Abstract

As the awareness of PB products in discount stores stays high and their portion in sales increases quite rapidly, research on consumer behavior of PB products becomes essential in setting up marketing strategies in discount stores. Thus this study uses customer lifestyle for segmenting effectively target markets and also consider any differential effects of PB product categories. The study analyzes price and quality perceptions, and purchase behavior, dependent on lifestyles. The study also analyzes the effects of price and quality perceptions, and demographic factors on purchase behavior. Demographic factors in the study include age, occupation, income level, and education background. Mediating effect of attitude towards PB product and differential effect of product category on the mediating effect are analyzed, as well. The results of empirical analysis show customer lifestyles have effect on price and quality perceptions, and purchase behavior. Price and quality perceptions, customer lifestyles, and demographic factors are found to have effect on purchase behavior. Specifically, low price perceptions are found to have positive effect on purchase behavior. Customer lifestyles are found to have effect on purchase behavior in food and home appliance categories. In the effect of price and quality perceptions on repeat purchase intention, mediating role of attitude towards PB products is also analyzed. The mediating role of attitude towards PB products was verified in both food and general consumer categories. Consumer lifestyle had effect on price perception in product categories, except home appliances. In category of clothing, quality of life type perceived price lower than the other two types of lifestyle. Quality of life type perceived price of general products lower than food focus type. Economical type price of food products lower than the other two types of lifestyle. On the other hand, quality perception differed in product categories. Economical type perceived higher quality of all the products than quality of life type. Food focus type perceived higher quality of general products than quality of life type. In category of clothing, food focus type perceived higher quality than quality of life type. PB purchase experience was found to depend on PB perceptions, lifestyles, and demographic factors. Low prices and high quality had effect on PB buying experience. In consumer lifesyles, food-focus type showed lower probability of purchasing food products than economical type. In demographic factors, the group with less than 3 million won showed higher probability of purchasing general products than the group with between 3 million and 4 million won. The group of high-school graduates showed higher probability of purchasing home appliance products than the group of college graduates. In both food and general consumer categories, price effects have stronger effect than quality effect. As for the mediating role of PB product attitude, it has partial mediating effect in general consumer categories while it has full mediating effect in food categories. This implies discount stores should implement strategies of boosting quality image of PB products by introducing premium high-quality in food product categories. On the other hand, both clothing and home appliance PB categories were found to fail to form positive customer attitudes. Merchandising in these two categories should be reviewed and due corrections should be made. In sum, the findings of this study provide critical implications for PB product merchandising: PB merchandising should consider consumer lifestyles, consumer price and quality perceptions, and consumer demographics.

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