Postprint version. Published in Journal of Retailing, Volume 74, Issue 3, Fall October 1, 1998, pages 331-352. Copyright © 1998. Published by Elsevier Science Inc. The definitive version can be found online at http://dx.doi.org/10.1016/S0022-4359(99)80099-2.
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.