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Journal of Retailing and Consumer Services 21 (2014) 284–292

Contents lists available at ScienceDirect

Journal of Retailing and Consumer Services


journal homepage: www.elsevier.com/locate/jretconser

Linkages of retailer awareness, retailer association, retailer perceived


quality and retailer loyalty with purchase intention: A study of Indian
food retail brands
Gopal Das n
Indian Institute of Management Rohtak, Department of Marketing, M.D. University Campus, Rohtak, India

art ic l e i nf o a b s t r a c t

Article history: The present study was an effort to explore the direct and indirect impacts (mediated through retailer
Received 13 December 2013 loyalty) of retailer awareness, retailer association and retailer perceived quality on purchase intention.
Received in revised form Seven hypotheses were developed with relevant literature support. The hypotheses were tested with
6 February 2014
primary data (n ¼ 355) collected through structured questionnaire using systematic sampling from food
Accepted 6 February 2014
Available online 19 March 2014
retail shoppers of age 18 years and above in Kolkata, a metropolitan city of India. Structural equation
modeling statistical technique was used to test the hypotheses. Results revealed that retailer awareness,
Keywords: retailer association, retailer perceived quality and retailer loyalty have positive impacts on purchase
Retailer awareness intention. Results also found that the indirect impacts (mediated though retailer loyalty) of retailer
Retailer association
awareness, retailer association and retailer perceived quality on purchase intention are stronger than the
Retailer perceived quality
direct ones. Academic and managerial implications are further discussed.
Retailer loyalty
Purchase intention & 2014 Elsevier Ltd. All rights reserved.
Indian food retailing

1. Introduction segmentation and promotional strategies. Purchase intention is


the final consequence of a number of factors in a shopping context.
Researchers argued that “branding and brand management Despite its importance, purchase intention has not been stu-
principle can and should be applied to retail brands” (Ailawadi died well in Indian retail branding context, particularly food retail
and Keller, 2004, p. 340). As a result, it is now being applied to branding context. The present study is an attempt to contribute in
retail brands as well, bringing in a change from the past when it this void. Its aim is to explore the direct and indirect (through
was only applied to product brands (Das, 2013a, 2013b; Moller and brand loyalty) impacts of brand awareness, brand association,
Herm, 2013; Das et al., 2012a, 2012b; Willems et al., 2011). Here perceived quality and brand loyalty on purchase intention. Con-
the retail brand refers to “a retailer as a brand or a retail store as a sidering ‘a retailer as a brand’, brand awareness, brand association,
brand” (Das, 2013a; Das et al., 2012b; Moller and Herm, 2013). For perceived quality, brand loyalty have been termed here as retailer
example, Shoppers Stop, an Indian retail store, can be considered awareness, retailer association, retailer perceived quality, and retailer
as a retail brand. A well-known retail brand attracts footfall and loyalty or store loyalty, respectively. This study has been conducted
influences purchase intention. As retail shopping is often a from Indian food retail branding perspective. The rise of “a retailer
hedonic experience (Babin et al., 1994), the intentions to shop as a brand” is one of the most important trends in retail branding
from a retail store might be directed towards actual shopping research (Grewal et al., 2004). This has been proved in several
behavior (Das, 2013b; Luo et al., 2011). Consumers' purchase recent retail branding studies (e.g., Moller and Herm, 2013;
intentions arise after they perceive utility and value of a product Das, 2013a; 2013b; Das et al., 2013). The present study is a new
or service (e.g., Dodds et al., 1991). Consumer purchase intention addition to this retail branding research group.
takes part in forecasting sales of existing and/or new products and Kearney report (2013) manifested Indian retail market as a
services of retailers (Das, 2013b). Purchase intention data assists high-potential market with accelerated growth of 14 to 15% per
retailers to take decisions related to product demand, market year expected through 2015. Strong microeconomic conditions
including a 6 to 7% rise in GDP, higher disposable incomes and
rapid urbanisation are the antecedents favouring this growth in
n
Tel.: þ 91 9836569837. Indian retail environment (Kearney report, 2012). Retailer are
E-mail address: gd.iitkgp@gmail.com expanding their businesses in tier 2 and 3 cities rapidly. The

http://dx.doi.org/10.1016/j.jretconser.2014.02.005
0969-6989 & 2014 Elsevier Ltd. All rights reserved.
G. Das / Journal of Retailing and Consumer Services 21 (2014) 284–292 285

