CC BY
20
UDC 332; DOI 10.18551/rjoas.2022-07.05
ROLE OF BRAND IMAGE AND BRAND TRUST IN MEDIATING E-WOM ON REPURCHASE INTENTION OF CHATIME DRINK IN DENPASAR
Putera I Wayan Adi Gunawan, Ekawati Ni Wayan
Faculty of Economics and Business, University of Udayana, Indonesia *E-mail: dixground.ind@gmail.com
ABSTRACT
The aims of this research to explain the influence of e-WOM on repurchase intentions, brand image, and brand trust, to explain the influence of brand image and brand trust on repurchase intentions, and to explain the role of brand image and brand trust mediating the influence of e-WOM on repurchase intentions at Chatime in Denpasar City. This study used quantitative data types that analyzed associatively. The sampling technique in this study was purposive sampling. The data collection technique used was in the form of distributing questionnaires to the people of Denpasar city. The samples used were as many as 135 chatime drink customers in Denpasar City. The data were analyzed using the SEM-PLS technique. The results of this study show that brand image and brand trust has a positive and significant effect on repurchase intentions, brand image and brand trust mediates the influence of e-WOM on repurchase intentions has a positive and significant effect. The practical implication that can be given from the research findings is that this study can be used as a basic model for evaluating chatime strategies for e-WOM, brand image, brand trust and repurchase intentions.
KEY WORDS
e-WOM, brand image, brand trust, repurchase intention.
The world today is presented by various types of culinary that compete with each other until there are competitors who threaten the existence of their products. National.kontan.co.id stated that the culinary industry is the biggest contributor to creative economic growth.
Franchising is a system of marketing goods or services based on a closed partnership (between the franchisor and the franchisee) and separate legally and financially where the franchisor grants rights to the franchisees and provides an obligation to carry out their business in accordance with the concept of the franchisor. Judging from the issuance of the Franchise Registration Certificate (STPW) by the Ministry of Trade, the number of local franchises will reach 107 brands in 2021, an increase compared to STPW in 2020 which amounted to 105. Local franchises that we can find in Bali in particular are food franchises that are already familiar is JFC, which is a franchise that serves ready-to-eat chicken meals. Local franchise brands have become the dominant market share in a number of sectors, including modern retail, but in the food and beverage sector, franchising in foreign brands is still being strengthened. People choose a business using a franchise system, because it can cut their work time which can be transferred to other jobs or businesses.
There are many types and consumers of franchise products that focus on beverages, considering that beverage products are easy to find and practical to consume. One of the tea drinks that are now familiar in the community is Chatime. Chatime is a provider of brewed tea drinks from Taiwan that presents more than 50 flavors. Chatime is identified with its purple colors because it is Henry Wang Yao-Hui's own favorite color. The name Chatime itself is a brand name that can be considered unique because, in Chinese, Chatime means "Sunrise". Chatime is a pun that has a double meaning of Tea Time (Cha-Time) or a place to socialize with friends (Chat-time).
Chatime in Indonesia is one of the business units under the Kawan Lama Group which has been around since 2011. In the process of serving drinks, Chatime uses selected tea leaves which are processed using the latest brewing machine. Adopting the concept of serving a customized drink, Chatime customers can determine for themselves the type of
topping and the amount of sugar and ice they want. Chatime also always innovates by presenting the latest menu. You can also enjoy Chatime drinks with additional topping choices, including Pearl, Pudding, Grass Jelly, Rainbow Jelly, Red Bean, Aloe Vera, Coconut Jelly, Coffee Jelly, and Mousse.
During the Covid-19 pandemic, shopping for delivery orders is a very popular thing to stay at home to prevent the spread of the Covid-19 virus. The Covid-19 outbreak can be transmitted from person to person through people infected with the virus. Currently, Covid-19 is having a huge impact on the global economy. The mobilization of the world's population that has high connectivity has caused the current pandemic to continue to spread rapidly. In 2020, Covid-19 is a big concern, one of which is Indonesia. Many losses have been caused by this pandemic which has an impact on the Indonesian economy. This impact will reduce people's repurchase intentions where the velocity of money will be very minimal and at the same time the production of goods will be limited and cause a trade deficit (Yamali and Putri, 2020).
