The Effects of Perceived Quality Factors on the Customer Loyalty: Focused on the Analysis of Difference between PB and NB (지각된 품질요인이 고객충성도에 미치는 영향: PB와 NB간의 차이분석)
- Ye, Jong-Suk;Jun, So-Yon
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- Journal of Distribution Research
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- v.15 no.2
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- pp.1-34
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- 2010
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Introduction As consumers' purchase behavior change into a rational and practical direction, the discount store industry came to have keen competition along with rapid external growth. Therefore as a solution, distribution businesses are concentrating on developing PB(Private Brand) which can realize differentiation and profitability at the same time. And as improvement in customer loyalty beyond customer satisfaction is effective in surviving in an environment with keen competition, PB is being used as a strategic tool to improve customer loyalty. To improve loyalty among PB users, it is necessary to develop PB by examining properties of a customer group, first of all, quality level perceived by consumers should be met to obtain customer satisfaction and customer trust and consequently induce customer loyalty. To provide results of systematic analysis on relations between antecedents influenced perceived quality and variables affecting customer loyalty, this study proposed a research model based on causal relations verified in prior researches and set 16 hypotheses about relations among 9 theoretical variables. Data was collected from 400 adult customers residing in Seoul and the Metropolitan area and using large scale discount stores, among them, 375 copies were analyzed using SPSS 15.0 and Amos 7.0. The findings of the present study followed as; We ascertained that the higher company reputation, brand reputation, product experience and brand familiarity, the higher perceived quality. The study also examined the higher perceived quality, the higher customer satisfaction, customer trust and customer loyalty. The findings showed that the higher customer satisfaction and customer trust, the higher customer loyalty. As for moderating effects between PB and NB in terms of influences of perceived quality factors on perceived quality, we can ascertain that PB was higher than NB in the influences of company reputation on perceived quality while NB was higher than PB in the influences of brand reputation and brand familiarity on perceived quality. These results of empirical analysis will be useful for those concerned to do marketing activities based on a clearer understanding of antecedents and consecutive factors influenced perceived quality. At last, discussions about academical and managerial implications in these results, we suggested the limitations of this study and the future research directions. Research Model and Hypotheses Test After analyzing if antecedent variables having influence on perceived quality shows any difference between PB and NB in terms of their influences on them, the relation between variables that have influence on customer loyalty was determined as Figure 1. We established 16 hypotheses to test and hypotheses are as follows; H1-1: Perceived price has a positive effect on perceived quality. H1-2: It is expected that PB and NB would have different influence in terms of perceived price on perceived quality. H2-1: Company reputation has a positive effect on perceived quality. H2-2: It is expected that PB and NB would have different influence in terms of company reputation on perceived quality. H3-1: Brand reputation has a positive effect on perceived quality. H3-2: It is expected that PB and NB would have different influence in terms of brand reputation on perceived quality. H4-1: Product experience has a positive effect on perceived quality. H4-2: It is expected that PB and NB would have different influence in terms of product experience on perceived quality. H5-1: Brand familiarity has a positive effect on perceived quality. H5-2: It is expected that PB and NB would have different influence in terms of brand familiarity on perceived quality. H6: Perceived quality has a positive effect on customer satisfaction. H7: Perceived quality has a positive effect on customer trust. H8: Perceived quality has a positive effect on customer loyalty. H9: Customer satisfaction has a positive effect on customer trust. H10: Customer satisfaction has a positive effect on customer loyalty. H11: Customer trust has a positive effect on customer loyalty. Results from analyzing main effects of research model is shown as
, and moderating effects is shown as
. Results This study is designed with 16 research hypotheses, Results from analyzing their main effects show that 9 of 11 hypotheses were supported and other 2 hypotheses were rejected. On the other hand, results from analyzing their moderating effects show that 3 of 5 hypotheses were supported and other 2 hypotheses were rejected. H1-1: (SPC: Standardized Path Coefficient)=-0.04, t-value=-1.04, p>. 05). H1-2: (
