward Purchase Intention, whereas Brand Trust fully mediates the relationship between Trendiness and Purchase Intention.