Impact of Paragon Cor'p Brand Equity Components on Purchase Decision of Gen Z Residing in Jakarta

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Asti Febrianti, Esther (2025) Impact of Paragon Cor'p Brand Equity Components on Purchase Decision of Gen Z Residing in Jakarta. Graduate thesis, Institut IPMI.

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Abstract

Indonesia’s cosmetics industry has been expanding, with the current valuation at US$7 billion, and is projected to reach US$10 billion in 2027. This growth expansion is promoted by the rise of Gen Z customers that are starting to dominate the Indonesian market, as nearly 54% of the beauty product customers are Gen Z. In addition to that, beauty and cosmetics products are the second most consumed products by Gen Z, only following after clothes. There are several Indonesian local brands that Gen Z loves, which include Wardah, Emina, and Make Over—which are under the umbrella of Paragon Corp brand (PT Paragon Innovation and Technology). This striking phenomenon has driven the curiosity of the researcher to further examine the effect of Paragon Corp’s brand equity components on the purchase decision of its Gen Z customers. This research utilized Aaker’s brand equity model, where there are four components of the brand equity, which are brand awareness, brand associations, perceived quality, and brand loyalty. The research is conducted by acquiring the responses from 133 respondents of Gen Z who are living in DKI Jakarta using an online questionnaire distributed through a third-party survey platform. In addition to that, respondents are also classified based on their city of residence, occupations and their expenditure level (which signifies their SES level). Afterwards, the data is processed and analyzed using multiple linear regression on SPSS software. This research has confirmed that brand awareness and brand associations do not have a significant and positive effect on the purchase decision, while perceived quality and brand loyalty have a significant and positive impact on the purchase decision. Therefore, this research suggests cosmetic brands—especially Paragon Corp—to not solely rely on their brand awareness. Instead, they are highly advised to start building their perceived quality as a differentiation strategy while also cultivating brand loyalty from the consumers to become the leading brand in the market. Keyword: Aaker’s Brand Equity, Purchase Decision, Gen Z, Cosmetics Industry, Brand Awareness, Brand Associations, Perceived Quality, Brand Loyalty

Item Type: Thesis (Graduate)
Subjects: H Social Sciences > H Social Sciences (General)
Divisions: Thesis > Bachelor of Business Administration
Depositing User: Dwi Selviyana
Date Deposited: 17 Dec 2025 06:40
Last Modified: 17 Dec 2025 06:40
URI: http://repository.ipmi.ac.id/id/eprint/2902

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