Customer-Based Brand Equity in Indonesia's Higher Education Institution

Abstract

Objective: This study aimed to examine the causal order among dimensions of customer-based brand equity (CBBE) in Indonesian higher education institutions. The core dimensions of brand equity used are brand awareness, brand association, perceived quality, and brand loyalty. Research Design & Methods: This study used a research instrument questionnaire with a 5-point Likert scale. The research sample is 150 students of the Universitas Terbuka in Jayapura. The research hypotheses were tested using PLS-SEM with the SmartPLS version 3 as the supporting software. Findings: The results showed a causal order among the CBBE dimensions. Brand awareness has a positive and significant effect on perceived quality. The perceived quality has a positive and significant effect on brand loyalty, and brand awareness indirectly affects brand loyalty through perceived quality. This study cannot prove the moderating role of brand association on the relationship between brand awareness and perceived quality. Implications & Recommendations: This study provides implications and recommendations for the management of higher education institutions to create brand loyalty with a gradual process starting from developing a brand awareness strategy and then building positive perceived quality. Contribution & value Added: This study significantly extends the CBBE literature in the higher education institution sector, especially in Indonesia, which is still rarely studied. This study provides novelty by examining causal sequences and interactions on the CBBE dimensions.