The Impact Of Store Image And Perceived Quality Of Store Brand On Retailer Equity

The accumulation and increment of retailer equity is very important for retailers to succeed in Chinese market. Building retailer equity generates multiple benefits for retailers such as the ability to leverage one's retail brand by launching private label brands and increase revenue and profitability by insulating them from competitors. Retailer equity depends not only on store image, which is the source of primary associations, but also the source of secondary associations like perceived quality of store brand. However, extant relative literature offers little insight into the empirical research which takes store image and store brands' perceived quality as factors affecting retailer equity.The objective of the present research is to examine the impact of store image and store brands' perceived quality on retailer equity. This dissertation concentrates on the following four parts:(1) Construct a theoretical model in which store image dimensions are related to retailer equity, and then prove the validity of the model through empirical research. The results show that six of the nine store image dimensions have significant effects on retailer equity, and a good store image is essential for hypermarket to build and increase its brand equity. Convenience is the most important dimension affecting retailer equity and then store reputation, the other four dimensions, i.e. personnel service, perceived price, physical facilities and shopping environment are comparatively less important. Merchandise, promotion and after service are not related significantly to retailer equity. Therefore, Chinese hypermarkets should lay stress on building store image with preponderant dimensions as a company strategy to set up "core value", and strictly manage operating particulars to improve significant store image dimensions, strengthening the role of retail brand on the part of retaining customers.(2) Dividing retailer equity of the theoretical model into two constructs, that is, retailer loyalty and store knowledge, we bring to light the routes through which 6 store image dimensions affect retailer equity dimensions, and verify the relations among retailer equity dimensions through empirical research. One of the results indicates that retailer awareness, retailer associations and retailer perceived quality are positively related to retailer loyalty, which validates the hiberarchy of retailer equity and supports the inference that retailer loyalty should be a more holistic variable, closer to retailer equity. 6 store image dimensions are positively related to retailer loyalty through the mediating role of store knowledge. The influential store image dimensions are different in both quantity and order of impact for each retailer equity dimensions. Therefore, in order to build retailer equity, retailers can capitalize on store image dimensions to improve store knowledge, then retailer loyalty is enhanced consequently. Also retailers should focus on different store image dimensions to improve different retailer equity dimension.(3) Introducing store brands' perceived quality, another external variable, into the model, we bring to light the moderating influence of brand extension strategy on retailer equity. The results indicate that store image positively affects four dimensions of retailer equity, and perceived quality of store brand imposes a moderating role to effective results from store image. Therefore, Chinese retailers should lay stress on building store image and utilize perceived quality of store brand to reinforce store image's effect. Moreover, retailers should use store image strategy to guide the management of store brands' perceived quality.(4) A comparison between national and international brand hypermarkets is undertaken and some suggestiones are proposed. The performance of national hypermarkets on store image dimensions, perceived store brand quality and retailer equity compares unfavorably with that of international hypermarkets. National hypermarkets should learn advanced managerial technologies from international hypermarkets while make full use of their inherent advantages as well as get policy support from government. Also national hypermarkets can adopt "high-quality goods stategy" to capitalize on their strengths and minimize their weaknesses while developing store brand.