CONSUMERS’ PERCEPTION TOWARDS STORE BRAND

CONSUMERS’ PERCEPTION TOWARDS STORE BRAND

Dr. N. Meeran Mydheen

Associate Professor, School of Commerce and International Business, Dr. G. R. Damodharan College of Science, Coimbatore.

ABSTRACT

Stores are nowadays expected to establish their brand image for survive in the market.

Over the period, stores enrich their services from augment to potential position for this. But it is

difficult to struggle with big giant’s concentration on retail sector in recent years. In order to

create more brand image in specific market, they have to understand the consumer perception

towards store brand. This study was conducted in Coimbatore city to understand consumers’

perception and expectation towards store brand. This study finds that majority of respondent are

belong to urban area and fall in the age group of 29-35.

Key Words: Brand, Perception, Consumer, Retail, Quality

Introduction

Retail are emerging sectors in India, its net sales are quite significant among the world

retail sector. Indian consumers‟ views and expectations towards retails are influenced by various

aspects like growth of middle class, exposure of global lifestyle with technological growth, flow

of FDI and inflow of global brand and marketing strategies. Hence the every retailer has to

present themselves as a unique outlet to the end users. Store brand is a creation of uniqueness

for their outlet by segmenting, pricing, packing, facilitating with their own brand. The stores falls

under one brand are responsible for maintaining of stock, sourcing, warehousing, and control and

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developing, merchandising of stock and marketing. Nowadays, the retailer may create format for

their services into various ways like supermarket, departmental stores, single brand and multi

brand and chain store. This formats require some uniqueness and identification, hence the

concept of store brand have emerged. The main advantages of store brand are control over

brand, more freedom and flexibility on pricing, more control over product attribute and quality ,

profit margin, and can fill the category gap that are not being filled by national brand.

Competition among these stores in creation of brand may give positive result for the consumers‟

purchase process. This study focus on the consumers‟ perception towards store brand in

Coimbatore. Coimbatore is one of the leading business centres with good number of

manufacturing sectors and services sectors.

Review of literature

Alan Dick, Arun Jain, Paul Richardson, (1996) their study shows that store brand prone

consumers exhibit significantly less reliance on extrinsic cues in quality assessment. Reliance on

brand name had an especially strong effect in forming taste expectations. Price reliance had a

marked effect in determining perceptions of quality and reliability of ingredients.. Eugene

Sivadas, Jamie L. Baker‐Prewitt, (2000) reveals in his study that service quality influences

relative attitude and satisfaction with department stores. Satisfaction influences relative attitude,

repurchase, and recommendation but has no direct effect on store loyalty. Fostering favorable

relative attitude and getting customers to recommend the product or service holds key to

fostering store loyalty. Kusum L. Ailawadi, Scott A. Neslin, Karen Gedenk (2001), reveal

findings in their study that though demographics do not influence these behaviors directly, they

have significant associations with psychographic characteristics and therefore are useful for

market targeting. Most important, usage of store brands and usage of promotions, particularly

out-of-store promotions, are associated with different psychographics. Store brand use correlates

mainly with traits related to economic benefits and costs, whereas the use of out-of-store

promotions is associated mainly with traits related to hedonic benefits and costs. Kristof De

Wulf, Gaby Odekerken‐Schröder, Frank Goedertier, Gino Van Ossel (2005), shows the results

confirm the common belief that private label products can offer the same or even better quality

than national brands, but at a lower price. George Baltas, Paraskevas C. Argouslidis (2007),

disclose in their study that specific consumer characteristics are associated with interpersonal

process, in which quality has the most significant role. The results also demonstrate the changing

image of store brands, the endorsement of such products by consumers of higher socio‐economic

status, and lead to important implications for both retailers and manufacturers of consumer

products Rita Martenson, (2007), shows in her study that most important for customer

satisfaction is the store brand. Customers are satisfied when the store is neat and pleasant and

when they feel that the store understands their needs. Only certain customer segments are

interested in store brands. Marcel Corstjens, Rajiv Lal (2000), in this article, In a market in

which a segment of consumers is sensitive to product quality and consumers‟ brand choice in

low-involvement packaged goods categories is characterized by inertia, the authors show that

quality store brands can be an instrument for retailers to generate store differentiation, store

loyalty, and store profitability, even when the store brand does not have a margin advantage over

the national brand. A quality store brand policy is profitable only if a significant portion of

shoppers buys the national brand. Mbaye Fall Diallo, Jean‐Louis Chandon, Gérard Cliquet, Jean

Philippe, (2013), depicts results in his study indicating that store image perceptions, Store Brand

price‐image, value consciousness, and Store Brand attitude have significant and positive

influence on Store Brand purchase behaviour. Store familiarity positively influences Store Brand

choice, but not Store Brand purchase intention. None of the socio‐demographic variables (age,

gender, household income, and family size) included as control variables has an effect on SB

choice.

