A STUDY ON FACTORS INFLUENCING INDONESIAN CONSUMERS’ PURCHASE INTENTION TOWARDS ITS LOCAL FASHION BRANDS

• Main Author: Wahyu Ardhia, Rediana
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/41094
• Institution: Institut Teknologi Bandung

Indonesian consumer market potential is a very attractive market for global fashion brands especially when there is a demand for Western-style clothing. Thus, many global fashion brands are entering Indonesia. While the expansion of global fashion brands often causes the disadvantage of the local brands, a study found that most Indonesians are still preferred to buy local fashion brands instead of global fashion brands, the only Indonesian category that prefers to buy global fashion brands are people with monthly income above IDR 10 million. Thus, even that Indonesia is a compelling market potential for both international and local companies, it is an amusing phenomenon to be the subject of the study to find Indonesian purchasing behavior towards its local brands. This study aims to uncover the purchase behavior of Indonesian towards its local fashion brands. To have a better strategy in marketing activities, it would be very helpful for Indonesian fashion local brands to have a better understanding of Indonesian purchasing behavior towards its local brands. The output of this study will be used to recommend the right marketing strategy for Indonesian local fashion brand SMEs. This quantitative study was obtained through an online questionnaire with 372 respondents aged 20-49 years old domiciled in Bandung, Jakarta and Surabaya. The data passed the five classical assumptions test and later analyzed with multiple linear regression. The study found that Indonesian consumers’ need for uniqueness, clothing interest, perceived quality, emotional value and group conformity has significant influence and explains 39.1% of Indonesian consumers’ purchase intention.