Extant Corpus on Retail Brand Choice Behavior and Multifactor Modelling on its Impact on Malaysia's Retail Stores

Devaraj S. Arujunen; Yeoh Khar Kheng; Amiya Bhaumik

doi:10.9744/ijbs.5.2.132-144

Authors

Devaraj S. Arujunen Lincoln University College
Yeoh Khar Kheng Universiti Utara Malaysia
Amiya Bhaumik Lincoln University College

DOI:

https://doi.org/10.9744/ijbs.5.2.132-144

Keywords:

Price Sensitivity, Risk Perception, Brand Awareness, Brand Familiarity, Consumer Purchase Behaviors, Retail Brand Choice Behavior

Abstract

This study proposed to close the ostensible research gap by examining the impacts of price sensitivity, risk perception, brand awareness, brand experience/brand familiarity, and consumer purchase behaviors on the retail brand choice behavior in Malaysia's retail stores. Moreover, the analysis method will be pivoted to the Smart PLS path modeling technique, which is much more robust and precise. Therefore, this study's proposed research framework was underpinned by Ajzen's Theory of Planned Behavioural and Prospect Theory as well as identifying the most significant factors impacting the retail brand choice behavior in Malaysia's retail stores. The empirical outcomes of this study provide a useful reference in teaching and research for students and faculties who do research or are concerned about retail brand choice behavior issues. In addition, it provides practical guidelines to assist local Malaysian brand retail chain store top management to consider and use the research output in this study to further strengthen their brand management vis-à-vis foreign retail stores in Malaysia. The SEM-PLS results showed that the direct effect of relationships between price consciousness, brand awareness, brand familiarity, risk perception, and consumer purchase behavior was significant and had statistical support for brand choice behavior in Malaysia. As for the moderating effects, consumer purchase behavior as moderator on the relationship between brand awareness, brand familiarity, and consumer brand choice behavior has been statistically established. However, statistical support could not be proved on the moderating effect of consumer purchase behavior on the relationship between price consciousness and risk perception with consumer brand choice behavior in Malaysia's retail stores. The limitations of the study and suggestions for future research were also discussed.

References

Adiwijaya, M., McGuinness, E., Cary, J.C. and Herjanto, H. (2021). The centrality of brand awareness. International Journal of Business Studies, 4(2), 109-121, DOI: https://doi.org/10.9744/ijbs.4.2.109-121

Ajzen, I. (1991). The theory of planned behavior. Organ. Behav. Hum. Decis. Process. 50(2), 179–211.

Ajzen, I (1988). Attitudes, Personality, and Behavior. Dorsey Press, Chicago.

Alford, B. L., & Biswas, A. (2002). The effects of discount level, price consciousness and sale proneness on consumers' price perception and behavioral intention. Journal of Business Research, 55(9), 775-783.

Asembri, C. A. (1986). The effect of consumers' planned products holding time on risk perception and acceptability. Unpublished PhD thesis, City University of New York, New York, NY.

Bagozzi, R., & Yi, Y. (1988). On the evaluation of structural equation models. Journal of the Academy of Marketing Science, 16, 74-94. doi:10.1007/bf02723327.

Bapat, D., & Thanigan, J. (2016). Exploring relationship among brand experience dimensions, brand evaluation and brand loyalty. Global Business Review, 17(6),1-16.

Bauer, R. A. (1967). Consumer behavior as risk taking, in Cox, D.F. (Ed.). Risk Taking and Information Handling in Consumer Behavior. Graduate School of Business Administration. Harvard University, Boston, MA, pp. 23-33.

Bauer, R. A. (1960). Consumer behavior as risk taking in Hancock, R.S. (Ed.). Dynamic Marketing for a Changing World, American Marketing Association, Chicago, IL, pp. 389-398.

Brooker, G. (1984). An assessment of an expanded measure of perceived risk, in Kinnear, T.C. (Ed.). Advances in Consumer Research, 11(1), 439-441, Association for Consumer Research, Provo, UT.

