The Effect of Marketing Communication and Price Promotion on Brand Equity: Empirical Study on Apple’s iPhone Users

Abstract

This research objective is to analyze the effect of marketing communication and price promotion on brand equity in the case of Apple’s Iphone product at Yogyakarta. The competition among smartphone products in Indonesia is very tight. There are several product of smartphone such as; BlackBerry, Apple Iphone, Samsung Android, and many others product of smart phone that have their own characteristic and provided some value added for the costumer to choose. Consumers now have many options before they decide to purchase certain brand of smartphone to fulfill their needs of communication. This study took 300 respondents who currently using Apple’s Iphone and were asked about their consideration among Apple’s Iphone advertising, price promotion and brand equity. The data were analyzed using AMOS Ver.5. Hypotheses were accepted if the probability level is less than 5% (p < 0.05). The result of the hypothesis testing is showing that the advertising spending have positive effect on perceived quality, brand loyalty, brand awareness and brand image. The result of the hypothesis testing also shows that the price deals have negative effect on perceived quality. Meanwhile, the research finding shows that the price deals have no negative effect on brand image. The brand awareness have no positive effect on brand image.