Skip to main navigation menu Skip to main content Skip to site footer

The Importance of Store Image and Retail Service Quality in Private Brand Image-Building



Objective: The purpose of this research is to highlight the role which store image and retail service quality can play in private brand image-building in the context of an emerging market in South-Eastern Europe (i.e. Bosnia and Herzegovina). We propose to address this issue by seeking answers to the following questions: (1) Does a ‘halo effect’ take place between the store image and the private brand image? (2) How does consumer’s evaluation of the quality of the service delivered by a retailer affect the image of its private brand?

Research Design & Methods: Data were collected through a field survey via the store-intercept method. The sample consisted of 699 customers of two large retail chains. The data were analysed using the Structural Equation Modelling technique.

Findings: The findings of the present study suggest that store image and retail service quality are important factors in the formation of the image of product-branded products.

Implications & Recommendations: This study offers some important insights for retailers who intend to develop their private brand. First, the image transfer from store brand to private brand suggests that retailers should consider the introduction of a private brand as a brand extension, with their stores as the parent brand. Second, we recommend that retailers put more emphasis on quality improvement initiatives related to the store environment attributes.

Contribution & Value Added: This study enhances the discussion on the phenomenon of private branding by analysing the store-level factors which underpin the formation of private brand image in the context of less developed European markets.



