Consumer Perceptions of Private Label Brands in Pakistan

Abstract

As the world market share of private label brands (PLBs) increases, so does the importance of and need for research in this field. Given the growing presence of PLBs in Pakistan, this study aims to examine the effects of service quality on PLB image, which we hypothesize affects purchase intention and brand loyalty. We also measure the mediating effect of perceived risk on the relationship between PLB image and purchase intention. Based on a sample of 348 respondents, we apply a structural equation model and find that (i) service quality has a positive effect on PLB image, (ii) PLB image has a positive effect on purchase intention, (iii) PLB image has a positive relationship with perceived risk, although this does not mediate the relationship between PLB image and purchase intention, and (iv) purchase intention translates positively into brand loyalty.