The Impact of Consumer Knowledge/Familiarity with Private Label Brands (PLBs) and Store Image on Perceptions and Preferences toward PLBs and Patronage Intentions: Case of Midscale Department Store PLBs

Abstract

This study examines the impact of consumer knowledge and familiarity with private label brands (PLBs) on perceptions and preferences toward PLBs and patronage intentions; in addition, it examines the incremental effects of a department store image over consumer knowledge and familiarity with perceptions, preferences, and patronage intentions. This study focused on midscale department store PLBs of apparel products and middle age consumers between the ages of 30 and 50 who are the main consumer group of private label brands of apparel products. A structured questionnaire was developed and data were collected from a convenience sample of 257 female consumers between the ages of 35 and 54, living in the Southeastern United States. A factor analysis identified the dimensions of department store image constructs; in addition, a hierarchical regression and multiple regression analyses examined the hypotheses. Consumer knowledge and familiarity with PLBs at department stores is recognized as a major determinant to shape consumer perceptions of and preferences for the PLBs as well as patronage intentions. The present study reveals the significant incremental effect of a store image on consumer preferences, perceptions, and patronage intentions beyond that explained by consumer knowledge and familiarity about PLBs. The study reveals that, among four store image constructs, the store atmosphere and store service factors had significant positive effects on consumer perceptions of PLBs. Store service and atmospheric aspects also affect consumer patronage intentions toward PLBs. The price factor shows a significant and positive influence on the preference consumers have for PLBs, but not on perceptions and patronage intentions. This study has practical implications for department store executives and managers on how to allocate resources in order to increase positive consumer perceptions toward PLBs, preferences over other brands, and patronage intentions of PLBs at a store as well as how to create effective store environments to promote PLBs.