International Journal of Retail & Distribution Management

Drivers of store brand usage in an Asian emerging market: evidence from Vietnam
Mbaye Fall Diallo

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IJRDM
43,12

Drivers of store brand usage in

an Asian emerging market:
evidence from Vietnam

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1144

Mbaye Fall Diallo

Department of Marketing, IMMD, University of Lille II,
Roubaix, France and
LSMRC Lab, Skema Business School,
University of Lille, Lille, France

Received 4 July 2014

Revised 18 July 2014
25 July 2014
24 November 2014
30 November 2014
24 March 2015
Accepted 26 May 2015

Abstract
Purpose Although they are increasingly offered by mass retailers in Asia, store brands (SBs) are
not well understood in Asian countries. The purpose of this paper is to investigate how store and
brand-level factors affect consumer usage of SBs in an Asian emerging country.
Design/methodology/approach A consumer survey, based on sample of 445 respondents, is
undertaken in two competing modern retail chains in Vietnam. Structural equation modelling is used to test
the research hypotheses. A latent interaction variable was created to test the moderation of store familiarity.
Findings Results indicate that SB price image, consumer attitude towards SBs and SB perceived
value influence most strongly SB usage in Vietnam, whereas store image perceptions have no direct
effect on it. Some investigated relationships differ across store formats. Overall, store familiarity has a
weak direct effect on SB usage, but its interaction effects differ depending on store format.
Research limitations/implications The study is limited because it investigated only one Asian
country and two retail chains. Besides, it did not account for effect of product categories on SB usage.
Practical implications Findings indicate that a positive store image is not sufficient to increase
consumer usage of SBs in Vietnam. Retailers should be especially careful when designing retail outlets in
this market, where consumers seem attached to traditions. Results highlight the importance of taking
measures to develop more positive attitudes towards SBs. Also, store familiarity has a weak effect on SB
purchase and should therefore be monitored more carefully by retail chains operating in Vietnam.
Originality/value This research is the first to address Vietnamese consumer usage of SBs.
In contrast to their counterparts in other emerging countries, Vietnamese consumers do not strongly
rely on store image when purchasing SBs. Their focus is rather on brand perceived value. These results
challenge conventional wisdom that attributes a low utilitarian value orientation to Asian consumers.
Keywords Vietnam, Store brand, Brand value, Image perceptions, Store familiarity, Store format
Paper type Research paper

International Journal of Retail &

Distribution Management
Vol. 43 No. 12, 2015
pp. 1144-1161
Emerald Group Publishing Limited
0959-0552
DOI 10.1108/IJRDM-07-2014-0086

1. Introduction
Despite several favourable conditions in Asia, such as higher disposable income among
Asian grocery shoppers, store brands (SBs which are heavily discounted grocery
brands in contrast with national brands) have not achieved the same success in Asia
than in Western countries (Mandhachitara et al., 2008). SBs are increasingly the focus of
investigation of marketing scholars and retail managers interest in the Asian context
(Au-Yeung and Lu, 2009; Jin and Suh, 2005; Lin et al., 2009). Professional studies have
also underlined the potential of SBs in Asia in the coming years (Nielsen, 2011a).
Retailers operating in Asia are also endeavouring to leverage SBs as a way to improve
store image and store traffic (Wu et al., 2011) and to increase retail margins (Au-Yeung
The author would like to thank Dr Min Huan Luong (University of Hanoi/Vietnam Chamber of
Commerce) for his help, especially on data collection.

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and Lu, 2009). Nevertheless, consumer behaviour towards SB products is less

understood in a less-developed emerging country such as Vietnam, despite the
increasing modernisation of the retail landscape, the institutional changes taken by
public authorities to foster foreign direct investment and the growth of SB product
ranges. Existing research on SBs in emerging countries is focused on BRIC nations
(Brazil, Russia, India and China); however, a better understanding of consumer
behaviour towards modern retailing in other emerging markets is needed (Mai and
Smith, 2012). Nguyen et al. (2013) recently stressed the importance of understanding the
Vietnamese retail sector. Indeed, international retailers are now present in many
emerging countries and should have deep insights into SB adaptation strategies in
these markets with different cultural contexts.
Previous research on Asia has investigated several variables in relation to SBs, such as
price and quality perceptions (Lupton et al., 2010), innovativeness ( Jin and Suh, 2005),
consumer perceptions of the retailer origin (Cheng et al., 2007) and store attributes (Wu
et al., 2011). However, researchers have given consumer familiarity less attention in prior
studies on Asia, though it has several managerial implications in Asian emerging
markets. Modern retail chains must face competition from traditional retail outlets in Asia,
especially in Vietnam, where traditional styles of shopping are still dominant (Maruyama
and Trung, 2007). Consequently, there is a need for a better understanding of SB
consumer behaviour in this country in comparison with other Asian and other emerging
economies. Indeed, consumers in emerging markets are not a homogeneous group. Thus,
each emerging country should be investigated individually, to understand its unique
nature and to appropriately fulfil the needs of its consumers (Cao and Pederzoli, 2013).
Consequently, the aim of this research is to investigate how store and brand-level
factors affect SB usage in different retail chains in an Asian emerging country (Vietnam).
Therefore, this paper contributes to existing research in the following ways: first, we
propose and test a conceptual model to investigate the effect of store and brand-level
factors on SB usage in an emerging country (Vietnam). Vietnamese consumers are living
in a challenging transition period in which they must make the choice between modernity
and tradition (Mai and Smith, 2012). Indeed, the rise of modern retailing contrasts with
the presence of traditional retail outlets in Vietnam, and consumers must decide which
retail sector to patronise based on purchasing power (Maruyama and Trung, 2012).
Second, we assessed the direct and the moderating effect that store familiarity has on the
proposed framework. Investigating consumers familiarity with the store is critical in
emerging markets, in which consumers have fewer opportunities to patronise modern
retail outlets, because most people there still buy in traditional retail outlets (Maruyama
and Trung, 2007). We assess both the direct and the moderating effects of store
familiarity in the same model, to give a more holistic view of the nature of the
relationships between store familiarity and SB usage in an emerging country.
The organisation of the paper is as follows. First, we present the theoretical
framework and our hypotheses development. Second, we explain the research
methodology, based on a survey of Vietnamese consumers. Third, we describe the
findings step-by-step, including measurement and hypotheses testing. Finally, we
discuss the results and highlight the theoretical and managerial implications arising
from them, as well as avenues for further research.
2. Conceptual framework and hypotheses development
Based on previous research on the consumption of modern products in Vietnam
(Maruyama and Trung, 2007; McDonald et al., 2000; Speece and Huong, 2002) and on