retailing, private brands, store image, service quality

PDF Figure 1


  1. Aaker, D. A. (1991). Managing Brand Equity: Capitalizing on the Value of a Brand Name, Free Press, NY.
  2. Ailawadi, K. L., & Keller, K. L. (2004). Understanding retail branding: Conceptual insights and research priorities. Journal of Retailing, 80(4), 331–342. .
  3. Anderson, J., & Gerbing, D. (1988). Structural equation nodeling in practice: A review and recommended two-StepaApproach. Psychological Bulletin, 103(3), 411–423.
  4. Anselmsson, J., Johansson, U., & Persson, N. (2007). Understanding price premium for grocery products: a conceptual model of customer-based brand equity. Journal of Product & Brand Management, 16(6), 401–414.
  5. Bagozzi, R. P., & Yi, Y. (2012). Specification, evaluation, and interpretation of structural equation models. Journal of the Academy of Marketing Science, 40(1), 8–34.
  6. Baker, J., Grewal, D., & Parasuraman, a. (1994). The influence of Store Environment on Quality Inferences and Store Image. Journal of the Academy of Marketing Science, 22(4), 328–339.
  7. Bao, Y., Bao, Y., & Sheng, S. (2011). Motivating purchase of private brands: Effects of store image, product signatureness, and quality variation. Journal of Business Research, 64(2), 220–226.
  8. Beneke, J. (2013). The influence of perceived product quality, relative price and risk on customer value and willingness to buy: a study of private label merchandise. Journal of Product & Brand Management, 22(3), 218–228.
  9. Beneke, J., & Carter, S. (2015). The development of a consumer value proposition of private label brands and the application thereof in a South African retail context. Journal of Retailing and Consumer Services, 25, 22–35.
  10. Beneke. J, Brito, A., Garvey, K. A. (2015). Article information : International Journal of Retail & Distribution Management, 43(1), 43–62.
  11. Beristain, J. J., & Zorrilla, P. (2011). The relationship between store image and store brand equity: A conceptual framework and evidence from hypermarkets. Journal of Retailing and Consumer Services, 18(6), 562–574.
  12. Berry, L. L. (1986). Retail Businesses Are Services Businesses. Journal of Retailing, 62(1), 3-6.
  13. Bloemer, J., de Ruyter, K. (1998). On the relationship between store image , store satisfaction. European Journal of Marketing, 32(5/6), 499–513.
  14. Brady, M. K., & Cronin, J. J. (2001). Perceived Service Conceptualizing Approach Quality : A Hierarchical. Journal of Marketing, 65(3), 34–49.
  15. Calvo-Porral, C., Martinez-Fernández, V.-A., Juanatey-Boga, O., & Lévy-Mangín, J.-P. (2013). What matters to store Brand Equity? An approach to Spanish large retailing in a downturn context. Investigaciones Europeas de Dirección Y Economía de La Empresa, 19(3), 136–146.
  16. Chowdhury, J., Reardon, J., & Srivastava, R. (1998). Alternative Modes of Measuring Store Image: An Empiricial Assessment of Structured versus Unstructured Measures. Journal of Marketing Theory and Practice, 6(2), 72–86.
  17. Collins-Dodd, C., & Lindley, T. (2003). Store brands and retail differentiation: The influence of store image and store brand attitude on store own brand perceptions. Journal of Retailing and Consumer Services, 10(November 2015), 345–352.
  18. Cuneo, A., Lopez, P., & Yague, M. (2012). Private label brands: measuring equity across consumer segments. Journal of Product & Brand Management, 21(6), 428–438.
  19. Dabholkar, P. a. (2000). A comprehensive framework for service quality: an investigation of critical conceptual and measurement issues through a longitudinal study. Journal of Retailing, 76(2), 139–173.
  20. Dabholkar, P. a., Thorpe, D. I., & Rentz, J. O. (1996). A Measure of Service Quality for Retail Stores: Scale Development and Validation. Journal of the Academy of Marketing Science, 24, 3–16.
  21. Diallo, M. F. (2012). Effects of store image and store brand price-image on store brand purchase intention: Application to an emerging market. Journal of Retailing and Consumer Services, 19(3), 360–367.
  22. Dobni, D., & Zinkhan, G. M. (1990). In Search of Brand Image: A Foundation Analysis. Advances in Consumer Research, 17, 110–119.
  23. Feldman, J. M., & Lynch, J. G. (1988). Self-generated validity and other effects of measurement on belief, attitude, intention, and behavior. Journal of Applied Psychology, 73(3), 421–435.
  24. Fornell, C., & Larcker, D. F. (1981). Structural Equation Models with Unobservable Variables and Measurement Error: Algebra and Statistics. Journal of Marketing Research, 18(3), 382–388.
  25. Grönroos, C. (1984). A Service Quality Model and its Marketing Implications. European Journal of Marketing. 18(4), 36–44.
  26. Hartman, K. B., & Spiro, R. L. (2005). Recapturing store image in customer-based store equity: a construct conceptualization. Journal of Business Research, 58(8), 1112–1120.
  27. Hooper, D., Coughlan, J., & Mullen, M. (2008). Structural equation modeling: guidelines for determining model fit. Electronic Journal of Business Research Methods, 6(1), 53–60.
  28. Hu, L., & Bentler, P. M. (1999). Cutoff criteria for fit indexes in covariance structure analysis: Conventional criteria versus new alternatives. Structural Equation Modeling: A Multidisciplinary Journal, 6(1), 1–55.
  29. Huang, M.-H. (2009). Using service quality to enhance the perceived quality of store brands. Total Quality Management & Business Excellence, 20(2), 241–252.
  30. Huang, Y., & Huddleston, P. (2009). Retailer premium own-brands: creating customer loyalty through own-brand products advantage. International Journal of Retail & Distribution Management, 37(11), 975–992.
  31. Johnson, J. L., Martin, K. D., & Saini, A. (2012). The role of a firm’s strategic orientation dimensions in determining market orientation. Industrial Marketing Management, 41(4), 715–724.
  32. Keller, K. L. (1993). Conceptualizing, Measuring , and Managing Customer-Based Brand Equity. Journal of Marketing, 57(1), 1–22.
  33. Kremer, F., & Viot, C. (2012). How store brands build retailer brand image. International Journal of Retail & Distribution Management, 40(7), 528–543.
  34. Kumar, N., & Steenkamp, J. E. M. (2007). Private Label Strategy: How to Meet the Store Brand Challenge. Havard Business School Press (Vol. 41). Harvard Business School Press.
  35. Liljander, V., Polsa, P., & van Riel, A. (2009). Modelling consumer responses to an apparel store brand: Store image as a risk reducer. Journal of Retailing and Consumer Services, 16(4), 281–290.
  36. Maccallum, R. C., Browne, M. W., & Sugawara, H. M. (1996). Power analysis and determination of sample size for covariance structure modeling of fit involving a particular measure of model. Psychological Methods, 13(2), 130–149.
  37. Martineau, P. (1958). The Personality of the Retail Store. Harvard Business Review, 36(1), 47–55.
  38. Martínez Salinas, E., & Pina Pérez, J. M. (2009). Modeling the brand extensions’ influence on brand image. Journal of Business Research, 62(1), 50–60.
  39. Mazursky, D., & Jacoby, J. (1986). Exploring the Development of Store Images. Journal of Retailing, 62(2), 145–165.
  40. Mehrabian, A., & Russell, J. A. (1974). An approach to environmental psychology. Cambridge Mass The MIT Press (Vol. 315).
  41. Meyvis, T., & Janiszewski, C. (2004). When Are Broader Brands Stronger Brands? An Accessibility Perspective on the Success of Brand Extensions. Journal of Consumer Research, 31(2), 346–357.
  42. Parasuraman, A., Zeithaml, V. a, & Berry, L. L. (1988). SERQUAL: A Multiple-Item scale for Measuring Consumer Perceptions of Service Quality. Journal of Retailing, 64(1), 12–40.
  43. Richardson, P., Jain, A. K., & Dick, A. (1996). The influence of store aesthetics on evaluation of private label brands. Journal of Product & Brand Management, 5(1), 19–28.
  44. Semeijn, J., van Riel, A. C. R., & Ambrosini, A. B. (2004). Consumer evaluations of store brands: effects of store image and product attributes. Journal of Retailing and Consumer Services, 11(4), 247–258.
  45. Siu, N. Y. M., & Cheung, J. T.-H. (2001). A measure of retail service quality. Marketing Intelligence & Planning, 19(2), 88–96.
  46. Stern, B., Zinkhan, G. M., & Jaju, a. (2001). Marketing Images: Construct Definition, Measurement Issues, and Theory Development. Marketing Theory, 1(2), 201–224.
  47. Swoboda, B., Haelsig, F., Morschett, D., & Schramm-Klein, H. (2007). An intersector analysis of the relevance of service in building a strong retail brand. Managing Service Quality, 17(4), 428–448.
  48. Theodoridis, P. K., & Chatzipanagiotou, K. C. (2009). Store image attributes and customer satisfaction across different customer profiles within the supermarket sector in Greece. European Journal of Marketing, 43(5/6), 708–734.
  49. To, W. M., Tam, J. F. Y., & Cheung, M. F. Y. (2013). Explore how Chinese consumers evaluate retail service quality and satisfaction. Service Business, 7(1), 121–142.
  50. Vahie, A., & Paswan, A. (2006). Private label brand image: its relationship with store image and national brand. International Journal of Retail & Distribution Management, 34(1), 67–84.
  51. Westbrook, R. a. (1981). Sources of Consumer Satisfaction with Retail Outlets. Journal of Retailing. 57(3), 68-85.
  52. Wu, P. C. S., Yeh, G. Y.-Y., & Hsiao, C.-R. (2011). The effect of store image and service quality on brand image and purchase intention for private label brands. Australasian Marketing Journal (AMJ), 19(1), 30–39.
  53. Yu, W., & Ramanathan, R. (2012). Retail service quality, corporate image and behavioural intentions: the mediating effects of customer satisfaction. The International Review of Retail, Distribution and Consumer Research, 22(5), 485–505.


Download data is not yet available.