Industrial Machinery Purchasing Decisions with Brand Equity Determination

Abstract

Market demand continues to increase to become an opportunity for businesses to meet market needs. One line of business that continues to grow is the manufacturing industry, such as a machine-building company that sells various tools or machines needed in the fields of industry, agriculture, animal husbandry, fisheries, and plantations. This study aims to determine the effect of brand equity on purchasing decisions of industrial machinery for MSME products. The population and sample are 216 consumers taken by nonprobability sampling technique. The analytical method used in this research is descriptive and verification. The instrument test was carried out with validity and reliability. Research data analysis includes multiple linear regression analysis, multiple correlation analysis, and hypothesis testing. The results of the study show that brand awareness, perceived quality, brand association, and brand loyalty have a positive and significant effect on industrial machine purchasing decisions. It is recommended to be able to innovate by highlighting excellence, not just standardization.