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Asian emerging countries in general (Cheng et al., 2007; Jin and Suh, 2005; Wu et al., 2011),
several factors are supposed to affect SB usage in Vietnam. SB usage refers to an active
buying behaviour including looking for SBs and buying them effectively during the
shopping trip (Ailawadi et al., 2001). However, variables at the store level (e.g. store image,
store familiarity) and at the brand level (e.g. SB perceived value, SB attitude) are likely to
affect the most consumer behaviour in emerging countries in general (Cheng et al., 2007;
Jin and Suh, 2005). Therefore, they are the focus of this research. Specifically, SB
perceived value is chosen instead of perceived quality because we studied mainstream
SBs which are more value-focused than premium SBs (positioned on quality). In turn, SB
price image is investigated because it is more dynamic (multi dimensional) than other
constructs analysed previously in the literative on Asia (e.g. price consciousness and
perceived price) and it reflects store image perceptions. We analyse a relevant set of these
factors based on the aforementioned studies and develop the research hypotheses before
presenting a conceptual model to be tested empirically.
2.1 Effects of store image and SB price image
Martineau (1958) defined store image as perceptions of the store that help consumers
make evaluations of the store. More specifically, store image is shaped in the shoppers
mind partly by functional qualities and partly by an array of psychological attributes
(Collins-Dodd and Lindley, 2003). SB price image can be defined as a global representation
of the relative level of prices of SBs, including financial and non-financial (psychological)
benefits (Jara and Cliquet, 2012).
Prior studies have established the relationship between store image perceptions in
emerging markets (Diallo, 2012; Wu et al., 2011). In the Vietnamese context, Maruyama
and Trung (2012) showed that store image cues referred to as service and operation
play an important role for Vietnamese consumers shopping in modern retail outlets
(domestic and foreign retailers) compared with traditional outlets (traditional markets
and family-run stores). They reported several store image attributes that contribute
strongly to retailers performance (e.g. shopping environment, product display, service,
advertising and promotion and the attitude of sales staff). These results confirm prior
studies in the Asian context, showing that store image perceptions positively affect
consumer behaviour towards retailer products and brands (Wu et al., 2011). They are also
consistent with cue utilisation theory, which states that store image can be a determinant
of product quality and perceptions (Semeijn et al., 2004). Therefore, store associations and
store evaluations can be generalised to SBs sold in the store (Collins-Dodd and Lindley,
2003). Chang and Luan (2010) showed also that store image dimensions such as store
atmosphere, service personnel and merchandise are important factors in Chinese
consumers perceptions of modern retailing. Nguyen et al. (2007) provided evidence that
store image perceptions have a positive effect on consumer behaviour for Vietnamese
consumers. In the same vein, Diallo (2012) showed that store image perceptions affect
both SB purchase and SB price image in the context of an emerging country. Therefore,
we propose the following hypothesis:
H1a. Consumers store image perceptions have a positive influence on SB usage.
H1b. Consumers store image perceptions have a positive influence on SB price
image.
Price perception is generally considered to be a key factor in firms success in emerging
countries (Beneke et al., 2013; Speece and Nguyen, 2005). Previous research in the Asian

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context has shown that local and traditional retailers have competitive price
advantages over international retailers (Cheng et al., 2007). Bao et al. (2011) showed that
SB image, mainly shaped by price perceptions, positively influences SB purchase
intention. In the context of emerging countries, Diallo (2012) found a significant effect of
SB price image on SB purchase intention in Brazil. In the Vietnamese context, Nielsen
(2011b) emphasised the critical role of pricing and promotion for consumers. Speece
and Nguyen (2005) also addressed the issue of brand price image perception in relation
to country-of-origin (COO) image in Vietnam. They showed that price cutting by the
Korean brands does little to attract customers away from the higher perceived quality
of Japanese brands. Because SBs are positioned on price advantages compared
with national brands, we expect that SB price image will have a positive influence
on SB usage, as has been observed in other emerging countries (e.g. Diallo, 2012). As a
consequence, we make the following deduction:
H2. SB price image has a positive influence on SB usage.
2.2 Effects of SB perceived value and attitude
In the current research, we define perceived value (following a utilitarian approach) as
the desire to pay a low price for a product moderated by some quality constraints
(Burton et al., 1998). Consumer attitude towards SBs refers to a general evaluation of a
SB products formed over time (Burton et al., 1998; Jin and Suh, 2005).
Research in emerging countries has established the positive effect of perceived value
on SB purchase behaviour in the Asian context ( Jin and Suh, 2005), but also in other
emerging countries such as Brazil (Diallo, 2012). Speece and Huong (2002) showed that
Vietnamese urban middle-class consumers are strongly value oriented in their shopping
behaviour, desiring fairly good quality and service but also factoring price into their
considerations. Therefore, because SBs are highly positioned on utilitarian benefits
(Beneke et al., 2013; Diallo et al., 2013), we posit that Vietnamese consumers will rely on
SB perceived value in their shopping behaviour in modern retailing. SBs do have the
advantage of being accessible to Vietnamese middle-class consumers (Nielsen, 2011a).
With their utilitarian value positioning, they constitute a viable alternative to national
brands and a good buy compared with products sold in traditional retail outlets. Thus:
H3a. SB perceived value has a positive influence on SB usage.
Prior studies in emerging countries has also emphasised the effect of perceived value
on consumer attitudes towards SBs. For example, Jin and Suh (2005) highlighted a
significant and positive influence of perceived value on SB attitude in Asia (South
Korea). Such a result was previously established in other contexts (Burton et al., 1998).
Consequently, we expect a positive relationship between SB perceived value and
consumer attitude towards SBs in the Vietnamese market. Given their price quality
positioning, SBs actually constitute an affordable means for Vietnamese consumers to
have access to higher quality modern products (Nielsen, 2011a). Therefore, we propose:
H3b. SB perceived value has a positive influence on attitude towards SBs.
Previous research has shown that attitudes towards SBs have a positive effect on
consumer purchase behaviour (Burton et al., 1998). Similarly, research in emerging
countries has empirically established the positive influence of attitudes towards SBs on
consumer purchase behaviour in Asia ( Jin and Suh, 2005). SBs are relatively new in
Asia (Au-Yeung and Lu, 2009), and consumers in emerging markets generally have a

