In-store promotion and customer value on private label product purchase intention

Abstract

This study aims to determine the influence of in-store promotion in the form of price discount and price package on customer value and purchase intention. The research sample was 120 consumers purchasing the private label products in modern stores using a purposive sampling technique. The data were then analyzed using SEM PLS. The result revealed that all hypotheses were accepted and each variable studied showed a strong and significant influence on each other, especially in terms of its influence on the purchase intention. In-store promotion is a more influencing variable of purchase intention in private label products than customer value. The result also pointed out the three most dominant items forming in-store promotion, customer value, and purchase intention. Those items are the frequency of discount program, the products’ quality, and the reference group that helps the company promoting private label products, usually friends’ recommendation. These findings are expected to be used by decision-makers in retail businesses to formulate in-store promotional activities and create customer value following the target market to increase consumers’ willingness to buy private label products. Acknowledgment The authors would like to express their gratitude to the Doctoral Dissertation Research Grant Program of the Ministry of Research, Technology, and Higher Education for funding this research. The authors highly appreciate the assistance, suggestions, and inputs from both editors and reviewers of this article.