changing landscape in India has changed Indian customers’ perceived quality are two distinct constructs (Pappu and Quester,
spending and shopping habits (Sengupta, 2008). The present 2006). Study argued that perceived quality influences consumer
scenario of Indian organized retailing is noteworthy (Halepete behaviour (Bolton, 1998). Richardson et al. (1994) found that
and Iyer, 2008). The new policy of foreign direct investment (FDI) consumer decision making process is largely influenced by per-
encourages many players to invest in Indian market. Emergence of ceived quality than other factors such as value-for-money.
e-commerce has made consumer decision making process easy.
Tata Strategic Management Group (TSMG) (2013) projects that 2.4. Retailer loyalty
organized food and grocery retail in India can grow to INR 1750 Bn
(at current prices) by 2015 representing approximate 11% of Store loyalty is conceptualised as “the tendency to be loyal to
overall food and grocery sales. Due to increasing mass consumer- a focal retailer as demonstrated by the intention to buy from the
ism on account of rising GDP, a high-growth rate, along with the retailer as a primary choice” (Pappu and Quester, 2006, p. 320).
increasing spending power of Indians, emergence of private labels Loyalty creates numerous benefits and hence is beneficial in devel-
and e-commerce, the food retailing is turning out to be highly oping and implementing various marketing strategies (Jacoby and
profitable segment and has significant potential to grow in years to Chestnut, 1978). For example, loyalty generates a stable customer
come. This study would help retailers to serve better, ensure pool for firms’ products and services (Oliver, 1997). Loyal customers
profitability and sustainability in growing Indian retail market. spread positive word of mouth about the brands/companies, parti-
The rest of the paper is structured as follows. We first provide a cipate in repeat purchase, and are willing to pay higher price
theoretical background for the study, followed by hypotheses (Zeithaml et al., 1996). A small change in customer retention rate
development and conceptual framework. We then describe the may have significant impacts on retail earnings. Thus, the effort to
methodology used for testing the hypotheses, discuss results, maintain retailer loyalty is considered as a critical retailer strategy to
suggest theoretical and managerial implications of the study, and retain existing customers and thus profitability and sustainability are
conclude the paper with its limitations, and directions for future ensured (Wallace et al., 2004).
research.
2.5. Purchase intention

2. Theoretical background
Purchase intention can be conceptualised as individual’s inten-
tion to buy products/services. Purchase intention can ultimately
2.1. Retailer awareness
result in actual purchase behavior (Luo et al., 2011). The greater the
purchase intention is, the greater a consumer’s desire to purchase a
Retailer awareness is conceptualized as a “consumer’s ability to
product or service (Schiffman and Kanuk, 2000). The intention to
recognise or recall that the retailer is a member of certain retailer
purchase a particular brand, product or service requires assessment
category” (Pappu and Quester, 2006, p. 320). Retailer awareness is
of all brands, products or services offered by competitors (Teng
the extent to which retailers’ names are familiar to shoppers
et al., 2007). Intentions to purchase products/services arise when
(Aaker, 1991). It is the strength of a retailer’s presence in shoppers’
they provide the features that meet the consumers’ need (Fournier,
minds. The strength of retailer awareness is reflected by the ability
1998). Studies argued that purchase intention is affected by both
to recognise the retailers under several conditions including store
recognized value and excellent offers of a product/service (Monroe
recognition and store recall (Keller, 1993). The study argued that a
and Krishnan, 1985; Zeithaml, 1988).
retailer’s name is an information-rich cue to its image (Grewal
et al., 1998).
3. Hypotheses development and conceptual framework
2.2. Retailer associations
The first four constructs (namely brand awareness, brand
Retailer associations is defined as “anything linked to the association, perceived quality and brand loyalty) as demonstrated
memory of the retailer” (Pappu and Quester, 2006; p. 320). Three in theoretical background section, are separate and distinct, and
desirable characteristics of brand associations are strength, favour- are reported in Aaker (1996a, 1996b) consumer-based brand
ability and uniqueness (Keller, 1993). Keller (1993) argued that equity model. The model was developed in product branding
“the presence of strongly held, favourably evaluated associations context. Several studies have argued the relationships between
that are unique to the brand and imply superiority over other brand awareness, brand associations, perceived quality and brand
brands is critical to a brand’s success” (p. 6). Developing strongly loyalty in the product branding context also (e.g., Grewal et al.
held and favourably evaluated brand associations that are unique (1998), Gladden and Funk (2001), O’Cass and Lim (2001), Garton
to the brands and imply superiority over others is often cited as (1995)). However, studies argued that product brands are different
the final reason why companies invest in advertising (Keller, 1993). from retail brands (Ailawadi and Keller, 2004). For example,
Brand associations linked to product performance related to the retailer brands are “typically more multisensory in nature than
brands or to the image of the brands (Keller, 1993) or to the product brands and can rely on rich consumer experiences to
product performance, such as attributes, features or benefits that impact their equity” (Ailawadi and Keller, 2004; p. 332). Thus, the
buyers link to a brand and that differentiate it from the competi- application of branding and brand management principles in retail
tion (Dillon et al., 2001). branding context may produce different results from that in
product branding context (Ailawadi and Keller, 2004; Zentes
2.3. Retailer perceived quality et al., 2008; Das, 2013a). In addition, most of the studies linking
brand awareness, brand association, perceived quality and brand
Retailer perceived quality is conceptualised as the “perception loyalty were based on Western culture. Studies found that con-
of the quality of the retailer as well as the (perception of) quality of sumers’ attitudes, opinions towards marketing activities and
products (goods or services) offered by retailers” (Pappu and marketing constructs vary across the cultures (Dawar and Parker,
Quester, 2006, p. 320). Sometime, retailer perceived quality 1994; Aaker et al., 2001). Yoo and Donthu (2002) argued that
and retailer associations are seemed as a combined dimension cultural and economic differences might mediate the effect of
(Yoo and Donthu, 2001). However, retailer association and retailer marketing efforts on creating brand equity. Based on these arguments,
286 G. Das / Journal of Retailing and Consumer Services 21 (2014) 284–292

