The Effect of Exhibitors' Brand Equity on Visitors' Purchase Decision: Moderating Role of Exhibition's Competitive Intensity
Abstract
This study explores the effect of exhibitors' brand equity on visitors' purchase intention, purchase postponement, and switching intention in an international industrial fair, as well as examines the moderating effect of competitive intensity on the above relationships. This study surveyed visitors of the famous International Woodworking Machine Fair in Jakarta, Indonesia. Of the 200 surveys distributed, 138 valid questionnaires were returned, representing a response rate of 69.00%. Analytical results show that higher exhibitors' brand equity is associated with visitors' higher purchase intention, more prevalent purchase postponement, and stronger switching intention. Also, in a high competitive intensity environment, the level of visitors' purchase postponement and switching intention of high brand equity products is similar. In a low competitive intensity exhibition, visitors are unlikely to postpone purchase of low brand equity products but are more likely to postpone purchase of high brand equity products. Lastly, in a low competitive intensity environment, visitors are less inclined to switch low brand equity suppliers but more likely to switch high brand equity suppliers. According to the research results, recommendations and limitations of this study are proposed.
Downloads
References
Aaker, D. A. (1991). Managing brand equity. Capitalizing on the value of a brand name. New York: Free Press.
Aaker, D. A. (1995). Building Strong Brand. (1st Ed.). New York: The Free Press.
Auh, S. & Menguc, B. (2005). Balancing exploration and exploitation: the moderating role of competitive intensity. Journal of Business Research, 58(12), 1652–1661.
Barnett, W. P. (1997). The dynamics of competitive intensity. Administrative Science Quarterly, 42(1), 128–160.
Barwise, P. (1993). Brand equity: Snark or boojum. International Journal of Research in Marketing, 10(1), 93–104.
Biedenbach, G., Bengtsson, M. & Wincent, J. (2011). Brand equity in the professional service context: Analyzing the impact of employee role behavior and customer–employee rapport. Industrial Marketing Management, 40(7), 1093–1102.
Chen, C. F. & Chang, Y. Y. (2008). Airline brand equity, brand preference and purchase intentions - The moderating effects of switching costs. Journal of Air Transport Management, 14(1), 40–42.
Cobb-Walgren, C. J., Ruble, C. A. & Donthu, N. (1995). Brand equity, brand preference and purchase intent. Journal of Advertising, 24(3), 25–40.
De Meyer, A., Nakane, J., Miller, J. G. & Ferdows, K. (1989). Flexibility: the next competitive battle the manufacturing futures survey. Strategic Management Journal, 10(2), 135–144.
Dekimpe, M. G., Francois, P., Gopalakrishna, S., Lilien, G. L. & Van den Bulte, C. (1997). Generalizing about trade show effectiveness: A cross-national comparison. Journal of Marketing, 61(4), 55–64.
DeSanctis G. (1983). Expectancy theory as explanation of voluntary use of a decision support system. Psychological Reports, 52(1), 247–260.
Dhar, R. (1997). Consumer preference for a no-choice option. Journal of Consumer Research, 24(2), 215–231.
Dodds, W. B., Monroe, K. B. & Grewal, D. (1991). Effects of price, brand, and store information on buyers’ product evaluations. Journal of Marketing Research, 28(3), 307–319.
Dutta, S. & Biswas, A. (2005). Effects of low price guarantees on consumer post-purchase search intention: the moderating roles of value consciousness and penalty level. Journal of Retailing, 81(4), 283–291.
Fein, A. J. & Anderson, E. (1997). Patterns of credible commitments: territory and brand selectivity in industrial distribution channel. Journal of Marketing, 61(2), 19–34.
Fishbein, M. & Ajzen, I. (1975). Belief, attitude, intention, and behavior: an introduction to theory and research. MA: Addison-Wesley.
Fornell, C. & Larcker, D. F. (1981). Evaluating structural equation models with unobservable variables and measurement error. Journal of Marketing Research, 18(1), 39–50.
Futrell, C., Parasuraman, A. & Sager, J. (1983). Sales force evaluation with expectancy theory. Industrial Marketing Management, 12(2), 125–129.
