Intergrating effect of consumer perception factors in predicting privating brand purchase in a Korean discount context

Abstract

Purpose Despite proven strategic significance and wide acceptance of private label products (PB), our understanding of PB in international markets is limited. The purposes of this study are to propose a model that integrates four consumer characteristic variables (price consciousness, value consciousness, perceived price variation, and consumer innovativeness) toward PB attitude and purchase intention, and to test the model in two product categories, grocery and home appliances, in a South Korean discount store context.

Design/methodology/approach A total of 168 usable data (87 for food and 81 for home appliances were collected using mall intercept method from female shoppers at one Korean discount store in Seoul, Korea.

Findings The findings revealed that, depending on the product category, contribution of the factors varies. Among four consumer characteristics, only three in each category exhibited direct and indirect association with PB purchase intention. Perceived quality variability in a food category and price consciousness in a home appliance category did not show any relationship with PB purchase intention nor with PB attitude. In both product categories, only two variables, value consciousness and consumer innovativeness, predicted PB attitude. Overall, consumer innovativeness was the strongest factor predicting Korean shoppers’ PB attitude.

Originality/value Important theoretical contributions of this study are finding the relative importance of the variables on PB attitude and purchase intention, and differing roles of consumer variables by product characteristics. Further significance of this study lies in understanding the differing impact of consumer perceptual variables in predicting PB attitude and purchase intention simultaneously. Managerial implications of these results were discussed.