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The purpose of this paper is to examine the dimensions of perceived risk, which influence consumers’ purchase intention toward the retailers’ private labels. Based upon the previous literature, majorly four dimensions of the perceived risk have been considered for the study. These include – perceived functional risk, perceived financial risk, perceived physical risk and perceived psychological risk.

Data have been collected by proceeding with mall intercept method and approached shoppers with the questionnaire at the outlets of large Indian retailers – Reliance retail, Aditya Birla’s More, Big Bazaar and Spencer’s. A total of 352 valid questionnaires were obtained, wherein responses were recorded on Likert-type scale anchoring five-points where 1 indicates strongly disagree and 5 indicates strongly agree. Then, the analysis was carried out by using Exploratory Factor Analysis and Multiple Regression Analysis.

Findings of this study revealed that perceived functional risk, perceived financial risk, perceived physical risk and perceived psychological risk have the direct negative and significant effects on consumers’ intention to purchase retailers’ private labels. Thus, all the hypotheses were accepted and all the findings of this study were in line with previous studies.

A limited set of product categories and brands were analyzed.

This study is of great interest for large retailers who wish to increase their private labels’ value proposition, with an in-depth understanding of these risks it could alter their value proposition accordingly and create more successful private labels in the market place.

This study is one among the very few studies which addressed the research on purchase intention toward private labels in Indian context.

The purpose of this paper is to examine the category‐level differences of both risk perception and brand loyalty effects on consumer proneness towards buying private label brands (PLBs).

This paper extends the work of Batra and Sinha by also examining the PLB effects of brand loyalty and price‐quality by product category using a mall‐intercept survey.

The results indicate that quality variability, price consciousness, price‐quality association and brand loyalty influence consumer proneness to buy PLBs. In addition, income, education and household size are moderators of PLB purchasing.

This research confirms the importance of price consciousness and quality variability on PLB purchasing. The importance of these determinants depends on both the product category and the PLB market share within the category.

Retailers and manufacturers need to consider the effects of PLB in relation to the product category. For retailers, the value of a PLB is less relevant in some categories but appealing to the price conscious consumer is important. Manufacturers should note in some categories that brand loyalty is important but not as much as price consciousness. Customer income is still an important determinant of PLB purchasing.

The paper shows that it is important to consider product category differences which make it more difficult to generalize about PLB purchasing.

Previous research has focused on identifying factors that influence buyers who uses price as a cue to quality. However, little work has been done to explain the theory of association and the psychological processes behind the buyer’s price‐quality association. This study examines the process from a psychological perspective and examines some antecedent variables in the formation of a price‐quality inferential belief. Data is collected for two product categories among a sample of young respondents. Results show that (1) the link between perceptual and inferential belief about the price‐quality association is stronger when the perceptual belief is based on direct purchase experience rather than on advertising; (2) buyers that lack direct purchase experience of a product category tends to rely on advertising to form their inferential belief. Implications are discussed, limitations are noted and directions for future research are indicated.

This paper aims to contribute to the literature on brand loyalty by illustrating the mechanisms through which product involvement influences brand loyalty. In doing so, the study is original in considering the mediating role of the multidimensional price perceptions’ construct.

Two thousand questionnaires were distributed in two shopping malls, yielding a sample of 535 consumers, covering eight different grocery products. To test the hypothesized model, the authors relied on structural equation modelling.

Product involvement influences on brand loyalty are partially mediated by price perceptions. This is a novel finding. Moreover, product involvement relates positively to six price perceptions, and this is also original. As expected, value consciousness and sale proneness are detrimental to brand loyalty, whereas price – quality schema contributes to it. Unexpectedly, however, price consciousness, sale proneness and price mavenism are positively related to loyalty.

Managers can improve brand loyalty by increasing consumers’ product involvement, by reducing the reliance on a value-for-money orientation and on non-coupon promotions and by focusing on lower or higher prices and on coupon promotions and emphasizing a price – quality association.

The product involvement/brand loyalty relationship has been characterized by mixed findings. This paper contributes to this debate by clarifying the mechanisms through which involvement relates to loyalty. In doing this, this paper also innovates by investigating the relationship between involvement and the multidimensional price perceptions’ construct. In this process, this paper also inquires how seven price perceptions relate to brand loyalty, with novel findings emerging.

Identifies the relationship between price and the consumer's evaluation of product quality with regard to developing a pricing strategy. Assesses the effects of price changes, and investigates the influence of advertising on perceived product quality.

Consumers use a variety of information cues to select products; price, however, is the most important. It is possible that the market environment can influence how price is viewed by consumers. The purpose of this study is to: establish validity and reliability for multidimensional aspects of the price construct; to explore how US and Korean students are different or similar in their perception of price cues; and to use countries’ retail environments to explore the differences. Findings of this study show that US subjects have higher levels of prestige sensitivity, price mavenism and value consciousness, than did Korean students. However, Koreans exhibited higher levels of sale proneness and price consciousness. Theoretical and managerial implications were suggested based on these findings.