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1148

favourable attitude towards new products (Wang et al., 2008). Wang et al. (2008)
showed also that the attitude of Chinese consumers towards new products has a
positive effect on their consumption behaviour. Maruyama and Trung (2012) report
that Vietnamese consumers have an increasing acceptance of modern retail formats
that offer new SB products, especially in urban areas. Therefore, we anticipate that:
H4. Attitude towards SBs has a positive influence on SB usage.
2.3 Direct and moderating effect of store familiarity
Alba and Hutchinson (1987) defined familiarity as the number of product related
experiences that have been accumulated by the consumer (p. 411). In emerging
countries, store familiarity is a critical factor in assessing store image and in explaining
consumption behaviours. Lin et al. (2009) reported a similar conclusion for brand
familiarity, which reduces perceived risk associated with SBs in the Taiwanese market.
Store familiarity is also a component of the consumers knowledge of the retailer. In fact,
emerging markets consumers with greater store familiarity will have better knowledge
of retail outlets and more opportunities to develop relationships with store personnel.
Along this line, Paswan et al. (2010) emphasised that consumers in emerging markets
may prefer smaller retail stores because they are familiar with the local store owners or
personnel. According to Sheau-Fen et al. (2012), the role of familiarity becomes more
significant in influencing consumer choice and decision making for SBs that are
purchased frequently. They also showed that store familiarity has a positive effect on SB
purchase behaviour in two Asian countries: Malaysia and China. The same rationale can
be extended to the Vietnamese context, in which some consumers have more access to
modern retailing and others still do their shopping at traditional retail outlets (Maruyama
and Trung, 2012; Nguyen et al., 2013). Therefore, we hypothesise that:
H5. Store familiarity has a positive effect on SB usage.
Furthermore, although only few studies have focused on the moderating effect of store
familiarity in emerging countries (e.g. Ha and Jang, 2010; Paswan et al., 2010), we expect
the level of store familiarity to affect significantly the relationships between SB usage
and its antecedents (i.e. store image, SB price image, consumer attitude towards SBs
and SB perceived value). In fact, Vietnamese consumers have different levels of
experience with modern retailing based on their income and consumption habits. Some
consumers usually shop in modern stores, whereas others make purchases in
traditional retail outlets (Nguyen et al., 2013; Maruyama and Trung, 2012). Hence,
Vietnamese consumers with greater store familiarity would be more prone to develop
positive perceptions of store image, SB price image and SB value than those with lower
store familiarity. For instance, a positive perception of store image combined with a
higher level of familiarity would lead to a higher level of purchase intention in Vietnam.
We also anticipate that a positive SB price image associate to greater level of familiarity
lead to higher purchase intentions. In fact, Vietnamese consumers with higher store
familiarity still tend to focus on price perceptions because of their lower purchasing
power compared to their Western counterparts. In addition, because these consumers
have more experiences with SBs, they develop more favourable attitudes towards SBs
such as the interaction between store familiarity and SB attitude leads to higher SB
purchase intentions. Paswan et al. (2010) report similar consumption patterns in
another emerging country (Mexico), where smaller retailers perform well due to greater
store familiarity. The moderating role of familiarity was also demonstrated in the Asian

context by Ha and Jang (2010), who showed that in South Korea perceived value affects
purchase intentions in different ways depending on the level of consumer familiarity.
Based on these considerations, we propose the following hypotheses:

Drivers of
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usage

H6a. A higher level of store familiarity associated with positive store image
perceptions affects positively SB usage.

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H6b. A higher level of store familiarity associated with a positive SB price image
affects positively SB usage.

1149

H6c. A higher level of store familiarity associated with a positive SB perceived value
affects positively store brand usage.
H6d. A higher level of store familiarity associated with a positive attitude towards
SBs affects positively SB usage.
Figure 1 presents our conceptual model and summarises the research hypotheses.
3. Methodology and empirical study
This research is based on a survey undertaken in the Vietnamese market. We chose
Vietnam as a focus for both theoretical and practical reasons. First, Nguyen et al. (2013)
stressed that Vietnam is a post-transition economy particularly worthy of exploration
given the well-known firm-level challenges for retailers in achieving acceptance of their
Western retail formats. Second, according to Maruyama and Trung (2012), whereas
traditional retailers (wet market retailers and family-run stores) continue to vastly
outnumber modern retailers, the development of the modern retail business sector has
been impressive in Vietnam, occurring as it has over a relatively short period of time. In
addition, retail businesses recognise that the Vietnamese market still represents a huge
potential, because the demands of Vietnamese consumers have not been fully satisfied.
For example, the French retailer Auchan intends to invest 500 million euros in Vietnam
in the next ten years, and Singapores leading retail company, NTUC FairPrice, and
Saigon Co.op of Vietnam have been licensed to set up a joint venture by opening two
mega-supermarket chains[1]. Though SBs are not yet well developed in Vietnam,
Store familiarity