the present study is an effort to explore the linkages between brand H3. Retailer association has positive impact on retailer loyalty.
awareness, brand association, perceived quality, brand loyalty and
purchase intention in Indian food retail branding context. 3.4. Retailer association and purchase intention
Before developing the hypotheses (linking the above mentioned
constructs) and conceptual framework of this study, we looked into Brand (retailer) associations contains the meanings of a brand
the existing retail branding study in Indian context. A very few for a consumer, by linking information about the product to the
studies have been conducted investigating different aspects of brand nodes in memory, therefore accounting for the product
Indian retail branding. For example, Das et al. (2012b) developed a attributes, perceived benefits, and various summary evaluations of
scale to measure retail brand personality. Another study explored evoked brands (Farquhar and Herr, 1993). The impact of consu-
positive impacts of retail brand personality and self-congruity on mers’ brand associations on their evaluations of brands is deter-
store loyalty (Das, 2013a). Although all these studies focused on mined by the strength, favourability and uniqueness of the brand
Indian retail branding context (e.g., Das et al. (2012a; 2012b), associations (Keller, 1993). Researchers argued that brand associa-
(2013)), none of them examined the linkages between brand tions has positive influence on purchase intention (e.g., O’Cass and
awareness, brand association, perceived quality, brand loyalty and Lim (2001)). Thus, we assume the following hypothesis in our
purchase intention in Indian food retail branding context. This gap study context.
motivated us to develop the following hypotheses.
H4. Retailer association has positive impact on purchase intention.
3.1. Retailer awareness and purchase intention
3.5. Retailer perceived quality and retailer loyalty
Brand (retailer) awareness is the ability of a customer to identify
a brand (Keller, 2003). Retailer awareness plays a significant role in Loyalty can occur when the service quality has been judged
influencing consumer decision making process (Hartman and Spiro, favourably and the experiences have delivered satisfactions, and to
2005; Arnett et al., 2003). For an example, awareness is considered persist unless and until a negative post-purchase experience gives
as a deciding factor in low involvement purchase decision making sufficient reasons to become disloyal (Selnes, 1993). Selnes (1993)
process, (Hoyer and Brown, 1990). Grewal et al. (1998) hypothesised argued that the perceived quality affects brand reputation and
that more positive the store/brand name or the reputation asso- customer satisfactions, that satisfaction in turn affect brand
ciated with the store is, the more positive the buyers’ perceptions of reputation, and that both satisfaction and brand reputation deter-
the store are. Brand awareness helps a customer to select a brand mine brand loyalty. In addition, Aydin and Ö zer (2005) argued that
(Laurent et al., 1995). In addition, brand awareness makes a perceived service quality is an antecedent of loyalty. Garton (1995)
customer to become aware of a product or service and then builds advocated that the perceived quality has effect on a customer’s
an intention of purchase the same (Percy and Rossiter, 1992). Aaker intention to re-purchase, and hence on the likelihood of loyalty
(1990) argued brand awareness enhances purchase intention. This developing. Thus, we develop the next hypothesis as follows.
leads to develop the following hypothesis.
H5. Retailer perceived quality has positive impact on retailer
H1. Retailer awareness has positive impact on purchase intention. loyalty.