During the pandemic, people can still enjoy Chatime dishes from accessing via gofood or grabfood, by using these services consumers can prevent contracting the covid virus that is being experienced around the world. However, there are several phenomena that mention the dangers of consuming bubble tea. Quoted from hot.liputan6.com in June 2019, which mentioned the dangers of consuming a drink that is being favored by young people today. Tea drinks combined with various other ingredients such as milk, sugar, to sweet and delicious toppings are certainly very interesting to try. Bubble tea toppings are usually round and small like pearls and have a soft texture. This topping made from tapioca flour comes from starch processed from cassava tubers. However, despite having a very good taste, bubble tea can actually cause various health problems. The danger of drinking bubble tea too often for health can even be fatal. Various diseases from diseases that can be cured quickly and severe diseases such as cancer can attack if you consume them too often. Statements in the online world can result in a decrease in the intention of the chattime drink.
Repurchase intention is defined as an individual's assessment of the intention to repurchase a product or service from the same company, taking into account the current situation (Matute et al., 2016). Research conducted by Rahman et al. (2020) revealed that to increase consumers' repurchase intention, e-WOM plays an important role in marketing success that influences consumer buying behavior. e-WOM influences product evaluation by consumers, as well as purchase decisions and post-purchase reviews. This study reveals the effect of trust between e-WOM and intention to buy products from the internet can create a brand image for an organization and build trust among buyers. Based on research conducted by Rahman et al. (2020), consumer repurchase intention cannot be separated from e-WOM which is mediated by brand image and consumer brand trust in the services provided.
e-WOM is a form of non-formal communication directed at consumers through an internet-based technology related to the characteristics or use of certain goods and services (Dewi and Sudiksa, 2019). e-WOM is able to attract more customers into digital businesses (Rahman et al., 2020). Positive e-WOM has a greater influence on consumers than negative e-WOM, because it increases a positive view of brands and goods (Rahman et al., 2020). e-WOM can influence consumers' repurchase intentions in shopping. This statement is supported by previous research conducted by Rahman et al. (2020) and Arif (2019) which state that the more positive e-WOM published by previous consumers can influence future consumers to make repurchase intentions. e-WOM is a positive statement made by consumers about a product or company that can be accessed by many people or institutions via the internet (Haikal et al., 2018).
Brand image is an important competitive advantage that helps in creating value through brand differentiation, shaping the reason for buying, and value significance for Shopee (Kala and Chaubey, 2018). Brand image can influence repurchase intention based on e-WOM contained in previous consumer reviews. This statement is supported by previous research conducted by Arif (2019) which stated that the better the brand image of a company, the higher the consumer's intention to repurchase. Yohana et al. (2020) explained that brand
image also has a positive and significant role in mediating the effect of e-WOM on repurchase intentions.
In addition to the effect of brand image, repurchase intention is also caused by the brand trust that consumers have in the brand. Consumers will make repurchase intentions because consumers feel the security and trust they have in Chatime is high, so consumer expectations are high, this trust can arise from previous purchases and the opinions of people around or previous consumer reviews. This statement is supported by several previous studies conducted by Samuel and Lianto (2014) and Syafaruddin et al. (2016) which states that the effect of brand trust on repurchase intention is positive and significant, which means that if consumers have confidence in a brand and have made a previous purchase, it will increase their repurchase intention on the product. Brand trust also has a positive and significant role in mediating the effect of e-WOM on repurchase intentions according to research conducted by Prasad et al. (2017) and Rahman et al. (2020).
In this digital era, the spread of e-WOM is very fast. Positive word of mouth information will be remembered by consumers much more often and produce a positive brand image, on the contrary it will be less remembered and cause a negative brand image if the information is negative (Adriyanti & Indriani, 2017). E-WOM makes consumers have knowledge about the product they will choose before making a purchase, then the risk that consumers receive will be less than when consumers have absolutely no knowledge about the product (Matute et al., 2016). With reviews about products from previous consumers, it can affect consumers' repurchase intentions for these products; this statement is supported by research conducted by Arif (2019) and Rahman et al. (2020).
