Abstract
Previous study found supporting evidence of several factors affecting purchase intention in retail environment. However, there is still few that focus on the private label brand (PLB) despite of the importance of the products for the convinience store business. This study aims to find the direct effects of store image and service quality on brand image and purchase intention for a private label brand (PLB) in the context of convinience store. In addition, it also aims to confirm the factors that directly influence purchase intention of consumers. Two hundred and seven respondents were investigated using nonprobability sampling technique (purposive sampling). The analyses emploted Structural Equation Modelling techniques and results indicate that store the image and private label brand image has a direct positive impact on purchase intention. The findings also confirmed that service quality has a direct positive effect on private label brand (PLB) image. Surprisingly, service quality has no direct influence on purchase intention, but have indirect influence through private label brand (PLB) image.
Highlights
The retail business in Indonesia groe rapidly from year to year
This study aims to find out if there is any influence of store image on the image of private label brands (PLB image) and the purchase intention in convenience stores 7Eleven, and aims to know if there is any influence of service quality to the image of private label brands (PLB image) at the 7-Eleven convenience stores as well as to determine the factors that influence directly the consumer’s purchase intention
There is only one variable that affect private label brands image (PLB image) that is service quality with amount of 0,51.Overall, there are 3 variables that affect the purchase intention, they are the image of store image, PLB image and price consciousness
Summary
The retail business in Indonesia groe rapidly from year to year It is evident from the many traditional retail businesses that transform their concept into a modern retail business as well as the emergence of new modern retail business. The growth of retail business in Indonesia from year to year is quite, it is evident from the many traditional retail businesses that transform their concept into a modern retail business as well as the emergence of new modern retail business. The presence of modern retail growth has eroded the traditional retail market share in recent years, because they are capable of providing more services either to consumers by providing what the consumer wants, for example by providing a diverse product variations with a comfortable, good quality and competitive prices. The growth of the middle class and lifestyle changes spur the growth of convenience store business, where this segment tends to prioritize practicality, and fast service to their needs, especially the need for food and beverage
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