3.2. Retailer awareness and retailer loyalty 3.6. Retailer perceived quality and purchase intention

Ability of a retailer and a consumer to recall and identify a brand The importance of perceived quality originates from its beneficial
is known as brand (retailer) awareness (Aaker, 1996a, 1996b). Brand impact on purchase intentions. Studies found contradicted findings
names offer characters that help retailers and consumers to spot on the influences of perceived quality on purchase intention.
service providers and to assume the outcomes of the services Some scholars have found a direct positive relationship between
(Turley and Moore, 1995). Customers have a tendency to pay more perceived quality and purchase intentions (e.g., Boulding et al.
money for known and famous brands (Keller, 1993).Brand aware- (1993), Parasuraman et al. (1996)), while others reported an indirect
ness affects perceptions and tastes: “People like the familiar and are relationship through satisfaction (e.g., Cronin and Taylor (1992),
prepared to ascribe all sorts of good attitudes to items which are Sweeny et al. (1999)). However, it is argued that the dual effects
familiar to them” (Aaker and Joachimsthaler, 2000). Brand name (direct and indirect) of perceived product quality on purchase
positively influences purchase intention (Grewal et al., 1998). Aaker intentions have been found for goods, while the single effect (direct
(1991) argued that brand awareness impacts brand loyalty. This or indirect) has been reported from studies focused on services.
leads to develop the next hypothesis of this study. Thus, keeping in mind our study perspective, we develop the next
hypothesis as follows.
H2. Retailer awareness has positive impact on retailer loyalty.
H6. Retailer perceived quality has positive impact on purchase
3.3. Retailer association and retailer loyalty intention.

Brand associations have strongest influences on consumer 3.7. Retailer loyalty and purchase intention
behaviour (Romaniuk and Gaillard, 2007). To create the differential
consumer response, it is important that some of the strongly held Loyalty has been a major focus of strategic marketing planning
brand associations are not only favorable but also unique. Retailer (Kotler, 1984) and offers a significant basis for developing a sustain-
associations make the consumer decision making process easy able competitive advantage (Dick and Basu, 1994). Brand loyalty is a
when features like price and quality, offered by retailers are repurchase vow that promises a consumer will repurchase his/her
similar. It gives buyers reasons and justifications to purchase the favorable brands in the future, and they will not change his/her
products (Keller, 1993, 1998). In this context, some studies argued loyalty under whichever condition (Oliver, 1999). In addition, some
that brand association enhances brand loyalty (e.g., Gladden and studies argued that consumers must have positive feelings to brands,
Funk (2001)). This leads to develop the third hypothesis of this and then they will produce purchase intention (Assael, 1998). Studies
study. argued that brand loyalty positively influences purchase intention
G. Das / Journal of Retailing and Consumer Services 21 (2014) 284–292 287

(Mittal et al., 1998; Hennig-Thurau et al., 2002). Thus, we develop the related to the constructs needed for this study and demographic
final hypothesis of this study as follows. of the respondents (see Appendix A for details of constructs). Data
were collected during different times of the day and on different
H7. Retailer loyalty has positive impact on purchase intention.
days of the week and the weekend to minimise periodicity and
Based on the aforesaid hypotheses, the conceptual framework non-coverage problems (Pappu and Quester, 2008). Out of 383
of this study is represented in Fig. 1. administered questionnaires, 355 were found usable for data
analysis based on outliers (i.e., the observation that has esteemed
values on one or more variables, over other observations) and
4. Research method incomplete questionnaires. The sample size deemed ideal to run
multivariate data analytics techniques like structural equation
4.1. Measures modeling (e.g., Shukla, 2009; Dennis et al., 2010).

Keeping in mind our study context, we were very careful in


adoption of constructs to be studied. For measuring retailer 5. Data analysis and results
awareness, retailer association, retailer perceived quality and
retailer loyalty, we have adopted the items developed by Pappu 5.1. The sample and descriptive statistics and reliability of the
and Quester (2006). Retailer awareness, retailer association, retai- constructs
ler perceived quality and retailer loyalty comprise of three, five,
four and three items, respectively. Pappu and Quester (2006) The socio-demographic profile of the sample and descriptive
developed and tested these items in retail branding context statistics of the constructs are represented in Table 1. Table 1
(Pappu and Quester, 2008). The items were measured with shows that almost half of the respondents are female (55%); 40%
7-point Likert type scale (1 ¼strongly disagree, 7¼ strongly agree). respondents are graduate; mean age of the respondents is 33 years
The purchase intention was measured with two items, adopted and mean monthly household income is USD$535.23. The mean
from Summers et al. (2006) study, using 7-point Likert-type scale scores and standard deviations of retailer awareness scale items
(1 ¼strong disagree, 7 ¼strongly agree). The purchase intention range from 5.532 to 5.597 and from 1.088 to 1.112 respectively
measure has proven its applicability in Indian retailing context (Table 1). The mean scores and standard deviations of retailer
(Das, 2013b). However, before final use of all these constructs, we association scale items range from 5.117 to 5.591 and from 1.030 to
checked their content/face validity in our study context. The 1.099, respectively. The same for retailer perceived quality range
content validity was checked with 15 respondents: 5 full market- from 5.321 to 5.532 and from 1.042 to 1.101, respectively. The
ing professors, 5 retail managers and 5 experienced food retail means and standard deviations of purchase intention range from
shoppers. 5.143 to 5.219 and from 1.113 to 1.168, respectively. Finally, the
means and standard deviations of retailer loyalty items range from
4.2. Sample and data collection 4.943 to 5.219 and from 1.263 to 1.512, respectively. The reliability
statistics (Cronbach alphas) of the five constructs are .769, .831,
The population of this study was composed of all food retail .834, .849 and .757 for retailer awareness, retailer association,
shoppers of age 18 years and above. The sampling frame consisted retailer perceived quality, purchase intention and retailer loyalty,
of residents of Kolkata, a metropolitan city of India. A mall respectively.
intercept survey technique using systematic random sampling
(approaching every 15th mall leaving customer) was applied to
collect data with structured questionnaire from five modern food 6. Hypotheses testing
retail stores available in Kolkata: Food Bazaar, More, Reliance
Fresh, Spencer’s and Arambagh’s Food Mart. The eligibility criteria The hypotheses of this study were examined with a sophisti-
of the responding candidate is as follows: purchase any food item cated multivariate statistical tool named structural equation mod-
from the selected retail stores least 4–6 times in the past six eling (SEM). The hypotheses were represented in the conceptual
months. This criteria was set with the objectives of capturing framework of this study (Fig. 1). Fig. 1 represents many depen-
shopping behavior in precise way and to facilitating the data dence relationships, particularly regressions, among the selected
collection process. The questionnaire comprised of questions constructs. Each construct is comprised of several items. So, one

