The effect of store name, brand name and price discounts on consumers' evaluations and purchase intentions

TLDR

Store image is shaped by store name and merchandise quality. The study develops and tests a model of how store name, brand names, price discounts, consumer knowledge, and prior ownership affect consumer evaluations and purchase intentions. The authors built a conceptual model and empirically tested it, exploring how consumer knowledge and prior ownership moderate the effects of store name, brand names, and price discounts on evaluations and intentions. Results show that price discounts, brand name, and perceived quality influence internal reference price, which together with perceived quality drives perceived value; perceived value and store image boost purchase intentions, and consumer knowledge moderates these effects, with high‑knowledge shoppers favoring brand name and low‑knowledge shoppers responding to price discounts and store name.

Abstract

This paper develops and tests a conceptual model of the effects of store name, brand names and price discounts on consumers' evaluations (store image, brand quality perceptions, internal reference prices, and value perceptions) and purchase intentions. The moderating effects of consumer knowledge and prior ownership on the proposed relationships in the model are also explored. A store's perceived image is influenced by the store name and the quality of merchandise it carries. Results also indicate that internal reference price is influenced by price discounts, brand name, and a brand's perceived quality. The influence of price discounts on a brand's perceived quality was minimal. Price discounts, internal reference price, and brand's perceived quality exerted significant influence on perceived value. Perceived value and store image, in turn, positively influenced purchased intentions. High knowledge respondents are more influenced by brand name, while low knowledge respondents are more influenced by price discounts. Low knowledge consumers are also swayed by store name and brand name.