Store image
perceptions

H6a H6b H6c H6d

H1b +

SB price-image

H1a +

H5 +

H2 +
SB usage

H3a +
SB perceived
value
H3b +

Attitude towards
SBs

H4 +

Figure 1.
Conceptual model
and hypotheses

retailers are trying to market the product lines with their own brands and believe that
in the coming years one out of four products will be of their own brand[2]. Furthermore,
according to the 2011 Nielsen Shopper Trends, SBs are 15-30 per cent lower in price
than manufacturer brands in Vietnam; therefore, they would be a highly appropriate
tool for targeting the emerging middle class in Vietnam (Nielsen, 2011a).

1150

3.1 Data collection

Data were collected using a questionnaire administered by investigators (enroled in
management classes) specially trained for the survey as in Paswan et al. (2010). Native
speakers of Vietnamese double back-translated the questionnaire, following the
collaborative and iterative translation framework suggested by Douglas and Craig
(2007). Respondents were intercepted while shopping in Big C (a hypermarket) and in
Fivimart (a supermarket) in Hanoi in March 2010. We selected Hanoi because it has a
good representation of modern retailing (along with Ho Chi Minh City) in Vietnam
(Maruyama and Trung, 2012). In addition, it is a location in which customers are more
familiar with modern retailing because they frequently go to supermarkets for their daily
needs (Yang et al., 2011). Our selection of the two retail chains was based on these criteria:
first, they are among the leaders in the Vietnamese retail market; second, they have the
widest ranges of SB products in Vietnam; and third, they target the same consumer
segment (urban consumers with medium-to-high income levels). Furthermore, because
these two retail chains operate two different store formats, targeting them allowed us to
consider the issue of smaller vs larger stores in emerging markets, following Paswan
et al. (2010). Created in 1998, Big C is a wholly owned subsidiary of the French retailer
Casino. It is an early pioneer of the hypermarket format in Vietnam and the market leader
due to its pattern of growth and its efforts to benefit the social and economic environment
of its stores. Fivimart is a local supermarket chain operated by the company Nht Nam
and founded in 1997. It has 16 stores in Hanoi as of June 2013. In 2012, Fivimart entered
the Top 500 best retailers list in the Asia Pacific region.
We asked respondents to refer clearly to brands with the retailer name, the focus
of this research. As risk profiles can differ substantially across product categories
(Zielke and Dobbelstein, 2007), we referred to food products, such as juices and
yoghurts, where SBs are frequently purchased in Vietnam. Because the reasons for
shopping may vary depending on the time of day and the day of the week, we collected
data at different times of the day and on different days of the week. The data collection
process allowed us to gather an overall sample of 445 respondents. The data comprises
a general sample of 173 respondents for exploratory factor analysis and a non-student
sample of 272 usable questionnaires for the final analyses (NBig C 130 and
NFivimart 142). Respondents were well distributed across age, gender, household
income and education (Table I). No significant differences were found between the two

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IJRDM
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Table I.
Sample description

Age

Gender

Family income per month

18-25
26-34
35-49

21
29
22

Men

40

$450-900
$901-1,790
$1,791-4,900

47.1
26.1
19.1

50-64
W64

16
09

Female

60

W $4,900

07.7

Education
No education
High school
Bachelor not achieved
Specialised (High school + 2)
Bachelor
Master/PhD

%
0.7
22.8
22.8
14.3
26.5
12.9

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segments based on socio-demographics. Overall, respondents tended to be between 26

and 49 years old (51 per cent), to belong to the middle/higher-income class in Vietnam
(53 per cent had a family income of at least $900 per month), to be female (59 per cent)
and to be well educated (more than 50 per cent had at least a bachelors degree).
3.2 Measurement of variables
We chose measurement tools based on the consumer and market characteristics of
Vietnam (a less-developed retail market). Therefore, to measure store image
perceptions, we used nine items from Semeijn et al. (2004). They are distributed
across three dimensions: layout, merchandise and service. These items are similar to
those researchers used in previous studies in emerging countries, making further
comparison more feasible (see Chang and Luan, 2010; Nguyen et al., 2007). We
measured SB price image with six items adapted from previous research in emerging
countries (Diallo, 2012). SB perceived value was measured in relation to four
parameters adapted from Burton et al. (1998). Consumer attitude towards SBs was
measured with four items adapted from Garretson et al. (2002). These two scales were
also used by Jin and Suh (2005) and found to be appropriate in an Asian context (South
Korea). SB usage (dependant variable) was measured using three items adapted from
Ailawadi et al. (2001). For store familiarity, we used an objective measure composed of
two parameters (frequency of store visits in a month and length of store use) adapted
from Diallo et al. (2013). Using objective measures helps avoid limitations related to
self-reported scales that might lead to confusion with other underlying factors.
4. Analyses and results
4.1 Measurement model assessment
Exploratory factor analysis (n 173) allowed first to check items loadings (W0.5) and
scales reliability (W0.7) in the Vietnamese context. We then tested the measurement
models for this study using confirmatory factor analysis (n 272), to verify the extent to
which our specification of the factors matched the actual data (Gerbing and Anderson,
1988). We used maximum likelihood estimation and bootstrapping on the covariance
matrix with Amos 18. To evaluate measurement model fit, three types of fit indices
(absolute, incremental and parsimonious) were used, following the suggestions of Jackson
et al. (2009). The overall measurement models fit indices indicated satisfactory model fit
( 2 315.88, df 330, po0.70; RMSEA 0.019; CFI 1; TLI 1 and 2/df 0.95). The
internal consistency of each of the constructs was adequate because composite reliability
( ) values were above the recommended cutoff criteria (0.7) in each sample (Table II).
Table II shows also that the convergent validity of the constructs is fulfilled because the
AVE values ( VC) are greater than 0.5 (Fornell and Larcker, 1981). The discriminant
validity of the constructs is supported because the constructs AVE values are greater
than their squared correlations (Fornell and Larcker, 1981) (Table II).
Next we verified measurement invariance so that the results could be examined and
interpreted across the two retail chains investigated. Previous research suggested that
at least two main levels of invariance should be achieved: configural and metric
invariance (Steenkamp and Baumgartner, 1998). Configural invariance assesses
whether the basic factor structure holds for the two groups, whereas metric invariance
refers to the extent to which the relationships between the factors and the items are
equivalent across the two groups (Campbell et al., 2008). We estimated the
measurement model across the retail chains and found a good fit for both samples:
Big C: 2 386.78, df 330, p 0.017; RMSEA 0.037; CFI 0.97; TLI 0.97 and

