Store image influences in consumers’ perceptions of store brands: the moderating role of value consciousness

Purpose – The purpose of this study is to develop and test a conceptual model of the moderating effect of customers’ value consciousness (CVC) on the relationship of store image (SI) with four dimensions of the perceived risk associated to the purchase of a store brand over a manufacturers’ brand, and the direct effect of those variables on the perceived unfairness of manufacturers’ brand prices. Design/methodology/approach – A mall-intercept survey of 600 shoppers in Colombia (South America) gathered data on their consumption experiences of a store brand and manufacturer’s brand across six product categories and two supermarket chains. Findings – Results suggest that SI exerts different influences on the four categories of perceived risk, the strength of which varies with value-consciousness. Perceptions of the price unfairness of manufacturers’ brands are attenuated by the financial and functional risk of buying store brands but increased by the social and psychological risk. Research limitations/implications – The findings may not be generally applicable to other shopping contexts or customers. The functional perspective on SI may mean that the results are not directly comparable with other studies adopting different perspectives. Practical implications – For retailers, the key implications concern awareness and management of customers’ perceptions of relative risks and the impact of value-consciousness on the use of SI as a heuristic decision-making cue. For manufacturers, they are the need to demonstrate clear product differentiation as a rationale for higher prices. Originality/value – This is the first study to encompass value-consciousness, SI, perceived risk and perceptions of price unfairness in a single field survey.