The effect of store image and service quality on private label brand image and purchase intention

Document Type : Research Paper

Authors

1 PhD in Business Management, Faculty of Accounting and Management, Farabi Campus, University of Tehran, Qom, Iran

2 Associate Professor, Faculty of Accounting and Management, Farabi Campus, University of Tehran, Qom, Iran

3 Assistant Professor, Faculty of Management, University of Tehran, Tehran, Iran

4 Professor of Statistics, Farabi Campus, University of Tehran, Qom, Iran

10.22034/jbar.2022.3495.1421

Abstract

Introduction: Private label brands are also known as store brands or retail brands. At present, these brands include almost all product categories. They have many benefits for both retailers and consumers. Private brands offer consumers relatively high quality products and very attractive prices. On the other hand, they play a significant role in building consumer loyalty to retailers. As a result, private label brands have become one of the key factors in the success of retailers around the world. The success of private label brands is influenced by many factors, which leads to the purchase intention of private label brands. As a result, in order for retailers to succeed in the field of private label brands, it seems necessary to study these factors. The aim of this study is, thus, to investigate the effect of store image and service quality on private label brands image and purchase intention in ETKA chain stores.
Methodology: The present study is a descriptive survey in terms of data collection from the statistical population. It has a practical purpose because managers can use the results in their decisions. The statistical population of the research is the customers of ETKA chain stores. The available sampling method was used to select the respondents. A questionnaire was designed based on previous studies, and the responses were made in a range of seven Likert options. To collect the data, 420 questionnaires were distributed among the customers of ETKA chain stores in Tehran in 2014. A total of 390 questionnaires were completed and usable. Out of 38 questionnaire questions, 4 questions were related to demographic characteristics, and the other questions related to the measured variables. The demographic characteristics of the sample were analyzed using the SPSS software, and structural equation modeling by the Amos 18 software was used to test the hypotheses and investigate the factor loads and the overall fit of the research model. In structural equation modeling, the model fit and the significance of the relationships were examined. The suitable fit indicators of the model included NFI, CFI, AGFI, GFI, RMSEA, and Cmin/ Df. Cronbach's alpha method was also used to calculate the reliability coefficient. The calculated Cronbach's alpha value of all the variables in this study was 0.785, which is a good value. The cronbach's alpha values for the store image, service quality, private brand image, perceived value, perceived risk and intention to buy private brand were found to be 0.824, 0.897, 0.743, 0.708, 0.741, and 0.854, respectively.
Results and Discussion: According to the results obtained from the data analysis, the indirect effect of store image on the purchase intention for a private label brand is significant. On the other hand, because of the significance of such relationships as store image-brand image, brand image-purchase intention, store image-perceived risk, and perceived risk-purchase intention, it can be concluded that the variables of private brand image and perceived risk have a mediating role in the relationship between the store image and the purchase intention of private label brands.
Conclusion: Marketing managers can use private label brands as a strategic tool in chain stores. This research provides important and practical insights for retailers that offer private label brand products. According to the research results, a retailer can develop strategies based on store image and service quality in order to improve the image of the private label brand for the consumers and to increase consumers' desire to purchase more private label brand products. Focusing on store image features can make a difference in the retail markets' competitive value. Retail managers, especially in chain stores, should be aware that the store image does not always directly increase the purchase intention. Therefore, store image improvement programs should be accompanied by strategies to reduce the perceived risk of consumers towards private label brands and improve the brand image. Consumers' perceived mental image of the private label brands also plays an important role in deciding to buy private label branded products. Marketing managers can reduce financial risks with the good pricing of private label brand products and provide products with good quality and reliable performance to reduce the performance risks. This, in turn, can increase consumers' purchase intention of private label brand products. Store managers can also increase the consumer’s purchase by improving the service quality and the perceived consumer value. The perceived value leads to the purchase intention for private label brands, so the activities of the store should be such that customers feel that, if they buy from this store, they will benefit more than in other stores.

Keywords

References

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Journal of Business Administration Researches
Volume 14, Issue 27
April 2022
Pages 1-26

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