Does price sensitivity and price level influence store price image and repurchase intention in retail markets?

Abstract

In today's competitive price environment, customers are more sensitive to store price image as a driver of the decision of where to buy. This paper addresses the impact of store price image on repurchase intentions in the context of retail markets in the south of Brazil. The moderating effects of price sensitivity and price level are also analyzed. A comprehensive model reports determinants of repurchase intentions. A descriptive quantitative research study is undertaken, based on an applied survey. Partial least squares–structural equation modeling (PLS–SEM) is used, supported by Smart-PLS 3.2.7. The model sample includes 207 customers, university students who had experienced retail purchases in different formats of supermarkets. The data analysis yields surprising findings. Results show that store price image positively impacted on customer repurchase intentions, with low and high price levels moderating these effects. Price sensitivity also presented moderating effects as another important variable acting on the relation between store price image and repurchase intentions for both low and high price sensitivity customers. The implications of these findings are discussed with suggestions for future research.