The reason this research was conducted in Denpasar City, is because Chatime outlets are easy to find in Denpasar City, with this phenomenon, the researcher assumes that the location is worthy of research in order to get optimal results. This study also conducted a pre-survey of 20 respondents in Denpasar City. A total of 11 respondents stated that they have repurchase intentions at Chatime because Chatime has a brand image and brand trust that arises from transactions that have been carried out by respondents before. After purchasing Chatime products, respondents feel satisfied, thereby creating trust in the minds of consumers. This creates a repurchase intention at Chatime. However, there were 9 respondents who did not agree to buy back at Chatime because the respondents were worried about the information about the dangers of consuming the bubble tea drink. The purpose of conducting this pre-survey is as a reference for researchers to take samples to be more accurate, due to a phenomenon in the field which states that Chatime is one of the pioneers of bubble tea drinks in Indonesia, which has won the hearts of Indonesian connoisseurs (Endeus, 2019).
There is a research gap in this study, Torlak et al. (2014); Savitri and Zahara (2016); Arumsari and Ariyanti (2015); Kamal, (2015); Nasir, (2017); Christie and Krisjanti, (2019) stated that e-WOM has a positive and not significant effect on repurchase intention. Aniesa (2018); Eze et al, (2012); Sriyanto (2016) stated e-WOM has a negative and insignificant effect on brand image. Stated electronic word of mouth has no positive and insignificant effect on repurchase intentions. Other studies, brand image has no significant effect on repurchase intention (Chin and Harizan, 2017). Nofiani's research, (2014) which stated that trust had no effect on purchasing decisions and Kumaralita et al (2017) stated that e-WOM had no significant effect on trust. The inconsistent research results between e-WOM and repurchase intention is a research gap.
Having a great and easily recognizable brand makes it easy for companies to win the competition (Sinurat et al., 2017). Research conducted by Dharma and Sukaatmadja (2015) states that brand image has a positive and significant effect on repurchase intentions. This means, the higher the brand image, the higher the level of continued repurchase intention. The role of brand trust in mediating the effect of e-WOM on repurchase intention has an important role. When consumers have trust in a brand, consumers will be willing to rely on the brand and believe that the brand has high reliability and integrity (Eun-Jung, 2019), and the research gap creates a gap to prove the role of brand image and trust in mediating e-WOM on repurchase intentions at Chatime in Denpasar City.
RJOAS, 7(127), July 2022 METHODS OF RESEARCH
This study uses the exogenous variable represented by the e-WOM construct (X), the intervening variable is represented by the brand image construct (M1) and brand trust (M2) and the endogenous variable is represented by the repurchase intention construct (Y).
The population in this study are all Chatime customers who live in Denpasar City with an infinite number of objects, where the collection of objects or individuals that are the object of research whose boundaries are unknown or cannot be measured on the total number of individuals contained in this study. In this study, a non-probability sampling technique was used to collect samples with purposive sampling method. Respondents needed in this study were 27 x 5 = 135 respondents.
In determining the respondents in this study, the criteria used were domiciled in Denpasar, aged 17 years and over, had bought and consumed Chatime drinks within the past month. Data analysis techniques used for this research are descriptive statistics and inferential statistics.
RESULTS AND DISCUSSION
The measurement model or outer model with reflexive indicators is evaluated with
convergent and discriminant validity from indicators and composite reliability for indicator
blocks.
Table 1 - Convergent Validity Test Results
Brand Image Brand Trust Repurchase Intention e-WOM
M1.1 0.935
M1.2 0.900
M1.3 0.878
M2.1 0.732
M2.2 0.902
M2.3 0.842
M2.4 0.878
X1.1 0.912
X1.2 0.945
X1.3 0.909
Y1 0.855
Y2 0.896
Y3 0.890
Y4 0.863
Source: Data Processing Results, 2022.
The results of the convergent validity test in Table 1 shows that all values for the indicator and variables have values greater than 0.70. Therefore, we can conclude that all indicators meet the convergent validity requirement.