This paper aims to examine how a stereotype threat, which entails being aware of a negative stereotype about one’s social group (e.g. gender), affects consumers’ price perceptions.

The authors conducted four studies to examine the effect of a stereotype threat on consumers’ perceptions of a product’s price–quality relationship.

This study found that being aware of a negative stereotype about one’s social group (i.e. gender here) led consumers to use price more as a quality indicator. This study also determined that reappraisal – an alternative way of coping with stereotype threats – reduced the impact of a stereotype threat and, subsequently, decreased reliance on price to infer quality.

This research contributes to the consumer decision-making literature by examining stereotype threat effect in in-store product purchasing contexts; provides theoretical contributions to the processing of price information by exploring the role of a stereotype threat in price perceptions and revealing that impairment of consumers’ working memory resources affects price perceptions; adds to the existing stereotype threat literature by investigating the effect of a stereotype threat on systematic versus heuristic information processing; and advances the stress and coping literature by suggesting that consumers adopting a reappraisal strategy cope better with a stereotype threat than when opting for a suppression strategy.

This research provides important implications for consumers. For example, the findings suggest that consumers who would like to avoid paying more for stereotype-associated products may adopt reappraisal to cope with a stereotype threat. Reappraisal may allow consumers to use fewer cognitive resources when coping with stereotype threats, thus minimizing the possibility that they might overpay for high-priced products.

This research uniquely examines the effect of a stereotype threat on consumers’ price perceptions and the role of reappraisal in this effect.

This study identifies the factors that affect the knowledge of mortgage loans' total cost.

Empirical research utilizing a survey administered through in-home interviews was conducted. This study adopts the elaboration likelihood model (ELM) theory to analyze the influence of information shortcuts and borrowers' abilities and motivations on the knowledge of mortgage loans' total cost.

The results support that the use of the price–quality cue and brand credibility have negative and positive effects, respectively, on the knowledge of mortgage loans' total cost. Households' primary income earners have a higher knowledge of mortgage loans' total cost. The results also show that the household's primary income earners who are price conscious and brand nonbelievers have more knowledge of mortgage loans' total cost.

Price knowledge studies in financial services, especially in the mortgage loan industry, are scarce. Consequently, understanding the price knowledge level for mortgage loans and its potential antecedents has been insufficient.

Examines the relationship between a product’s features, the consumer’s quality evaluation, and the marketer’s pricing in the context of a dynamic product/market environment. Estimates a simultaneous system model using two‐stage‐least‐squares regression on Consumer Reports data of three high‐technology consumer durables which have shared common product/market characteristics but reached different levels of household ownership in the late 1980s. The results of pairwise correlation and 2SLS regression analyses revealed that the associations between prices and quality evaluations were insignificant, but the associations between product features and prices or between product features and quality evaluations, varied across the three product categories at their different levels of market penetration. As a product’s customer base widens or the consumer’s knowledge and experience with the product accumulates, the significant association of marketer’s prices changes from “with the product’s feature availability” to “with the consumers’ experience‐in‐use advantages,” while the significant association of consumers’ quality evaluations changes from “with the consumers’ experience‐in‐use advantages” to “with the consumers’ experience‐in‐use disadvantages.” The empirical results, however, suggest no relationship between the marketer’s pricing of a product and the Consumer Reports’ overall quality evaluations on the product.

Many apparel brands use growth strategies that involve extending a brand’s line horizontally (same price/quality) and/or vertically (different price/quality). While such opportunities for growth and profitability are enticing, pursuing them could dilute a highly profitable parent brand. Categorization theory’s bookkeeping model and the cue scope framework provide the theoretical framework for this study. The purpose of this study is to test whether specific attributes of a line extension (i.e. direction of extension, brand concept, price discount and perceived fit) make a parent brand more susceptible to dilution.

This experimental study manipulates brand concept (premium or value brand) and price level (horizontal or vertical: −20per cent, −80per cent) and measures perceived fit to test effects on parent brand dilution. ANOVA and t-tests are used for the analysis.

Vertical extensions dilute the parent brand, but horizontal extensions do not. Dilution is strongest for premium (vs value) brands and when line extensions are discounted (i.e. −20per cent or −80per cent lower than the parent brand), regardless of the perceived fit between brand concept and brand extension price. Overall, brand concept is the strongest predictor of parent brand dilution in the context of vertical-downward extensions.

This study establishes which factors emerge as important contributors to parent brand dilution. Although previous studies on brand dilution are abundant, few studies have compared the effects of horizontal and vertical extensions on brand dilution. This study offers strong theoretical as well as practical implications.