Search results

1 – 10 of over 2000
To view the access options for this content please click here
Article

Ramulu Bhukya and Sapna Singh

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…

Abstract

Purpose

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.

Design/methodology/approach

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

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.

Research limitations/implications

A limited set of product categories and brands were analyzed.

Practical implications

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.

Originality/value

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

To view the access options for this content please click here
Article

Mark S. Glynn and Shaoshan Chen

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…

Abstract

Purpose

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).

Design/methodology/approach

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.

Findings

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.

Research limitations/implications

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.

Practical implications

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.

Originality/value

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

Details

International Journal of Retail & Distribution Management, vol. 37 no. 11
Type: Research Article
ISSN: 0959-0552

Keywords

To view the access options for this content please click here
Article

Hsiu‐Yuan Tsao, Leyland F. Pitt and Albert Caruana

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…

Abstract

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.

Details

Asia Pacific Journal of Marketing and Logistics, vol. 17 no. 1
Type: Research Article
ISSN: 1355-5855

Keywords

To view the access options for this content please click here
Article

Alcina G. Ferreira and Filipe J. Coelho

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…

Abstract

Purpose

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.

Design/methodology/approach

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.

Findings

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.

Practical implications

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.

Originality/value

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.

Details

Journal of Product & Brand Management, vol. 24 no. 4
Type: Research Article
ISSN: 1061-0421

Keywords

To view the access options for this content please click here
Article

R.S. Masen

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…

Abstract

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.

Details

European Journal of Marketing, vol. 8 no. 1
Type: Research Article
ISSN: 0309-0566

Keywords

To view the access options for this content please click here
Article

Byoungho Jin and Brenda Sternquist

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…

Abstract

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.

Details

International Marketing Review, vol. 20 no. 6
Type: Research Article
ISSN: 0265-1335

Keywords

To view the access options for this content please click here
Article

Pablo Farías

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

Abstract

Purpose

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

Design/methodology/approach

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.

Findings

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.

Originality/value

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.

Details

International Journal of Bank Marketing, vol. 39 no. 1
Type: Research Article
ISSN: 0265-2323

Keywords

To view the access options for this content please click here
Article

Eunsang Yoon and Valerie Kijewski

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…

Abstract

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.

Details

Pricing Strategy and Practice, vol. 5 no. 2
Type: Research Article
ISSN: 0968-4905

Keywords

To view the access options for this content please click here
Article

Michelle Childs, Byoungho Jin and William L. Tullar

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…

Abstract

Purpose

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.

Design/methodology/approach

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.

Findings

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.

Originality/value

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.

Details

Journal of Product & Brand Management, vol. 27 no. 6
Type: Research Article
ISSN: 1061-0421

Keywords

To view the access options for this content please click here
Article

Peter J. Boyle, Hyoshin Kim and E. Scott Lathrop

This paper aims to investigate price and objective-quality in durable product categories containing national and private-label (PL) brands.

Abstract

Purpose

This paper aims to investigate price and objective-quality in durable product categories containing national and private-label (PL) brands.

Design/methodology/approach

Using data from consumer reports objective-test results of 14,476 durable products available in the US the authors identified product categories containing both national and PL brands; constructed relative price- and quality-indices for each category; calculated price and quality differentials for each category then modeled the relationship between them; estimated the price premium associated with national brands (NBs); and computed price–quality (PQ) correlations for each category. The authors also analyzed the same relationships using subjective brand-perception data collected from 240 consumers.

Findings

Overall the price of NBs in durable products was substantially higher than the price of PL brands despite there being little to no difference in quality levels overall, with the proportion of categories having higher PL quality nearly equaling that of categories having superior NB quality. Correlation between price and quality was moderate. Accuracy of consumer perceptions varied depending on the importance of brand in the purchase decisions for particular product categories.

Originality/value

This paper uses a large objective dataset spanning a period of more than eight years to assess price and quality for durable goods in categories offering PL brands. It addresses an under-studied area, that of PL brands for higher-priced, longer-lasting products. The findings contribute to an existing understanding of PLs, especially in the domain of durable-goods, as well as to the body of research in the area of PQ relationships. It also adds to our understanding of consumers’ perceptions of brand as a factor in durable product decisions and how the market aligns with those perceptions.

Details

Journal of Product & Brand Management, vol. 27 no. 6
Type: Research Article
ISSN: 1061-0421

Keywords

1 – 10 of over 2000