Customers' willingness to purchase new store brands

Abstract

Purpose – The purpose of this paper is to identify factors influencing customers\’ willingness to purchase new store brands. Design/methodology/approach – The paper develops a 3 £ 3 design to investigate the impact of price and quality positioning on the willingness to purchase new store brands in five product groups. A total of 990 respondents completed a questionnaire about store brand perception, aspects of purchasing behavior and willingness to buy. Data are analyzed with analysis of variance and partial least squares. Findings – The paper finds that customers\’ willingness to buy new store brands differs between different product groups. It is lowest for product groups associated with high social risk. Accordingly, premium store brands are preferred for these categories. The influence of price is small and nonlinear. Furthermore, the attitude towards a specific store brand has a large impact on customers\’ willingness to purchase, while the attitude toward store brands in general is less important. The drivers influencing customers\’ attitude towards specific store brands depend on the respective product group. Practical implications – The results indicate that price is not the only factor influencing customers\’ willingness to buy new store brands. Therefore, the results encourage retailers to position store brands also in premium segments, especially for product groups where social acceptance is important. Originality/value – This paper differs from other papers in the literature in that it analyses factors influencing the success of new store brands. Furthermore, it analyzes many different potential influencing factors, namely product group, price and quality positioning, store brand perceptions, attitudes and aspects of purchasing behavior.