Chapter 42

The Influence of Brand Image and Brand

Attitude Toward Buying Interest (The Case
of Garuda Indonesia and Lion Air)

Hendro Lukman and Stevanus Adree Cipto Setiawan

Abstract This paper describes the competition on aviation industry in Indonesia. A

phenomenon occuring in this industry that causes the decline in Purcashing Power
will bring negative impact on domestic aviation industry. On the other hand the
number of airplane passengers increases significantly, but this is not followed by
increments of airline industry. Research was focused on two domestic airlines that
have relatively large market share in this industry, Garuda Indonesia and Lion Air.
Garuda Indonesia carries punctuality and convenience strategies both in aircraft and
ground with target segmentation of passengers who are not sensitive to prices. Lion
Air has a strategy of low cost carrier (LCC) with segmentation of passengers who have
price sensitivity. This study analyzes if the brand image affects brand attitude, and if
the brand attitude will affect buying interest. The result of this study describes that the
brand image can enhance the perceived quality and advertising quality. Furthermore,
the brand image will influence better attitudes toward the brand and buying interest.

42.1 Introduction

Business environment changes rapidly. Companies must be able to adapt to the

changes with accurate identity as the aspects of competition in the market to win
the competition. Corporate should be changed to fit with the environment and to
maintain the loyalty of customers. The research was carried out in domestic aviation
market. Aviation industry experiences an interesting phenomenon. Despite a decline
in purchasing power that has negative impact on the domestic aviation industry, the
number of domestic air passengers continues to increase and this is not followed by
the growth of aircraft companies. The current growth of airline industry in Indonesia

H. Lukman ()
Accounting Department, Faculty of Economics,
University of Tarumanagara, Jakarta, Indonesia
e-mail: hendrolukman@gmail.com
S. A. C. Setiawan
Faculty of Economics, University of Tarumanagara, Jakarta, Indonesia
e-mail: stevanusiwan1@gmail.com

P. Mandal (ed.), Proceedings of the International Conference 375

on Managing the Asian Century, DOI 10.1007/978-981-4560-61-0_42,
Springer Science+Business Media Singapore 2013
376 H. Lukman and S. A. C. Setiawan

is competed by the 28 companies which serve domestic and international routes.

This research was conducted on two airlines, Lion Air with a strategy of low cost
carrier (LCC) and Garuda Indonesia which is more concerned with the differentiated
strategy targeting on segmented passengers who are not sensitive to price but more
concerned with the accuracy of the flight schedule and service in both the aircraft
and the airport.
What influences people in choosing on airline? The first thing is a brand which
is not only embedded with a product name and a name but also a promise. Hence,
companies want to build strong brand equity, because of the positive correlation
between strong brand equity with profits and this gives future net profits for the
company as well as the potential revenue in the future. Secondly, Buying Interest
is derived from learning and thinking processes that form a perception. The interest
creates a motivation that is kept in mind and becomes a very strong desire in the
end when the consumers must satisfy their needs to actualize what is in their mind.
Hierarchy of buying interest effects is used to describe the sequence of the emergence
of beliefs. Attitudes serve as a reference that gets the influence from the environment.
The state of brand which is known by the buyer will create an interested in making
a purchase decision. Another thing is advertising. By using advertising, people can
have opinions and create appeal to a product. Appeal is used to create things such as
quality and expensive products. Basically, quality of a product or service may make
an impulse buying behavior of consumer who determines the final decision about
products on the market.
This research was conducted on gaps of researchers that gave stated that Buying
Interest is not influenced by the perception of quality, but the other statement said
that the quality perception will influence buying interest, purchasing decisions and
brand loyalty directly. Therefore, this research will attempt to explain empirically
about the factors that influence the buying interests. The factors examined in this
study are the perception of quality, the quality of the advertising messages, brand
image, attitudes towards the brand and purchasing interests to Lion Air and Garuda
Indonesia.

42.2 Literature Review

42.2.1 Attitude Toward to a Brand

An attitude is a mental and neural state of readiness, organized through experience,

exerting a directive or dynamic influence upon the individuals response to all objects
and situations with which it is related. Attitude plays a major role in shaping the
behavior (either positive of negative), attitudes to evaluate the marketing activities
to be carried out, to understand the attitude of todays society, and it helps in better
advertising activities. Attitude towards the brand is consumer behavior that is closely
related to the value of the brand for consumers and consumer expectations. Positive
attitudes toward the brand assessed depend on the brand preferred, the memorable
brand.
42 The Influence of Brand Image and Brand Attitude Toward Buying Interest. . . 377

42.2.2 Brand Image

Brand is a name, term, sign, symbol, design, or a combination of all of these. A

brand is intended to identify products or services of a person or a group of sellers
and to differentiate from the competitor or it can be said to be something related
to the appointment, acceptance, trust, and hope, so that a brand of a strong prod-
uct will make consumers feel more confident, comfortable, and safe when they buy
the product (Kotler 2000). The brand is easily recognizable entity, and promising
specific values. The brand image is a rational and emotional perception of a partic-
ular. Furthermore, dimension of the corporate image can effectively influence the
brand equity which consists of product attributes, benefits, and behaviors in general.
Product is related to the quality and innovation; people and relationships, consumer
orientation; Value and programs are related to environmental awareness and social
responsibility; the corporate credibility, and they are also related skills, confidence,
and fun.

