THE IMPACT OF JAKARTA MRTâS STATION NAMING RIGHTS TOWARDS BRAND EQUITY
MRT Jakarta not only generates revenue through ticket sales but also benefits significantly from non-farebox revenue, which surpasses its earnings from ticket sales. One key source of nonfarebox revenue is Naming Rights, where companies sponsor MRT stations and display their brand elements prominent...
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| Format: | Final Project |
| Language: | Indonesia |
| Online Access: | https://digilib.itb.ac.id/gdl/view/83467 |
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| Institution: | Institut Teknologi Bandung |
| Language: | Indonesia |
| Summary: | MRT Jakarta not only generates revenue through ticket sales but also benefits significantly from non-farebox revenue, which surpasses its earnings from ticket sales. One key source of nonfarebox revenue is Naming Rights, where companies sponsor MRT stations and display their brand elements prominently. Despite the increasing popularity and adoption of Naming Rights Sponsorship, its impact on brand equity within the context of public transportation has not been thoroughly examined by prior literature. This research investigates the influence of Naming Rights Sponsorship in Jakarta MRT on brand equity, with a particular focus on brand awareness and brand image. While previous studies on naming rights in sports facilities have yielded mixed results, some literature found that naming rights has no significant impact, while others highlight positive effects on brand equity. The context of public transportation like MRT Jakarta presents unique characteristics which different from sport facilities in the most prior literature which necessitate targeted research to understand its specific impact. Using a quantitative approach, this study collected data from 280 respondents aged 15-50 across Indonesia, all of whom are familiar and already used MRT Jakarta. The data were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) with SmartPLS software. The findings reveal that Naming Rights Sponsorship in MRT Jakarta significantly enhances brand equity. Key factors such as Brand Element, Marketing Program, and Leveraging Secondary Association were found to positively influence Brand Awareness and Brand Image, which in turn strengthen brand equity. These findings will give insights to brands which suggest that Naming Rights Sponsorship is a valuable branding strategy for increasing brand equity. Brands looking to maximize the benefits of their naming rights sponsorship investments should focus on critical factors which are Brand Elements, Marketing Programs, and Leveraging Secondary Associations to effectively enhance their brand equity |
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