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CONCLUSION AND RECOMMENDATION

5.1 Conclusion

In this chapter, the author will explain about the conclusion of the findings and the

conclusion obtained from the findings. Moreover, the author also will further explain

about the managerial implications, limitations, and suggestion for future research.

This research observed about ‘ The Effect of Brand Trust toward Brand Equity of Instant

Noodle’s products’ which further analyze the relationship between four variables which

are satisfaction, brand trust, brand loyalty and brand equity. From total 7 hypothesis ( 3

main hypothesis with 4 sub hypothesis), 5 hypothesis were supported and 2 hypothesis

were not supported. The finding of this research suggests that there is relationship

between satisfaction, brand reliability (a dimension of brand trust), brand loyalty and

brand equity within instant noodle’s industry. However the research found that there is

no relationship between satisfaction with other dimension of brand trust which is brand

intention, and brand intention also does not have relationship with brand loyalty.

This research shows that most of the instant noodle’s consumers become loyal to a brand

because they expect that the brand has ability to consistently and continuously provide

satisfying taste for them. That brand trust formed by the overall evaluation of consumers

toward their experience with the brand (whether they are satisfied or not satisfied with

the brand). Further, brand loyalty also has relationship with brand equity by means that

when brand loyalty increase, brand equity will also increase (because the consumers will

not likely to change to the other brands in any situation). The reason why there is no

relationship between overall satisfaction with brand intention, and brand intention with

 
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brand loyalty is because most of the consumers think that instant noodle is a mass

product and the company mostly huge, therefore they do not believe that the company

would be able to address their concerns or handle their problems with the products.

Brand trust generally is affected by overall satisfaction and affects brand loyalty;

however in the context of instant noodle’s industry, only one dimension of brand trust

has relationship with overall satisfaction and brand loyalty, which is brand reliability.

The reason of the findings is because most of the consumers become loyal to an instant

noodle’s brand because of their satisfaction toward the taste, not because of the

company’s good intention toward their consumers.

The other finding that this research obtained from cross tabulation is that the consumers’

awareness about the bad effect of consuming Instant Noodle does not have association

with theirbrand loyalty. It is means that although most people aware of the instant

noodle’s bad effect, the consumers do not care and still willing to consume it. In addition

demographic factors (income, gender, ages, etc) also do not has association with brand

loyalty.

Morover, this research also found that there is also no association between brand

domination with brand trust, which is measured by the dimensions ( brand reliability

and brand intentions). It means that the customers have the same perception of brand

trust towards the dominating brand and non dominating brand.

As already stated in Chapter 1 and 3, the objectives of conducting this research are:

- Discovered factors which influences brand equity by testing the theoretical model

using these variables (overall satisfaction, brand trust, and brand loyalty)

 
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- To examine the importance of brand trust in the development of brand equity.

And the benefits by achieving those objectives:

- Companies in the industry could know how to develop brand equity of their products,

which will further provides them some competitive advantages (e.g: price flexibility

of customers , greater market share, customers become more prefer toward the brand,

etc)

- This research could be helpful for the companies to restructure and improving their

marketing strategies to become stronger brand and more competitive in the market,

also have greater brand equity.

5.2 Managerial Implication

The findings from this research would not only beneficial for education, but also could

be beneficial and used by the practitioners in instant noodle industry. This research for

example allows the players in the industry to increase their performance / equity. This

research suggests that one way to increase brand equity is by increasing the brand trust

from the customers, especially related to brand reliability means that the brand could

able to always satisfied them in terms of the taste and performance.

The small players or new comers in the industry need to adapt their flavors with

market’s interest, probably qualitative research ( e.g: focus group) and market testing

needs to be done for understanding the preferences of the consumers.

In order to make consumers trust the brand, firstly the company need to make people

aware about the product. To increase the awareness of the consumers of their products,

the new comers/ small players in the industry need to enhance their promotional strategy

 
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( e.g: through advertising strategy, products’ display strategy at retailers, attractive

packaging, innovative flavors, etc ). In Indonesia, one effective way to increase brand

awareness especially regarding to food product is by Word Of Mouth.If the company

has effective advertising strategy and has a good quality product, positive Word of

Mouth about the product will be also increase.

The players in the industry need to know that to make consumers loyal to their brand is

the reliability of the brand. Therefore, they need to make their customers believe that the

brand could always offer them good performance/ good taste. A practical way to

increase brand reliability is through applying ‘strict product’s quality control’ to make

the brand be able to deliver consistant quality of their product. When customers already

have belief that the brand delivered satisfying products, therefore their loyalty would be

increase..

Regarding to brand loyalty, thecompany needs to do market research routinely, to

evaluate the performance of their products and to know their consumers demand toward

their products, in order to sustain the loyalty of their consumers .Moreoverr, in order to

enhance the equity of the brand, the company should also do continuous innovation to

anticipate the competitions in the market and therefore their power/ equity in the

industry would be sustained.

The players also need to increase the brand intentions as to make the competitive

advantage of the brands. To increase the brand intentions, one of the ways is by educate

the customers or giving information to their customers for example about the acceptable

level of MSG and preservatives in instant noodle product, and also give information to

 
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the customers about their level of MSG and preservatives in their product, therefore the

customers will feel more secure to consume their product.

5.3 Limitations

In the research, there are some limitations occurred during the study because of the time

limitation:

- The number of respondents in this study is 150 respondents which has its certain

limitation to generalize the opinion of the society.

- The respondents for this study was chosen using convenience sampling to

simplify the research process, which is actually has limitation to have different

types of respondents.

- In this study, there are certain variables that might be significance for the result

but was not take into account such as brand reputation and external influence

which form brand trust ( Lau and Lee, 1999) and also perceived quality which is

one of the dimension of brand equity ( Aaker, 1991). Because based on the result

in this study, the most reason why the respondents willing to repurchase an

instant noodle brand is because of the taste ( which means that the brand has

good quality) and also because of the tradition or habit ( their family always

provide that instant noodle’s brand at their house or because most people in

Indonesia buy that instant noodle’s brand)

5.4 Recommendation for Future Research

- For the future research, the author recommend to add brand reputation, external

influence and perceived quality as the additional variables, because the author

 
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think that those variables might have relationship with brand equity in instant

noodle industry.

- The author also suggeststo include more respondents for the study to more

confirm the findings of the study.

- The future research would be better to use random sampling ( as the original

research) to obtained more variety of respondents.