• Journal of Distribution Research
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• v.17 no.5
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• pp.85-111
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• 2012

Introduction : The purpose of this study was to examine the relationship between perceptual characteristics of consumers and intent of relational continuance for PB(Private Brand) products in discount stores. This study was conducted as an empirical study based on survey. For the empirical study, factors of PB products as characteristics perceived by consumers such as perceived quality, store image, brand image and perceived value were deduced from preceding studies. The effect of such factors on intent of relational continuance mediated by brand trust and brand equity of PB products was structurally examined. Research Model : Based on theory analysis and hypotheses, constructed a Structural Equation Model(SEM). The research model is shown in Figure 1. Research Method : This paper is based on s qualitative study of selected literature and empirical data. The survey for empirical study was carried out on consumers in Gyeonggi and Busan between January 2012 and May 2012. 300 surveys were distributed and 253 (84.3%) of them were returned. After excluding omissions and insincere responses, 245 surveys (81.6%) were used for final analysis as effective samples. Result : First of all, the Reliability was carried out for instrument used. The lower limit of 0.7 for Cronbach's Alpha as suggested by Hair et al. (1998). And Construct validity was established by carrying out exploratory factor analysis by Varimax rotation for all. Four factor result for the consumer's perceptual characteristics of PB Products, two mediating factors and one dependent factor. All constructs included in research framework have acceptable validity and reliability. Table 1 shows the factor loading, eigen value, explained variance and Cronbach's alpha for each factor. In order to assure validity of constructs, I implemented Confirmatory Factor Analysis (CFA), using AMOS 20.0. In confirmatory factor analysis, researcher can take control over the specification of indicators for each factor by hypothesizing that a specific factor is loaded with the relevant indicators. Moreover, CFA is particularly useful in the validation of scale for the measurement of specific construct. CFA result summarized Table 2 shows that the fit measures of all constructs fulfill the recommended level and loadings are significant. To test causal relationship between constructs in the research model, used AMOS 20.0 that provides a graphic module as method for analysing Structural Equation Modeling. The result of hypothesis test is shown in Table 3. As a result of empirical study, perceived quality, brand image and perceived value as selected attributes for PB products showed significantly positive (+) effect on brand trust and brand equity. Furthermore, brand trust and brand equity showed significantly positive (+) effect on intent of relational continuance. However, store image of discount stores selling the PB products was analyzed to have positive (+) effect on brand trust and no significant effect on brand equity. Discussion : Based on the results of this study, the relationship between overall quality, store image, brand image and value perceived by consumers about PB products and intent of relational continuance was structurally verified as being mediated by brand trust and brand equity. Looking at the results, a strategic approach that maximizes brand trust and equity value for PB products by large discount stores is required on top of basic efforts to improve quality, brand image and value of PB products in order to maximize consumer's intent of relational continuance and to continuously attract repeated purchase of products.