42.2.3 Quality Perception

The quality can make an impulse consumer. It is because the consumers determine
the final decision about the quality of products on the market. Perceived quality
can be defined as consumer perceptions of the overall quality or superiority of a
product or service to relevant alternatives and in accordance with the objectives.
The dimensions of the quality of the product are: (1) performance, (2) features, (3)
conformance quality, (4) reliability, (5) durability, (6) serviceability, and (7) style
and design. Consumer confidence in these dimensions often underlies the perception
of the quality of a product, which eventually can influence the attitudes and behaviors
toward a brand.

42.2.4 Quality Messages of Advertising

Advertising has a strong influence in persuading and is able to introduce new products
or new uses. It can help consumers to differentiate one brand with other brands and
it is able to demonstrate how to use the product. Advertising can be used to build
brand association and to bring the message of improving quality of the product.
Furthermore, advertising is one way in the formation of brand equity, and it can
provide insight/ knowledge of the brand to consumers and increase the likelihood
of a brand embedded in the minds of consumers that will give contribution in the
formation of the association of the brand by consumers and when it is embedded, it
can be translated into people mind of a position of a consistent behavior.
378 H. Lukman and S. A. C. Setiawan

42.2.5 Purchasing Interest

Hierarchy of buying interest effect is used to describe the sequence of the emer-
gence of beliefs. Attitudes and behavioral cognitive knowledge that consumers are
acquired attributes, benefits, and the object (by evaluating information), while it
refers to a feeling or attitude of effective response. Attitudes serve as a reference
that gets the influence from the environment. Behavior is everything conducted by
consumers to buy, discard, and use products and services. Theoretically, the third
component of hierarchy effects can vary depending on the level of his involvement or
even each element may be either partially. According to previous researcher, product
evaluation can be a effected by price, brand and embedded information. However,
in this research, the third component that engages in standard formation, i.e. cog-
nition, attitudes, and behaviors can not separated from the information received by
consumers.

42.3 Research Method

42.3.1 Population and Sample

The population is composed of generalization of regions for objects or subjects that

have certain qualities and characteristics which are determined by the researchers
to be studied, and then they make conclusions. Due to a very large population, the
method becomes very sensitive, so that it is difficult to obtain a goodness of fit.
Sampling technique used here is a combination of accidental sampling and pur-
posive sampling. This is done considering the number of samples that is very few
in determining the number of samples, and the samples selected in the study were
done by spreading the questionnaire. Respondents were randomly and accidentally
selected by researchers with various considerations, including the representatives
of the population and compliance with the terms of the instrument analysis. This
research, sample is used 102 respondents with at least 18 years old, who living in
Jakarta and interested in buying or using the services of Garuda and Lion Air.

42.3.2 Data Analysis Method

The method chosen to analyze the data must conform to the pattern of the study and
the variables to be studied. To analyze the data, The Structural Equation Modeling
(SEM) of the statistical software package AMOS 16 is used in the assessment of
model and hypotheses. The analysis used is the analysis of the Structural Equation
Model (SEM). The variables in this research are:
42 The Influence of Brand Image and Brand Attitude Toward Buying Interest. . . 379

No Indicator construct Indicator variable

1 Perceived quality X1: core capabilities
X2: feature
X3: quality conformity
2 Quality of advertising messages X4: understanding of the message
X5: memorable ad
X6: advertisements provide reliable information
X7: ads provide clear information
3 Brand image X8: professional impression
X9: modern impression
X10: serving all segments
X11: attention to consumer
4 Attitude towards the brand X12: brand in mind
X13: preferred brand
X14: brand selected
5 Buying interest X15: find information about where to purchase
X16: looking for information about prices
X17: immediate desire to buy

42.4 Results and Conclusion

42.4.1 Result

42.4.1.1 Hypothesis Model & Result

The results of tests in the confirmatory factor analysis of the overall model shows as
below:

Perceived
Quality

A tude
Buying
Brand Image towards the
Interest
brand

Quality of
adver sing
messages
380 H. Lukman and S. A. C. Setiawan

42.4.1.2 Perception Has a Quality Effect on Brand Image

The study is consistent with Zeithaml who suggested that the perceived quality of
a product or service is closely related to reputation associated with the name of the
brand. Under certain conditions, the consumer will only associate a product with its
brand. It also said that the quality of the product received is related to the reputation
associated with the brand name.
In business, the brand is often associated with a reputable company rather than the
product itself. Anderson and Sullivan, proved that the reputation of a company in the
consumers point of view can be used as collateral for consumers to assess the quality
of the product or service. Lau and Lee, consider the companys reputation as one
of the most important factors of the characteristics of companies that can establish
consumer confidence in the brand. Hoeffler and Keller point out, the creation of
consumer perception that the company creates products and high quality services
will affect the consumers perception of the corporate image, and vice versa, for
example, with rising airline Lion Air, the perceptions of consumers only focus on
the term of low prices due to the strategy of low cost, while consumers flying with
Garuda have created perceptions of maximum comfort and punctuality.

