1. Research on the Theoretical Model of Factors Affecting Consumers’
Perception Quality of the Products of Private Brand*
Sha Zhenquan1 Zhang Depeng2
1
College of Business Administration, South China University of Technology, P. R. China, 510641
2
School of Economics and Management, Guangdong University of Technology, P. R. China, 510090
Abstract In order to effectively develop private brands, it is necessary for retailing enterprises to make
clear the factors affecting consumers’ perception quality of the products of private brands. Based on
detailed literature review, the paper points out the main factors affecting consumers’ perception quality.
According to the actual situation of China’s retailing enterprises, the paper analyses the relationship
between every affecting factor and consumers’ perception quality, and finally sets up the theoretical
model on the factors affecting consumers’ perception quality.
Key words Perception quality, Consumer, Affecting factor, Theoretical model
1 Introduction
At present, the trend, which big-size international retailing enterprises develop the products of
private brands by themselves, has been formed. Confronting with aggravating market competition,
big-size retailing enterprises in China have become to pay attentions to the development of the products
of private brands.
The precondition of successful operation of products’ brands is the consumers’ approbation and
purchase, which are depended on the consumers’ perception value of the products. Among the
component factors of the consumers’ perception value, consumers’ perception quality is one of the key
factors. Because the researches on private brands in China are just in their beginning stage, the factors
affecting consumers’ perception quality of the products of private brands have not been made clear yet.
Thus, researching on the theoretical model of factors affecting consumers’ perception quality will be of
guiding significance to promote the theory research and the actual development of the products of
private brands.
2 Literature Review
2.1 The Actual Quality of Products and the Perception Quality of Products
Product quality has two kinds of expressive forms, actual quality and perception quality. The actual
quality of products means the whole merits and advantages of real products, which can be judged or
evaluated based on corresponding standards. However, the perception quality of products means
consumers’ judgment on the whole merits and advantages of products. It is the consumers’ subjective
evaluation and judgment on product quality.
Zeithmal thought, in 1985, that consumers evaluated products based on their perceptions on the price,
quality and value of products, but not based on the objective attributes of products such as the durability
of products. This is a subjective judgment. The perception quality is a higher-level summary for the
products. It is not any specific attributes of products, but is a subjective judgment based on consumers’
own concrete hypothesis.
2.2 The Perception Quality of the Products of Private Brands
According to the analysis above, the perception quality of the products of private brands means
consumers’ subjective perception on the product quality of private brands provided by retailing
enterprises. For a long time, retailing enterprises have only token on the intermediary functions to
deliver the products from manufacturing enterprises to consumers. Consumers are accustomed to
*
Supported by Guangzhou Philosophy and Social Science Item (No.YZ1-16)
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2. purchasing products made by manufacturing enterprises, and not familiar with the products of private
brands provided by retailing enterprises. Especially in our country, the private brand has just been
developed in recent years. Therefore, it is generally difficult for consumers to effectively evaluate and
judge the actual attributes of the products of private brands. Consumers’ perception quality of the
products of private brands is generally lower than their actual quality.
2.3 The Factors Affecting Consumers’ Perception Quality
As a matter of fact, many scholars have begun their researches by using the perception quality as
an important standard for consumers to evaluate the products of private brands. In 1974, Sundel
discovered that if consumers were let to separately evaluate the canned corn of the brands of
manufacturing enterprises and that of the private brands of retailing enterprises, they would thought that
the corn quality of the brand of manufacturing enterprises was better than that of the private brands of
retailing enterprises. Similarly, in 1982, Cunningham’s research showed that the external features, label,
taste and selective scope of the foods of the brands of manufacturing enterprises were better than that of
the private brands of retailing enterprises.
Those researches also showed that compared with that of the brands of manufacturing enterprises,
the products of the private brands of retailing enterprises were generally positioned as a kind of low
quality products by consumers. In 1979, Fugate’s experimental research initially explored the causes of
the low perception quality of private brands. In his experiment, the product packages of private brands
were used as a controlled factor; i.e. some product (for example, cake and jam) packages are expressed
with the brands of manufacturing enterprises. The experimental results showed that consumers’
evaluation was low if the names of manufacturing enterprises were not printed on the product packages
of private brands; the show of the brands of manufacturing enterprises had a positive effect on
consumers’ evaluations. Especially when the product brands of manufacturing enterprises were
extensively known by consumers and had high celebrities, consumers’ positive evaluation would be
more obvious.
Richard, Dick and Jain, in 1994, farther examined the effects of various indications such as price,
package and so on, on the quality evaluation of private brands. They found that consumers’ evaluation
on the product quality of private brands would be high when the products of private brands were packed
into the products of the brands of manufacturing enterprises, and showed with the price of
manufacturing enterprises. Meanwhile, when the brands of manufacturing enterprises were showed with
the private brands of retailing enterprises, consumers’ evaluation on the product quality would greatly be
reduced. The research showed that consumers’ evaluation on private brands were highly depended on
the external attributions of products, not their actual quality.
Manolis, in 1994, pointed out that consumers made their value judgments based on these factors
such as the overall service quality, product quality, price and inside atmosphere of the stores. Aaker in
1997, Wheatley and Chiu in 1977, pointed out that the brands, store images and store names were the
important factors for consumers to judge quality. Because the products of private brands are provided by
retailing enterprises, the retailing enterprises are the brands of products to a certain extent. Therefore,
with regard to the products of private brands, the reputations of retailing enterprises represented the
brand name, the image and product name.
