The Effect of Store Image and Price on Store Brand Equity: Evidence from Supermarkets in Kenya

Abstract

In Kenya store brands are gaining popularity with supermarket chains now packaging and branding their own products more aggressively as competition forces firms to come up with more innovative ways to lock in consumers and increase earnings. To achieve competitive advantage therefore firms will have to ensure that consumers’ perception of their stores image and price are favourable since these factors will likely have an effect on brand equity of the store. Studies conducted so far have been in other contexts. Investigated in this study is the effect of store image and price on brand equity in the Kenyan supermarket industry. The association between store image and price with brand loyalty, perceived brand quality and brand awareness/association is examined. The study adopted a cross sectional survey design with shoppers as the target population. A representative sample of 180 respondents was determined using both proportional and random sampling techniques. Chi square test was used to determine the relationship between store image and price with store brand equity. Study findings show store image and price image to have an association with store brand equity. There also exists a significant relationship between store image and perceived brand quality, brand loyalty and brand awareness and between price image and perceived brand quality, brand loyalty and brand awareness. Findings should contribute empirically to brand equity concepts and help improve on supermarket’s store brand positioning.