${\Delta}\chi^2$ =1.10, df=1, p> 0.05). H1-1 and H1-2 are rejected, so it is prove that perceived price is not a significant decision variable having influence on perceived quality and there is no significant variable between PB and NB in terms of influence of perceived price on perceived quality. H2-1: (SPC=0.31, t-value=3.74, p<. 001). H2-2: (${\Delta}\chi^2$ =3.93, df=1, p< 0.05). H2-1 and H2-2 are supported, so it is proved that company reputation is a significant decision variable having influence on perceived quality and, in terms of influence of company reputation on perceived quality, PB has relatively stronger influence than NB. H3-1: (SPC=0.26, t-value=5.30, p< .001). H3-2: (${\Delta}\chi^2$ =16.81, df=1, p< 0.01). H3-1 and H3-2 are supported, so it is proved that brand reputation is a significant decision variable having influence on perceived quality and, in terms of influence of brand reputation on perceived quality, NB has relatively stronger influence than PB. H4-1: (SPC=0.31, t-value=2.65, p< .05). H4-2: (${\Delta}\chi^2$ =1.26, df=1, p> 0.05). H4-1 is supported, but H4-2 is rejected, Therefore, it is proved that product experience is a significant decision variable having influence on perceived quality and, on the other hand, there is no significant different between PB and NB in terms of influence of product experience on product quality. H5-1: (SPC=0.24, t-value=3.00, p<. 05). H5-2: (${\Delta}\chi^2$ =5.10, df=1, p< 0.05). H5-1 and H5-2 are supported, so it is proved that brand familiarity is a significant decision variable having influence on perceived quality and, in terms of influence of brand familiarity on perceived quality, NB has relatively stronger influence than PB. H6: (SPC=0.91, t-value=19.06, p< .001). H6 is supported, so a fact that customer satisfaction increases as perceived quality increases is proved. H7: (SPC=0.81, t-value=7.44, p<. 001). H7 is supported, so a fact that customer trust increases as perceived quality increases is proved. H8: (SPC=0.57, t-value=7.87, p< .001). H8 is supported, so a fact that customer loyalty increases as perceived quality increases is proved. H9: (SPC=0.08, t-value=0.76, p> .05). H9 is rejected, so it is proved influence of customer satisfaction on customer trust is not significant. H10: (SPC=0.21, t-value=4.34, p< .001). H10 is supported, so a fact that customer loyalty increases as customer satisfaction increases is proved. H11: (SPC=0.40, t-value=5.68, p< .001). H11 is supported, so a fact that customer loyalty increases as customer trust increases is proved. Implications Although most of existing studies have used function, price, brand, design, service, brand name, store name as antecedent variables for perceived quality, this study used different antecedent variables in order to analyze and distinguish purchase group PB and NB through preliminary research. Therefore, this study may be used as preliminary data for a empirical study that is designed to be helpful for practical jobs. Also, this study is made to be easily applied to any practical job because SEM(Structural Equation Modeling), most strongly explaining the relation between observed variable and latent variable, is used for this study. This study suggests a new strategic point that, in order to increase customer loyalty, customer's perceived quality level should satisfied for inducing customer satisfaction, customer trust, and customer loyalty. Therefore, after finding an effective differentiating factors in perceived quality in order to increase customer loyalty through increasing perceived quality, this factor was made to be applied to PB and NB. Because perceived quality factors which is recognized as being important by consumers is different between PB and NB, this study suggests how to efficiently establish marketing strategy by enhancing a factor. Companies have mostly focused on profitability in terms of analyzing customer loyalty, but this study included positive WOM(word of mouth). Hence, this study suggests that it would be helpful for establishing customer loyalty when consumers have cognitive satisfaction and emotional satisfaction together. Limitations This study used variables perceived price, company reputation, brand reputation, product experience, brand familiarity in order to determine whether each constituent factor has different influence on perceived quality between purchase group PB and NB. These characteristic variables are made up on the basis of the preliminary research, but it is expected that more precise research result would be obtained if additional various variables are included in study. This study selected a practical product that is non-durable, low-priced and bestselling product in a discount store through the preliminary research because it can be easily estimated by consumers. Therefore. generalization of study would be more easily obtained if more various product characteristics is included. Regarding a sample used in this study, it was only based on consumers who purchase products in a large-scale discount store located in Seoul and in the capital area. Accordingly, this sample has some geographical limitation, If a study is expanded by including more areas, more representative research results may be produced. Because this study is only designed to analyze consumers who purchase a product in a large-scale discount store, some difference may be found according to characteristics of each business type. In other words, there is certainly some application limitation, so research result from this study may not be applied to other business types. Future research may have fruitful results if it adjusts a variable to each business type.A Study on the Effects of Quality Evaluation Cues on Private Brands Purchasing Behavior (유통업체 상표의 구매행동에 관한 실증적 연구)
- Kim, Yong-Mahn;Kang, Seok-Jeong;Byeon, Choong-Kyu
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- Journal of Global Scholars of Marketing Science
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- v.7
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- pp.353-374
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- 2001