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Constructs

Stand. loadinga rb AVE

0.71
Layout: 0.87
Physical facilities are visually appealing
0.87
0.31 0.69
Store layout is clear
0.79
Easy to find articles on promotion
0.84
0.81
Merchandise: 0.89
1152
Merchandise is available when needed
0.85
0.31 0.74
Store offers high-quality merchandise
0.82
Store offers a broad assortment
0.91
0.64
Service: 0.88
0.87
Employees are knowledgeable
0.29 0.72
Employees are courteous
0.80
Employees are willing to find customer solutions
0.88
0.84
SB perceived relative price: 0.84
SB priceI found low-priced SB product ranges in this store
image
compared to other stores
0.81
0.44 0.64
0.80
AVE 0.67 All SB products in this store seem to be cheaper than
those in other stores
0.77
I think that the SBs in this store are low priced compared
to other stores
0.83
0.81
SB perceived benefit: 0.86
I have bought more SB products than I planned to buy in
this store
0.83
0.44 0.67
I was tempted to buy more SB products in this store than I
really needed
0.82
I bought some SB products not on my list in this store
0.81
SB perceived I am very concerned about SB prices, but I am equally
value
concerned about SB product quality
0.87
0.46 0.63
When grocery shopping, I compare the prices of different
0.87
SBs to be sure I get the best value for money
0.74
When purchasing a product, I always try to maximise the
SB quality for the money I spend
0.74
When I buy SB products, I like to be sure that I am getting
my moneys worth
0.83
Attitude
For most product categories, the best buy is usually
towards SBs the SBs
0.81
0.47 0.60
I love it when SBs are available in the product categories
0.86
I purchase
0.75
When I buy a SB, I always feel that I am getting a good
deal
0.74
In general, SBs are good quality products
0.82
I buy SBs when I go shopping
SB usage
0.79
0.60 0.65
0.85
I look for SBs when I go shopping
0.77
0.87
My shopping cart always contains several SBs products
Frequency of store visit
0.86
Store
0.53 0.57
familiarity
Table II.
0.72
Length of store use
0.64
Psychometric quality
Notes: aAll standardised loadings are significant at p o 0.01; bhighest squared correlation between the
of measurement
construct of interest and other constructs
scales
Store image
perceptions
0.76
AVE 0.52

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Dimensions and measurement items

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2/df 1.17; Fivimart: 2 375.77, df 330, p 0.042; RMSEA 0.031; CFI 0.97;
TLI 0.97 and 2/df 1.13. These results suggest satisfactory configural invariance.
We subsequently verified metric invariance through a delta 2 test (a comparison
between a freely estimated model and another model in which loadings were
constrained to equality). We found satisfactory metric invariance: 2(df) 16.71 (19),
p W 0.05. Thus, satisfactory measurement invariance is achieved and meaningful
comparisons can be made between the two retail chains.

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4.2 Structural model and main hypotheses

Before testing the hypotheses, structural model fit needed to be assessed. The results of
model estimation show that fit indices are satisfactory, based on accepted levels in
previous studies (overall sample: 2 654.79, df 339, p o 0.00; RMSEA 0.059;
CFI 0.92; TLI 0.92; and 2/df 1.93). Similar results are obtained in subsamples
from Big C ( 2 569.54, df 339, p o 0.00; RMSEA 0.073; CFI 0.89; TLI 0.88;
and 2/df 1.68) and Fivimart ( 2 531.91, df 339, p o 0.00; RMSEA 0.064;
CFI 0.91; TLI 0.90; and 2/df 1.56). It is therefore appropriate to conclude that the
hypothesised model acceptably fits the data. Furthermore, the results indicate that
the predictors explain substantial amounts of variance in the dependant variable: SB
usage: R2Overall 0.58, R2Big C 0.59 and R2Fivimart 0.59.
Table III shows the structural coefficients for estimating our model. The effect of store
image perceptions on SB usage is not significant ( pW0.05), which rejects H1a. However,
an assessment of indirect effects, through bootstrapping (see Cheung and Lau, 2008),
shows that store image perceptions affect significantly SB usage via the mediation of SB
price image ( 0.22, po0.01). This result means that for Vietnamese consumers, store
image becomes a determinant of SB usage only when the SB price promise is fulfilled.
H1b is supported because store image perceptions significantly affect SB price image.
The latter has a positive effect on SB usage, which supports H2. However, this
relationship is not significant in Fivimart (supermarket), suggesting that this retail chain

Directs effects

Total sample
(n 272)

Standardised coefficientsa
Fivimart sample
Big C sample
(supermarket)
(hypermarket)
(n 142)
(n 130)

