THE PERCEIVED VALUES OF INDONESIAN GENERATION Z TOWARDS A LOCAL BRAND’S PRICING STRATEGY

Abstract

The pricing strategy of a newly established business or local brand in Indonesia becomes very important. Indonesia is still believed as a developing country which the society still prefers global brands and products more than their own locals. But in these present days, people are beginning to give the locals chances and started to be proud to wear local products. The problem is that local brands are either set their prices too high because they have the overconfidence to sustain in the market or set their prices too low because they are afraid that society cannot accept them in competition with global brands. The study is researching what are the perceived values of the customers so that the right pricing strategy can be made and suit the market exactly. By using descriptive and multiple linear regression analysis, functional, economic, emotional, social, and service dimensions are taken as the variables towards the perceived values that will determine the pricing strategy of local brands, as the subject of this research. Giving questionnaires to 400 generation Z as the sample, those who are born between 1995 to 2010. The result shows that the five dimensions of value are significant towards their willingness to pay more and having a linear relationship to increase the price as they increase their product’s perceived values