2.

3 Intrinsic Value
Intrinsic value is associated to physical qualities of a product, which it consists
perceived quality, risk and value (Jaafra 2012). Risk is generated from a mistake or
uncertainty. Uncertainty exposed entitled to the appearance of the product. (Sudhir &
Talukdar 2004) stated that consumers mainly presumed that to purchase low price,
less complex packaging and unfamiliar merchandise is at substantial risk because the
quality believed to be inadequate of assurance and suspicious. Namely, that is the
thought of why consumers identify private label product with tremendous risk. The
typical of consumers are not familiarized to private label product (Cox, 1967) plus the
products are beyond their understanding, therefore consumers are concerned of taking
false choice (Batra and Sinha, 2000).
The degree of packaging in store brand product is reflected as low, consumers refuse
the idea of high quality in store brand. (Dick et, al. 1995) claimed consumers
associate store brands with low-priced packages. Correspondingly, (Dick et, al. 1994)
likewise formulated the base acumen that consumers accord poor valuation on store
brand quality is from the demonstration of packaging that point out the inexpensive
vibes.
Perceived risk is crucial configuration of marketing which respects to enhance
resolving consumer assessment, choice, and buying behavior (Bauer, 1960; Campbell
and Goldstein, 2001; Dowling and Staelin, 1994; Mitchell, 1999). Perceived risk is
prone to in cohort of losses and forthcoming concerns of uncertainty (Alhakami and
Slovic, 1994; Saba and Messina, 2002). Supplementary, more perceived risk
comprises exploratory tendencies and prompt consumers to choose recognizable
options than unaccustomed ones (Campbell and Goldstein, 2001), such as a new
product.
Perceived value from the standpoint of consumers can be explicated from the context
of benefit, money, quality, and social psychology. (Bishop 1984) stated value is the
outcome from the distinction between the quality of the product and the money paid
for it. Which is why, positive perceived value is caused from the fact that less money
is involved to attain high quality product. The perception of benefit identifies that
perceived value is expressed by consumers overall evaluation of functional aspects of
perceived sacrifices and perceived benefits (Zeithaml 1988).
2.4 Extrinsic Value
Extrinsic factors are playing an important role in influencing consumers purchase
intention opposite to intrinsic elements (Richardson, 1997). According to Jaafar and
Laip (2012) 'Perceived price, packaging, store image, and advertisement are the
features of extrinsic factors. Thus we want to assessment the correlation between
extrinsic qualities toward customers purchase intention.
The previous research by Munusamy and Wong (2008) shows that there is a
significant positive relationship between price and consumers motives towards
purchase of private label product. Hence, most of consumers will make their decision
by choosing low price product (Boutsouki, C., Zotos, Y. and Masouti, Z. 2008).
Referring to Monroe (1976) Price may serve as a reference point for judging brand
quality when other information are not available or when consumer is convicted that
there are differences in quality between different brands. According to Aaker (1982)

often the price means quality. Research on consumer products with high purchase
frequency and cheap, have shown that the price is almost a quality indicator
sometimes more than the brand (Rao et Manroe, 1989). According to Laaksonen
(1994) price become less important in the choice of private labels products than
previously. Private labels are more shows as a solution to get good quality products
but at lower prices than manufacturers brands (Veloutsou, Gioulistanis and Moutinho,
2004). However, the price gap between manufacturer brands and retailer brands are
small, consumers tend to buy manufacturer brands with the association of better
quality products. So price is still an important asset for brands perception (Dodds, W.
B., Monroe, K. B. and Grewal, D.,1991). Customers, which associated price and
quality, tend to more consume manufacturer brands (Garretson, Fisher, & Burton,
2002). The belief in a pricequality relationship, coupled with the fact that price does
not invariably dominate consumers choices, helps explain why private labels have
traditionally gained only limited market shares (Ehrenberg et al., 1997). Winer, R. S.,
1986, shows than a low price strategy can create confusion in consumers mind and
have a negative effect on brand image.
On the other hand, there is still some purchaser with the mindset of price awareness.
Price awareness is often one of the characteristics of buying private label brand more
than quality conscious (Ailawadi, Neslin, & Gedenk, 2001). Baltas in 1997 has shown
that price is an informational element that increases sensitivity to private label.
Anselmsson and Johansson, 2007 in their study also explain those private labels are
positively affected by price consciousness. However, Sinha & Batra (1999) study
shows that this price consciousness can become less important for products categories
perceive as risky. So private label products perform better in the product categories,
where customers are more prices sensitivity (Raju, 1995; Burton, 1998; Ailawadi,
2001).
Additionally, another extrinsic feature is advertisement. The use of sales promotions
directed at the consumers is one of the factors influencing brand choice behavior
(Dodson, Tybout and Strenthal, 1978). Sales promotions generally put in place on
short-term including price reductions (package, coupons, refunds etc.). Mela and
Gupta (1997) research emphasizes that sales promotions have a significant impact on
the consumers decision-making process, however, that sales promotions can have an
negative effect on brand equity and encourage brand switching. Some authors such as
Mela, C. F., Gupta, S. and Lehmann, D. R. in 1997, found that, due to of the increased
of promotional actions, customers become more price and promotion sensitive.
Research by Mariola and Elina (2005) indicates promotional action have an positive
impact on brand equity.