Retailer Awareness
H1
H2
H7 Purchase intention
Retailer loyalty
Retailer Association H3
H6

H5

Retailer perceived
quality

H4

Fig. 1. Conceptual framework of the study.


288 G. Das / Journal of Retailing and Consumer Services 21 (2014) 284–292

Table 1
The sample and descriptive statistics of the construct items.

The sample
Male 45%
Gender
Female 55%
Secondary and higher secondary 28%
Graduate 40%
Education
Post graduate 24%
Others (like M.Phil, Ph.D) 8%
Occupation Housewife 31%
Employed (government/private/self) 51%
Businessman 12%
Others (like students) 6%
Age Mean age 33 years
Monthly household income (MHI) Mean MHI $535.23

Mean SD

Constructs and their itemsa


Retailer awareness
AW1 5.323 1.112
AW2 5.597 1.088
AW3 5.69 1.099
Retailer association
AS1 5.591 1.03
AS2 5.4 1.048
AS3 5.45 1.052
AS4 5.554 1.073
AS5 5.177 1.099
Retailer perceived quality
PQ1 5.532 1.042
PQ2 5.439 1.062
PQ3 5.357 1.072
PQ4 5.321 1.101
Retailer loyalty
RL1 5.287 1.263
RL2 4.943 1.512
RL3 5.138 1.499
Purchase intention
PI 1 5.143 1.168
PI 2 5.219 1.113

a
See Appendix A for items’ details

needs to reconfirm this structural issue and check the validity of model fits the data. The measurement model validity depends on
the constructs in his study context. So, instead of running goodness-of-fit measures and specific evidence of construct valid-
confirmatory factor analysis (to reconfirm the items of constructs ity (Hair et al., 2008).
and check validity) and regressions several times (to examine the Goodness of model fit was initially assessed through Chi-square
dependence relationships), we considered SEM, as it performs value (χ2). However, as Chi-square test is sensitive to sample size
both the analyses together in a same model at the same time. Hair and model complexity, we considered relative Chi-square value
et al. (2008) defined structure equation modeling as a multivariate (χ2/degree of freedom) and some other measures including NFI,
technique combining aspects of factor analysis and multiple RFI, IFI, TLI, CFI and RMSEA as fit indices. The relative Chi-square
regression that enables the researcher to simultaneously examine value of our proposed model (3.66, df ¼ 112, p ¼.000) maintained
a series of interrelated dependence relationships among the the standard of less than 5 (Marsh and Hocevar, 1985). The value of
measured variables and latent constructs (variates) as well as rest fit indices, NFI (.904), IFI (.898), TLI (.895) and CFI (.893) and
between several latent constructs. We used AMOS (version-18) to the RMSEA (.080). The fit indices show the model fit the data
perform SEM. SEM consists of two sub-models, measurement moderately.
model and structural model (Byrne, 2010). The measurement We checked modification indices (MIs) to find any discrepancy
model depicts the links between the latent variables and their between proposed and estimated model (Joreskog and Sorbom,
observed measures, and the structural model depicts the links 1993). Based on the higher value of MIs (Hair et al., 2008), four
among the latent variables themselves (Byrne, 2010). Measure- pairs of items were allowed to covariate and subsequently the
ment model is performed through confirmatory factor analysis structural equation modeling was run. Taking into consideration
(CFA). the contextual perspective, it seemed reasonable to allow the
errors (of the selected items showing higher value of MIs) to
6.1. Measurement model covariate as they measure conceptually similar indicators (Byrne,
2010; Hair et al., 2008). The changes based on modification indices
Measurement model (i.e., CFA) involves examining the loading resulted in a better fitting model (relative Chi-square¼ 3.33, df¼108,
of the observed variables on the latent variables, and estimating p¼.000; NFI¼.925, IFI¼ .916, TLI¼.911, CFI¼.906 and RMSEA¼.078).
indicators and constructs validity. Measurement model helped us No further modification was made and all fit indices indicated a very
to checking validity and psychometric properties of the constructs good model fit.
in this study context. However, before checking the validity and Construct validity and psychometric properties were checked
psychometric properties, we checked how well the measurement with confirmatory factor loadings, composite reliability values
G. Das / Journal of Retailing and Consumer Services 21 (2014) 284–292 289

