Customer Relationship, Brands Value, Retail Settings, Service Quality


This study endeavoured to examine the antecedents of customer’s willingness to buy store branded household cleaning products. The study examined this phenomenon in a retail setting by considering the key constituents of perceived value, as proposed by Sweeney, Soutar & Johnson (1999). Respondents were recruited through an in-store survey and the data analysed using PLS path modelling. The results verify those identified by Sweeney et al. Strong relationships between perceived relative price and perceived product value, as well as between perceived product value and willingness-to-buy, were found to exist. A powerful negative relationship was observed between perceived product quality and perceived risk. The results indicate that establishing a value perception is critical in the buying process. Tangible cues exhibiting high quality (e.g. packaging, shelf space, media placement, etc) need profound attention. Furthermore, it is suggested that risk, which plays an important part in the consumer decision process, is minimised through optimal retail service quality and customer reassurances.

Full Text : PDF

  1. Aaker, D.A. 1991, Managing brand equity: Capitalizing on the value of a brand name, Free Press New York. 
  2. Agarwal, S. & Teas, R.K. 2004, "Cross-national applicability of a perceived risk-value model", Journal of Product & Brand Management, vol. 13, no. 4, pp. 242-256.
  3. Batra, R. & Sinha, I. 2000, "Consumer-level factors moderating the success of private label brands", Journal of Retailing, vol. 76, no. 2, pp. 175-191.
  4. Beneke, J. 2010, "Consumer perceptions of private label brands within the retail grocery sector of South Africa", African Journal of Business Management, vol. 4, no. 2, pp. 203-220.
  5. Brown, J., Broderick, A. and Lee, N. 2007. Word of mouth communication within online communities: conceptualizing the online social network. Journal of Interactive Marketing, 21(3), 2-20.
  6. Cronin, J.J., Brady, M.K. & Hult, G.T.M. 2000, "Assessing the effects of quality, value, and customer satisfaction on consumer behavioral intentions in service environments", Journal of Retailing, vol. 76, no. 2, pp.193-218.
  7. DeSarbo WS, Jedidi K, Shina I. 2001., “Customer value analysis in a heterogeneous market”, StrategManag J 22:845–857.
  8. Dodds, W.B., Monroe, K.B. & Grewal, D. 1991, "Effects of price, brand, and store information on buyers' product evaluations", Journal of Marketing Research, vol. 28, no. 3, pp. 307-319. 
  9. Dowling, G.R. 1986, "Perceived risk: the concept and its measurement", Psychology and Marketing, vol. 3, no. 3, pp. 193-210. 
  10. Eriksson, K., Majkgård, A. & Sharma, D.D. 1999, "Service quality by relationships in the international market", Journal of Services Marketing, vol. 13, no. 4/5, pp. 361-375.
  11. Etgar, M. & Malhotra, N.K. 1981, "Determinants of price dependency: Personal and perceptual factors", Journal of Consumer Research, vol. 8, no. 2, pp. 217-222. 
  12. Field, A. P. 2005. Discovering Statistics Using SPSS (2nd edition). London: Sage.
  13. Gabor, A. & Granger, C.W.J. 1993, "Price sensitivity of the consumer", Management Decision, vol. 17, no. 8, pp. 569-575.
  14. Garretson, J.A., Fisher, D. & Burton, S. 2002, "Antecedents of private label attitude and national brand promotion attitude: similarities and differences", Journal of Retailing, vol. 78, no. 2, pp. 91-99. 
  15. Gerstner, E. 1985, "Do higher prices signal higher quality?”, Journal of Marketing Research, , pp. 209-215. 
  16. Grewal, D., Krishnan, R., Baker, J. & Borin, N. 1998, "The effect of store name, brand name and price discounts on consumers' evaluations and purchase intentions", Journal of Retailing, vol. 74, no. 3, pp. 331-352. 
  17. Henseler, J, Ringle, C. and Sinkovics, R. 2010.The use of Partial Least Squares path 
  18. modelling in international marketing. New Challenges to International Marketing, 20, 277-319.
  19. Hoch, S.J. & Banerji, S. 1993, "When do private labels succeed?", Sloan Management Review, vol. 34, pp. 57-57. 
  20. Huber, F., Herrmann, A. and Henneberg, S.C. 2007, “Measuring customer value and satisfaction in services transactions, scale development, validation and cross- cultural comparison”, International Journal of Consumer Studies, Vol. 31, No. 6, pp. 554-64.
  21. Jacoby, J., and Kaplan, L.B. 1972, “The Components of Perceived Risk”, in Proceedings of the Third Annual Conference of the Association for Consumer Research. Association for Consumer Research, pp. 382-393.
  22. Jacoby, J., Olson, J.C. & Haddock, R.A. 1971, "Price, brand name, and product composition characteristics as determinants of perceived quality", Journal of Applied Psychology, vol. 55, no. 6, pp. 570-579.
  23. Kashyap R & Bojanic D. 2000. “A structural analysis of value, quality, and price perceptions of business and leisure travellers”, J Travel Res 39:45–51.
  24. Kumar, N. and Steenkamp, J. 2007, “Private Label Strategy”, Harvard Business School Press: Boston, MA.
