Store price image: the role of non-price factors

Abstract

Price is a critical factors in purchase decision. However, a customer first needs to choose a store before they choose to buy a product. Since price of individual products might vary across stores consumers often construct the price image of a store in their minds. The literature has explicated a number of factors that help form the price image of a store. However, it has primarily focused on the role of price factors, and the role of non-price factors has been ignored. The objective of this study is to understand the store related attributes that impact the price image of a store. We do this first by carrying out an extensive literature review and identify attributes affecting store price from diverse literature. Next, we conduct a qualitative research which is exploratory in nature to identify other impact consumer's price image of the store. The results indicate that people form the store price image on the basis of price as well as non-price factors. Non-price factors include attributes like, depth of assortment, store ambience and appearance etc. This study has a number of theoretical and managerial contributions.