H1a+: store image

perceptionsSB usage
0.14 ns [0.04; 0.33] 0.02 ns [0.38; 0.23] 0.25 ns [0.01; 0.60]
H1b+: store image
perceptionsSB price image
0.60 [0.44; 0.73]**
0.58 [0.33; 0.75]**
0.58 [0.33; 0.82]**
H2+: SB price-imageSB usage
0.38 [0.16; 0.61]**
0.56 [0.28; 0.89]** 0.18 ns [0.17; 0.59]
H3a+: SB perceived valueSB
usage
0.35 [0.21; 0.51]**
0.29 [0.08; 0.52]**
0.41 [0.18; 0.64]**
H3b+: SB perceived
valueattitude towards SBs
0.49 [0.36; 0.60]**
0.42 [0.22; 0.59]**
0.55 [0.35; 0.69]**
H4+: attitude towards SBsSB
usage
0.27 [0.07; 0.44]** 0.22 ns [0.02; 0.53]
0.29 [0.06; 0.58]*
H5+: Store familiaritySB
usage
0.25 [0.08; 0.41]**
0.33 [0.04; 0.61]*
0.25 [0.03; 0.44]*
Notes: ns, not significant. aAssociated bootstrap intervals [lower bound; upper bound] should not
include zero for significance of the relationship. *po 0.05; **p o0.01

Table III.
Main hypotheses
testing with
bootstrap intervals

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1154

has to improve its SB pricing strategy. The SB perceived value influences not only the SB
usage, but also attitudes towards SBs. These results give support to H3a and H3b and
show that perceived value is an important factor for Vietnamese consumers, regardless
of the retail format. Furthermore, meditation analyses showed that perceived value has
an indirect effect on SB usage ( 0.13, po0.01). H4 is also supported, because the
attitude of consumers towards SBs has a significant effect on SB usage, but the effect is
not significant at Big C (hypermarket). Similarly, store familiarity has a significant effect
on SB usage ( 0.25, po0.01), supporting H5. This effect is, however, stronger for Big
C in comparison with Fivimart, in contrast with previous findings in other emerging
countries (Paswan et al., 2010). To assess the strength of these results relative to sample
size, we used the bootstrapping procedure in Amos 18 (Bootstrap BC, 1,000 replications,
CI 95 per cent), following the recommendations of Cheung and Lau (2008). We found
stable results because the coefficients have the same significance with the bootstrap
sample, meaning that the results are not likely to be subject to sample size. We discuss
the results in the conclusion section.
4.3 Moderation of store familiarity and effects of covariates
To assess the moderating effect of store familiarity, we created latent interaction
variables using Amos 18. To address multicollinearity issues, which lead to instability
in the estimation of coefficients, double-mean centring was undertaken, following the
recommendations of Lin et al. (2010). Therefore, for each latent interaction variable, we
first centre each of the observed variables and then form the product term and re-centre
it. To statistically test the moderation of store familiarity, we examined t-tests and
p-values associated with the effect of latent interaction variables. Table IV shows that
no interaction effect is significant in the overall sample, which rejects H6a, H6b, H6c
and H6d. However, model estimation in subsamples indicates three moderating effects
of store familiarity for Big C in relation to store image perceptions ( 0.24, p o 0.05),
SB perceived value ( 0.25, p o 0.01) and attitude towards SBs ( 0.26, p o 0.01).
These findings emphasise that familiarity is not yet a leading factor in the Vietnamese
market, in contrast with Western countries (Diallo et al., 2013) and emerging countries
such as Mexico (Paswan et al., 2010). However, the results highlight differences
between Big C (bigger format) and Fivimart (smaller format) in terms of store
familiarity, though these results should be considered with caution because bootstrap
intervals suggest the possibility of no significance, depending on sample sizes
(Table IV). We discuss these results in the next section.

Moderating effect of store

familiarity

Table IV.
Moderating effect of
store familiarity and
effects of covariatesa

Total sample
(n 272)

Big C
(hypermarket)
(n 130)

Fivimart
(supermarket)
(n 142)

H6a: SFAM SIPSB usage

0.11 ns [0.09; 0.31]
0.24 [0.19; 0.80]*
0.07 ns [0.55; 0.86]
H6b: SFAM SBPISB usage 0.00 ns [0.12; 0.12] 0.12 ns [0.05; 0.33]
0.12 ns [0.30; 0.06]
H6c: SFAM SBPVSB usage 0.10 ns [0.03; 0.22]
0.25 [0.02; 0.45]** 0.04 ns [0.24; 0.11]
H6d: SFAM ATSBSB usage 0.09 ns [0.07; 0.22]
0.26 [0.17; 0.47]** 0.07 ns [0.40; 0.13]
Notes: ns, not significant; SFAM, store familiarity; SIP, store image perceptions; SBPI, SB price-image;
SBPV, SB perceived value; ATSB, attitude towards SBs. Model fit with covariates: 2 776.49;
df 411, p o0.00; RMSEA 0.057; CFI 0.92; TLI 0.91 and 2/df 1.88. aWith associated
bootstrap intervals [lower bound; upper bound]. *p o0.05; **p o0.01

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5. Discussions and implications