42.4.1.3 The Effect of Advertising Messages Quality on Brand Image

This study is in line with Mudiantono and Purnomo, whose research shows that
companies in competitive markets put more attention on spending on advertising
because of the instruments effectiveness in maintaining brand loyalty. The good and
popular brands are generally created by companies which spend more in the field
of advertising to maintain the usefulness of the product information. The research
was also supported by Mudiantono and Purnomo in their study of the decision to
compete on the basis of competitive advertising, new varieties, and prices. The
decision generally tends to overspend in promotional spending. Steenkamp et al. also
said that advertising can be used to build brand association and bring the messages
of improving quality of the product.
On the other hand, Krishnan and Chakravarti, and Shapiro and Krishnan, said
that advertising is one way in the formation of brand equity, and it can provide
insight/ knowledge of the brand to consumers and increase the likelihood of a brand
to be embedded in the minds of consumers that will contribute in the formation
of the association of the brand by consumers and when it is embedded, it can be
translated into peoples mind but has a position of consistent behavior. This is in line
with Garudas promotion, that communicates its product image by using the slogan
Proud to Fly with Garuda. Meanwhile, Lion Air uses the slogan We Make People
Fly.

42.4.1.4 Brand Image Has Effect on Attitude Toward the Brand

The results are in line with Chaundhuri that stated that attitude toward the brand is
the overall evaluation of the consumer to the brand. The model found that increased
42 The Influence of Brand Image and Brand Attitude Toward Buying Interest. . . 381

brand equity occurs when the market shows increasingly positive attitude toward the
brand. Attitude toward the brand (brand attitude) will affect the attitude toward, and
the brand brand equity can be used to predict future business performance. Ruth,
Hilliar and Alper (2002) noted that attitudes toward a particular brand or image are
influenced by the impressions of the brand itself.

42.4.1.5 Attitudes Toward Brand Has Influence on Buying Interest

In conclusion, there is a positive relationship between attitudes toward the brand

and decision consumers to buy. According to Assael ([1], p. 82), attitude toward the
brand which is a statement that assesses the mental whether it is positive or negative,
whether it is good or not good, whether it likes or not. Research conducted by Wu
and Lo (2009) shows that attitude toward the brand influence buying interest.

42.4.1.6 The Effect of Quality Perceptions on Buying Interest

The results showed that according to Zeithaml, Berry, and Parasuraman (1996), there
are five dimensions of behavioral intentions or consumer interests, loyalty, switch,
willingness to pay more, external response and internal response. This research
developed by Mittal, Kumar, and Tsiros (1999), found that the function of behavioral
intention or interest of consumers is a function of the quality of products and quality
services. The better the quality of products or services, the more interested the
consumers to the product.

42.4.1.7 The Influence of Advertising message Quality on Buying Interest

This study is also in line with Stigler in the Cobb-Walgren (1995), who states that
a brand which is known by the purchaser will cause interests in making purchasing
decisions. The impact of a product symbol gives meaning in consumer decision
making because the symbols and images are important in advertising and they have
an influence in the buying interest.

42.4.2 Conclusions

The research model developed consists of six hypotheses are: a positive effect on the
perceived quality of the brand image (Hypothesis 1); quality advertising messages
that have a positive effects on brand image (Hypothesis 2); positive effect on the
brand image of the brand attitude (Hypothesis 3); attitude toward the brand to bring
positive effect on buying interest (hypothesis 4); positive effect on perceived quality
buying interest (hypothesis 5), and the quality of advertising messages which has a
positive effect on buying interest (hypothesis 6).
382 H. Lukman and S. A. C. Setiawan

The principle of the brand shows that brand equity is formed when consumers
perceive that the brand is relevant to the needs, desires and purchasing power, so
the branding strategy should follow the development of the consumer requirements,
for example, if the trend of consumer preference shows that consumers want af-
fordable but quality, memorable of air transport services, then the airlines should
have a competitive advantage with two strategic position as well, which are low cost
and differentiation. Airline industry with high competitive intensity shows that in-
novation strategy should be continued to create brand equity and to keep consumer
loyalty. What do Garuda Indonesia and Lion Air do to win in airline industry battle?
Garuda Indonesia operates low cost air transportation with City Link brand. On
the other hand, Lion Air operates Batik Air (launching on April 26, 2013), airline
transportation with full services aircraft to compete with Garuda Indonesia.

References

1. Assael, H. (2001). Consumer behaviour and marketing action (6th ed.). Thompson.