Influence of Retailer Equity on Shoppers’ Intention to Purchase Private Labels : An Empirical Evidence from Indian Large Retail Market

The aim of this study is to analyze the influence of retailer equity on shoppers’ intention to purchase private labels from shoppers’ standpoint in the Indian large retailing. We conceptualize retailer equity comprises four dimensions-retailer awareness, retailer associations, perceived retailer quality and retailer loyalty. We proceeded with mall intercept method and contacted shoppers with the structured questionnaire at the outlets of large Indian retailers. We obtained 254 valid and useable questionnaires wherein responses are recorded on Likert-type scale of 5 points, with 1 being strongly disagree and 5 strongly agree. Then, the analysis was carried out by Exploratory Factor Analysis (EFA), Confirmatory Factor Analysis (CFA) and Structural Equation Modelling (SEM). Findings of this study reveal that all the retailer equity dimensions i.e., retailer awareness, retailer associations, perceived retailer quality and retailer loyalty have the positive and significant influence on shoppers’ intention to purchase private labels. Based up on the results, it was found that retailer perceived quality was the most influential dimension. Hence, retailers should give considerable importance on retailer equity dimensions to increase market for their private labels. Thus, this study is of great interest for large retailers who wish to increase their private labels’ value proposition to the marketplace