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Price and brand are two major attributes of products that consumer purchases. Price is important because it is often a measure of worth and quality. Some consumers purchase only well-known national brands. However, By reason of the price competition on account of new business condition and depressions, and consumers practical and rational purchasing tendency, consumers tend to purchase private brands(PB hereafter) because as consumers they expect that producers have reasonable and acceptable quality. Accordingly, The study, with intrinsic cue, extrinsic cue, familiarity anything like these cues from the study of Richardson et aI(1994, 1996), intends to present current topics we guide in retailer's promotion strategy for PB. As for investigating how quality evaluation has on effect on the private brands purchasing behavior of discount store grocery items. This study establishes a hypotheses on the basis of the quality evaluation cues of PB and literature review for purchasing behavior and collects materials for consumers about 196, and also analyzes them using a variety of SPSS/PC+package program. Therefore, the findings of this study provide the following managerial implications. 1) Retailer will successful in increasing private brand market share through dramatic improvement in package design, labeling, advertising, and branding strategies. 2) Planned Purchasers have high intention to repurchase PB because they buy them reasonably in accordance with the estimate therefore, they might have word-of-mouth effect for the evaluation of quality and recognition. They need to acknowledge benefits for PB purchases to maintain purchase like that. 3) The main consumers are housewives in their thirties and forties and they something reasonably because they have a lot of family and retailer will work out.
The Influential Analysis for Customer Preference in the Perceived Quality of Hypermarket PB (대형마트 PB상품 품질지각이 고객선호도에 미치는 영향)
- Wang, Il-Woung;Kang, Chang-Dong
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- Journal of the Korea Academia-Industrial cooperation Society
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- v.12 no.5
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- pp.2099-2107
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- 2011
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Despite the PB diffusion introduced as a strategic competitive factor from the change of a retailing business, the study of PB perceived quality in a customer aspect is poor. Therefore, this study led the influential factors to retailer attribute and product attribute through overall analysis. Also, the study found the influential attributes affecting the perceived quality and analysed the influential power linking to customer satisfaction and preference through the perceived quality. The examined results of the study have known that each attribute links to customer satisfaction via the only perceived quality. The strategic PB sales advantage should be achieved as giving customers the overall perceived quality, and has shown that it can increase the customer preference for PB.
An Influence of Distributor's Corporate Image on Consumer Behavior Towards PB Products (유통업체의 기업이미지가 PB제품에 대한 소비자태도에 미치는 영향)
- Kim, Moon-Jung;Oh, Young-Ye;Kim, Ki-Soo
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- Journal of Distribution Science
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- v.9 no.4
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- pp.83-91
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- 2011
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In addition to the globalization of the distribution industry and intensified competition, the importance of Private Brands has been emphasized, and thus, many studies that clarify the various preceding factors that affect PB purchase intent are being conducted. Following this trend, the purpose of this study is the following. First, the effect of distributor's corporate image on consumer behavior was verified. Second, the perceived quality difference on PB products according to consumers' job was verified. Third, satisfaction difference for PB products according to consumers' job was examined. Research results were shown as the following. First, factorial analysis, conducted to verify distributor's corporate image, gave out the result of ethicality, reliability, stability factors. Among those factors, ethicality and stability were shown to have an effect on brand attitude. However, reliability was not shown to influence PB brand attitude. Second, through the analysis to see the effect of distributor's corporate image on PB product attitude, it was verified that stability has an effect on PB product attitude but ethicality and reliability do not. Third, the analysis to verify the effect of distributor's corporate image on PB product purchase intent showed that ethicality has an effect on purchase intent, but reliability and stability do not. Fourth, housewives, the most active users of distributors, were shown the highest in the research on whether there is perceived quality difference according to consumers' job. Following the group were college students, and then office workers. Fifth, research on the level of satisfaction according to consumers' job showed that there was not a significant difference. The limitations and suggestions of this research were as the following. First, this study could go over each corporate image according to distributor type and characteristics. Due to the vast development of distribution industry, the companies can be classified according to the various types. Therefore, we propose the corporate image of each distributors to be checked, and furthermore, to verify which image of the different types of distributors has positive influence on consumer attitude. Second, PB products should have various perceived quality. However, in this research, it has not been verified which specific factors among the various perceived quality of PB products has a more meaningful influence on consumer attitude. Therefore, we also would like to propose a need for closer research on the specific factors and on which factor has a more positive influence on consumer attitude.