  25. Kwon, K.N., Lee, M. and Kwon, Y.J. 2008,"The effect of perceived product characteristics on private brand purchases", Journal of Consumer Marketing, Vol. 25, No.: 2 pp. 105 - 114
  26. Laforet, S. 2007, “British grocers’ brand extension in financial services”, Journal of Product and Brand Management, 16(2), 82-97.
  27. Lapierre, J. 1997, "What does value mean in business-to-business professional services?", International Journal of Service Industry Management, vol. 8, no. 5, pp. 377-397. 
  28. Livesey, F. & Lennon, P. 1993, "Factors affecting consumers' choice between manufacturer brands and retailer own labels", European Journal of Marketing, vol. 12, no. 2, pp. 158-170.
  29. Mitchell, V. 1998, “A role for consumer risk perceptions in grocery retailing”, British Food Journal, 100(4), 171-183.
  30. Monroe K.B. 2002. Pricing: Making profitable decisions. 3rd edition. New York: McGraw-Hill. 
  31. Monroe, K.B. & Krishnan, R. 1985. “The effect of price on subjective product evaluations” in Perceived quality: How consumers view stores and merchandise (edited by J. Jacoby & J. Olson), Lexington Books: Lexington, MA, p.p. 209-232. 
  32. Monroe, K.B. and Lee, A.Y. 1999, “Remembering versus knowing: issues in buyers’ processing of price information”, Journal of the Academy of Marketing Science, Vol. 27, No. 2, pp. 207-25.
  33. Murphy, P.E. & Enis, B.M. 1986, "Classifying products strategically", The Journal of Marketing, vol. 50, no. 3, pp. 24-42.
  34. Narasimhan, C. & Wilcox, R.T. 1998, "Private labels and the channel relationship: A cross-category analysis", Journal of Business, vol. 71, no. 4, pp. 573-600. 
  35. Nirmalya, K. 2007, “The right way to fight for shelf domination”, Advertising Age, 78(4), 24-35.
  36. Peter, J.P., and Tarpey, L.X. 1975, “A Comparative Analysis of Three Consumer Decision Strategies”, Journal of Consumer Research, 2 (June), 29-45.
  37. Peterson, R.T. & Yang, Z. 2004, "Customer perceived value, satisfaction, and loyalty: The role of switching costs", Psychology and Marketing, vol. 21, no. 10, pp. 799-822. 
  38. Petrick, J.F. 2002. Development of a multi-dimensional scale of measuring the perceived value of service. Journal of Leisure Research, Vol 34, No 2, 119-134.
  39. Ralston R.W. 2003, “The effects of customer service, branding, and price on the perceived value of local telephone service”, Journal of Business Research 56:201–213.
  40. Rangaswamy, A., Burke, R.R. & Oliva, T.A. 1993, International Journal of Research in marketing, vol. 10, no. 1, pp. 61-75.
  41. Richardson, P.S. 1997, "Are store brands perceived to be just another brand?", Journal of Product & Brand Management, vol. 6, no. 6, pp. 388-404. 
  42. Richardson, P.S., Jain, A.K. & Dick, A. 1996, "Household store brand proneness: a framework", Journal of Retailing, vol. 72, no. 2, pp. 159-185. 
  43. Settle, R.B. & Alreck, P.L. 1989, "Reducing buyers' sense of risk", Marketing communications, vol. 14, no. 1, pp. 34–40.
  44. Shimp, T.A. and Bearden, W.O. 1982, “Warranty and Other Extrinsic Cue Effects on Conusmer’s Risk Perceptions”, Journal of Consumer Research, 9 (June), 38-46.
  45. Snoj, B., Korda, A.P. & Mumel, D. 2004, "The relationships among perceived quality, perceived risk and perceived product value", Journal of Product & Brand Management, vol. 13, no. 3, pp. 156-167.
  46. Sweeney, J.C. & Soutar, G.N. 2001, "Consumer perceived value: The development of a multiple item scale", Journal of Retailing, vol. 77, no. 2, pp. 203-220. 
  47. Sweeney, J.C., Soutar, G.N. & Johnson, L.W. 1999, "The role of perceived risk in the quality-value relationship: a study in a retail environment", Journal of Retailing, vol. 75, no. 1, pp. 77-105. 
  48. Tam, J.L. (2012) "The moderating role of perceived risk in loyalty intentions: an investigation in a service context", Marketing Intelligence & Planning, Vol. 30, no 1, pp.33 - 52
  49. Ulaga, W., Chacour, S. 2001, "Measuring customer-perceived value in business markets", Industrial Marketing Management, 30, 525-40.
  50. Vahie, A. and Paswan, A. 2006, "Private label brand image: its relationship with store image and national brand", International Journal of Retail & Distribution Management, 34(1), 67 – 84
  51. Vasilecas, O., Caplinskas, A., Wojtkowski, G., Wojtkowski, W., Zupancic, J. and Wrycza, S. 2005. Information systems development: advances in theory, practice, and education. [Online]. Available: [29 August 2011]
  52. Verhoef, P., Nijssen, E. & Sloot, L. 2002, Strategic Reactions of National Brand Manufacturers towards Private Labels, European Journal of Marketing, Vol 36, No 11, 1309-1326.
  53. Wangenheim, F. & Bayon, T. 2007, “Behavioural consequences of overbooking service capacity”, Journal of Marketing, 71:36–47.
  54. Zeithaml, V.A. 1988, "Consumer perceptions of price, quality, and value: a means-end model and synthesis of evidence", Journal of Marketing, 2-22.
  55. Zielke, S. and Dobbelstein, T. 2007, “Customers’ willingness to purchase new store brands”, Journal of Product & Brand Management, Vol 16, No 2, 112-121.