Does religious knowledge level affect brand association and purchase intention of luxury cars? Case of the Lexus cars in Indonesia

• Main Authors: Ratnasari, Ririn Tri, Prajasari, Anniza Citra, Kassim, Salina
• Format: Article
• Language: English; English
• Published: Emerald Publisher 2023
• Subjects: BPK Islamic law. Shari'ah. Fiqh; HF Commerce; HG3368 Islamic Banking and Finance
• Online Access: http://irep.iium.edu.my/110247/7/110247_Does%20religious%20knowledge%20level%20affect%20brand%20association.pdf; http://irep.iium.edu.my/110247/8/110247_Does%20religious%20knowledge%20level%20affect%20brand%20association_Scopus.pdf; http://irep.iium.edu.my/110247/; https://www.emerald.com/insight/content/doi/10.1108/JIMA-01-2020-0004/full/html; http://dx.doi.org/10.1108/JIMA-01-2020-0004
• Institution: Universiti Islam Antarabangsa Malaysia

Purpose – This study aims to analyze the role of religious knowledge level in influencing customers’ brand association and purchase intention of luxury cars by focusing on the Indonesian context and taking the Lexus brand as a case in point. Design/methodology/approach – A sample of 159 respondents was taken from a population of Muslim consumers who live in Java province, Indonesia, and who have not had Lexus luxury car but have had other cars before. Using a quantitative research approach on primary data collected in several cities in Indonesia, the study adopts the partial least square as a method of analysis. Findings – The study shows that brand association positively and significantly influences Muslim consumers’ attitudes on luxury cars, in this case, the Lexus brand. More importantly, the level of religious knowledge among Muslim consumers is shown to significantly weaken the influence of consumer attitudes toward purchase intention on luxury cars. The study also shows that brand association has a significant influence on Muslim consumers’ purchase intention on luxury cars. Research limitations/implications – This study only explores the consumers’ perceptions based on their income levels. Further details of the consumers when making purchases of the luxury cars are not being considered; this includes who the decision-maker is, gender and education level. Practical implications – There are several important implications that come from this study, especially on the risk of after-sales that will be experienced by luxury car owners, in this case, the Lexus brand. Luxury car manufacturers should show and highlight different characters in representing each variant or each type, to be more reflective of the intention and personalities of consumers who purchase luxury cars and not only to show the impression of owning the luxury cars. Social implications – There are also social implications of this research where although middle- and high-income consumers do not always intend to buy luxury cars due to the role of religiosity that directs the Muslim consumers to evaluate whether it is really necessary to buy the luxury cars. Originality/value – There has been a gap in the literature in assessing the role of religious knowledge level in affecting brand association as well as purchase intention, especially from a quantitative research approach and particularly focusing on the Indonesian context. This study including in responsible consumption as a good customer, which is one of Sustainable Development Goals items