. Willingness to purchase is positively influenced by
perceived product value.
. Perceive value mediates the impact of perceived relative
price on willingness to buy.
. The influence of perceived risk on willingness to purchase
is mediated by perceived value.
. Perceived relative price impacts the perceived value.
. Perceived value is influenced by perceived quality.
. Perceived relative price influences perceived quality.
. Perceived risk impacts on perceived value.
. Perceived product quality negatively influences perceived
risk.
Partial mediation was additionally found for perceived value
on the impact of perceived quality, perceived risk on the
influence of perceived value, and perceived product quality on
the effect of perceived value.
These findings closely relate to those found in the earlier
study concerning electronic goods. The strong influence of
perceived product value on purchase decisions highlights the
need for marketers to place considerable emphasis on price.
Ideally, national and store brands should be priced relatively
so that the increased risk of choosing a brand perceived as
inferior is compensated by savings. But retailers are warned
against mid-range pricing as this could signal inferior quality
relative to leading brands while not been low enough to
prompt purchase.
Perceived risk would seem to be a particular issue for lower
socio-economic groups in South Africa. Efforts to minimize
risk and offer greater affordability could lower the reluctance
of these consumers to adopt private label products. Beneke
et al. propose making improvements to the quality of these
goods, while addressing risk concerns through such as
offering product samples, in-store demonstrations and
appealing returns policies.
The importance of signaling quality is likewise noted.
Attractive in-store displays of merchandise and promotion
using appropriate media channels are suggested. With regard
to the latter, the authors recommend using glossy magazines
and other “niche publications” rather than mass-produced
newspapers. Educating consumers about store brands is also
considered imperative. Marketers should emit positive
messages about their private label brands and use social
media channels as a cost-effective way of reaching consumers.
Firms are additionally advised to improve operations and
manage the supply chain more efficiently. Focusing on such as
service quality and store layout can help provide a positive
experience for customers at retail outlets and improve their
perception of the store’s own brands.
Researchers might in future consider other product
categories, especially premium goods. Simultaneous study of
national and private label brand domains is another
possibility.