A Case Study on the Importance of Private Brand to Maximize Profit in the CVS (편의점의 이익 극대화를 위한 PB 상품 개발에 관한 사례 연구)
- Kim, Hee-Sam;Cho, Jai-Rip
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- Proceedings of the Korean Society for Quality Management Conference
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- 2010.04a
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- pp.141-145
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- 2010
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소형 편의점에서 판매하고 있는 상품 중에서 NB는 모든 업체 모든 점포에서 판매하는 공통 상품으로서 비교 차별화 되는 상품은 아니다. 외관은 물론 유통방식이나 기능은 물론이고 매출 이익률이 거의 비슷하기 때문이다. 여기에는 서비스, 가격 할인과 같은 극심한 판촉 경쟁이 있을 뿐이다. 편의점에서 비교 우위의 차별화를 기할 수 있는 상품은 PB상품 즉 자사 상표 부착 상품이다. 자사의 제조 기술이나 판매 방식을 쏟아 넣어 자사만의 독특한 컨셉으로 상품을 제조할 수 있기 때문이다. 본 연구에서는 편의점 또는 소형 소매점이나 할인점에서의 PB 상품의 중요성과 상품본부에서 정책을 취할 때 어떤 상품 군을 어떤 비중으로 개발하고 마켓팅력을 집중해야 하는지에 대한 사례를 연구하였다.
A Study on Subjective Recognition of One Authorized District for Large Retailers' Home Meal Replacement PB Products (대형유통업체 가정간편식 PB상품에 대한 1인가구의 주관적 인식에 관한 연구)
- Kim, Dong-Soo
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- The Journal of the Korea Contents Association
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- v.18 no.12
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- pp.309-318
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- 2018
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In this study, we investigated subjective perceptions of one retailer's PB products for large retailers by applying the Q methodology to examine subjective trends of consumers who purchased and experienced PB products at home. In this study, we examine how HMR-type PB products developed and released by large retailers according to the demographically changing social structure represent the meaning and subjective acceptance of PB products in a single licensee through Q methodological studies. The purpose of this paper is to propose various direction and improvement plan of food product development and release for one license of large distribution company in the future. Based on these research problems, five types of type analysis results were derived. Specifically, the first type (N = 5): Brand image trust type, the second type (N = 5): NB product preference type, the third type(N = 2): Easy cooking preference type, and fourth type (N = 2): Pursuing taste for price type and fifth type (N = 2): Quantitative pursuit for price type.
