THE IMPACT OF CUSTOMER EQUITY ON WORD-OF-MOUTH BEHAVIOR THROUGH PURCHASE INTENTION: A STUDY ON THE TOURISM INDUSTRY IN INDONESIA

Abstract

This study examines the influence of customer equity on word-of-mouth (WOM) behavior
through purchase intention within the tourism industry in Indonesia, with a specific focus on the Gumuk
Pasir Parangkusumo tourist destination. The research investigates the effects of three elements of customer
equity, namely, value equity, brand equity, and relationship equity, on purchase intention and their impact on
WOM behavior. A total of 150 respondents were surveyed, and data were analyzed using AMOS software.
Results indicate that value equity, brand equity, and relationship equity have a positive impact on purchase
intention, which, in turn, significantly affects WOM behavior. Further analysis suggests that purchase
intention mediates the relationship between brand equity and WOM behavior. The findings have important
implications for managers of tourist destinations who seek to create customer equity by offering quality
products and services, understanding and fulfilling customer needs, providing reasonable prices, and
developing long-term relationships. By building strong brand, value, and relationship equity, businesses can
encourage customers to make purchases, leading to positive WOM behavior. The study concludes that
improving the quality of services, managing unique attractions, and always providing the best service can
increase purchase intention and bring positive feedback to others about the tourist attraction.