The effects of store image components on consumers purchasing retailer brands in Korea

Abstract

Although a huge number of academic researchers have paid considerable attention to exploring both the degree to which store image influences retailer brand customers and how to develop store personality, they have overlooked the contemporary retail context in which retailers have developed many different types of retailer brands, that is, price-oriented or quality-oriented retailer brands. Rather than focusing on the latter, much literature has looked at the former. Accordingly, even though there are many articles related to store image, a few authors have shown their interest in identifying the extent to which store personality affects customers purchasing retailer brands at lower prices. As a result, their efforts have been to illustrate the relationship between store image and consumer behaviours buying retailer brands. In that multiple retailers over the world such as E-Mart, Lotte-Mart, Tesco Korea and Tesco UK have actively introduced not only the quality-focused retailer brands that quality is better than, or equal to national brands, and prices are slightly higher than, or equal to them, but also price-focused retailer brands, academicians should make an effort to investigate how store image affects customers purchasing a quality-oriented retailer brand, comparing with previous research results. That is why the authors illustrate the extent to which store personality components influence retailer brand customers, including particularly quality-oriented retailer brand customers through an empirical research. By adopting a questionnaire method as a research technique to illuminate the relationship between store image components and retailer brand customers, research validity increases and further, data gathered through a field survey are analysed through a few statistic analysis methods, in order to minimise statistical deviations. Compared with the prior research concentrated on price-focused retailer brands, the authors have significantly shed light on customer behaviours purchasing retailer brand products with higher quality. When it comes to store personality components, the research suggests the following five items: merchandise attributes, services, physical facilities, promotions, and institutional image, considering the subcomponents mentioned by the previous research. Proposing the conceptual research model which those elements are differently hypothesised, according to retailer brand types: PR (Price-oriented Retailer brand) and QR (Quality-oriented Retailer brand), the research is proceeded. Through empirical research, the authors found that amongst the five items, only promotion influenced retailer brand customers in the Korean retailing marketplace, unlike other countries explored by many researchers, such as UK. Although much literature emphasises that those elements are closely related to retailer brand buying proneness, it is completely not fit to the Korean market. Also, research findings provide new insights into the degree of store image effects on retailer brand customers for academicians and practitioners. Whether the retailer brand development program that a retailer has carried simultaneously both price-focused and quality-focused retailer brand types is practically profitable should be explored in the future.