Customer Loyalty and Powerful Brand in Heavy Machinery Industry

Abstract

Market of the heavy machinery industry is growing fast. Customers have choices in purchasing new or used equipment or they can decide to rent or leas. Today's brand concept embraces all the things that a product or service offers, including how a product shapes consumers' behavior. The brand's special value is the perception that consumers have to a brand, which is perceived by many factors. This research is based on the Keller model, which includes the main four criteria’s: brand awareness, brand association, perceived quality, and brand loyalty. The most important reason that customers would changes suppliers is the lack of providing services and products based on customer needs. Through this case study the company, TECHNOCAT, seeks to understand the correlation of the brand and customer re-purchases, whether the value of the brand affects customer decisions in future purchases. The researcher conducted a survey study. The expert panels in the field validated a questionnaire; Cronbach’s alpha coefficient is 0.82 for reliability testing. Managers of the mining businesses and owners of machines are the target population. Statistical Package for Social Science (SPSS) version 23.0 with descriptive statistics and multiple regression were utilized for data analysis, and AMOS was used for the structural equations. The finding presented results from 132 respondents. The study showed that there is a significant relationship between brand equity with an intention to buy again. Furthermore, certain factors; awareness, quality, loyalty, and association with the intention of re-buying, have significantly influence on repurchasing.