Short answer
Design and manage the entire retail experience—from store layout and ambiance to staff interaction and service efficiency—as a critical component of private brand strategy.
- Field
- Innovation & Markets
- Source
- Entrepreneurial Business and Economics Review (2017)
- Method
- Quantitative Field Survey and Structural Equation Modelling
- Sample
- 699 customers
- Evidence
- Strong effect
A strong store image and high-quality retail services create a 'halo effect' that positively influences consumer perception of the store's private brands. This innovation & markets research insight is drawn from a 2017 study published in Entrepreneurial Business and Economics Review. Using Quantitative field survey and structural equation modelling with 699 customers, researchers explored how this design variable affects real-world outcomes. The key design takeaway: Design and manage the entire retail experience—from store layout and ambiance to staff interaction and service efficiency—as a critical component of private brand strategy.
Positive store image and service quality significantly enhance private brand perception.
A strong store image and high-quality retail services create a 'halo effect' that positively influences consumer perception of the store's private brands.
Entrepreneurial Business and Economics Review · 2017
Key Findings
- 01A significant positive 'halo effect' exists between store image and private brand image.
- 02Consumer evaluation of retail service quality positively impacts the perceived image of private brands.
Application
Design takeaway
Design and manage the entire retail experience—from store layout and ambiance to staff interaction and service efficiency—as a critical component of private brand strategy.
How to apply
When designing a new private brand or refreshing an existing one, simultaneously evaluate and enhance the in-store experience and service quality to maximize the brand's potential.
Project actions
- 01Consider how the physical environment and customer service of a business impact the perception of its products.
- 02When developing a product, think about the context in which it will be sold and experienced by the user.
Method & Evidence
Variables
Strengths & Limitations
Strengths
- +Uses a large sample size for a field survey.
- +Employs advanced statistical analysis (SEM) to establish relationships.
Limitations
The findings are specific to the market studied and may not apply universally. The study focused on two large chains, so results might differ for smaller or specialized retailers.
Reliability & validity
The use of Structural Equation Modelling provides a robust statistical framework for assessing the relationships between variables, contributing to the study's internal validity. The field survey method enhances external validity by capturing real-world consumer behavior.
Think critically
How might the 'halo effect' differ for luxury brands versus discount brands, and what design strategies would be appropriate for each?
Design Principles
"The perceived quality of the retail environment acts as a powerful endorsement for associated private brands."
For businesses developing or managing private label products, understanding the symbiotic relationship between the retail environment and brand perception is crucial. This insight highlights that investments in store aesthetics, staff training, and overall service experience can directly translate into improved acceptance and desirability of their own-brand offerings.
What This Means for Your Design
If a shop looks good and the staff are helpful, people will think the shop's own brands are good too.
How to use in your project
- 1.Use this research to justify focusing on brand presentation and customer experience as part of your design strategy for a product or service.
Add to My Project
Quick Cite
Paragraph starter
Research indicates that a positive store image and high-quality retail services significantly contribute to the favorable perception of private brands, suggesting that the overall retail environment plays a crucial role in brand-building.
Source
Entrepreneurial Business and Economics Review
The Importance of Store Image and Retail Service Quality in Private Brand Image-Building
journal · 2017
View sourceQuestions About This Research
- What does the research say about positive store image and service quality significantly enhance private brand perception?
- Design and manage the entire retail experience—from store layout and ambiance to staff interaction and service efficiency—as a critical component of private brand strategy. Evidence: Entrepreneurial Business and Economics Review (2017).
- Why does "Positive store image and service quality significantly enhance private brand perception." matter for design?
- For businesses developing or managing private label products, understanding the symbiotic relationship between the retail environment and brand perception is crucial. This insight highlights that investments in store aesthetics, staff training, and overall service experience can directly translate into improved acceptance and desirability of their own-brand offerings.
- How can designers apply this research?
- Design and manage the entire retail experience—from store layout and ambiance to staff interaction and service efficiency—as a critical component of private brand strategy.
- What were the main findings?
- A significant positive 'halo effect' exists between store image and private brand image.. Consumer evaluation of retail service quality positively impacts the perceived image of private brands.
- What research method was used?
- Quantitative Field Survey and Structural Equation Modelling with 699 customers.
- How strong is the evidence?
- Evidence strength is rated Strong effect, based on a 2017 journal from Entrepreneurial Business and Economics Review.
- What should I do differently in my next project?
- When designing a new private brand or refreshing an existing one, simultaneously evaluate and enhance the in-store experience and service quality to maximize the brand's potential.
- What are the limitations?
- The study was conducted in a specific emerging market (Bosnia and Herzegovina), and findings may vary in different economic or cultural contexts. The research focused on two specific retail chains, limiting generalizability to all retail types.