The effect of luxury values to affective commitment through brand tribalism and brand reputation as mediating variables to luxury car users in Jabodetabek, Indonesia

Refviro, Jasson and Heyzer, Michael Andika Gregorius and Rusli, Ray Jeremy (2019) The effect of luxury values to affective commitment through brand tribalism and brand reputation as mediating variables to luxury car users in Jabodetabek, Indonesia. Bachelor thesis, Universitas Pelita Harapan.

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Abstract

In recent years, literature regarding the influence of luxury values on affective commitment has become increasingly popular. It is believed that users who believe that luxury materials accrue power, position, status, prestige will have a positive attitude towards acquiring luxury car brands. However, a luxury car may reflect the user’s lifestyle and passion in life. This phenomenon affects luxury car brands in order to maintain relationships with consumers and to find out what motivates users towards maintaining an existing relationship with the brand. The main objective of this research was to find out whether the luxury values (functional, social, and individual value) significantly and positively affect luxury car brands affective commitment. The model is mediated by brand tribalism and brand reputation. The population of this study is luxury car users whose car brand is either Audi, BMW, or Mercedes-Benz. This study was conducted in Jabodetabek area of Indonesia where almost all of the respondents were gathered from car communities or car clubs. A total of 120 respondents was reached for the real test run. The model was tested quantitatively by using online questionnaire. The collected data was processed and analysed further using Structural Equation Method (SEM) using a program called Smart PLS 3.0. Five hypotheses (H1a, H1b, H2a, H2b, H4) were found to be significant while another three hypotheses (H1c, H2c, H3) were found to be insignificant. In the end, a conclusion was reached: (i) social and individual values significantly affect brand tribalism and brand reputation, (ii) functional value does not affect brand tribalism significantly nor it does brand reputation, (iii) brand tribalism does not affect affective commitment significantly, (iv) brand reputation significantly affects affective commitment. Managerial implications and possible explanations behind the rejected hypotheses were discussed deeply further into this research.

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