Table 2 - Discriminant Validity Test Results (Cross loading)
Brand Image Brand Trust Repurchase Intention e-WOM
M1.1 0.935 0.728 0.746 0.671
M1.2 0.900 0.744 0.753 0.656
M1.3 0.878 0.648 0.677 0.485
M2.1 0.630 0.732 0.602 0.482
M2.2 0.683 0.902 0.790 0.647
M2.3 0.626 0.842 0.666 0.579
M2.4 0.699 0.878 0.725 0.604
X1.1 0.593 0.679 0.707 0.912
X1.2 0.636 0.642 0.696 0.945
X1.3 0.640 0.590 0.638 0.909
Y1 0.645 0.703 0.855 0.649
Y2 0.726 0.752 0.896 0.679
Y3 0.694 0.712 0.890 0.629
Y4 0.748 0.747 0.863 0.631
Source: Data Processing Results, 2022.
Based on Table 2, it can be seen that in each variable are greater than 0.7. Therefore, we can conclude that all indicators meet the convergent validity requirement. The following is an image of the Loading Factors diagram for each indicator:
Figure 1 - Empirical Model PLS Algorithm Table 3 - Discriminant Validity Results with AVE
Variable Average Variance Extracted (AVE)
X1 (E-WOM) 0.851
M1 (Brand Image) 0.818
M2 (Brand Trust) 0.707
Y (Repurchase Intention) 0.768
Source: Data Processing Results, 2022.
Based on Table 3, you can see that the AVE's values for all variables are greater than 0.50. Therefore, this model can be considered appropriate for this study is valid.
Table 4 - Instrument Reliability Research Results
Cronbach's Alpha Composite Reliability
X1 (E-WOM) 0.912 0.945
M1 (Brand Image) 0.889 0.931
M2 (Brand Trust) 0.860 0.906
Y (Repurchase Intention) 0.899 0.930
Source: Data Processing Results, 2022.
The reliability of variables e-Wom, brand image, brand trust, and Cronbach's alpha output for repurchase intention all exceed 0.70. This means that all variables are reliable.
Table 5 - Coefficient of Determination Value
Variable R-square R-square Adjusted
M1 (Brand Image) 0,455 0,451
M2 (Brand Trust) 0,478 0,474
Y (Repurchase Intention) 0,778 0,773
Source: Data Processing Results, 2022.
Based on Table 5, the model of the effect of e-WOM on the brand image has an R-squared value of 0.455. This can be interpreted as the fluctuation of the brand image variable
being explained by the fluctuation of the e-WOM variable of 45.5%. 54.5 percent can be explained by other variables. In addition, due to the impact of e-WOM on brand trust, the R-squared value is 0.478. This can be interpreted as explaining brand trust variable variability by 47.8% variability in the e-WOM variable, while 52.2% is explained by other variables outside the study. Next, the model of the impact of e-WOM, brand image, and brand trust on repurchase intention provides an R-squared value of 0.778. This can be interpreted so that the volatility of the repurchase intent variable can be explained by the volatility of e-. WOM variables, brand image and brand trust are 77.8%, while 22.2% are explained by other variables not surveyed. Based on Q-square calculations, it can be explained that 93.7% of repurchase intention are affected by e-WOM, brand image and brand trust, and the remaining 6.3% are affected by other variables.
Figure 2 - PLS Bootstrapping Model
e-WOM has a direct effect on brand image with a statistical value of 7,995. E-WOM has a direct effect on brand trust with a statistical value of 7.620. E-WOM has a direct effect on repurchase intention with a statistical value of 2.123. Brand image has a direct effect on repurchase intention with a statistical value of 3.540 and brand trust has a direct effect on repurchase intention with a statistical value of 4.361.
Table 6 - Path Coefficients
Hypothesis Effect Between Variables Original Sample (O) Sample Mean (M) Standard Deviation (STDEV) T Statistics (|O/STDEV|) P Values
H1 e-WOM -> Repurchase Intention 0,233 0,254 0,110 2,123 0,034
H2 e-WOM -> Brand Image 0,675 0,678 0,084 7,995 0,000
H3 e-WOM -> Brand Trust 0,692 0,697 0,091 7,620 0,000
H4 Brand Image -> Repurchase Intention 0,313 0,308 0,089 3,540 0,000
H5 Brand Trust -> Repurchase Intention 0,425 0,407 0,098 4,361 0,000
Source: Data Processing Results, 2022.