Gatignon, H. & Xuereb, J. M. (1997). Strategic orientation of the firm and new product performance. Journal of Marketing Research, 34(1), 77–90.
Godar, S. H. & O’Connor, P. J. (2001). Same time next yearï¼Buyer trade shows motives. Industrial Marketing Management, 30(1), 77–86.
Gopalakrishna, S. & Lilien, G. L. (1995). A three-stage model of industrial trade shows performance. Marketing Science, 14(1), 22–42.
Gopalakrishna, S., Lilien, G. L., Williams, J. D. & Sequeira, I. K. (1995). Do trade shows pay off? Journal of Marketing, 59(3), 75–83.
Greenleaf, E. A. & Lehmann, D. R. (1995). Reasons for substantial delay in consumer decision making. Journal of Consumer Research, 22(2), 186–199.
Hansen, K. (2004). Measuring performance at trade shows: scale development and validation. Journal of business Research, 57(1), 1–13.
Harder, J. W. (1991). Equity theory versus expectancy theory: The case of major league baseball free agents. Journal of Applied Psychology, 76(3), 458–464.
IFMAC (2013). International furniture manufacturing components. Retrieved from http://www.ifmac.net/press-release.
Jackson, D. W. Jr., Keith, J. E. & Burdick, R. K. (1987). The relative importance of various promotional elements in different industrial purchase situations. Journal of Advertising, 16(4), 25–33.
Jambulingam, T., Kathuria, R. & Doucette, W. R. (2005). Entrepreneurial orientation as a basis for classification within a service industry: The case of retail pharmacy industry. Journal of Operations Management, 23(1), 23–42.
Jaworski, B. J. & Kohli, A. K. (1993). Market orientation: Antecedents and consequences. Journal of Marketing, 57(3), 53–70.
Jin, X. & Weber, K. (2013). Developing and testing a model of exhibition brand preference: The exhibitors' perspective. Tourism Management, 38, 94–104.
Keaveney, S. M. (1995). Customer switching behavior in service industries: An exploratory study. Journal of Marketing, 59(2), 71–82.
Keller, K. L. (1993). Conceptualizing, measuring, managing customer-based brand equity. Journal of Marketing, 57(1), 1–22.
Kim, S. S. & Chon, K. (2009). An economic impact analysis of the Korean exhibition industry. International Journal of Tourism Research, 11(3), 311–318.
Kirchgeorg, M., Jung, K. & Klante, O. (2010). The future of trade show: Insights from a scenario analysis. Journal of Business & Industrial Marketing, 25(4), 301–312.
Kotler, P. & Keller, K. L. (2009). Marketing Management. (13th Ed.). New Jersey: Prentice Hall.
Kotler, P. & Pfoertsch, W. (2007). Being known or being one of many: The need for brand management for business-to-business companies. Journal of Business & Industrial Marketing, 22(6), 357–362.
Lee, C. H. & Kim, S. Y. (2008). Differential effects of determinants on multi-dimensions of trade show performance: By three stages of pre-show, at-show, and post-show activities. Industrial Marketing Management, 37(7), 784–796.
Li, L. Y. (2006). Relationship learning at trade shows: Its antecedents and consequences. Industrial Marketing Management, 35(2), 166–177.
Li, L. Y. (2007). Marketing resources and performance of exhibitor firms in trade shows: A contingent resource perspective. Industrial Marketing Management, 36(3), 360–370.
Mahapatra, S. K., Das, A. & Narasimhan, R. (2012). A contingent theory of supplier management initiatives: Effects of competitive intensity and product life cycle. Journal of Operations Management, 30(5), 406–422.
McCabe, V. S. (2001). Career paths and labor mobility in the convention and exhibition industry in Eastern Australia: Results from a preliminary study. International Journal of Tourism Research, 3(6), 493–499.
Melone, N. P. (1990). A theoretical assessment of the user-satisfaction construct in information systems research. Management Science, 36(1), 76–91.
Michell, P., King, J. & Reast, J. (2001). Brand values related to industrial products. Industrial Marketing Management, 30(5), 415–425.
