International Journal of Marketing and Business Communication

Open Access Open Access  Restricted Access Subscription Access
Open Access Open Access Open Access  Restricted Access Restricted Access Subscription Access

Identifying the Factors Affecting Purchase of Private Label Brands


Affiliations
1 Research Scholar, Haryana School of Business, GJU S & T, Hisar, Haryana, India
2 Professor, Haryana School of Business, GJU S & T, Hisar, Haryana, India
     

   Subscribe/Renew Journal


Along with the growth in the organised retail sector, private label brands have become a growing phenomenon. Every retailer focuses on the development of private labels due to high margins, thus providing consumers an alternative to national brands. Initially, the focus was only on the food and grocery segments. However, now it has extended to other product categories. The objective is to identify the factors that influence the purchase of private labels in retail stores, through systematic literature review. After a rigorous review, 67 papers were selected, which were published between the years 1972 and 2020. These research papers are from various databases, such as Emerald Insight, Elsevier, and JSTOR. The findings of the study reveal that maximum studies were done on food and grocery and apparel categories. Mall intercept survey was conducted to obtain information from respondents. Other findings revealed that factors such as store image, product familiarity, perceived quality, perceived risk, price consciousness, consumer attitude, value consciousness, and extrinsic cues influenced the perception of consumers towards purchase intention of private label brands.

Keywords

Retail Industry, Private Labels, Consumers
Subscription Login to verify subscription
User
Notifications
Font Size


  • Abdullah, R. B., Ismail, N. B., Rahman, A. F. B. A., Suhaimin, M. B. M., Safie, S. K. B., Tajuddin, M.T. H. M.,...Nair, G. K. S. (2012). The relationship between store brand and customer loyalty in retailing in Malaysia. Asian Social Science, 8(2), 171.

  • Ahlert, D., Olbrich, R., Kenning, P., Schroeder, H., Glynn, M. S., & Chen, S. (2009). Consumer-factors moderating private label brand success: Further empirical results. International Journal of Retail & Distribution Management, 37(11), 896-914.

  • Ampuero, O., & Vila, N. (2006). Consumer perceptions of product packaging. Journal of Consumer Marketing, 23(2), 100-112.

  • Amrouche, N., & Zaccour, G. (2007). Shelf-space allocation of national and private brands. European Journal of Operational Research, 180(2), 648-663.

  • Bao, Y., Bao, Y., & Sheng, S. (2011). Motivating purchase of private brands: Effects of store image, product signatureness, and quality variation. Journal of Business Research, 64(2), 220-226.

  • Batra, R. and Sinha, I. (2000). Consumer-level factors moderating: The success of private consumer-level factors moderating the success. Journal of Retailing, 76(2), 175-191.

  • Beneke, J., & Carter, S. (2015). The development of a consumer value proposition of private label brands and the application thereof in a South African retail context. Journal of Retailing and Consumer Services, 25, 22-35.

  • Beura, D., & Moharana, T. R. (2018). Private label brand extension and consumer buying behavior towards household cleaning chemicals. International Journal of Advances in Agriculture Sciences, 5(2), 34-45.

  • Binninger, A. S. (2008). Exploring the relationships between retail brands and consumer store loyalty.International Journal of Retail & Distribution Management, 36(2), 94-110.

  • Burger, P. C., & Schott, B. (1972). Can private brand buyers be identified? Journal of Marketing Research, 9(2), 219-222.

  • Burt, S., & Mavrommatis, A. (2006). The international transfer of store brand image. International Review of Retail, Distribution and Consumer Research, 16(4), 395-413.

  • Burton, S., Lichtenstein, D. R., Netemeyer, R. G., & Garretson, J. A. (1998). A scale for measuring attitude toward private label products and an examination of its psychological and behavioral correlates. Journal of the Academy of Marketing Science, 26(4), 293.

  • Chaniotakis, I. E., Lymperopoulos, C., & Soureli, M. (2010). Consumers’ intentions of buying own-label premium food products. Journal of Product & Brand Management, 19(5), 327-334.

  • Chattopadhyay, P. (2018). A study on perception index on private label brands and national label brands offered by organized retailers: Theoretical approach.PARIDNYA-The MIBM Research Journal, 6(1), 48-62.

  • Chawla, J., Agrawal, R., & Sharma, B. (2019). A comparative study of unorganized and organized retailing in India. Journal of Emerging Technologies and Innovative Research, 6(3), 127-132.

  • Collins-Dodd, C., & Lindley, T. (2003). Store brands and retail differentiation: The influence of store image and store brand attitude on store own brand perceptions. Journal of Retailing and Consumer Services, 10(6), 345-352.

  • De, D., & Singh, A. (2017). Consumer’s perspective and retailer’s consideration towards purchase of private label brands. Procedia Computer Science, 122, 587-594.

  • Diallo, M. F. (2012). Effects of store image and store brand price-image on store brand purchase intention: Application to an emerging market. Journal of Retailing and Consumer Services, 19(3), 360-367.

  • Dick, A., Jain, A., & Richardson, P. (1995). Correlates of store brand proneness: Some empirical observations.Journal of Product & Brand Management, 4(4), 15-22.