5.1 Discussion and theoretical implications
This research shows that several factors determine SB usage in the Vietnamese market.
The results indicate that SB price image and SB perceived value have the strongest
effect on SB usage. These findings stress that Vietnamese consumers focus on price
cues and utilitarian values in their usage SB products. The importance of SB price
image can be related to consumer price sensitivity as well as to retailers efforts to offer
affordable SB products to consumers in Vietnam, especially in Big C. This focus on
price-related factors has been reported in other emerging countries (Beneke et al., 2013;
DAndrea et al., 2006). It can also be associated with the search by Vietnamese
consumers for sales promotions. Nielsen (2011b) found that Vietnam has the most
promotionally focused shoppers in Asia, with 87 per cent of consumers open to buying
through sales promotions compared with a regional average of 68 per cent. The effect
of SB perceived value can be analysed similarly and may be related to the rising cost of
everyday consumer goods, which has prompted shoppers to be even more value
conscious than before (Nielsen, 2011b). Compared with findings reported in previous
research in Asia (e.g. Jin and Suh, 2005) and in Western countries (Diallo et al., 2013), SB
perceived value carries a higher importance for Vietnamese consumers. The effect of
this variable is also stronger for the supermarket chain Fivimart (direct 0.41, p o 0.01)
than for Big C, the hypermarket chain (direct 0.29, p o 0.01). Another explanation of
the highest overall importance of SB perceived value (direct 0.35, p o 0.01 and
indirect 0.13, p o 0.01) may be related to Vietnamese cultural values, in which
Fivimart is more rooted. Vietnamese cultural and traditional values, mainly shaped by
Buddhism and Confucianism (Le Monkhouse et al., 2013), attribute a great importance
to balance in life and consumption. Therefore, focusing on a SBs perceived utilitarian
value may allow Vietnamese consumers to avoid wasting money and remain consistent
with their cultural and traditional values. This result contrasts with recent findings
showing a low utilitarian value orientation for Chinese consumers (Zhang et al., 2014).
The effect of attitude towards SBs in our research is also positive ( 0.35, p o 0.01),
but it is rather weak compared with previous studies in other Asian emerging countries
(e.g. Jin and Suh, 2005). This finding shows that attitude is not yet an important factor
in Vietnamese consumer usage of SBs, regardless of the retail chain format. It also
explains why SB market shares are still low in Vietnam.
Store image perceptions (i.e. layout, merchandise and service) did not seem to be a
leading factor in SB purchase, because they have only an indirect effect on SB usage.
This result contrasts with previous research in other emerging countries, in which store
image more strongly and directly affected SB purchase behaviour (Diallo, 2012;
Wu et al., 2011). By investigating the relationship between store image perceptions and
SB usage, this research complements previous studies that focused only on store image
perceptions in Vietnam. For example, Maruyama and Trung (2012) showed that
Vietnamese consumers have positive perceptions of store image cues in supermarkets.
This study adds richness to our understanding of Vietnamese consumption behaviour
by showing that a positive perception of store image does not necessarily lead directly
to positive SB usage. The contrast with findings from other emerging countries may be
explained by different cultural values and consumer characteristics.
The results of this study indicate that store familiarity is positively related to SB
usage; however, the strength of this effect is rather weak overall ( 0.25, po0.01). This
finding corroborates previous studies showing the specific characteristics of Vietnamese
consumers with regard to their frequency of store visits (McDonald et al., 2000). It also

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points out a contrast with findings from other emerging markets. In Vietnam, we do
not find a difference in favour of the smaller retail format, which was the case for
Mexican consumers (Paswan et al., 2010). Rather, we found a slightly stronger effect of
store familiarity in the hypermarket retail chain (Big C), which illustrates that even
though the supermarket format (Fivimart) has a better SB perceived value, it does not
perform well in terms of store familiarity. Furthermore, our assessment of the moderating
role of store familiarity did not demonstrate any significant effect in the overall sample,
confirming the weak effect of this variable. However, the interaction between store image
perceptions and store familiarity significantly affects SB usage in the hypermarket
format (Big C), highlighting again the greater role of store familiarity in the bigger
format. Similar results concerning the moderation of store familiarity are found in the
relationships between SB perceived value and SB usage as well as between attitude
towards SBs and SB usage in Big C. These results have several managerial implications,
which we analyse below.
5.2 Managerial implications
The results of this study allow the researchers to derive several managerial
implications for retail firms operating in Vietnam. First, the stronger effect of SB price
image and SB perceived value indicates that Vietnamese consumers seem to give a
priority to price-related constructs in their purchase of SB products. Therefore, retailers
should further focus their communication strategies on these dimensions. However,
because price does not entail either brand attachment or store loyalty in the long run,
we recommend that retailers focus on SB perceived value and on other variables such
as brand attitude, to promote store loyalty and to foster retail sales in Vietnam.
Compared with traditional retail outlets (i.e. wet markets), modern retailers are not
sufficiently competitive in terms of price (Maruyama and Trung, 2012). Therefore,
focusing only on SB price image may harm retail sales in the long run. This
recommendation is especially true for Big C (hypermarket), where SB price image
strongly affects SB usage. Conversely, Fivimart (supermarket), where SB price
image does not affect SB usage, should focus on price to attract more consumers
through sales promotions and retail branding. This retailer, though a local one, is
perceived to be expensive by most Vietnamese consumers. Therefore, it should focus
on SB price ranges positioned to reach less wealthy consumers and improve store
traffic. This latter recommendation is also related to store familiarity, the effect of
which is found to be weaker in Fivimart. The hypermarket chain should pay attention
to the perceived value of its SBs, which less strongly affect SB usage compared with the
supermarket chain ( 0.29, p o 0.01 vs 0.41, p o 0.01). A similar consumption
pattern was highlighted by Yang et al. (2011), who argued that smaller Vietnamese
retailers remained surprisingly competitive, partly due to the preference of many
consumers for convenience as well as the ability to purchase food close to their homes.
Second, regardless of store format, retailers in the Vietnamese market should
concentrate on measures that improve consumer attitudes towards SBs. The effect of
this variable on SB usage is rather weak. In general, Asian consumers do not seem to
have strong and positive attitudes towards SBs. Previous studies have emphasised the
difficulties in developing SBs in Asia (Mandhachitara et al., 2008). Consequently,
retailers should improve consumers attitudes towards SBs in Asian markets,
especially in Vietnam, via marketing efforts and customer relationship management.
Strengthening customer experience with SBs, through in-store preference tests, can
help improve SB perceived quality and then the attitude towards SBs compared with

