THE INFLUENCING FACTORS OF BRAND PREFERENCE IN ONLINE RIDE – HAILING SERVICES AMONG MILLENNIALS GENERATION IN BANDUNG CITY

• Main Author: Harris Wahyudi (19015011), Richard
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/30421
• Institution: Institut Teknologi Bandung

Within the past three years, there was an innovation that leads to a transformation in transportation and technology known as online ride-hailing. This innovation is capable of integrating transportation and technology simultaneously to fulfill people’s needs. Not surprising that in 2017, around 15 (fifteen) million Indonesia’s connected consumers were utilizing this service every week. As a phenomenon that is consistently escalating, it is important to examine factors that are believed to influence the brand preference in online ride-hailing services significantly. Seeing the different origin between Go – jek as a local-based company (Indonesia) and Grab foreign-based company (Singapore) and brand equity that related with brand appraisal and preference, the two factors that believed as a significant influencer in this service preference are consumer ethnocentrism and overall brand equity. To examine so, this study will use CETSCALE from Shimp and Sharma (1987) and Overall Brand Equity (OBE) from Yoo and Donthu (2001). This study is conducted in Generation Y seeing their existence as the primary user of internet and this services as well. The questionnaire is distributed to 400 respondents and measured using statistic and quantitative approach. The finding of this research reveals that the millennials more prefer a company that has higher overall brand equity. And OBE is positively and significantly affect the brand preference in both local and foreign online ride-hailing. Consumer ethnocentrism is not significantly affected the local brand preference, instead affected negatively on the foreign one. The Millennials with high consumer ethnocentrism tendency also found prefer local-based rather than foreign-based online ride-hailing services. The study implication and recommendations for future study, and the online ride-hailing service provider.