Antecedents and consequences of a retailers’ price image: The moderating role of pricing strategy

Abstract

The high competition in retail sectors around the world has a decisive impact on the selection of the right retail price strategies for developing a strong retail price image. Therefore, this study examines the effect of price-related and non-price factors on developing a favourable retailer’s price image in tandem with the mediating role of price image and the moderating role of pricing strategy on shopping intention. This study employed the mall-intercept method and collected data from 522 retail customers of different retail stores in Indonesia. SEM-PLS is employed for examining the conceptualized hypotheses and the research model. The empirical findings exhibit that price-related factors and pricing strategy are important antecedents of retail price image, but non-price-related factors are insignificant antecedents of the retailer’s price image. The empirical findings also exhibit that the price image mediates the relationship between price-related factors and shopping intention. In addition, the price strategy has an impact on price-related factors, non-price factors, price image, and shopping intention. Price strategy also moderates the relationship between price image and shopping intention. This study suggests that retail managers should select one of the best retail price strategies, such as everyday low pricing (EDLP), promotional pricing, and high-low pricing (Hi-Lo) strategy, to develop a strong retailer price image and to enhance customer impression on price setting. In so doing, the purchase intention of retail customers could be increased significantly, and the selling of the retailers could be higher.

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