Table 2 6.4. Power analysis


β values, t-values and p-values.
Power analysis is also an important consideration in SEM
Hypothesis β values t-value p-value# Decision
analysis since it can influence values of the test statistics, and
H1 (AWa-PIa) 0.175 2.305 0 Accepted modification indices (e.g., MacCallum et al. (1996)). However,
H2 (AW-RLa) 0.365 4.103 0 Accepted calculation of power is complicated as it varies with several factors
H3 (ASa-RL) 0.440 4.356 0 Accepted such as reliability of variables, magnitude of error variances,
H4 (AS-PI) 0.149 2.104 0 Accepted
H5 (PQa-RL) 0.238 2.907 0 Accepted
number of manifest indicators per construct, magnitude of the
H6 (PQ-PI) 0.201 2.680 0 Accepted covariance among variables, and the estimation method used (e.g.,
H7 (RL-PI) 0.392 4.127 0 Accepted Browne et al. (2002), MacCallum et al., 1996). As simple rule of
#
thumb, Barrett (2007) therefore suggested that a sample size of
p o .05,
a 150–200 gives adequate power in the sample. Therefore, power in
AW ¼ retailer awareness, PI¼ purchase intention, RL ¼retailer loyalty,
AS ¼ retailer association, PQ ¼retailer perceived quality. our sample was deemed to be adequate for this analysis.

and average variance extracted values. All items loaded on their 6.5. Structural model
corresponding latent factors with significant (p¼.000) factor loadings
Z.70 (Hair et al., 2008) suggested strong convergent validity of the The structural model, representing path analysis, depicts the
constructs used in this study. The measurement model of our study links among the latent variables (Byrne, 2010). The proposed
exhibited strong psychometric properties with composite reliability structural model in this study depicts the linkages between
and average variance extracted (AVE). retailer awareness, retailer association, retailer perceived quality,
The composite reliability (CR) values of the constructs are as retailer loyalty and purchase intention. The model fit indices of
follows:.749 for retailer awareness, .756 for retailer association, structural model also shows a good fit: relative Chi-square¼2.33,
.803 for retailer perceived quality, .749 for retailer loyalty and .840 df ¼103, p¼ .000; NFI ¼.935, IFI¼ .924, TLI ¼.922, CFI ¼.917 and
for purchase intention. All the CR values maintained the recom- RMSEA¼ .072. The linkages between the constructs (as stated in
mended minimum value of .70 (Hair et al., 2008; Bagozzi and Yi, H1–H7) were tested with standardised regression coefficients
1988). The AVE values are:.518 for retailer awareness, .508 for (β values), t-values and p-values (Table 2).
retailer association, .570 for retailer perceived quality, .503 for
retailer loyalty and .502 for purchase intention and all maintained
recommended minimum value of .50 (Hair et al., 2008; Fornell and 7. Discussions
Larcker, 1981). The values of AVE extracted from two standardised
constructs were greater than the square of the correlation The objective of this study was to explore the direct and
between the two constructs (ranges from .001 to .302) indicating indirect (through brand loyalty) impacts of retailer awareness,
strong discriminant validity of all constructs (Fornell and Larcker, retailer association, retailer perceived quality and retailer loyalty
1981). on purchase intention in retail branding context. The impacts of
one constructs on others were represented in hypotheses H1 to
H7, as depicted in conceptual framework. The hypotheses were
6.2. Test for mediation effect tested through structural equation modelling (SEM). The results
of SEM were represented in Table 2. Table 2 shows that retailer
In our proposed model, retailer loyalty or store loyalty is working awareness positively influences purchase intention (β¼.175,
as a mediator variable. In order to test this mediating relationship, we t¼2.305, p o.05) and retailer loyalty (β ¼.365, t¼4.103, p o.05).
run the model without the retailer loyalty-purchase intention link Thus, hypotheses H1 and H2 are accepted. These results are in line
(no mediation). The model fit indices indicates (NFI¼.901, IFI¼.856, with previous study in product branding context (e.g., Percy and
TLI¼.835, CFI¼.856 and RMSEA¼ .089) a reasonable fit but worse Rossiter (1992), Aaker (1991)). Table 2 also reveals positive impacts
than the mediated model. Thus, we established that retailer loyalty of retailer association on retailer loyalty (β ¼.440, t ¼4.356, p o.05)
mediates the relationships (e.g., Singh and Das (2013)). and purchase intention (β¼.149, t¼ 2.104, p o.05). Thus, hypoth-
eses H3 and H4 are supported. The results are at par with many
previous studies conducted in product branding context (e.g.,
6.3. Test for alternative models Gladden and Funk (2001), O’Cass and Lim (2001)). Retailer
perceived quality found to have positive impacts on retailer loyalty
We tested three alternate models to examine for the robustness (β¼.238, t ¼2.907, po .05) and purchase intention (β¼.201,
of our proposed structural model. In order to check these models, t¼2.680, po .05). Thus, hypotheses H5 and H6 are also supported.
we run four different models with different linkages between These results are also in line with several previous studies (e.g.,
constructs. Model 1, consists of linkages between retailer aware- Boulding et al. (1993), Parasuraman et al. (1996)). Finally, as
ness (AW)-Retailer loyalty (RL), retailer association (AS)-(RL), expected, retailer loyalty has positive impact on purchase inten-
retailer perceived quality (PQ)-(RL) and RL-purchase intention tion (β¼.329, t¼4.127, p o.05). Thus, the last hypothesis of this
(PI). Model 2 consists of linkages between AW-RL, AS-RL, PQ- study H7, also is accepted. Studies in product branding context
PI, and RL- PI. Model 3 consists of linkages between AW-RL, also confirmed the same impact of retailer loyalty on purchase
AS-PI, PQ-RL, and RL-PI. Finally, model 4 consists of linkages intention (e.g., Hennig-Thurau et al. (2002)). The indirect impacts
between AW-PI, AS-RL, PQ-RL, and RL-PI. However, the fit (through retailer loyalty) of retailer awareness, retailer association
indices results of each model (model 1: NFI ¼.890, RFI¼.887, and retailer perceived quality on purchase intention calculated
IFI¼ .867, TLI¼.897; model 2: NFI ¼.862, RFI¼ .876, IFI ¼.883, simply by summing up the coefficients. Interestingly, results shows
TLI ¼.834; model 3: NFI ¼.823, RFI¼ .845, IFI¼.862, TLI ¼.832; that the indirect impacts of retailer awareness (.365þ.392¼.757),
model 4: NFI ¼.889, RFI¼ .845, IFI¼ .867, TLI ¼.856) show that all retailer association (.440þ .392¼.832) and retailer perceived quality
the three alternate models have poor fit compared to the proposed (.238þ.392¼.630) on purchase intention are higher than the direct
structural model. Therefore, we stick to our proposed model. ones.
290 G. Das / Journal of Retailing and Consumer Services 21 (2014) 284–292

