Effects of Risk-Related Purchasing Factors on Private Label Quality Perceptions in Bosnia and Herzegovina

Abstract

Purpose

This study analyses direct effects of risk-related factors on perceived quality for private labels.

Design/methodology/approach

A total of 159 usable data was collected through survey, using mall intercept method in one regional retail chain in Bosnia and Herzegovina.

Findings

The results confirm that the perceived risk has a significant and negative impact on consumers’ perceptions of the quality of private labels, and that the financial risk, performance risk, and physical risk are significant determinants of overall perceived risk, thus indirectly influencing the perception of the quality of these brands.

Originality/value

This chapter shows that the perceived quality of private labels is significantly determined by the perceived risk to which consumers are exposed. The findings of this research can help retailers in terms of adequately defining marketing policies aimed at reducing the perceived risk that consumers are exposed to when purchasing their own brands.

Citation

Alic, A., Agic, E. and Pestek, A. (2013), "Effects of Risk-Related Purchasing Factors on Private Label Quality Perceptions in Bosnia and Herzegovina", Challenges for the Trade of Central and Southeast Europe (International Business and Management, Vol. 29), Emerald Group Publishing Limited, Leeds, pp. 137-154. https://doi.org/10.1108/S1876-066X(2013)0000029012