A hypothesis test of the effect of e-WOM on repurchase intention gave a correlation coefficient of 0.233. The value of the t-statistic is 2.123 (> t-critical 1.96), so the impact of e-WOM on repurchase intent is significant. Therefore, Hypothesis 1 (H1) is based on e-WOM has a significant positive effect on repurchase intention is accepted. These results support the research of Liang et al. (2017) which suggests that e-WOM has a positive effect on repurchase intentions on Airbnb consumers. A similar study by Kudeshia (2017) also states that e-WOM has a positive effect on repurchase intentions. These results are also in accordance with the results of research conducted by Nuseir (2019), Rahman et al. (2020) and Arif (2019) which state that e-WOM has a positive effect on repurchase intentions.
A hypothesis test of the effect of e-WOM on the brand image gave a correlation coefficient of 0.675. The value of t-Statistics is 7.95 (> t-critical 1.96), so the impact of e-WOM on the brand image is important. Therefore, Hypothesis 2 (H2) is accepted and shows that e-WOM has a significant positive effect on the brand image. These results support a study by Jalilvand and Samiei (2012) who found that the e-WOM language had a positive impact on brand image. The results are Sandes and Urdan (2013), Torlaketal. It is also consistent with the study of. (2014) and Pratiwi and Yasa (2019) found that e-WOM had a significant positive effect on the brand image. Johanna et al. (2020) and Rahman et al. (2020) also suggests in their research that e-WOM has a positive impact on brand image.
A hypothesis test of the effect of e-WOM on brand trust gave a correlation coefficient of 0.692. The value of t-Statistics is 7.620 (> t-critical 1.96), so the impact of e-WOM on brand trust is important. Therefore, Hypothesis 3 (H3) that says so e-WOM has a positive and significant effect on brand trust is accepted. These results support the research of Bulut and Karabulut (2018); Anggitasari and Wijaya (2016); Syafaruddin et al. (2016); Seifert and Kwon (2019) stated that there was a positive effect of e-WOM on brand trust, brand trust was significantly more positive when e-WOM on social media was positive.
As a result of hypothesis testing on the effect of brand image on repurchase intentions, the correlation coefficient was 0.313. The value of the t-statistic is 3.540 (> t-critical 1.96), so the impact of the brand image on the repurchase intention is important. Therefore, Hypothesis 4 (H4) is accepted. This shows that the brand image has a significant positive impact on repurchase intention. Brand image has a positive effect on repurchase intentions, indicating that if the physical product owned by Chatime is very attractive, the product owned by the Chatime company is very satisfactory, the price of the product offered is comparable to that presented, has the supporting facilities of the Chatime product very satisfactory, then this will further increase consumers' purchase intention on Chatime products. These results also show that if Chatime provides a variety of services, then Chatime provides price variations of the products in question and Chatime provides differentiation from the physical appearance of a product, then this will further increase consumers' purchase intentions for Chatime products. In addition, the results also show that if the Chatime name is easy to pronounce, then the Chatime name is easy to remember, and Chatime provides a match Between the impression of the brand that is memorable to the customer and the image that the company wants from the brand in question, consumers are more willing to buy Chatime products.
These results support the research of Yundari and Wardana (2019); Yasa (2018); Christie and Krisjanti (2019) and Nuseir (2019); Eze et al, (2012), Sriyanto (2016), Chin and Harizan (2017), Rahman et al., (2020) and Yohana et al., (2020) It states that the brand image has a positive impact on repurchase intent. The higher the brand image of a product, the higher the consumer's willingness to buy.
As a result of hypothesis testing of the effect of brand trust on repurchase intention, the correlation coefficient was 0.425. The value of the t-statistic obtained is 4.361 (> t-critical 1.96), and the impact of brand trust on the repurchase intention is significant. Therefore, Hypothesis 5 (H5) is accepted. This shows that brand trust has a significant positive impact on repurchase intention. Trust has a positive effect on repurchase intention, indicating that if Chatime obtains high trust from consumers because Chatime provides more enjoyment when consumed, then consumers rely on the Chatime brand, and consumers trust reviews, comments, suggestions, what is found online and Chatime gives a sense of comfortable, then this will further increase consumers' purchase intentions on Chatime products. This study is in accordance with the research of Astarina et al. (2014); Syafaruddin et al., (2016) and Heesup et al. (2019) also states that brand trust has a positive influence on repurchase intention.