As the linkages between the constructs discussed in the afore- purchase, and are willing to pay higher price (Zeithaml et al., 1996).
said paragraph has been discussed in product branding and several Purchase intention can ultimately result in actual purchase behavior
cultural contexts, arguably, this study could be seen as a first study (Luo et al., 2011). Understanding of loyalty and purchase intention
in Indian and food retail branding contexts. While studies argued helps companies better manage customer relationship management
that retail brands are different from product brands (e.g., Ailawadi for creating long-term investment and profitability. In addition,
and Keller (2004)), this study could be seen as a significant thorough understanding of the factors influencing loyalty and pur-
contributor to the present knowledge of retail branding literature. chase intention could help retailer to formulate and implement
several marketing strategies like segmentation and positing. In this
regard, our study may be proved useful as it explored the factors
8. Theoretical and managerial implications influencing retailer loyalty and purchase intention.
Our study has found direct positive impacts of retailer aware-
Our study has both theoretical and managerial implications. ness, retailer association, retailer perceived quality and retailer
This study has explored the direct and indirect (through retailer loyalty on purchase intention. Purchase intention is the most
loyalty) impacts of retailer awareness, retailer association, retailer important predictor of consumer purchase behaviour (Morwitz
perceived quality on purchase intention. All the impacts are and Schmittlein, 1992). Inside physical shops, information from
positive and significant. Interestingly, this study found that the products/services and salespersons’ service quality have impacts
extent of indirect impacts are greater than the direct ones. These on purchase intentions. Our study provided another set of factors
findings contribute significantly to retail branding and consumer which have impacts on purchase intention. This study also found
behavior theory as such linkages have not been explored earlier in the indirect impacts, through retailer loyalty, of retailer awareness,
Indian food retail branding context. The study also established the retailer association, retailer perceived quality on purchase inten-
mediating role of retailer loyalty in the linkages between retailer tion. Interestingly, we have seen that the indirect impacts are
awareness, retailer association, retailer perceived quality and higher than the direct ones. This provides a ready reference for the
purchase intention. Based on the stronger mediating effect of retailers to formulate and implement their purchase intention
retailer loyalty, we argue that intent to purchase a product/service strategy, the foundation of actual purchase behaviour.
can be best encouraged through retailer loyalty rather just the In summary, this study provides the antecedents of two most
direct influences of retailer awareness, retailer association and important marketing activities namely purchase intention and store
retailer perceived quality. This is another significant contribution loyalty. In emerging economy like Indian market, store loyalty and
to the retail consumer behavior theory. In investigating the direct purchase intention are the key to succeed and survive. Due to the
and indirect (through retailer loyalty) impacts of retailer aware- attractive economic growth and relaxation in foreign direct invest-
ness, retailer association and retailer perceived quality on pur- ment in retail sector, many international players are entering into
chase intention, we have found four antecedents of purchase Indian market. Every retailer wants to enhance their customer base.
intention namely retailer awareness, retailer association, retailer In this regard, our study suggests the retailers that customers base
perceived quality and retailer loyalty. So, far, studies have identi- can be enhanced through proper management of brand awareness,
fied studies have found product’s extrinsic cues like price, brand, brand associations and perceived quality of their brands.
advertising, as various antecedents of purchase intention. How-
ever, arguably, our study is the first to identify retailer awareness,
