EXPLORING THE EFFECT OF PRIVATE LABEL PRODUCTS ON RETAIL STORE IMAGE AND CONSUMER PERCEPTION

Abstract

Private label products, or store brands, have become essential in shaping the identity and competitiveness of retail outlets. This study examines how private label attributes—packaging, price, quality, and variety, and availability— impact store image in a developing country context. The research was conducted in Karachi, Pakistan, using data collected from 279 respondents via a structured questionnaire. Multiple regression analysis was employed to evaluate the relationships between the independent variables and store image as the dependent variable. The findings highlight that packaging and price significantly influence the store image. Packaging, which serves as both a functional and visual cue, enhances consumer perceptions of product quality and store identity. Competitive pricing strategies, particularly in price-sensitive markets, positively affect the store’s perceived value and attractiveness. On the other hand, attributes such as quality, variety, and availability showed no significant impact, indicating that consumers in developing markets may prioritize external cues like packaging and pricing over intrinsic product attributes. These results emphasize the importance of packaging and pricing in retail strategies, offering actionable insights for retailers to improve their private label offerings and strengthen their overall store image. By investing in visually appealing packaging and adopting competitive pricing strategies, retailers can attract and retain consumers, driving customer loyalty and market differentiation.