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

This study aims to investigate the direct effects of store image and service quality on brand image and purchase intention for a private label brand (PLB). This study also investigates the indirect effects mediated by perceived risk and price consciousness on these relationships.The sample in this study consisted of three hundred and sixty (360) customers of the Watsons and Cosmed chain of drugstores. The pre-test results identified “Watsons” and “My Beauty Diary” as the research brands of the PLB for the two stores, respectively. This study uses LISREL to examine the hypothesized relationships.This study reveals that (1) store image has a direct and positive effect on the purchase intention of the PLB; (2) service quality has a direct and positive effect on the PLB image; (3) the perceived risk of PLB products has a mediating effect on the relationship between the brand image and the consumers purchase intention of the PLB.

Research highlights► This study investigates the direct effects of store image and service quality on brand image and purchase intention for a private label brand (PLB). This study also investigates the indirect effects mediated by perceived risk and price consciousness on these relationships. ► The sample in this study consisted of three hundred and sixty (360) customers of the Watsons and Cosmed chain of drugstores. The results of this study reveal that (1) store image has a direct and positive effect on the purchase intention of the PLB; (2) service quality has a direct and positive effect on the PLB image; (3) the perceived risk of PLB products has a mediating effect on the relationship between the brand image and the consumers purchase intention of the PLB. ► Marketing managers can effectively use the results of this study since the PLB is a critical strategy for a chain of stores. Managers can enhance consumers’ perception of the PLB image by improving the service quality that relates to the PLB. Marketing managers can improve the store image by increasing product variety, enhancing product quality, offering the products in the price worthy of value, and pleasantly decorating the store. These improvements directly increase the purchase intention of the PLB. Marketing managers can price the PLB product appropriately to reduce perceived financial risk, and provide PLB products with good quality and reliable performance safe for use to reduce perceived performance risk and physical risk, which in turn will increase consumers’ purchase intention for PLB products.