EFFECT OF CONSUMER FACTORS ON STORE BRAND CHOICE IN THE RETAIL INDUSTRY IN KENYA: A SURVEY OF SELECTED SUPERMARKETS IN NAIROBI COUNTY

KABORIO Catherine Njoki, KAMAU Simon, MBITHI Mary

Abstract


Abstract: This study set out to investigate the effect of consumer factors on store brand choice in the retail industry in Kenya. A cross-sectional explanatory design was used. The target population in this study was 10,535 registered customers in selected supermarkets in the Nairobi County Business District. Convenient sampling was adopted to select the supermarkets and proportionate random sampling was conducted to select the 385 respondents. Data was collected from primary sources using structured questionnaires. The study analyzed data with assistance of the Statistical Package for Social Sciences (SPSS) 20 as a tool to process and analyses data. The study established that store brand choice in the retail industry was moderate. The study found out that in terms of Store Image Perceptions on Store Brand Choice; store arrangement make it easier to do self-selection, staff always available to assist where need be, shopping environment makes shopping enjoyable and store owned by foreigners who care about quality. The study revealed that in terms of Store Brand Price- Image on Store Brand Choice; the store offers competitive prices across product ranges. Customers have never come across differences between price label and till price in this supermarket, shopping experience is good value for money and the store uses price baiting to attract customer. The study further found out that in terms of Store Brand Perceived Value on Store Brand Choice; store has wide range, stores private brands are sourced from reputable manufacturers, store stocks high quality products, the company’s own brands such as milk, bread are my first choice other brands second and store assures customers about quality of brands and in terms of Store Brand Attitude on Store Brand Choice study revealed that store offers wide product categories as well as store offers good quality products. The study also found out that store image perceptions, store brand price-image, store brand perceived value and store brand attitude accounted for 24.3% of the variation in store brand choice in the retail industry in Kenya. The model exhibited a joint significant relationship between all independent variable and dependent variable. Individually Store image perception and Store brand price –image were significantly related to store brand choice in the retail industry in Kenya. The study concludes that the proposed framework of the study was able to demonstrate moderate explanatory power. Notably the study provides evidence for the influence of consumer factors on store brand choice in the retail industry in Kenya as suggested by the literature. Store image perception emerged as the stronger predictor of store brand choice followed by Store brand price –image, Store brand attitude and Store brand perceived value respectively. The study further concluded that the established regression model was moderately significantly good for forecasting and could be used for prediction.

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