How Word of Mouth Influence Brand Equity for Automotive Products in Indonesia

The objective of the study is to evaluate the influence of WOM towards brand equity on automotive customer in Indonesia. Brand equity in this case is measured using brand awareness, association, loyalty, and perceived quality. Data was collected by deploying questionnaire and automotive customers were the respondents. Taking into account that research variables (WOM, brand awareness, association, loyalty, perceived quality, and brand equity)are latent in nature, Structural Equation Modeling (SEM) was used to perform data analysis. Result shows that WOM influence brand awareness, association, loyalty, and perceived quality significantly in the positive direction. Subsequently brand awareness, association, loyalty, and perceived quality influence brand equity significantly and positively.