International Journal of Management and Commerce Innovations ISSN 2348-7585 (Online) Vol. 7, Issue 2, pp: (419-427), Month: October 2019 - March 2020, Available at: www.researchpublish.com
The Role of Brand Image Mediate the Effect of Sponsorship on Purchase Decisions Putu Agus Mahendra Wijaya1, Kastawan Mandala2 1,2 1,2
Udayana University
Faculty of Economics and Bussiness, Bali, Indonesia
Abstract: The rapid development of the coffee industry in Indonesia today, requires coffee companies to be more creative and innovative in increasing sales. This is because the competition in the coffee industry is getting tougher. Overcoming increasingly fierce business competition can be done by planning and implementing a strategic sponsor. Then, it will create a strong and complete product brand image, giving rise to consumer confidence in making Purchase Decision. The purpose of this study was to study the relationship of sponsorship variables to brand image, sponsors to purchase Decision, and brand image variables mediate sponsorship variables to purchase Decision. This research was conducted in Denpasar involving 120 respondents who had visited the event visited by ABC White Coffee. Data collection was carried out using a questionnaire, while data analysis techniques used descriptive analysis, analytical pathways, the classic assumption test and the sobel test. The results of the study found that sponsors supported the brand image and Purchase Decision positively. The brand image supports positively towards the purchase Decisions and mediates the positive sponsor of the purchase Decisions. Keywords: Brand Image, Sponsorship, Purchase Decision.
I. INTRODUCTION The rapid development of the coffee industry in Indonesia today, requires coffee companies to be more creative and innovative in increasing sales and quality of their products. This is due to increasingly fierce business competition in controlling existing market share. Applying the right marketing strategy will help improve the company's position, increase product sales and maintain the company's survival, and will automatically create a good brand Sukoco (2014). Brand is very important to make it easier for consumers to make Purchase Decision and become a stimulus in the implementation of other strategies, therefore companies must be more selective in implementing strategies, especially in the field of marketing. One marketing strategy that can be applied is through sponsorship Nurshanti (2011). According to Sidhi (2014) sponsorship is a form of assistance in the form of funds, services or products to the recipients so that the implementation of the event remains smooth and the sponsoring party has the right to place advertisements and market their products at the location of the event. In Indonesia since 2000, large companies have conducted sponsorship collaborations in organizing various events at regional, national and international levels. An event that can be sponsored by companies is very much, sponsorship in the field of arts and sports is increasingly popular in use by companies today, because it has the greatest interest and often becomes media coverage Hatta (2018). Olkkonen (2006) defines sponsorship as a mutually beneficial business relationship between sponsors and sponsored parties, there are two benefits of implementing sponsorship. First, sponsorship can create public awareness of the company's product or image. Second, relationship relations can be built and developed through sponsorship, becoming an important outcome of various stakeholders after attending sponsored events. Jalilvand (2012) states, a strong brand image will be able to increase consumer confidence in the products and services offered, so as to enable them to better visualize and better understand the importance of a company establishing a sponsorship partnership, then the company's goal of establishing a sponsorship collaboration can be achieved namely to market its products and effect consumers to make Purchase Decision.
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