Statement of problem

Nowadays stores have to meet huge competition in emerging globalization scenario. They are

driven by product brand as well as other store competitor. The store itself creates marketing

strategy to enrich brand image and occupy the strong place in consumer minds. They need to

understand the consumer perception towards store brand.

Objective of study

This study is carried out with following objectives:

a) To understand the profile of the customer

c) To understand consumer „s perception on branded store

Research Methodology

The data were collected through structured questionnaires and distributed to visitors of

various branded store in Coimbatore city. The questionnaire was prepared with five point Likert

Scale method. There were twenty five branded stores chosen in Coimbatore city on convenient

sample methods. From each store ten visitors were selected to collect primary data. Totally 250

questionnaire were collected through convenient sampling method. Descriptive statistics and

Chi-Square technique were used to analyse the data and with percentage analysis, the respondent

were categorized into various segments.

ANALYSIS

Profile of the Consumer

Table No. 1 depicts the profile of the consumer of stores in the Coimbatore City.

Consumers‟ profile includes gender, residential, age, occupation, income and education are taken

for understanding classification of consumer who using stores.

Table No. 1.

Profile of Consumer

Valid Frequency Percent

Gender Male 184 73.6

Female 66 26.4

Total 250 100.0

Resident City 152 60.8

Rural 98 39.2

Total 250 100.0

Age Below 20 65 26.0

21-35 123 49.2

36-50 49 19.6

Above 51 13 5.2

Total 250 100.0

Employee 91 36.4

Agriculture 18 7.2

Professional 16 6.4

None 26 10.4

Total 250 100.0

Income Per Month Below 15000 5 2.0

15001-25000 41 16.4

25001-40000 132 52.8

40001-60000 44 17.6

Above 60000 28 11.2

Total 250 100.0

Education _{Secondary Level} 66 26.4

Degree Level 141 56.4

Post Graduate 21 8.4

Professional 22 8.8

Total 250 100.0

Table No. 1 shows that majority (73.6 Percent) of the respondent belong to

male, majority (60.8 percent) of the respondent are residing in city area, majority (40.2 percent)

of consumer falls under the age group of 29-35 category, majority (39.6 Percent) of the

respondent doing business are visiting the stores, 52.8 percent of the respondent falls under the

income group of (25,001-40,000), 56.4 percent of the respondent are degree holders.

Number of time visited

Table No. 2 shows that the number of time visited the stores by the consumers.

As many as time a consumer visiting stores will show their level of satisfaction towards stores

brand.

Table No. 2

Number of time visited the Store

Valid Frequency Percent

Number of Time

Visited

one time 6 2.4

Rare 29 11.6

Occasionally 71 28.4

Frequent 106 42.4

Regularly 38 15.2

Total 250 100.0

Table No. 2 depicts that majority of the respondent (42.4 Percent) are visiting the stores

frequently.

Purpose of visit

Table No. 3 shows that purpose of visiting the store. The purpose includes

shopping, entertainment, just a company with others who intending to visit the stores for their

own purpose, enquiry about the product to make purchase decision. The purpose of visit has

been evaluated through five point scales with Regular, Frequently, Occasional, Rare and None.

Table No. 3 Purpose of Visit

Descriptive Statistics

N Minimum Maximum Mean Std.

Deviation

Shopping 250 1 4 2.42 .924

Entertainment 250 2 5 3.67 1.074

Just a company to

others

250 1 5 3.13 .902

Enquiry about product 250 2 5 3.58 .902

Table No. 3 depicts that means score 3.67 shows that stores were visited for

entertainment purpose was rare. Mean value of purpose of visiting stores is close to 2.42 shows

that stores were visited frequently for the shopping purpose

Selection of a store

Table No. 4 shows that factors of selection of stores includes convenient, brand of store,

Trust, variety of product, product brand, price , service after sales, ambience, product quality,

service quality , Elite, Credit facility measured by five point scale with Strongly Agree, Agree,

Neutral, Disagree, Strongly Disagree.

Table No. 4

Selection of a Store

Descriptive Statistics: Selection of a Store

N Minimum Maximum Mean Std. Deviation

Convenenient 250 1 4 1.78 .758

Brand 250 1 5 1.98 1.086

Trust 250 1 2 1.46 .499

Variety Of Product 250 1 4 1.52 .701

Product Brand 250 1 5 1.94 .923

Price 250 1 4 1.65 .799

Service After Sales 250 1 4 1.88 .834

Ambience 250 1 5 3.69 1.101

Product Quality 250 1 2 1.28 .450

Service Quality 250 1 2 1.51 .501

Elite 250 1 4 1.85 .835

Credit Facility 250 1 5 2.59 1.216

Table No. 4 reveals that highest mean value 3.69 shows that Ambience of

parking has been „Disagreed‟. Mean value 1.28 is close to Strongly Agree shows the product

Opinion on success factor on branded stores

Table No. 5 shows the opinion of the respondent towards various factor success of store

brand which include which include private label, modern looking, store layout, merchandise

display, role of national brand, celebrity influence on store brand. Respondent‟s opinions were

evaluated through five point scale with Strongly Agree, Agree, Neutral, Dis-agree, Strongly

disagree.

