Does Luxury Brand Perception Matter In Purchase Intention?A Comparison Between A Japanese Brand And A GermanBrand

The research regarding luxury products in developed economies can be found in many literatures,on the other hand similar research in developing economies are still limited. Since this topic is stillunderexplored, particularly in developing economies, the purpose of this study is to investigate Indonesianconsumers’ perception of two different luxury brands that comes from different countries,namely BMW (Germany) and Lexus (Japan). Data was collected from diverse Indonesian BMWand Lexus owners. The consumers’ general brand perception and perceived values of luxury car areexamined in this study. Data analysis used structural equation modeling (SEM). Results indicatedthat Indonesian consumers considered Japanese luxury car’s (Lexus) conspicuous value higher thanGerman luxury car (BMW). Nevertheless, BMW was considered to have higher value in all of therest of the aspects studied such as quality value, social value, and hedonic value. Even though so, theresult of the study finds that Lexus owners have a higher purchase intention than BMW owners. Theresearch concludes that luxury brand perception is highly affecting consumers’ purchase intention inthis luxury automotive industry.