Mediating effect of perceived risk on familiarity and purchase intention: an empirical analysis for private label apparels

Abstract

PurposeThe current study aims to analyze the mediating role of perceived risk from private label apparels in between the familiarity and consumer purchase intention (PI).Design/methodology/approachExploratory factor analysis and structural equation modeling techniques were utilized for evaluating the relationship between different constructs. Participants were given the opportunity for expressing their degree of approval or disapproval using a series of statements using a five-point Likert scale. For the purpose of the survey, a total of 400 participants were selected.FindingsThe finding highlights the mediating role of perceived risk between familiarity and PI of consumers toward private label apparels. When there is a mediator, the direct influence of familiarity on PI is absorbed.Originality/valueThis research aims to offer an understanding of buyer preferences in developing markets as well as providing suggestions for retailers and marketers on how to successfully promote and position private label apparel in such an environment through investigating the importance of familiarity with private label apparel. While doing so, it develops the premise that familiarity with private label apparel directly impacts perceived risk while indirectly impacting PI of consumers towards private label apparel.