Mitchell, T. R. & Biglan, A. (1971), Instrumentality theories: current uses in psychology. Psychological Bulletin, 76(6), 432–454.
Modi, S. & Mabert, V. (2007). Supplier development: Improving supplier performance through knowledge transfer. Journal of Operations Management, 25(1), 42–64.
Monroe, K. B. & Krishnan, R. (1985). The effect of price on subjective product evaluation. In J. Jacoby & J. C. Olson (Eds.), Perceived quality: How consumers view stores and merchandise (pp. 209-232). Massachusetts: Lexington Books.
Morwitz, V. G. & Schmittlein, D. (1992). Using segmentation to improve sales forecasts based on purchase intent: Which intenders actually buy. Journal of Marketing Research, 29(4), 391–405.
Mudambi, S. (2002). Branding importance in business-to-business markets: Three buyer clusters. Industrial Marketing Management, 31(6), 525–533.
Noble, C. H. & Mokwa, M. P. (1999). Implementing marketing strategies: Developing and testing a managerial theory, Journal of Marketing, 63(4), 57–73.
Oliver, R. L. (1974). Expectancy theory predictions of salesmen's performance. Journal of Marketing Research, 11(3), 243–253.
Oliver, R. L. & Swan, J. E. (1989). Consumer perceptions of interpersonal equity and satisfaction in transactions: A field survey approach? Journal of Marketing, 53(2), 21–35.
Podsakoff, P. M., MacKenzie, S. B., Lee, J. Y. & Podsakoff, N. P. (2003). Common method biases in behavioral research: A critical review of the literature and recommended remedies. Journal of Applied Psychology, 88(5), 879–903.
Schiffman, L. G. & Kanuk, L. L. (2000). Consumer Behavior. New Jersey: Prentice-Hall.
Seringhaus, F. H. R. & Rosson, P. J. (2001). Firm experience and international trade fairs. Journal of Marketing Management, 17(7-8), 877–901.
Slater, S. F. & Narver, J. C. (1994). Does competitive environment moderate the market orientation-performance relationship? Journal of Marketing, 58(1), 46–55.
Sloot, L. M. & Verhoef, P. C. (2008). The impact of brand delisting on store switching and brand switching intentions. Journal of Retailing, 84(3), 281–296.
Tanner, J. F. (2002). Leveling the playing field: Factors influencing trade show success for small companies. Industrial Marketing Management, 31(3), 229–239.
Vroom, V. C. (1964). Work and motivation. New York: John Wiley & Sons.
Walsh, G., Hennig-Thurau, T. & Mitchell, V. W. (2007). Consumer confusion proneness: scale development, validation, and application. Journal of Marketing Management, 23(7-8), 697–721.
Wang, C. L., Li, D., Barnes, B. R. & Ahn, J. (2012). Country image, product image and consumer purchase intention: Evidence from an emerging economy. International Business Review, 21(6), 1041–1051.
Webster, F. E. & Keller, K. L. (2004). A roadmap for branding in industrial markets. Journal of Brand Management, 11(5), 388–402.
Yoo, B. & Donth, N. (2001). Developing and validating a multidimensional consumer-based brand equity scale. Journal of Business Research, 52(1), 1–14.
Copyright (c) 2016 Journal of Economics and Behavioral Studies

This work is licensed under a Creative Commons Attribution 4.0 International License.
Author (s) should affirm that the material has not been published previously. It has not been submitted and it is not under consideration by any other journal. At the same time author (s) need to execute a publication permission agreement to assume the responsibility of the submitted content and any omissions and errors therein. After submission of a revised paper in the light of suggestions of the reviewers, editorial team edits and formats manuscripts to bring uniformity and standardization in published material.
This work will be licensed under Creative Commons Attribution 4.0 International (CC BY 4.0) and under condition of the license, users are free to read, copy, remix, transform, redistribute, download, print, search or link to the full texts of articles and even build upon their work as long as they credit the author for the original work. Moreover, as per journal policy author (s) hold and retain copyrights without any restrictions.