Customer Perceived Risk on Store Brand Products: A Study on Malaysian Hypermarket Consumer Perspective

This study has focused on the customers’ perceived risk and its influence on consumers’ attitude towards retailer bands in Malaysian hypermarkets from customers’ behavioural perspective. An adapted survey questionnaire was used for data collection. Total 400 questionnaires were distributed among the customers in various hypermarkets randomly, out of which 371 were found valid for data analysis. Structural equation modelling was employed to test the hypothesis. The result confirms that income level, age, education level, family size and other characteristics are significantly influence consumers’ attitude towards retailer bands mediated customers’ perceived risk. This study has also explored that compared to national brands, it is widely accepted that store brands have very higher perceived risk in terms of quality, although many consumers felt that store brand quality was the same or even better than national brands. Finally, this study suggests that Malaysian hypermarket industries should emphasize on how to remove perceived risk from the mind of consumers for both retailers and manufacturers as these are verified to have significant relationship with consumers’ attitude towards retailer bands in Malaysian hypermarkets.