Based on Table 7, the results revealed that the indirect effect between e-WOM variables for repurchase intent through brand image received a value of 0.211 and received an indirect effect between e-WOM variables on repurchase intention through brand trust obtained a value of 0.294. Based on Table 8, the total indirect effect between the variables of e-Wom on repurchase intention is 0.506.
Table 7 - Indirect Effect Test Results
Influence between variables Original Sample Standard _ „. .. .. o i n/i n, ■ i- T Statistics Sample Mean Deviation (O) (M) (STDEV) (l°/SIDtVD P Values
e-WOM -> Brand Image -> Repurchase Intention 0.211 0.208 0.062 3.423 0.001
e-WOM -> Brand Trust -> Repurchase Intention 0.294 0.280 0.064 4.622 0.000
Source: Data Processing Results, 2022.
Table 8 - Total Indirect Effect Result
Original Sample Mean Standard Deviation Sample (O) (M) (STDEV) T Statistics (|O/STDEV|) P Values
e-WOM -> Repurchase 0 506 0 488 intention ' ' 0,064 7,873 0,000
Source: Data Processing Results, 2022.
Table 9 - Mediation effect result
Hypothesis Mediation Effect Variance Accounted For (VAF) Criteria
H6 e-WOM -> Brand Image -> Repurchase Intention 0,417 Partial
H7 e-WOM -> Brand Trust -> Repurchase Intention 0,581 Partial
Source: Data Processing Results, 2022.
The VAF score for indirect effects between e-Wom variables on repurchase intent through brand image is 0.417, which is in the VAF score range of 0.20 to 0.80 and falls into a partial category. In addition, the VAF score for the indirect impact between e-Wom variables on the brand's trust in repurchase intent is 0.581, which is in the VAF score range of 0.20 to 0.80. It falls into the category of partial mediation. The results of this study support the work of Kadafi (2015) Puturi and Amalia (2018); Anggitasari and Wijaya (2016) and Yokohama et al. (2020) The role of the brand image in mediating e-WOM on purchase intentions indicates that the brand image is considered appropriate to mediate the influence of e-WOM on repurchase intentions. The higher or more positive the consumer's e-Wom for a Chatime product, the more motivated they are to buy back the Chatime product by increasing the Chatime brand image.
The results of this study support the work of Prasad et al. (2017); Purna Masari and Juliant (2018); Dewi and Sudiksa (2019) and Rahman et al., (2020) They also found that the impact of e-WOM on repurchase intent conveyed by brand trust has a positive impact. The higher the consumer's e-WOM for a Chatime product, or the more credible the Chatime brand is, the more motivated they are to buy the Chatime product again.
CONCLUSION
Based on data analysis and discussion, the study concludes that e-WOM has a positive and significant impact on the intention to repurchase Chatime beverages in the city of Denpasar. Therefore, the higher the eWOM, the more likely you are to buy more chatime beverages in the city of Denpasar. e-WOM has a positive and significant impact on the brand image of Chatime beverages in the city of Denpasar. This indicates that the higher the e-WOM, the higher the brand image of the chatime drink in Denpasar. e-WOM has a positive and significant impact on the trust of the Chatime beverage brand in the city of Denpasar. In other words, the higher the eWOM, the higher the chatime beverages' brand trust in the city of Denpasar. The brand image has a positive and significant impact on the willingness to buy back chatime beverages in the city of Denpasar. In other words, the higher your brand image, the more motivated you will be to replenish your chatime drinks in Denpasar City. Brand credibility has a positive and significant impact on the willingness to buy back chatime beverages in the city of Denpasar. In other words, the more credible the brand is, the more motivated you are to buy back Chatime drinks in the city of Denpasar. The brand image can
convey the impact of eWOM on repurchase intent. This indicates that eWOM may increase the repurchase intention Chatime beverages, and when communicated through the brand image, the repurchase intention will increase again. Brand trust can convey the impact of e-WOM on repurchase intention. The results of this study suggest that e-WOM may increase repurchase intention for Chatime beverages, and when communicated through brand trust, repurchase intention will increase again.
Based on the results of the survey analysis, we have some suggestions: among others, Chatime can analyze this in order to get maximum results, in order to establish interaction between consumers to complement each other which are expected to get positive or negative input about products and services for company stability, differentiation is needed.
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