• Journal of Distribution Science
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• v.18 no.10
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• pp.121-130
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• 2020

Purpose: In this study we investigate the determinants of private label (PL) purchase intention in South Korea. Private labels are becoming more and more popular in America and European countries. However, there are not enough studies focusing on PL within the South Korean market. Therefore, the present study has been written in order to understand more about consumers' purchase intention of store brand in the South Korean market. Many characteristics and aspects of consumers and brand's behavior have been reviewed in order to bring relevant results. Research design, data and methodology: Data was collected using a quantitative survey of Korea retail store's consumer. We analyzed using multiple regression method to test the hypothesis. We analyzed how and why do consumers have a strong intention to purchase the PL. Results: a) Trust towards retailer influences the PL purchase intention of customers; b) brand awareness has an impact on the PL purchase intention of customers; c) perceived quality has an impact on the PL purchase intention; d) Price-quality relationship influences on the PL purchase intention. However, there is no direct effect of some of the factors of determinant. Conclusion: For private label products in the Korean market, trust in sellers and brand awareness influences the purchase of PL products.

• Journal of Korea Trade
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• v.26 no.5
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• pp.106-124
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• 2022

Purpose - The increasing share of Korean private label products (PLPs) in the domestic market helped generate lucrative revenue. In recent years, major South Korean retailers have begun to cast their sights on overseas markets and actively export their PLPs. In China, the proportion of private label fresh food (PLFF) is gradually expanding amid the development of the new retailing model. A profound understanding of the relationship between private label fresh produce and purchase intention may be the answer to helping Chinese retailer private labels expand supply chains in Korea. This study, taking Chinese retailers as an example, examines the impacts of selection factors of private label fresh food and perceived value on purchase intention. Apart from that, the relationship between the selection factors and purchase intention will be analyzed with perceived value as a mediator. Design/methodology - This work aims to empirically analyze the purchase intention of private label fresh food using statistical analysis. In this study, a hypothetical causal model consisting of 6 latent variables and 24 measured variables is developed based on the literature review. To validate the research hypotheses and the research model, SPSS23.0/AMOS23.0 is used to analyze factors such as validity and reliability, as well as structural equation modeling. Findings - The hypothetical model established in this study is of general applicability. In respect to PLFF, perceived value, while significantly influencing purchase intention in combination with four selection factors (perceived quality, perceived price, brand trust, and store image), mediates partially between the first three factors and purchase intention, which rules out the impact and mediating effect of store image on purchase intention. Originality/value - These research results, as helpful insights into the present circumstances of Chinese PLFF in the domestic market, provide useful information and guidance for Korean retailers and service providers to innovate production and service, as well as develop marketing and promotion strategies, so that they can shift private label goods with advantages from domestic demand to export, thus increasing overseas profitability. Further, this work will also contribute to relevant research.

• The Journal of Asian Finance, Economics and Business
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• v.7 no.11
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• pp.939-945
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• 2020

This study aims to develop propositions about the factors that influence the purchase intention of private label products. These factors are: in-store promotion, visual merchandising, store image, and customer value. This study elaborates on some of the results of previous studies that have examined the factors that influence purchase intention of private label products that have been published on Google Scholar and indexed by Scopus between 1991- 2020, to develop a proposition. This paper fills a lack of Studies which discuss purchase intention from a consumer behavior perspective. From the perspective of consumer behavior, purchase intention is influenced by three factors, namely: intrinsic factors including: consumer value, extrinsic factors including: in-store promotions, visual merchandising and store image, and consumer factors. This paper defines purchase intention as the effort and strong urge to buy a particular product in the future, the possibility of considering buying the product, the decision to rebuy the product and the desire to recommend the product. The main findings of this research are several propositions, namely: in-store promotion, visual merchandising and store image directly affect customer value and purchase intention. The following propositions are: In-store promotion, visual merchandising and store image influence purchase intention mediated by customer value.

• Journal of Distribution Science
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• v.17 no.5
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• pp.95-102
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• 2019

Purpose - The purpose of the research is to identify the demographic characteristics of the customers with high private label purchase intention. According to the previous research demographics such as gender, age, income, and residence type affect private label purchase intention indirectly through psychographics rather than directly. For instance, higher income group is time pressured, price-insensitive, quality-sensitive, less likely to enjoy shopping utilitarian products, and less likely to be variety-seeking. The main contribution of this research is to verify the results found in the previous empirical foreign research using scanner data and to investigate the differences of the characteristics of private label users between Korea and the foreign countries. Research design, data, and methodology - In order to empirically test the proposed hypotheses, scanner data of a Korean major super center was analyzed. Results - Empirical results show that private labels are more favored by old people over 50s, dwellers in individual house, lower income group, and frequent store visitors. Age of 30s, dwellers in the apartment of 30 pyung, higher income group, and consumers who purchased a large amount are less likely to purchase private labels. Gender turned out not to affect private label purchase. It should be noted that there is a significant multicollinearity among independent variables. Conclusions - The research findings provide managerial implication for retailers' private label strategy. In general, retailers heavily send private label coupons to the customers with high purchase volume. According to the research, however, store visit frequency is much more positively associated with private label purchase than purchase amount. The study has some limitations. The samples are only consumers with private label purchase experience. The data were drawn from one store and only 8 commodity products were used for the analysis. Also, if more demographics were available, a more complete description on the private brand users' profile could have been derived. We propose the following future research. Research using the data including consumers without private label experience, research investigating direction of causality between private label loyalty and store loyalty, and research using hedonic private label products such as TV and PC could be promising.