Table No. 5

Descriptive Statistics: Opinion on success factor of branded stores

N Minimum Maximum Sum Mean Std.

Deviation

Private Label 250 1 4 562 2.25 1.003

Modern Looking 250 1 4 479 1.92 .680

Store layout 250 1 4 552 2.21 .867

Merchandise

display

250 1 4 513 2.05 .745

National Brand 250 1 5 709 2.84 1.155

Celebrity influence 250 1 5 764 3.06 1.167

Table No. 5 reveals that the respondent agrees that modern looking of the stores increase

the outlook of the stores. The highest mean value (3.06) is close to „Dis-Agree‟ for Celebrity

influence towards store brand. Because of mean value of modern looking (1.92) is close to

„Agree‟.

Correlation between Income and Price of Branded Stores

The Table No. 6 shows that correlation between Income of the respondent and their

opinion on price of Branded stores. Income of the consumers is one of the deciding factors of

purchasing power which ultimately influence on price of product or services. This table shows

whether there is any significant relativity between income of the respondent and Price of the

Branded stores.

Null Hypothesis: There is no significant relationship between Income of the respondent and

Price of the Branded stores

Alternative hypothesis: There is significant relationship between Income of the respondent and

Price of the Branded stores

Table No.6

Correlations between Income and Price of Branded Stores

Income Per

Month

Price of

Branded

Stores

Income Per Month

Pearson

Correlation

1 .186**

Sig. (2-tailed) .003

N 250 250

Price of Branded

Stores

Pearson

Correlation

.186** 1

Sig. (2-tailed) .003

N 250 250

**. Correlation is significant at the 0.01 level (2-tailed).

Table No. 6 shows that correlation between income of the respondent and opinion on

prices of branded store. This Table shows that Pearson‟s „r‟ is 0.186 which is close to 0 hence

there is weak relationship between Income of the respondent and Prices of the branded store.

Descriptive Statistics

Mean Std.

Deviation N

Income Per Month 3.20 .913 250

Price of Branded

Stores

The Sig (2-tailed) value 0.003 is less than 0.05. Hence null hypothesis is rejected and alternative

hypothesis is accepted. There is significant relationship between income of the respondent and

prices of the branded store.

FINDINGS

This study focuses on consumers‟ experience and expectation on store brand. This study

shows that majority of respondent are male and majority are residing in city area under the age

group of 29-35 category, majority of the respondent doing business are visiting the stores and

falls under the income group of (25,001-40,000), majority of respondent are degree holders.

Majority of the respondent are visiting the stores frequently. Descriptive analysis shows that

people are rarely visiting the store for entertainment purpose and ambiance for parking is not

given higher importance for selection of stores when compare with product and service quality

and price and Celebrity factor are less influential factor on success of the store brand. There is

significant relationship between income of the respondent and prices of the branded store. The

perception towards the price will be influenced with purchasing capacity of the people.

BIBLIOGRAPHY

1. Alan Dick, Arun Jain, Paul Richardson, (1996), "How consumers evaluate store brands",

Journal of Product & Brand Management, Vol. 5 Issue: 2, pp.19-28,

2. Eugene Sivadas, Jamie L. Baker‐Prewitt, (2000) "An examination of the relationship

between service quality, customer satisfaction, and store loyalty", International Journal of

Retail & Distribution Management, Vol. 28, Issue: 2, pp.73-82,

3. Kusum L. Ailawadi, Scott A. Neslin, Karen Gedenk (2001), “Pursuing the Value-Conscious Consumer: Store Brands Versus National Brand Promotions”, Journal of

Marketing: January 2001, Vol. 65, No. 1, pp. 71-89.

4. Kristof De Wulf, Gaby Odekerken‐Schröder, Frank Goedertier, Gino Van Ossel, (2005),

"Consumer perceptions of store brands versus national brands", Journal of Consumer

5. George Baltas, Paraskevas C. Argouslidis, (2007) "Consumer characteristics and demand

for store brands", International Journal of Retail & Distribution Management, Vol. 35

Issue: 5, pp.328-341,

6. Rita Martenson, (2007), "Corporate brand image, satisfaction and store loyalty: A study

of the store as a brand, store brands and manufacturer brands", International Journal of

Retail & Distribution Management, Vol. 35 Issue: 7, pp.544-555.

7. Marcel Corstjens and Rajiv Lal, (2000), “Building Store Loyalty Through Store Brands”,

Journal of Marketing Research: August 2000, Vol. 37, No. 3, pp. 281-291.

8. Mbaye Fall Diallo, Jean‐Louis Chandon, Gérard Cliquet, Jean Philippe, (2013) "Factors

influencing consumer behaviour towards store brands: evidence from the French market",

International Journal of Retail & Distribution Management, Vol. 41 Issue: 6, pp.422-441,