Trade-in Promotion and Its Effect on Brand Loyalty and New Vehicle Purchase Intention
Usep Suhud (a)- Pier Palestrini (b)- Mamoon Allan (c)-

(a) Faculty of Economics, Universitas Negeri Jakarta, Indonesia
(b) LSPR Communication and Business Institute, Jakarta, Indonesia
(c) Faculty of Archaeology and Tourism, Jordan University, Jordan

Abstract

Four-wheeled vehicle sales agents carry out various kinds of promotions to attract the attention of old customers, for example, by using trade-in promotion, a program of exchanging an old vehicle owned by a customer of the same brand for a new vehicle. This study examines the effect of trade-in promotion, promotion awareness, attitude toward a purchase, and brand loyalty on purchase intention. The data was collected in Jakarta by involving the owners of four-wheeled vehicles of the Toyota brand. A total of 270 participants were included in the survey, and they were selected using the convenient sampling method. The data were processed using exploratory and structural equation models. As a result, seven hypotheses were accepted that trade-in promotion affected promotion awareness, purchase intention, and attitude toward purchase. In addition, brand loyalty was influenced by promotion awareness and attitude toward a purchase, and purchase intention was influenced by attitude toward purchase and brand loyalty. The study of trade-in promotion has not received the attention of researchers in the field of marketing. Therefore, this finding fills the existing gap.

Keywords: Automotive product, brand loyalty, promotion awareness, promotional tools, trade-in promotion

Topic: Marketing Management