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Impact of Customer Brand Perceptions on Store Image and Purchase Intention: An Application in Retail Stores

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Impact Of Customer Brand Perceptions on Store Image and Purchase Intention: An Application in Retail Stores


By  rapidly changing the brands trend in Pakistan, the people are brand conscious and wants new every time. Increasing brand competition and higher  expectations of customers the domestic retail environment changed and some companies maturing the customers expectations and an aging consumer market in the Pakistan. Argues that for many retailers, competitive edge in the local market  has been based on the building of strong store images as retailers aim to develop themselves as brands.

Brand image created customer loyalty and results in cognitive and emotional satisfaction (Kumar and Kim, 2014). From this view, brand image follow the ability to achieve customers’ expectations. Brand image also tells  the value and created an identity for the customers (Rayburn and Voss, 2013).store brands  formed positive and negative recalls towards customer attitude and also about the product (Aghekyan-Simonian et al, 2012). Companies uses brand image to attract customers by identifying their needs and providing product according to their demands (Merz et al., 2009; Vargo and Lusch, 2004). by adopting effective and differentiated strategies to built a strong and impressive brand to differentiate products from competitors(Colucci et al., 2008; Madden et al.,2006).

In marketing and retailing literature the price fairness and Price-making policies of store retailers  has received attention of consumers. Price image  considered as  a part of a overall store image(Lindquist, 1974).  price-image is generally defined as a set of factors related to customers’ having image about the product and price of that products, which push the customer to buy that products(Diallo, 2012; Jara and Cliquet, 2012). The previous research has not thoroughly describes the relationship between store image and price-image, the relationship has been described only some researchers (Jara and Cliquet, 2012). Vahie and Paswan (2006) described that price image can create positive effect on store image. When customers are not familiar with the brand, store image is only a way for judging store brands.

 Negative perception may arise for the brand from poor retailer performance or unfavorable experience with the brand that may lead to risk perception. High  risk perception may be the reason that the customers not willing to purchase the brand. Customers rely on low risk cues such as they choose that brands or stores which have good reputations and avoid uncertainty (Aghekyan-Simonian et al., 2012).

 The price of  a product or service that the customer want to pay to buy a certain product or service is known as purchase intention. Purchase intention is  dependent variable and it  depends upon some external and internal factors. Purchase intention  used as a predictor of consecutive  purchase and relationship had been found between store image and purchase intention (Grewal at al., 1998). In the study conducted by Granot et al., (2010), three dimensions have  found to make a decision in retail purchase of female consumers. These drivers are emotional (brand), services (retail environment) and lastly experiential (shopping). They further suggest that retailers should take all three issues to attract and created satisfy customers. To estimate the customer behavior the purchase intention is also used as an indicator (Wu et al., 2011). 

Store image is the mediating variable in this study. It create a relationship between independent and dependent variable. The retailers store image is the one factor that affect the brands image(Cohen and Jones, 1978). Brands are able to gain competitiveness with the quality of service they provide to its customers since this helps to maintain the brand image and improve customer satisfaction (Torres et al.2001). A good brand image creates positive attitude of customers towards the brand and reduces the perceived risk from buying the product (Wu et al., 2011).

Studies in Pakistan about brand image and  relationship between purchase intentions are limited, and none of them compare different types of products and degree of association. Therefore, this study explores the effects of brand image directions on purchase intention and they have a strong relationship with the mediating variable store image . As Aaker (1996) suggests, brand personality effect or influence customers preference to operate in different ways for different areas.the price image and perceived  risk directly and indirectly affect the purchase intention.

The purpose of this study is to investigate the effect of brand image, price image and perceived risk on store image and  purchase intentions of the customer .The customer want to buy best and with reasonable price which satisfies the needs of  customers. A successful brand store has a strong impression on the minds of the customers and make it easy for them to take decision in the favor of that brand which increases customer satisfaction and gain their loyalty and commitment towards the brand.


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