Short answer

Designers and marketers should prioritize strategies that cultivate a strong and positive brand image, as this will enhance the effectiveness of promotional and pricing tactics in influencing consumer purchasing decisions.

Field: Innovation & Markets
Source: E-Jurnal Manajemen Universitas Udayana (2019)
Method: Quantitative research using path analysis and Sobel test.
Sample: 112 respondents
Evidence: Strong effect

A strong brand image can amplify the positive effects of promotional activities and pricing strategies on consumer purchasing choices. This innovation & markets research insight is drawn from a 2019 study published in E-Jurnal Manajemen Universitas Udayana. Using Quantitative research using path analysis and sobel test. with 112 respondents, researchers explored how this design variable affects real-world outcomes. The key design takeaway: Designers and marketers should prioritize strategies that cultivate a strong and positive brand image, as this will enhance the effectiveness of promotional and pricing tactics in influencing consumer purchasing decisions.

Study

Innovation & MarketsHigh ImpactStrong effect

Brand image significantly mediates the impact of promotion and price on smartphone purchase decisions.

A strong brand image can amplify the positive effects of promotional activities and pricing strategies on consumer purchasing choices.

E-Jurnal Manajemen Universitas Udayana · 2019

Key Findings

01Promotions positively and significantly influence brand image.
02Prices positively and significantly influence brand image.
03Promotions positively and significantly influence purchasing decisions.
04Prices positively and significantly influence purchasing decisions.
05Brand image positively and significantly influences purchasing decisions.

Application

Design takeaway

How to apply

When developing marketing plans for new products or re-evaluating existing ones, consider how each promotional activity and pricing adjustment will contribute to or detract from the desired brand image, and how this image will, in turn, influence purchase intent.

Project actions

01When researching a product, consider how the brand's reputation influences your own perception and purchase choices.
02If you are designing a marketing campaign, think about how your messaging will shape the brand's image.

Method & Evidence

AimTo investigate the mediating role of brand image in the relationship between promotion, price, and purchasing decisions for smartphones.

MethodQuantitative research using path analysis and Sobel test.

ProcedureData was collected from smartphone customers in Denpasar City via questionnaires, both in-person and online. Path analysis was employed to examine the direct and indirect effects of promotion and price on purchasing decisions, with brand image as a potential mediator.

Sample112 respondents

ContextConsumer electronics market, specifically smartphones.

Variables

IV["Promotion","Price"]

DVPurchasing Decision

CV["Brand Image (as a mediator)","Product Type (smartphones)","Geographic Location (Denpasar City)"]

Strengths & Limitations

Strengths

+Utilizes statistical path analysis to model complex relationships.
+Employs a mediating variable (brand image) for a more nuanced understanding.

Limitations

The findings might be specific to the cultural context of Denpasar and the smartphone market. Other product categories or regions might show different results.

Reliability & validity

The use of path analysis and Sobel test provides statistical rigor. However, the reliance on self-reported data from questionnaires could introduce social desirability bias, potentially affecting validity.

Think critically

To what extent does the perceived quality of a product itself contribute to brand image, independent of marketing efforts?

Design Principles

"The perceived value and trustworthiness of a brand (brand image) can significantly amplify the impact of tactical marketing elements like price and promotion on consumer behavior."

Understanding how brand image acts as a mediator is crucial for developing effective marketing strategies. It suggests that simply offering discounts or running advertisements may not be enough; these efforts are more impactful when they reinforce or build a positive perception of the brand.

What This Means for Your Design

Making people feel good about a brand (brand image) makes them more likely to buy a product when it's on sale or advertised.

How to use in your project

1.Use this research to justify why focusing on brand perception is important in your design project's marketing strategy.
2.Reference this study when discussing how your product's features or marketing will build a positive brand image.

Add to My Project

Quick Cite

Paragraph starter

Research indicates that brand image plays a crucial mediating role in the effectiveness of promotional and pricing strategies on purchasing decisions. For instance, a study by Armayani and Jatra (2019) found that a strong brand image significantly enhanced the impact of promotions and price on smartphone purchase decisions in Denpasar City, highlighting the importance of cultivating positive brand perception alongside tactical marketing efforts.

Source

E-Jurnal Manajemen Universitas Udayana

PERAN BRAND IMAGE MEMEDIASI PROMOSI DAN HARGA TERHADAP KEPUTUSAN PEMBELIAN SMARTPHONE SAMSUNG DI KOTA DENPASAR

journal · 2019

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Questions About This Research

What does the research say about brand image significantly mediates the impact of promotion and price on smartphone purchase decisions?: Designers and marketers should prioritize strategies that cultivate a strong and positive brand image, as this will enhance the effectiveness of promotional and pricing tactics in influencing consumer purchasing decisions. Evidence: E-Jurnal Manajemen Universitas Udayana (2019).
Why does "Brand image significantly mediates the impact of promotion and price on smartphone purchase decisions." matter for design?: Understanding how brand image acts as a mediator is crucial for developing effective marketing strategies. It suggests that simply offering discounts or running advertisements may not be enough; these efforts are more impactful when they reinforce or build a positive perception of the brand.
How can designers apply this research?: Designers and marketers should prioritize strategies that cultivate a strong and positive brand image, as this will enhance the effectiveness of promotional and pricing tactics in influencing consumer purchasing decisions.
What were the main findings?: Promotions positively and significantly influence brand image.. Prices positively and significantly influence brand image.. Promotions positively and significantly influence purchasing decisions.. Prices positively and significantly influence purchasing decisions.
What research method was used?: Quantitative research using path analysis and Sobel test. with 112 respondents.
How strong is the evidence?: Evidence strength is rated Strong effect, based on a 2019 journal from E-Jurnal Manajemen Universitas Udayana.
What should I do differently in my next project?: When developing marketing plans for new products or re-evaluating existing ones, consider how each promotional activity and pricing adjustment will contribute to or detract from the desired brand image, and how this image will, in turn, influence purchase intent.
What are the limitations?: The study was conducted in a specific geographic location (Denpasar City) and focused on a single product category (smartphones), which may limit the generalizability of the findings to other markets or product types.