The Relationship between Brand Image and Purchase Intention: Evidence from Award Winning Mutual Funds

Abstract

Mutual funds represent one of the most popular investment instruments. Some institutions offer fund awards to recognize strong performing funds and fund groups that have shown excellent returns relative to their peers. Many fund companies also use awards won in their advertising and marketing material. This brings rise to the question: Do investors think award winning funds have a better brand image? Can awards increase investors’ purchase intention? The purpose of this study is to investigate the relationships and effects of brand image, perceived quality, perceived risk, perceived value, and purchase intention, as well as to examine the effects of demographic variables on these five dimensions. The research findings show significant relationships between brand image, perceived quality, perceived value, and purchase intention. In addition, some demographic variables may lead to significant differences in these five dimensions. Finally, the results from structural equation modeling show that there are positive and direct effects among brand image, perceived quality, perceived value, and purchase intention. Brand image indeed increases investors purchase intentions. The purchase intention is affected mainly by perceived quality, not by perceived risk.

Keywords: Brand Image, Perceived Quality, Perceived Risk, Perceived Value, Purchase Intention

JEL Classification: G1, M1, M5