Abstract

Purpose - The main purpose of this study is to create and test a model regarding perceptions of consumers towards discount stores in the context of perceived risk and quality about products of discount stores. Design/methodology/approach – In the study, the structural model which created by imposed on the findings of previous studies was tested. In the model, the effect of the pricing strategy of the discount stores on the consumers' risk and quality perceptions towards the products of the discount stores and the effect of consumers' risk and quality perceptions on attitudes towards discount stores, the dependent variable of the model, was tested. The data of the study were gathered from 247 participants using the convenience sampling method via survey form. The survey form was consisted of Zielke's (2006) 3-statement price scale, Laroche et al.'s 4-statement perceived risk scale, (2005), Grewal et al.'s (1998) 3-statement perceived quality scale, and Mathwick and Rigdon's (2004) It was formed from a 4- statement attitude scale. Items were presented as 5-point Likert type scales. In addition to descriptive analysis, correlation analysis and Structural Equation Modeling were used in the study. Findings - The findings of the present study showed that the pricing strategy of discount stores affect the consumers’ quality perceptions. At the same time, it was found that consumers’ quality perceptions towards products of discount stores effects consumers’ risk perception. In addition, findings revealed that the perceived risk of consumers towards the products of discount stores affects their attitudes towards these stores. Moreover, path analysis results exhibited that the theoretical model of the study is fit for discount stores. Discussion - The findings show that consumers consider the price as an indicator of quality, contrary to the “discount stores operate with low-pricing due to their cost-based nature and that it is a misconception that they offer low quality products” claims. In addition, as some previous studies have revealed, consumers' perceptions of quality affect their risk perceptions, and the higher the quality perception, the lower the risk perception of the consumers. Moreover, consumers' perceived risk towards the products of discount stores affects their attitudes towards these stores and as the perceived risk decreases, consumers have more positive attitude towards discount stores.

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