retailer association, retailer perceived quality and retailer loyalty 9. Limitations and future studies
as antecedents of purchase intention. Retail branding and con-
sumer behaviour theory can be enriched with these findings. This study has several limitations. This study has focused only
This study has several managerial implications too. Regarding the on one retail segment, i.e., food and on one city, Kolkata. So,
hypotheses, H1–H6, this study has proved that retailer awareness, further testing across other retail segment (i.e., non-food) and
retailer association, retailer perceived quality have positive impacts different geographical regions is required before any generations
on retailer loyalty and purchase intention. Thus, higher the retailer of these results can be undertaken. We examined the impacts of
awareness, retailer association and retailer perceived quality are, retailer awareness, retailer association, retailer perceived quality
higher the tendency to be loyalty with and to purchase from the and retailer loyalty on purchase intention. Several other variables
retailers. Thus, this study provides sets of antecedents of store loyalty like social influence (Vigneron and Johnson, 1999; Wiedmann
and purchase intention. Both store loyalty and purchase intention et al., 2009) behavior of the retailers/sales persons can influence
have significant impacts on profitability and sustainability of retailers. purchase intention. We invite future researchers to focus on this
However, retailers do not have direct control on customer purchase aspect. Shopping behaviour could vary across gender (Das, 2013a).
intention and commitment (loyalty). But our study shows purchase Thus, we invite future research investigating how these linkages
intention and loyalty can be controlled indirectly through retailer vary from male to female shoppers.
awareness, retailer association and retailer perceived quality. Several
marketing activities like advertisements, pricing, and store layout
build the retail brand awareness, association and perceive quality. Appendix A
These marketing activities are retailers’ controllable variables. Control
of these variables mean control of brand awareness, brand associa- Measures
tion and perceived quality. Thus, through controlling retail brand
awareness, association and perceived quality, the purchase intention Retailer awareness (AW)
and loyalty can be controlled.
The last hypothesis H7 confirms that retailer loyalty positively  Some characteristics of the store come to my mind quickly (AW1).
influences purchase intention from a retailer. Retailer loyalty is the  I am aware of the store (AW2).
customers’ commitment towards the retailers which is the will-  I can recognize the store among other stores (AW3).
ingness to keep or maintain a high quality relationship. Having
high rate of loyal customers, retailers can gain competitive advantages Retailer association (AS)
through higher price pay willingness and less price sensitivity. A loyal
customer spreads positive word of mouth, participate in repeat  The store offers very good store atmosphere (AS1).
G. Das / Journal of Retailing and Consumer Services 21 (2014) 284–292 291

 The store offers very convenient facilities (AS2). Das, Gopal, 2013b. Linkages of retailer personality, perceived quality and purchase
 The store offers very good customer service (AS3). intention with store loyalty: a study of Indian non-food retailing. J. Retailing
 The store offers very good variety of products (AS4).
Consumer Serv. http://dx.doi.org/10.1016/j.jretconser.2013.11.001i
Dick, A.S., Basu, K., 1994. Customer loyalty: toward an integrated conceptual
 The store offers very good after sales service (AS5). framework. J. Acad. Marketing Sci. 22 (2), 99–113.
Dennis, C., Andrew, Newman., Richard, Michon., J., Josko, Brakus., Len, TiuWright,
2010. The mediating effects of perception and emotion: digital signage in mall
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Dodds, W.B., Monroe, K.B., Grewal, D., 1991. Effect of price, brand and store
 The store offers products of very good quality (PQ1). information on buyers’ product evaluation. J. Marketing Res. 28 (3), 307–319.
 The store offer products of consistent quality (PQ2).
Dillon, W.R., Madden, T.J., Kirmani, A., Mukherjee, S., 2001. Understanding what’s in
a brand rating: a model for assessing brand and attribute effects and their
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