The Study of Characteristics of Consumer Purchasing Private Brand Products at Large-Scale Mart (국내 대형마트의 유통업체 브랜드 상품 구매 소비자의 특성 분석에 관한 연구)
- Hwang, Seong-Huyk;Lee, Jung-Hee;Roh, Eun-Jung
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- Journal of Distribution Research
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- v.15 no.4
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- pp.1-19
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- 2010
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As having the movement of developing private brand (PB) goods, domestic big retailers are facing up with new problems. Thus, it is required studies of PB products, and how consumers recognize PB products as a consideration commodity set. Also, it is worthy in order that it gives us the important meaning on the marketing strategy with focusing on evaluating the differences between customers buying PB grocery goods with respect to demographic characteristics and purchasing behaviors. PB has some advantages for customers and retailers. However, according to AC Nielson's report (2005), Asian and emerging market has 1/5 sales relatively to Western countries. But we can assume that the emerging market has the most potential growth through this result. As a result from several other studies, it becomes necessary to not only increase the rate of selling composition of PB product temporarily, but also analyze the characteristics of customers using big retailers and segmenting customer groups to make PB product as a consideration commodity set for them. In addition, it is needed to have a variety of acts of marketing. From studies related to PB, there is a prejudice - cheap products have low quality - but, evaluation by customers who have used those products shows neutral stand, and there is a study representing that it is the most important to accumulate the belief between the retailers selling PB products and consumers using those for the accurate evaluation and intention on purchasing. Also, by the result from analyzing the characteristics of customers buying PB products, we could assume that higher income and higher education level, more preference on PB products. Especially, according to TNS's research, the primary targets of PB product are 30's who seeks value for money and planned spending habits, and 40's who have teenager children, and are interested in encouraging themselves. This paper used Probit model to analyze the characteristics of consumers. This model helps us to analyze with the variables representing the demographic characteristics of consumers (gender, age, educational level, occupation, income level, living area), and variables related to purchasing behavior (visiting frequency on big retailers, the average amount that they pay for goods in there, and check-up which brand made those goods). The method we used in this study is by man to man interview and survey on-line with the rate of 89% and 11% in Seoul and Gyunggi Province, respectively, for about one month from the beginning of February, 2008. As a result of this, under the assumption that people buy PB products more as long as they go shopping more, it was not meaningful for target groups which we pointed out as frequently visiting customers to be. Although, we have expected women buy more PB products than men do, gender doesn't mean anything for the result. And, it has inferred that married people buy more PB goods than singles do. It was also meaningless with variables related to occupation. Because housewives are often exposed to any kind of supermarket than workers are, we could not get any relatives. Moreover, we couldn't proof that younger generation prefer big retailers more than older people who 50~60's. Education levels doesn't affect on the purchase of PB product as well. Related to living area, the result is statistically not similar as we expected whether living in Seoul or not. It shows there is no relationship with the preference on retail brands and PB products, and it is similar with the study researched by TNS(2008) that customers tend to buy PB product impulsively no matter which brand it is and where they are even though their shopping place is the big market where customers are often using. Variables on which we had meaningful results are income level and living place. That is, customers who have 3,000,000~6,000,000 WON every month on average are more willing to buy PB products than other customers whose income is over 6,000,000 WON, and residents not living in Seoul prefer PB goods than those who are living in Seoul. To explain more about what we got, if there is only one condition about customer's visiting frequency on big retails, we could come up with this result that more exposed to PB products, more purchasing frequency. Consequently, it brings the important insight that large retailers have to prepare something to make customers visit them often to increase selling rate of PB products. To demonstrate the result of analyzing more, what is more efficient variables are demographically including marital status, income level, and residential area to buy items that affect the PB products and could include the frequency of visiting large markets by the purchase habits. Specifically, then, married couples rather than singles, middle-income customers than high-income customers, and local residents not living in Seoul than customers in Seoul are more likely to purchase PB goods. In addition, as long as a customer visits two times more, then the purchasing rate of PB products is to increase over 5.3%. Therefore, it seems that retailers are better to make a shopping place as fun and comfortable places. With overwhelming the idea that PB products are just cheap, one-time purchase goods, it is needed to increase the loyalty on those goods like NB products, try to make PB products as a consideration products set, and occur to sustainable sales. Especially, as suggested by this paper, it seems like it strongly needs to identify the characteristics of customers who prefer PB, to segment those customers, and to select the main target, and to do positioning with well-planned marketing strategies. Then, it is able to give us a meaningful point on marketing strategy by developing the field of PB study, identifying the difference of life style and shopping habits of customers.
A Study on the Asset Attributions of Exclusive Imported Brands at Department Stores (백화점 독점 수입브랜드 자산 요인에 대한 연구)
- Lyu, Moon-Sang;Park, Jai-Ok
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- Fashion & Textile Research Journal
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- v.13 no.1
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- pp.44-54
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- 2011
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This study aims to clarify the asset evaluation attributes of imported brands exclusively by department stores based on qualitative study. For the qualitative research, hands-on staff of the branch office who had at least 5 years experience in PB-related positions at one of the four domestic department stores(Lotte, Shinsegae, Hyundai, Galleria), and at least 20 years old adults who had purchased imported brand items exclusively by a certain department store(Shinsegae, Lotte) were included. The asset evaluation attributes of department store-exclusively imported brands were drawn up through the one-to-one in-depth interview method. As a result of qualitative study on the asset evaluation attributes of department store-exclusive importation brands, it turned out that there were 4 factors in view of business entity - stability, profitability, growth potential, and relationship, and that there were 6 factors in view of consumers - product quality, recognition, country of origin, image, preference, and reliability. In comparison with the existing preliminary study, it was notable that relationship in view of business entity, and country of origin in view of consumers were added to the asset elements.