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those towards products offered in traditional retail settings where a large majority of
Vietnamese consumers continue to shop. More importantly, leveraging Vietnamese
cultural values (e.g. group status, respect and reciprocity) is a key option for modern
retailers attempting to develop more positive attitudes towards SBs that carry the
retailers name. Vietnamese consumers are trying to reconcile modern influences with
traditional values-that is to say, the traditional self with the modern self (Mai and
Smith, 2012). Retail brand management practices should, therefore, be consistent with
consumers desires to find the best balance between tradition and modernity. This
suggestion is probably more appropriate for the hypermarket chain (Big C), which is
perceived as foreign and which is a setting where SB perceived value less strongly
affects SB usage.
Third, our findings show that store image perceptions do not have a direct effect on
SB usage. This result is disturbing for retail chains operating in Vietnam and
throughout Asia. Previous studies showed that Vietnamese consumers have a good
perception of overall image (Nguyen et al., 2007). However, our findings indicate that
there is not a strong direct spillover effect of store image perceptions on SB usage, even
though retail chains operating in Vietnam and other parts of Asia are trying to leverage
their store image to foster retail sales. We suggest that modern retailers revamp their
store image development strategies by adapting them further to the local context
through the use of local architectural designs in store facilities. They should also foster
social interaction within the store. Modernity associated with Western-style retail
chains should not overpower the expression of the local culture in store image
management. Practises adopted in the early development of modern retailing in
Taiwan can be comprehensively transferred to Vietnam and other Asian countries.
They consisted of adopting store layouts resembling traditional markets to promote
consumer acceptance of modern retailing.
5.3 Limitations and further research
As one of the first of its kind in the Vietnamese market, this study provides a good
starting point for further research on SBs in Vietnam. As to limitations, first, the
researchers focused only on two grocery retail chains, located in Hanoi. Given the rapid
development of the Vietnamese retail structure, other sectors and other locations
(e.g. Ho Chi Minh City) need to be investigated to further understand SB usage in
Vietnam. For example, fashion retailers, such as Zara, offer their brands in Vietnam as
well as in other Asian countries. It would be interesting to understand how store image
perceptions and perceived utilitarian and non-utilitarian values affect SB usage of
specialty retailers. Nguyen et al. (2007) showed that shopping motivation positively
affects Vietnamese consumer loyalty towards hypermarket retail chains; however, their
study was not focused on branding issues, which have become an important subject of
research in Asia (Swoboda et al., 2012). Second, this research was focused on image
factors and did not investigate COO image, because the retail chains investigated are
not associated with a specific COO in their communication with consumers.
Nevertheless, COO image is another interesting subject that deserves more attention
from marketing researchers. In the Vietnamese context, Speece and Nguyen (2005)
showed that COO is important to consumer behaviour by stressing that price cuts
made by Korean brands do little to attract customers towards their products and away
from the perceived higher quality Japanese brands. This subject is all the more
interesting because local firms (e.g. Fivimart) are doing well and are increasingly
tempted to expand to other emerging countries. Third, this study focused on Vietnam

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for theoretical and practical reasons; however, because each emerging country has its
own market and consumer characteristics, comparing Vietnam to other emerging and
developed countries would be an important area for further research on SBs.
For example, Cheng et al. (2007) found that Taiwanese consumers differentiate between
international (foreign) and local SBs in terms of brand personality and brand
leadership. It is not clear, however, whether Vietnamese consumers would have similar
perceptions. Furthermore, our results indicate that the relationships between SB price
image, SB perceived value and SB purchase intention is similar to those found in
developed countries (e.g. Diallo et al., 2013). Therefore, qualitative research and
cross-country investigations are needed to understand the rationale behind such results
and the specificity of Vietnamese consumers.
Notes
1. Source: www.gba-vietnam.org/uploadfiles/file/NEWSLETTER/2013/JUNE%20(10_05)/D_M-%
20Legal%20updates%20-%2001%20to%2015%20May_%202013.pdf (accessed 15 April 2014).
2. Source: VietNamNet, http://english.vietnamnet.vn/en/business/7859/sbv-to-keep-close-eyeson-lendersinvestments.html (accessed 15 April 2014).

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About the author
Dr Mbaye Fall Diallo is an Assistant Professor at the University of Lille 2 (Institute of Retail
Marketing and Management IMMD) and Member of the LSMRC Lab (Universit de Lille-Skema
Business School). He obtained his PhD in Management Science at the Aix-Marseille University in
2011-2012. He is the member of scientific associations including Association for Consumer
Research, Association for Education and Research in Commercial Distribution, European
Marketing Academy and the French Association of Marketing (AFM). His research interests lie in
the field of retail internationalisation in emerging countries, store brands and quantitative data
analysis (structural equation modelling and econometrics of panel data). His work has been
published in journals such as European Business Review, Journal of Retailing and Consumer
Services, International Business Research, International Journal of Retail and Distribution
Management, Service Industries Journal, Revue Management et Avenir, Revue Franaise de
Gestion, Recherche et Applications en Marketing, and in conferences proceedings such as
INFORMS Marketing Science, European Association for Education and Research in Commercial
Distribution, European Marketing Academy, International Conference of Marketing Trends,
Association Franaise de Marketing Congress, etc. He is the author/co-author of two books and
six book chapters on retail branding and management. Additionally, he has been a visiting
scholar at the University of Brasilia (Brazil) and a Visiting Professor at the University of Stirling
(Scotland). He serves as a reviewer for several academic journals (International Journal of Retail &
Distribution Management, Service Industries Journal, Journal of Consumer Behaviour,
International Review of Retail, Distribution and Consumer Research, Economies et Socits) and
scientific conferences (AMA, EMAC, EAERCD, AFM, Etienne THIL). Dr Mbaye Fall Diallo can
be contacted at: mbayefall.diallo@univ-lille2.fr

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Drivers of
store brand
usage
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