  • Dodds, W. B., Monroe, K. B., & Grewal, D. (1991).Effects of price, brand, and store information on buyers’ product evaluations. Journal of Marketing Research, 28(3), 307-319.

  • Dowling, G. R. (1986). Perceived risk: The concept and its measurement. Psychology & Marketing, 3(3), 193-210.

  • Erdem, T., Zhao, Y., & Valenzuela, A. (2004). Performance of store brands: A cross-country analysis of consumer store-brand preferences, perceptions, and risk. Journal of Marketing Research, 41(1), 86-100.

  • Fong, S. W. L., Kian, T. P., Fern, Y. S., & Vincent, W.(2015). Monetary and image influences on the purchase decision of private label products in Malaysia. The Journal of Faculty Business, 3(4), 312-318.

  • Gala, D., & Patil, R. D. (2013). Consumer attitude towards private labels in comparison to national brands.

  • International Journal of Business and Management Invention, 2(5), 12-18.

  • Gangwani, S., Mathur, M., & Shahab, S. (2020). Influence of consumer perceptions of private label brands on store loyalty - Evidence from Indian retailing. Cogent Business & Management, 7(1), 1751905.

  • Goldsmith, R. E., Flynn, L. R., Goldsmith, E., & Stacey, E. C. (2010). Consumer attitudes and loyalty towards private brands. International Journal of Consumer Studies, 34(3), 339-348.

  • González Mieres, C., María Díaz Martín, A., & Trespalacios Gutiérrez, J. A. (2006). Antecedents of the difference in perceived risk between store brands and national brands. European Journal of Marketing, 40(1/2), 61-82.

  • Gupta, N. (2015). Indian private labels: Modifying retailing perspective. International Journal of Applied Sciences and Management, 1(1), 43-47.

  • Hariprakash, U. P. (2011). Private labels in Indian retail industry. International Journal of Multidisciplinary Research, 1(8), 335-340.

  • Hemantha, Y., & Arun, B. K. (2015). Case study: Consumer’s perception towards private label brands in retail stores. Advances in Management, 8(1), 33.

  • Jin, B., & Sternquist, B. (2004). Shopping is truly a joy. The Service Industries Journal, 24(6), 1-18.

  • Jin, B., & Suh, Y. G. (2005). Integrating effect of consumer perception factors in predicting private brand purchase in a Korean discount store context. Journal of Consumer Marketing, 22(2), 62-71.

  • Juan, L. S., & Govindan, S. (2017). Opportunities of private label brands at Malaysia. Journal of Global Business and Social Entrepreneurship (GBSE), 3(7), 59-70.

  • Kakkos, N., Trivellas, P., & Sdrolias, L. (2015). Identifying drivers of purchase intention for private label brands. Preliminary evidence from Greek consumers.Procedia-Social and Behavioral Sciences, 175, 522-528.

  • Khandelwal, P. (2015). Private label brands and consumer brand consciousness. Pacific Business Review International, 7(8), 71-77.

  • Konuk, F. A. (2018). The role of store image, perceived quality, trust and perceived value in predicting consumers’ purchase intentions towards organic private label food. Journal of Retailing and Consumer Services, 43, 304-310.

  • Kumar, A., & Khan, F. (2020). An overview of organized & unorganized retailing in India. Parishodh Journal, 9(3), 8388-8393.

  • Kumar, N. (2007). Private label strategy: How to meet the store brand challenge. Harvard Business Review Press.

  • Kumar, S., & Kothari, M. (2015). A study on consumer perception regarding private label branding in India.

  • European Journal of Business and Management, 7(10), 225-232.

  • Labeaga, J. M., Lado, N., & Martos, M. (2007).Behavioural loyalty towards store brands. Journal of Retailing and Consumer Services, 14(5), 347-356.

  • Lichtenstein, D. R., Ridgway, N. M., & Netemeyer, R.G. (1993). Price perceptions and consumer shopping behavior: A field study. Journal of Marketing Research, 30(2), 234-245.

  • Liljander, V., Polsa, P., & Van Riel, A. (2009). Modelling consumer responses to an apparel store brand: Store image as a risk reducer. Journal of Retailing and Consumer Services, 16(4), 281-290.

  • Mathur, M., & Gangwani, S. (2016). The effect of retail store image dimensions on consumer’s purchase intention of private label brands. International Journal of Research in Finance and Marketing, 6(11), 89-102.

  • Mendez, J. L., Oubina, J., & Rubio, N. (2008). Expert quality evaluation and price of store vs. manufacturer brands: An analysis of the Spanish mass market. Journal of Retailing and Consumer Services, 15(3), 144-155.

  • Nair, L. (2011). Private labels brands in food & grocery: The changing perceptions of consumers & retailers in India-A study in the Pune region. Researchers World, 2(1), 144.

  • Olson, J. C., & Jacoby, J. (1972). Cue utilization in the quality perception process. ACR Special Volumes.

  • Pangriya, R., & Kumar, R. (2016). Factors affecting the performance of private label brands in Indian online market: An assessment of reliability and validity. Asian Journal of Management, 7(3), 223-230.

