Analysis of the Effect of Brand Equity on Purchasing Decision towards Organic Rice in Special Region of Yogyakarta

Abstract

The community’s need for organic rice increases every year along with changes in people’s lifestyles towards a healthy lifestyle. This has made many organic rice brands appear on the market. Each of these brands needs to implement the right marketing strategy to increase its competitive advantage. The study aims to analyze the influence of brand equity elements (brand awareness, brand association, perceived quality, and brand loyalty) on purchasing decisions for organic rice. The Structural Equation Modeling-Partial Least Square (SEM-PLS) is used to analyze the data, with a purposive sampling data collection technique. Respondents in this study were 105 consumers of organic rice “Lingkar Organik”. The “Lingkar Organik” brand was chosen because it is the market leader in the branded organic rice market in Special Region of Yogyakarta. Based on the results of the study, it was found that the perceived quality and brand loyalty variables have a significant effect on the purchase decision towards organic rice. Brand association and brand awareness variables have no significant effect on purchasing decisions.