Article2012

The influence of perceived risk on purchase intent – the case of premium grocery private label brands in South Africa

Justin Henley Beneke · Inge Lok · Kate Mallett

95 citations0/0 files storedJournal of Product & Brand Management

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Consumer Market Behavior and Pricing Consumer Behavior in Brand Consumption and Identification Consumer Retail Behavior Studies

Abstract

Purpose The purpose of this study is to investigate the perceived risks that consumers associate with premium grocery private label brands in South Africa, and to understand which of these risks significantly affect their purchase intention. Design/methodology/approach A self‐administered survey consisting of 325 respondents was utilised. Item total reliability and confirmatory factor analysis were used to test the reliability and validity of the constructs. Furthermore, path modelling in the form of partial least squares analysis was employed to analyse the relationship between consumers' perceived risks and their purchase intention. Findings This study revealed that functional and time risk both have a significant negative influence on consumers' purchase intention of premium grocery private label brands (at the 5 per cent significance level), while financial, physical, psychological and social risks do not significantly influence their purchase intention. Research limitations/implications This study is limited in that respondents are consumers of a specific geographic region and demographic grouping. Findings may therefore not be generalisable, particularly with respect to developed markets. Originality/value This is one of the first studies investigating consumers' perceived risks of premium grocery private label brands sold within emerging markets. As retailers continue to grow profits through the deployment of such brands, this study may provide direction on how best to entice consumers to trial and adopt these brands in a largely commodity‐driven environment.

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References

2009\nThe use of partial least squares path modeling in international marketing 1970Marketing Research 1998Brand Equity as a Signaling Phenomenon 2003Consumer Switching Costs: A Typology, Antecedents, and Consequences 1993Price Perceptions and Consumer Shopping Behavior: A Field Study 1999The role of perceived risk in the quality-value relationship: A study in a retail environment 1999Consumer perceived risk: conceptualisations and models 1972The Components of Perceived Risk

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