Based on the analysis above and the overall concept of products, when consumers purchase the
products of private brands, the factors affecting consumers’ perception quality should include the price,
actual quality, package, service quality of the products of private brands and the reputation of retailing
enterprises.
3 Research Hypotheses and Model
3.1 Putting forward the Research Hypotheses
3.1.1 The Price of the Products of Private Brands
Price is always considered as an important index to evaluate product quality (Olson, 1977).
Because price can affect consumers’ purchasing demands and the gradation classifications of products,
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3. consumers often use price to evaluate the quality gradation of products. Therefore, the relationship
between the price of products of private brands and the quality of products of private brands can be
positive relative.
However, some researchers pointed out that if more conditions could be gained, the positive
relative relationship could not be untenable (Dodds et al, 1991; Eeithaml, 1980). Of course, Richardson,
in 1994, discovered that the low price of the products of private brands would reduce consumers’
perception quality, and made consumers not be willing to purchase the products of private brands.
Because the private brands of retailing enterprises have just sprung up in China, and consumers are
unfamiliar with them and their corresponding intrinsic quality. The price of the products of private
brands can bring forth the positive effects on consumers’ perception quality. Therefore, the following
hypothesis can be brought forwards.
H1: The prices of the products of private brands and consumers’ perception quality are positive
relative.
3.1.2 The Quality of Products of Private Brands
According to the definition of Amercia Quality Control (AQC), the quality of products means the
sum of the characteristics and special properties of products or services. It can meet the inherent and
self-evident demands of consumers. After consumers purchase and use the products of private brands,
they can experience the actual quality characteristics of products of private brands such as functions,
useful life, and reliability and so on. If these characteristics are good, consumers’ perception quality can
be raised and vice verse. Therefore, the following hypothesis can be brought forwards.
H2: The qualities of the products of private brands and consumers’ perception quality are positive
relative.
3.1.3 The Service Quality of Retailing Enterprises
In general, consumers hope to gain extra services to support them to purchase and use products or
services. In China, the private brands of retailing enterprises have just been put into markets. They are
belongs to new brands for consumers. It is necessary for retailing enterprises to provide consumers with
essential services such as introducing the characteristics of new brands, permitting consumers to replace
or return products bought without any difficulity, and other after-sales services. Whether and how
efficient these services are provided directly affect consumers’ perception quality of the products of
private brands. Therefore, the following hypothesis can be brought forwards.
H3: The service quality of retailing enterprises and consumers’ perception quality are positive
relative.
3.1.4 The Package Gradation of the Products of Private Brands
The rational package of products can not only be convenient for consumers to use products, but
also change the extra image of products and attract consumers to purchase products. After the marketing
personnel in Du Pont de Nemours, E. I. & Company in America had made marketing researches, they
brought forwards the famous law of their company: 63% of consumers make their purchasing decisions
based on the package and decoration of products; when housewives do shopping in supermarkets, the
items they have purchased are often 45% more than what they originally expected to purchase because
of the attraction of exquisite package and decoration of products. Thus, the package of products is
similar to the face and dress of products. It serves as the first image of products and affects consumers to
make their purchasing decisions. Meanwhile, the package of products is one of the component parts of
the whole products. In general, the products of high gradation are outfitted with the package of high
gradation. If the package of products is comparatively exquisite, consumers generally think the quality
of products is comparatively high. Therefore, the following hypothesis can be brought forwards.
H4: The packages of the products of private brands and consumers’ perception quality are positive
relative.
3.1.5 The Reputation of Retailing Enterprises
In 1961, Stigler thought that the reputation of enterprises showed the consistency with the quality
of their products, and could gain higher price of products. The reason was that it could reduce
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4. consumers’ time and cost to seek products. Bolten and Drew in 1991, Tears and Agarwal in 2000,
pointed out that the reputations of retailing enterprises were formed by consumers’ oral communications,
enterprise advertisements and precipitation of brand values. These researchers also showed that
consumers’ oral recommends played an important role in reducing consumers’ misgivings on product
quality and helping consumers to make their purchasing decisions. In 1997, Aaker thought that the
private brands of retailing enterprises could affect the consumers’ expected quality when they brought
products. In 1990, Hoyer and Brown believed that the reputation of retailing enterprises played a role of
a spokesman of product quality, it could help consumers to make their selections when they faced with
plenty of product information; retailing enterprises could also apply their reputations to affecting
consumers’ attitudes on the products of private brands. Therefore, the following hypothesis can be
brought forwards
H5: The reputation of retailing enterprises and consumers’ perception quality of products can be
positive relative.
3.2 Hypothesis Model
Summarizing the analyzing results above, the hypothesis model can be brought forwards, as shown
in figure 1.
Price of Quality of Service Package of Reputation of
Product Product Quality Product Retailing Enterprise
Consumers’ Perception Quality
Fig. 1 the Model the Factors affecting Consumers’ Perception Quality
4 Conclusions
Theoretically, when consumers purchase the products of private brands, the factors affecting
consumers’ perception quality include the price, quality, package, service quality of the products of
private brands and the reputation of retailing enterprises. Thus, the hypothesis model is built up. Of
course, the model is only a theoretical hypothesis. Whether it is consistent with the actual operation
situation of China’s retailing enterprises is still needed to be proved. So, it is necessary to carry out the
positive researches on the model. With the results of the positive researches, the retailing enterprises in
China can make clear and definite the factors affecting the consumers’ perception quality and also use
the results to guide their development of private brands.
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