Factors Influencing Customer Perceived Quality and Purchase Intention toward Private Labels in the Vietnam Market: The Moderating Effects of Store Image

Abstract

This study aims to investigate how financial risk, performance risk, physical risk, store image and familiarity affect perceived quality and customer purchase intention toward private labels in Vietnamese context. Moreover, the moderating effects of store image are measured to gain deep knowledge into this proneness. The research model is designed to test in Ho Chi Minh City with 380 participants and collected data is analyzed by SEM method. The results indicate that performance risk, physical risk and store image significantly influence perceived quality. In addition, performance risk, physical risk and store image have indirect effect on purchase intention through perceived quality while only direct effect of familiarity on purchase intention is proved. Interestingly, the role of store image, which moderates the relationship between performance risk, physical risk and perceived quality, is strongly determined. Hence, store image is considered as a symbol of quality and risk reducer. From these findings, the research is expected to provide useful reference for retailers and marketers to come up with effective solutions associated with private labels. Lastly, this research still contains some limitations including sample size, product category and measurement scale, which need to be improved by further research.