i THE EFFECTS OF BRAND EQUITY ON CAPITAL MARKET INVESTMENT INTENTION: THE MEDIATING ROLE OF PERCEIVED RISK UNDERGRADUATE THESIS Submitted in Partial Fulfillment of the Requirement for The Degree of Bachelor of Economics Yovita Mandasari 20160410272 INTERNATIONAL PROGRAM OF MANAGEMENT AND BUSINESS FACULTY OF ECONOMIC AND BUSINESS UNIVERSITAS MUHAMMADIYAH YOGYAKARTA 2020
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i
THE EFFECTS OF BRAND EQUITY ON CAPITAL MARKET
INVESTMENT INTENTION: THE MEDIATING ROLE OF
PERCEIVED RISK
UNDERGRADUATE THESIS
Submitted in Partial Fulfillment of the Requirement
for The Degree of Bachelor of Economics
Yovita Mandasari
20160410272
INTERNATIONAL PROGRAM OF MANAGEMENT AND BUSINESS
FACULTY OF ECONOMIC AND BUSINESS
UNIVERSITAS MUHAMMADIYAH YOGYAKARTA
2020
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DECLARATION PAGE
I hereby,
Name : Yovita Mandasari
Student Number : 20160410272
Stating that this paper with the title: "THE EFFECTS OF BRAND EQUITY ON
CAPITAL MARKET INVESTMENT INTENTION: THE MEDIATING ROLE OF
PECEIVED RISK" no work has ever been submitted to obtain a degree in a
university, and as long as my knowledge or opinions is not available that have been
written or published by other people, except those written in reference to this text and
mentioned in the References. If it turns out that in this thesis it is known that there are
works or opinions that have been written or published by other people, then I am
willing to cancel the work.
Yogyakarta, July 10th
, 2020
Yovita Mandasari
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MOTTO
QS Al-Insyirah 94:5-6
“Verily with every hardship comes ease”
“An investment in knowledge pays the best interest”
― Benjamin Franklin
“When the dark night passes, a bright morning will come”
― BTS
“Even when I fall and hurt myself, I keep running toward my dream”
― BTS
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DEDICATION
الرحيم الرحمن الل بسم
Thank you, I pray to Allah SWT for all the endless graces so I am able to
complete this undergraduate thesis well and smoothly. I believe that everything is
based on our hard work. Allah found me lost and guided me.
* My Beloved Parents, Brother, and Sister *
Thank you, my father, my mother, my brother, and my sister for the endless
support. Without you I won’t be able to finish this undergraduate thesis. I present this
thesis for my family as my gratitude for your hard work and sacrifice.
* My Friends *
Thank you for all the endless support from all my friends. Your suggestion,
criticism, makes this thesis possible. I hope we all find what we dreamed of and let’s
achieve success in our own way.
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ABSTRACT
The phenomenon of competition among companies is getting tighter in this
era. It makes companies to do more in order to get higher value in the mind of
customers. One of value of company that becomes important is brand. Brand is
intangible assets that lead customers trust and involves person's willingness to
behave. A company’s reputation also supported by how strong its brand equity.
Nowadays, marketing is getting dynamic to be used in any areas, including capital
market industry. The improvement of capital market investment within the last three
years makes company conducting marketing things to promote their companies in
order to get potential investors who interested to invest in their company by exposing
brand information. This study investigates the influence of brand equity on
investment intention. It explores the mediating effect of perceived risk towards brand
equity and investment intention. It tests the differential respond between brand
popularity (famous and non-famous brand), risk information (low and high risk) on
willingness to invest. Experimental research is conducted in this study to test the
difference respond before and after treatment. The number of participant in this study
is 121 participants. The findings of this study are famous brand has good brand
equity and company that has famous brand type in low risk has positive respond to
intention to invest. This study discusses about consumer good industry company that
listed in Indonesia Stock Exchange (IDX), PT Unilever Indonesia Tbk. It concerns in
how companies that have strong brand equity can attract and encourage people to