• The Research Journal of the Costume Culture
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• v.17 no.5
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• pp.911-922
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• 2009

As more consumers shop online and prefer private label apparel products, the importance of private label apparel brand of Internet shopping malls are increasing. This study investigated consumer attitudes toward private label apparel brand of Internet shopping malls. Attitudes were conceptualized into two sub-factors: utilitarian and hedonic. Based on findings of prior studies, subjective norm and familiarity were included as antecedents to attitude variables. Purchase intention and word of mouth intention were also included as consequence variables of attitudes. Types of Online shopping malls were considered as moderating variable. For the empirical research, the Online survey was conducted. Young male and female consumers who have experience in Internet shopping of clothing products participated in the study. 429 questionnaire were used for the final statistical analysis. Results indicated that subjective norm had significant influence on consumer attitudes toward private label apparel brand. Familiarity however did not have significant influence on attitude variables for general internet shopping malls. For specialized Internet shopping malls, familiarity had significant influence only on hedonic attitude. Attitude variables had significant influence on purchase intention and word of mouth intention. Subjective norm and familiarity had significant influence on purchase intention and word of mouth intention.

• Journal of Distribution Science
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• v.11 no.9
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• pp.51-57
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• 2013

Purpose - This study investigates the effect of visual merchandising display (VMD) of local specialty retailer of private label apparel (SPA) brands, such as space, display, and presentation on brand awareness, brand image, and purchase intention. It investigates consumers' VMD awareness and purchase intention of SPA brands to help business activities of local SPA enterprises. Research designs, data, methodology - This study uses SPSS 18.0 to study eight local SPA brands and has 193 effective usable copies from a sample of 200. Results - The display and presentation of VMDs of SPA brands had a positive influence on brand awareness and brand image, which in turn had a positive influence on purchase intention. Conclusions - As SPA brands are increasingly located in supercenters, they face space constraints and find it difficult to display their facade and signs effectively. Therefore, decisions pertaining to display, presentation, and space should consider whether these SPA brands are launched as independent specialty shops or in supercenters. The space for VMD is considered important in independent shops. However, shops that open in supercenters should pay more attention to presentation rather than space.

• Journal of Distribution Research
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• v.14 no.2
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• pp.67-95
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• 2009

The purpose of this study is to empirically examine the transference of trust process, an important factor to consumer's purchase decision-making. Even though several researchers have discussed the trust transference process, there is no research related to this concept. Specifically we have focused on the transference of trust from the retailer to low involvement private label (PL) products. PL products were chosen as transference of trust occurs under ambiguity due to lack of information about the product and their manufacturer. PL products provide relatively less information than national brand (NB) products. In addition, retailers have been rapidly expanding their PL product categories. To identify the theoretical and empirical limitations of prior studies, we discuss several theories explaining the transference of trust: 'Balance theory' and 'availability heuristic' in transference of cognitive trust; 'affective transference' and 'affect as information' in transference of affective trust. An empirical test was performed. A self completion questionnaire was developed and administered to a convenience sample of PL users. 206 usable questionnaire were received. The results show that the transference of trust plays a mediating role linking the retailer to the manufacturer and to the product. Although our model, which included the transference process of trust as a mediating effect, did not improve the competitive model, the coefficients of the respective paths were found to be better. This study confirms the transference of cognitive trust from the retailer to both the manufacturer and the product, but not for affective trust. We offer the explanation that PL products may tend to have affective trust resulting from brand familiarity but not to their PL manufacturers.

• Journal of Distribution Science
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• v.13 no.7
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• pp.85-90
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• 2015

Purpose - Global trends play a part to change the structure of the fashion industry. In particular, companies attempting to conduct innovative marketing centering on such products as SPA brands are growing into global companies. SPA stands for "Specialty Store Retailer of Private Label Apparel", meaning its activities are fully integrated from manufacturing through sales, including material procurement design, product, distribution, inventory management, and final sales. For this reason, more understanding of individual corporate profitability is very sensitive to consumer's attitudinal changes. The effects that corporate marketing activities on customer lifetime value through brand attitude were analyzed based on a structural equation model. Rust suggested value equity, brand equity, and relationship equity as customer equity driver. The study examines Chinese consumer because China is the fastest growing fashion market in the world. Research design, data, and methodology - The survey targeted Chinese college student age 20s. Only respondents who had purchased SPA brands in the past year were included for this research. A total of 303, except for 47 missing data of 350 distributed questionnaires were included in this research. The questionnaire is consists of six part to measure value, brand, relationship equity, attitude toward brand, purchase intention and demographic characteristics. This research conducted exploratory factor analysis and reliability test. To verify research hypotheses, structural equation model test was conducted. As for customer equity, diversified models in consideration of the scope of acquisition data, a method of collection of data, influencing factor, and predictability were suggested based on a net present value model. However, the history of customer equity study is relatively short, and sufficient empirical analyses have not been conducted, so more integrated analysis is required. In this study, the concept of driver suggested by Rust was applied to figure out the effects that consumer's attitude has on customer equity. The customer equity driver suggested by them consists of brand equity, value equity, and relationship equity. Results - This study reveals that value equity and brand equity have a positive influence on relationship equity. And, relationship equity has a positive influence on purchase intention through brand attitude. However, value equity and brand equity do not influence on brand attitude. Conclusion - The results of this research generated following implications. First, SPA brands need to take advantage of their value equity such as perceived low price and up-to-date fashion style to attract Chinese young consumer. Second, strong brand equity promises dominants position in the competitive market. As Chinese fashion market grows rapidly, SPA brands can consider branding strategy such as flagship store and celebrity marketing enhancing brand image. Third, the core concept of customer equity strategy is to maintain a relationship with their expecting and existing customers. The relationship equity is built by brand equity and value equity. When SPA brands serves product and service meet with individual customers, customers have intimacy to the brands.