The Role of Word of Mouth in Increasing Purchase Intention of Low Cost Green Car

Edhie Budi Setiawan

Abstract


The participation of Indonesia to play a role in Green Environment for automotive industry occurred by issuing Low Cost Green Car regulations. This segment is well known as reflected by the high car sales in the first year. The aims of this study is to determine the impact of word of mouth on brand image and purchase intention on Low Cost Green Car. Data obtained from 320 prospective buyers Low Cost Green Car in Jakarta, Indonesia. The data are analyzed by Structural Equation Modeling (SEM) with Lisrel. The results show that word of mouth can improve brand image, but not contribute to purchase intention. This indicates that consumers do not believe in promotion through word of mouth because low involvement of dealers to promote green car and impact on not significant influence of purchase intention.


Keywords


Purchase Intention; Brand Image; Word of Mouth

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DOI: https://doi.org/10.25292/atlr.v1i1.12

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