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How previous positive experiences with store brands affect purchase intention in emerging countries: A comparison between Brazil and Colombia

Mbaye Fall Diallo (Institute of Retail Marketing and Management, Université de Lille 2, Roubaix, France) (LSMRC Lab, Skema Business School, Université de Lille 2 (IMMD), Roubaix, France)
Jose Ribamar Siqueira Jr (Department of Marketing, Davenport University, Grand Rapids, Michigan, USA) (Colegio de Estudios Superiores de Administración – CESA, Bogotá, Colombia)

International Marketing Review

ISSN: 0265-1335

Article publication date: 10 July 2017

Abstract

Purpose

Brand experience is a key factor that helps elucidate why consumers choose a given brand among others. The purpose this paper is to investigate how previous experience with store brands affects store brand purchase intention in two emerging markets and whether the cultural context moderates the relationships between store brand positive or negative cues and store brand purchase intention.

Design/methodology/approach

A store-intercept survey undertaken in the Latin American context generated 769 usable responses from consumers of two metropolitan cities (Brasilia and Bogota), respectively, in Brazil and Colombia. The questionnaires were collected in four well-established retail chains by professional investigators. Structural equation modelling was used to test a series of proposed hypotheses.

Findings

Overall, this paper reveals that consumers in Latin America do care about brand experience when shopping. More specifically, the results indicate that previous positive experience with store brands has a positive effect on consumer purchase intention in both countries investigated. In Brazil, store brand price perceptions mediate rather strongly the relationship between previous experience with store brands and purchase intention. In contrast, this effect is weak in Colombia. Store brand perceived risk has significant mediation effects in Brazil, but no mediation effects in Colombia. The authors also underline heterogeneous moderation effects of the cultural context, suggesting that common perceptions of Latin America as a culturally homogeneous region are stereotypical.

Research limitations/implications

Respondents were consumers of only two Latin American emerging countries (Brazil and Colombia) and shoppers of two retail chains in each country. Caution should therefore be exercised when generalising the results to other emerging markets.

Practical implications

The paper offers recommendations on how to standardise/adapt brand experience management in different Latin American markets. Overall, retailers should go beyond the transaction itself and establish true differentiation using different store brand ranges. However, due to differences in cultural contexts, marketing communication should adopt different approaches to each country: emphasise the price advantages of store brands in Brazil, but focus on other factors such as quality in Colombia. Because they are culturally bound, risk perceptions towards store brands should also be managed carefully. It would be possible to target premium consumer segments with standard store brands in Colombia while a more sophisticated approach is necessary in Brazil (e.g. co-branding or launching more premium store brands).

Originality/value

By employing three theoretical frameworks (learning theory, cue utilisation theory and culture theory), this research investigates the effect of previous experience with store brands on purchase intention in two emerging countries that are geographically close but culturally different. It highlights direct and indirect processes of brand experience and underlines significant structural path differences between the two Latin American countries investigated in terms of consumption behaviour towards store brands.

Keywords

Acknowledgements

The authors would like to thank University of Brasilia for logistical support, University of Aix-Marseille (France) and the French Government (CAPES COFECUB program) for financial support provided for a part of the survey. The authors also thank Professor Eduardo Vargas (University of Brasilia) and Professor Jean-Philippe (Aix-Marseille University) for their help at various stages of the project.

Citation

Diallo, M.F. and Siqueira Jr, J.R. (2017), "How previous positive experiences with store brands affect purchase intention in emerging countries: A comparison between Brazil and Colombia", International Marketing Review, Vol. 34 No. 4, pp. 536-558. https://doi.org/10.1108/IMR-07-2014-0224

Publisher

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Emerald Publishing Limited

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