Impact of Brand Image and Service Quality on Consumer Purchase Intentions. A Study of Retail Stores in Pakistan

ABSTRACT

The objective of this research is to determine the relationship between brand image, service quality and price on consumer purchase intention. Normative and informative susceptibility has indirect effect on consumer purchase intention. The empirical analysis were determined by collecting data from sample of 301 consumers of large retail stores. The findings of study reveal the positive effect of brand image and service quality on consumer purchase intention. Results reveal the insignificant relationship between price and consumer purchase intention. The findings also documented that consumers in large retail stores don’t bother prices because consumers consider that the stores charge reasonable prices. Most of consumer’s purchases depend upon the brand image and service quality. Normative and informative susceptibility have positive effect on brand image. The recommendations and suggestions are very helpful for managers and operators of large stores. Brand image depends on informative and normative susceptibility.

Keywords : Brand image, informative susceptibility, normative susceptibility, service quality

1. INTRODUCTION

Retail market consists of small retail and large retail stores. Consumers always seek an affective experience in retail environment. The structure of retail market has changed considerably in previous years. A number of retailers have established a significant presence. They have given a new way to purchasing. Several small retailers are transforming themselves to compete successfully with the new large players. The consumers are also shifting to large retail stores for purchasing the products. They select these stores on different bases. So their purchase intention from a particular store depends on the different factors. May be their decision depends upon the references (information) which they get from different sources (friends, media, family and social groups). Consumers have a great array of products and services information in their mind. This information may come through advertising, friends, peer groups, family and other channels. They use this information in choosing from available offerings to satisfy their needs. So this information is used by the consumers to decide about purchase of particular products and services. That decision also depends on personal factors such as emotions, feelings, personality attributes and fantasies. Consumers want to purchase those brands which are liked or loved by others. A sense of inspiration is always there. The present study focuses on Purchase Intention. Consumers are not alike in their age, income, education level habits and tastes. There are different factors which affects their choices among different services and products. It is not easy to read a customer mind. Sometimes he or she is unpredictable as their buying decisions can be changed with mind change. At one moment he or she decides to purchase a product but on the other side a sudden change can be come into their mind to change their decision. Consumer becomes conscious about their purchases. The change in buying decision may be due to getting some crucial information about another most valuable brand because consumer purchase behavior depends on social factors. Today the consumer’ purchase behavior is influenced by status, peer groups, family, friends, and social roles and by social classes. There are many variables which influence consumers to purchase as price, merchandise quality, service quality, music, lighting and aroma. Stores are trying to provide a good service to their consumers. The difference between expected services and actually provided services is called the service quality. The overall impression of a brand in the consumers' mind. Brand's real and imaginary qualities in the mind of consumer is also called image. Brand image can be developed by using media, as advertising. Price is one of the major financial factors which affect purchase decision. Consumers’ perceptions about the value affect the prices which they are willing to pay for selective brands. Consumers always want to balance the price of products and services with their benefits. But in retail stores the prices are not high, so most of the consumers are not conscious about it. Purchase intention can be defined as the possibility; a consumer will purchase a product or service in future. A positive purchase intention propels to consumer for actual purchase action or a negative purchase intention restrain to consumer not to purchase that. Several factors can influence the purchase intention. A consumer will purchase those brands which have good image. An increase in brand image enhances the purchase intention. The purpose of this research is to evaluate the impact of non-financial factors like brand image and service quality. Non-financial factor, price always effects the consumer purchase decision. So social and personality factors also influence the purchase decision.

2. LITERATURE REVIEW

Brand Image

Brand image is defined by Aaker that image is series of brand involvement stored in a consumer’s memory ¹.The reasons in consumers’ mind linked with brand specifications ². Brand image is the perception of brand that created in memory of consumer due to brand involvement ³. Brand image is similar to self-image of consumers as consumers associate themselves with brands ⁴. In this highly competitive environment, a brand image is very important ⁵. To create a well- positioned brand the companies always play an important role. Customers’ emotions to brand based on their identification with a brand image ⁶. Brand image is the total and overall personality in the consumers mind. Brand image depends upon the actual image of the firm in consumers’ mind. A unique set of association in the mind of consumers communicates expectations. Image creation is considered essential for customer attraction and retention ^{7 8 9}. A consumer purchase decision most often depends on brand image rather than physical characteristics of brand [4]. Murphy ¹⁰describes the life cycle of brand. He says there are three stages of brand cycle. The last or the third stage of brand cycle is image building stage. Here the image of brand builds ¹¹. Consumers have evoked set of brands, while choosing a brand the image help consumer in purchase decision. Image of a brand differentiate the brands from competitor’s brands.

Service Quality

Consumer requirements depend on service quality ^{12 13}. Service quality is judgment of consumers’ attitude. Service quality is important factor in affecting decision making process. Service quality is an assessment about the service delivery conforms to the customer expectations. Service quality and purchase intention has a positive relation [14]. A good service quality has a positive relationship with purchase intentions and consumers increase the number of visits to store [^{14 15 16}]. When a store provides better service quality, satisfaction of consumers increase towards a store, and the purchase intention of products also increase ¹⁷.

Informative Susceptibility

Ang¹⁸ studied about an interesting fact that nonfinancial factors have a great impact on consumer purchase intention. Ang and Ochner constructed a model which examine the effect of social and personality traits on consumer purchase decision ¹⁹. Informative susceptibility is the form social susceptibility ²⁰. Informative susceptibility means opinion of others. It can influence image of a brand. As informative susceptibility has a positive or negative impact on brand image, as consumers may present negative or positive attitudes towards brands image it depends on social image ²¹. Chinese society has interpersonal relationships, so their purchase decision affect by others ²².

Normative Susceptibility

Personality traits of consumer have power to influence the individual decisions ²³. Peck and Childer [23]conducted a research that there are individual differences in consumers. Normative susceptibility is form of social influence ²⁴. Consumer make decisions on the basis of others liking and disliking. Consumers’ purchase decisions depends on others expectations, they want to impress others [18]. Consumers because of personal happiness and pleasure give more importance to norms while deciding about purchase ²⁵. Chinese society has interpersonal relationships, so their purchase decision affect by others [21]. Individuals are more likely to purchase those products which they considered as status symbol. Consumers are not willing to purchase those products which are less status symbol²⁶.

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