Pan-Pacific Conference XXXIV. Designing New Business Models in Developing Economies

Purchase intention
Purchase intention has been defined as how
susceptible a person can be to different stimuli such
as branding, advertising, previous experience, and
he carrying out of a purchasing behavior. This has
focused the attention of many psychologists and
economists to understand what variables influence
the creation of favorable attitudes toward brands,
and from this, what influence they have on
intentions to purchase [26][22][7][27][9]. Although
the focus of this research is not to measure
purchasing behavior in new products, the statement
of the purchase intention of a product appears to be
sufficient when seeking to predict such behavior
which requires consideration of new variables [35].
THEORETICAL FRAMEWORK
The research proposal expects to determine if using
all the set of variables of brand equity and perceived
risk at the same time can influence and improving
the purchase intention indicator, with consumer
attitude as a mediating variable. The theory
supports the possible influence of the attitude on
purchase intention, considering the latter as the
result of the brand equity and the perceived risk on
the consumer.
In addition, and according with Bagozzi there are
two additional groups of attitudes, evaluative
attitudes and emotional attitudes whose have to be
included in this research. These support the theory
about the influence on purchase intention using the
attitude as the variable that can influence or affect
the results over consumer [10][11][12][17].
The model used Structural Equation Model, because
it allows the simultaneous analysis of the latent
variables, which can only be measured by observed
variables through calculation of the various tests
and statistical indices. See the research proposal
model in Figure 1
Brand
Awareness
Images
Associations
Perceived
Quality
Loyalty
Social
Risk
Financial
Risk
Functional
Risk
Psychological
Risk
Physical
Risk
Time
Risk
Brand
Equity
Perceived
Risk
Subjective
Norm
Figure 1: Research proposal model
Attitude
Perceived
Behavioral
Control
Attitude
Towards
Purchase
Intention
The model suggests purchase intention as dependent
variable, brand equity and perceived risk as
independent variables and consumer attitude. As
mediating variable. The model also considers
latent variable: The model considers brand equity,
perceived risk and consumer attitude as latent
variables. Observed variable: The model considers
four variables of brand equity, six variables of
perceived risk and three variables of consumer
attitude as observed variables.
Hypothesis
The research considering the following hypotheses:
H1: Perceived risk influence purchase intention
directly and through the mediating variable of
attitude;
H2: Perceived risk has an influence on brand equity
of the soluble coffee brand;
H3: Brand equity has an influence on perceived risk
of the soluble coffee brand;
H4: Brand equity of the soluble coffee brand has an
influence on consumer attitude and thus on purchase
intention; and
H5: Brand equity and perceived risk have an
influence on consumer attitude and thus on purchase
intention of the soluble coffee brand;
RESEARCH DESIGN
This research has been approached from a positivist
paradigm, with a deductive approach that applies
statistical techniques to get to know to what extent
the purchase intention can be affected if the
perceived risk, brand equity and attitude are taken
as a whole.
This research is of the correlational type that aims,
through an analysis of cause-effect, to determine the
degree of influence of different independent
variables on the dependent variable. This
confirmatory study, seeks to know the extent that
variables are related [19]. The correlation test is
considered to test hypotheses of causal relationships
and tries to identify the influence of the brand
equity and perceived risk on purchase intention
through attitude as the moderating variable [16][34].
Sampling frame
The city selected for this research is Bogotá. It had
the largest share of soluble coffee sales at the end of
2016. The population will be limited to heavy users
within soluble coffee category, men and women
between 20 and 55 years old, equivalent to
6’509,481 people. The socioeconomic level from
two to six, representing 92% of the population.
Sampling procedure
The research will be of a probabilistic type, and it
will use a proportional stratified sample. The
cartography or official list of neighborhoods and
localities of Bogotá’s urban areas will be used in the
research. The sampling technique divides the
sample in different groups, (a) locality (areas), (b)
neighborhood, (c) household, (d) people and unit of
research, considering this as a multi-stage sampling.
Instrument
The variables of brand equity construct will be
measured on a 7 point scale (Likert scale), where
one means strongly disagree and seven means
strongly agree [14]. Brand equity will be measure
with 21 items. The variables of perceived risk
construct will be measured on a 7 point scale
(Likert scale), where one means strongly disagree
and seven means strongly agree [33] Perceived risk
will be measure with 18 items. The variables of
attitude construct will be measured on a 7 point
scale (Likert scale), where one means strongly
disagree and seven means strongly agree [3]
[4][11][12][13]. Attitude will be measured with 25
items.
Internal consistency was measured through
Cronbach's alpha coefficient
199