  • Pangriya, R., & Kumar, M. R. (2018). ‘My store my brand’ - A critical review of online and offline private label brands in India. International Journal of Indian Culture and Business Management, 16(2), 223-244.

  • Ramakrishnan, M., & Ravindran, S. (2012). A study on the consumer perception towards private label brands with special reference to Big Bazaar, Coimbatore, Tamil Nadu. Researchers World, 3(3), 79.

  • Rao, A. R., & Monroe, K. B. (1988). The moderating effect of prior knowledge on cue utilization in product evaluations. Journal of Consumer Research, 15(2), 253-264.

  • Richardson, P., Jain, A. K., & Dick, A. S. (1994). Extrinsic and intrinsic cue effects on perceptions of store brand quality. Journal of Marketing, 58, 28-36.

  • Richardson, P. S., Jain, A. K., & Dick, A. (1996). Household store brand proneness: A framework. Journal of Retailing, 72(2), 159-185.

  • Rowley, J. (1998). Promotion and marketing communications in the information marketplace. Library Review, 47(8), 383-387.

  • Semeijn, J., Van Riel, A. C., & Ambrosini, A. B. (2004).Consumer evaluations of store brands: Effects of store image and product attributes. Journal of Retailing and Consumer Services, 11(4), 247-258.

  • Shao, C. Y., Baker, J. A., & Wagner, J. (2004). The effects of appropriateness of service contact personnel dress on customer expectations of service quality and purchase intention: The moderating influences of involvement and gender. Journal of Business Research, 57(10),1164-1176.

  • Sharma, K. M., Dubey, D. K., & Pandey, B. D. (2011). Customer perception of store brands vs. National brand in select area of Maharashtra. Journal of Engineering, Science and Management Education, NITTTR, Bhopal, 4, 59-65.

  • Singh, A., Gupta, R., & Kumar, A. (2018). Consumer purchase decision towards private label brands: Evidence from the Indian market. International Journal of Supply Chain Management, 7(4), 84-93

  • Sprott, D. E., & Shimp, T. A. (2004). Using product sampling to augment the perceived quality of store brands. Journal of Retailing, 80(4), 305-315.

  • Talreja, M., & Jain, D. (2013). Changing consumer perceptions towards organized retailing from unorganized retailing – An empirical analysis. International Journal of Marketing, Financial Services & Management Research, 2(6), 73-85.

  • Thakkar, B. A., & Panigrahi, A. (2016). Consumer attitudenew trends and direction in PLB with comparison with National brand. International Journal of Pure and Applied, 4(1), 25-34.

  • Thanasuta, K. (2015). Thai consumers’ purchase decisions and private label brands. International Journal of Emerging Markets, 10(1), 102-121.

  • Tjakraatmadja, J. H., Novani, S., Tjhi, M., & Azis, Y. (2019). Buying decision factors influencing organic food purchase by young consumers: Case of Bandung City, Indonesia. International Journal of Business Excellence, 18(3), 360-387.

  • Trusov, M., Bucklin, R. E., & Pauwels, K. (2009). Effects of word-of-mouth versus traditional marketing:Findings from an internet social networking site. Journal of Marketing, 73(5), 90-102.

  • Wu, P. C., Yeh, G. Y. Y., & Hsiao, C. R. (2011). The effect of store image and service quality on brand image and purchase intention for private label brands. Australasian Marketing Journal, 19(1), 30-39.

  • Yang, D., & Wang, X. (2010). The effects of 2-tier store brands’ perceived quality, perceived value, brand knowledge, and attitude on store loyalty. Frontiers of Literary Studies in China, 4(1), 1-28.

  • Zeithaml, V. A. (1988). Consumer perceptions of price, quality, and value: A means-end model and synthesis of evidence. Journal of Marketing, 52(3), 2-22.


Abstract Views: 184

PDF Views: 0




  • Identifying the Factors Affecting Purchase of Private Label Brands

Abstract Views: 184  |  PDF Views: 0

Authors

Madhuri
Research Scholar, Haryana School of Business, GJU S & T, Hisar, Haryana, India
Ubba Savita
Professor, Haryana School of Business, GJU S & T, Hisar, Haryana, India

Abstract


Along with the growth in the organised retail sector, private label brands have become a growing phenomenon. Every retailer focuses on the development of private labels due to high margins, thus providing consumers an alternative to national brands. Initially, the focus was only on the food and grocery segments. However, now it has extended to other product categories. The objective is to identify the factors that influence the purchase of private labels in retail stores, through systematic literature review. After a rigorous review, 67 papers were selected, which were published between the years 1972 and 2020. These research papers are from various databases, such as Emerald Insight, Elsevier, and JSTOR. The findings of the study reveal that maximum studies were done on food and grocery and apparel categories. Mall intercept survey was conducted to obtain information from respondents. Other findings revealed that factors such as store image, product familiarity, perceived quality, perceived risk, price consciousness, consumer attitude, value consciousness, and extrinsic cues influenced the perception of consumers towards purchase intention of private label brands.

Keywords


Retail Industry, Private Labels, Consumers

References