The Effect of Consumer’ Perception on Their Private Brand Purchase Intention at Foreign Discount Stores in China

Abstract

The Chinese economy has been developing rapidly and the distribution industry has been keeping pace as well. With global firms entering the country, primarily large-scale stores from multinational retail companies, it has had to reorganize the distribution market. Thus, there has been intense competition among them. Recently, private label (or store) brands have been rapidly gaining acceptance from consumers in China partly because of the perceived quality and value of these brands. Although academic studies in this area have been increasing, the findings regarding consumer’ perception of private labeled products remain unclear. The purpose of this study is to determine the effects of private brand image, store image, perceived quality and price on purchase intention in terms of perceived value. Survey data were collected from consumers who live in Shanghai and analyzed using PLS. Results show that several factors affect private brand purchase intentions of Chinese consumers and these include private brand image, perceived value and perceived price.