Christodoulides, G., Cadogan, J. W., & Veloutsou, C. (2015). Consumer-based brand equity measurement: lessons learned from an international study. International Marketing Review, 32(3/4), 307-328.

Christodoulides, G., & de Chernatony, L. (2010). Consumer-based brand equity conceptualization and measurement: a literature review. International Journal of Research in Marketing, 52(1), 43-66.

Çifci, S., Ekinci, Y., Whyatt, G., Japutra, A., Molinillo, S., & Siala, H. (2016). A cross validation of consumer-based brand equity models: driving customer equity in retail brands. Journal of Business Research, 69(9), 3740-3747.

Curlo, E. (1999). Marketing strategy, product safety, and ethical factors in consumer choice. Journal of Business Ethics, 21(1), 37-48.

Dixit, A., Whipple, T. W., Zinkhan, G. M., & Gailey, E. (2008). A taxonomy of information technology-enhanced pricing strategies. Journal of Business Research, 61(4), 275-283.

Dowling, G. R., & Staelin, R. (1994). A model of perceived risk and intended risk-handling activity. Journal of Consumer Research, 21(1), 119-134.

Focus Economics (2018). Retail Sales in Malaysia. Retrieved from https://www.focus-economics.com/countryindicator/Malaysia/retail-sales (3 Feb 2021).

Hair, J. F., Sarstedt, M., Ringle, C. M., & Mena, J. A. (2012). An assessment of the use of partial least squares structural equation modeling in marketing research. Journal of the academy of marketing science, 40(3), 414-433.

Hair Jr, J. F., Money, A. H., Samouel, P., & Page, M. (2007). Research Methods for Business. West Susex, England: John Wiley and Sons Ltd.

Haque, A., & Rahman, S. (2009). Exploring customers' shopping experience through shopping center branding in Malaysia. Journal of Management Research, 9(3), 167-181.

Hanaysha, J. R. (2018). Customer retention and the mediating role of perceived value in retail industry. World Journal of Entrepreneurship, Management and Sustainable Development, 14(1), 2-24.

Hasliza, H., Bakar, S. A., & Sabbir, R. M. (2013). Malaysian hypermarket retailing development and expansion. International Journal of Retail & Distribution Management, 41(8), 584-595.

Huang, R. & Sarigöllü, E. (2012). How brand awareness relates to market outcome, brand equity, and the marketing mix. Journal of Business Research, 65(1), 92-99.

Iveroth, E., Westelius, A., Petri, C. J., Olve, N. G., Cöster, M. & Nilsson, F. (2013). How to differentiate by price: proposal for a five-dimensional model. European Management Journal, 31 (2), 109-123.

Jing, B., & Wen, Z. (2008). Finitely loyal customers, switchers, and equilibrium price promotion. Journal of Economics & Management Strategy, 17(3), 683-707.

Jiputra, J. A., Tarigan, Z. J. H., & Siagian, H. (2020). The effect of information technology on retailer satisfaction through supply chain manage¬ment practices and retailer-distributor relationship in modern retailer Surabaya. Inter¬national Journal of Business Studies, 3(2), 126-134. https://doi.org/10.9744/ijbs.3.2.126-134

Kahneman, D., & Tversky, A. (1979). On the interpretation of intuitive probability: a reply to Jonathan Cohen. Cognition, 7, 409-411.

Kjaernes, U. (2006). Trust and distrust: cognitive decisions or social relations? Journal of Risk Research, 9(9), 911-32.

Lichtenstein, D. R., Ridgway, N. M., & Netemeyer, R. G. (1993). Price perceptions and consumer shopping behavior: a field study. Journal of Marketing Research, 20(2), 234-245.

Macdonald, J. (1994). Quality in retail and distribution. The TQM Magazine, 6(4),11-14.

Magnusson, M., Arvola, A., Hursti, U., Aberg, L. & Sjoden, P. (2001). Attitudes towards organic foods among Swedish consumers.British Food Journal, 103(3), 209-26.