A Study on the Effect of POP Message Framing of Discount Stores and PB Fashion Product Types of Cognitive Need for Closure on Preference of Consumers (할인점 PB패션제품의 제품유형, POP 메시지 프레이밍, 인지종결욕구가 소비자의 호의도에 미치는 영향)
- Kim, Kyoung Jin;Hwang, Sun-Jin
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- Journal of the Korean Society of Costume
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- v.67 no.1
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- pp.22-39
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- 2017
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This study intended to empirically verify the effect of message framing, cognitive need for closure, and type of fashion products on purchasing attitude of PB fashion products in discount stores. The design consisted of three-mixed design of 2(POP(Point of Purchase)message framing: benefit message vs. loss message)
${\times}2$ (cognitive need for closure: high vs. low)${\times}2$ (PB fashion product type: utilitarian vs. hedonic). Survey of this study was conducted on 330 men and women in 20~50's in Seoul and Gyeong-gi, and a total of 287 data were analyzed. Data were analyzed with SPSS 18.0 program, and three-way ANOVA, simple interaction effects and simple main effects analysis were conducted. The results of this study are as follows: First, it was identified that the framing type of POP message of discount store, cognitive need for closure, and PB fashion product type had significant effect on preference and purchase intention. Secondly, it was identified that consumers with both high and low cognitive need for closure had high preference level and purchase intention when they encountered the benefit message framing than the loss message framing. Thirdly, the benefit message framing was more effective than the loss message framing for hedonic PB fashion products in discount stores, but utilitarian PB fashion products did not get affected by the message framing. Fourthly, it was identified that groups with both high and low cognitive need for closure preferred hedonic PB fashion products. Lastly, it was verified that benefit message framing POP advertisement on a group with high cognitive need for closure was effective for Hedonic PB fashion products in discount stores, and utilitarian PB fashion products showed no difference in purchase intention according to the POP message framing type and cognitive need for closure.
The Effects of Consumers' Recognition and Information Searches Comparative to Private Brand(PB) Products on Consumer Dissatisfaction (유통업체 브랜드(PB)제품에 대한 소비자인식과 비교정보탐색이 소비자불만에 미치는 영향)
- Ma, Mi-Young;Cui, Ming;Bae, Yoon-Shin;Seo, Mi-Hye;Na, Seung-Bok;Lee, Seung-Sin
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- Journal of Families and Better Life
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- v.32 no.2
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- pp.99-116
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- 2014
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Domestic PB products have emerged and been distributed by hypermarkets, department stores, convenience stores, as well as TV home shopping channels and Internet shopping malls. However, the fierce competition among the distributors due to the emergence of the PB products have caused the diversion of consumers' recognition to be reduced weight and volume as well as had the effect of misleading consumers about the prices. The width of the PB product price's up and down is larger than the width of the NB product. Thus, following consumers' purchases of PB products, there has been an increasing number of consumer complaints. In order to research consumers' recognition of PB products and to examine how consumers' recognition and information search comparative to PB products affect consumers' dissatisfaction, an online survey targeted consumers with experience purchasing PB products. This study was conducted and analyzed using SPSS 19 Statistics. The findings can be summarized as follows. Even though more consumers who frequently purchased and used the PB products, the more they compared with information search comparative to the NB product and then purchased the PB product. We investigated the result that the relevant variables of consumer complaints have some relative influence in the purchasing of PB products. There will be a higher probability o the group having high recognition about price and safety not making consumer complaints in comparison with the probability of other consumers making complaints after the purchase of a PB product. Therefore, based on the results of this study, companies need to build a system so that they can figure out consumers' needs in order to prevent the occurrence of consumer complaints related to the products of distribution companies' brands. By means of the system, it is also necessary for companies to collect consumer complaints and analyze them by category. Then they eventually should develop a consumer-centered management system which may contribute to quality improvement, product development and the reduction of consumer complaints.
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