Trade-In Promotion and Its Effect on Brand Loyalty and New Vehicle Purchase Intention

Abstract

Four-wheeled vehicle sales agents carry out various kinds of promotions to attract the attention of old customers, for example, by using trade-in promotion, a program of exchanging an old vehicle owned by a customer of the same brand for a new vehicle. This study examines the effect of trade-in promotion, promotion awareness, attitude toward a purchase, and brand loyalty on purchase intention. The data was collected in Jakarta by involving the owners of four-wheeled vehicles of the Toyota brand. A total of 270 participants were included in the survey, and they were selected using the convenient sampling method. The data were processed using exploratory and structural equation models. As a result, seven hypotheses were accepted that trade-in promotion affected promotion awareness, purchase intention, and attitude toward purchase. In addition, brand loyalty was influenced by promotion awareness and attitude toward a purchase, and purchase intention was influenced by attitude toward purchase and brand loyalty. To date little attention has been paid to trade-in promotion in the field of marketing and thus, this study fills the existing gap in the pertinent literature.