Manzur, E., Olavarrieta, S., Hidalgo, P., Farías, P. & Uribe, R. (2011). Store brand and national brand promotion attitudes antecedents. Journal of Business Research, 64(3), 286-291.

Mitchell, V. W., & Greatorex, M. (1993). Risk perception and reduction in the purchase of con¬sumer services. The Service Industries Journal, 13(4), 179-200.

Nunnally, J. C. (1967). Psychometric Theory. New York, NY: McGraw-Hill.

Pallant, J. (2011). SPSS survival manual: A step by step guide to information analysis using SPSS (4th ed.). Allen & Unwin: Australia.

Phillips, R. (2005). Pricing and Revenue Optimization. Stanford Business Books, Stanford, CA.

Piercy, N. F., Cravens, D. W., & Lane, N. (2010). Thinking strategically about pricing decisions. Journal of Business Strategy, 31(5), 38-48.

Preacher, K. J., & Hayes, A. F. (2008). Asymptotic and resampling strategies for assessing and comparing indirect effects in multiple mediator models. Behavior Research Methods, 40(3), 879-891. DOI: 10.3758/BRM.40.3.879.

Quintal, V. A., & Polczynski, A. (2010). Factors influencing tourists' revisit intentions. Asia Pacific Journal of Marketing and Logistics, 22(4), 554-578.

Retail Group Malaysia (2021). New strategies needed for retailers in 2021. Retrieved from: https://www.retailnews.asia/tag/retail-group-malaysia/ (30 Jan 2021).

Romaniuk, J., Wight, S., & Faulkner, M. (2017). Brand awareness: Revisiting an old metric for a new world. The Journal of Product and Brand Management, 26(5), 469-476.

Sasmita, J., & Norazah, M. S. (2015). Young consumers' insights on brand equity. International Journal of Retail & Distribution Management, 43(3), 276-292.

Sekaran, U. & Bougie, R. (2010). Research Methods for Business: A skill building approach (5th ed.). Chichester: John Willey and Sons Ltd.

Stahl, F., Heitmann, M., Lehmann, D. R., & Neslin, S. (2012). The impact of brand equity on customer acquisition, retention, and profit margin. Journal of Marketing, 76, 44-63.

Stone, R. N., & Mason, J. B. (1995). Attitude and risk: exploring the relationship. Psychology & Marketing, 12(2), 135-153.

Su, J., & Tong, X. (2015). Brand personality and brand equity: evidence from the sportswear industry. Journal of Product & Brand Management, 24(2), 124-133.

Tabachnick, B. G., & Fidell, L. S. (2007). Using Multivariate Statistics (5th ed.). Boston: Pearson Education, Inc.

Thaler, R. (1985). Mental accounting and consumer choice. Marketing Science, 4(3), 199-214.

Valette-Florence, P., Guizani, H. and Merunka, D. (2011). The impact of brand personality and sales promotions on brand equity. Journal of Business Research, 64(1), 24-28.

Yavas, U.,Verhage, B., & Green, R. (1992). Global consmer segmentation versus local market orientation. Management International Review, 32 (3), 265-72.

Yee, W. F., mm, N. S., & Hwa, L. C. (2018). Causerelated Marketing: Its Influence on Consumers' Choice of Hypermarket. International Journal of Business and Society, 19(3), 616-636.

Yeung, R., allace, Y., & Morris, J. (2010). The effects of rik-reducing strategies on consumer perceived risk and on purchase likelihood. British Food Journal, 112(3), 306-322. doi: http://dx.doi.org/10.1108/00070701011029174.

Yeung, R. M. W., & Yee, W. M. S. (2005). Consumer perception of food safety related risk: a multiple regression approach. Journal of International Food & Agribusiness Marketing, 17(2), 195-212.

Zikmund, W.G., & Scott, J. E. (1977). An investigation of the role of product characteristics in risk perception. Review of Business and Economic Research, 13 (1), 19-34.