Relative importance of retail store image and consumers characteristics on the perception of value and willingness to pay a premium price
ABSTRACT
Retail store image, customer evaluation of merchandise value and intention to purchase have been studied as a most important constructs of the retail domain. It is considered from previous research, that store image is expressed in terms of tangible and intangible dimensions as assessed by consumers. Consumers are affected by the store’s attributes and consider image associations in order to assess perceived benefits and attitudes. This study develops a proposition that store image makes an influence on the level of perceived product value. As recent research has shown, perceived value is related to willingness to pay a higher price. Accordingly, this study posits a path model of store image, product value perception and willingness to pay a premium price. The proposed theoretical framework entails insights on the differences in retail image – customer attitude relationship according to customer characteristics – gender and income. Therefore I hypothesize the impact of gender and income on the perceived merchandise value and willingness to pay a premium price. Analyzing the path model, this paper investigates the influence of retail image and customer characteristics on the important retail outcomes. The results suggest a link of retail store image and perceived value of merchandise, also the hypothesized assumptions of the link of customer income and endogenous variables of perceived value of merchandise and willingness to pay a higher price were supported by the results. Findings of the structural model do not support the effect of the gender on the relationship between retail image and resultant variables of perceived value of merchandise and willingness to pay a higher price.