Private Label Brand Choice Dynamics: Logit Model Involving Demographic and Psychographic Variables

Research on private label brands started with focus on explaining the choice of private label brands by simple demographics variables which later expanded into work on attitudinal and behavioral characteristics of customers. However, all these studies have not tried to integrate demographic and psychographic variables to achieve a higher explanatory power, even though researchers have suggested that such a combination is likely to have a higher explanatory power. This paper, after a review of literature, identifies the variables for private label brand proneness. This is followed by mathematical explanation which provides the mathematical model using discrete choice modeling. The paper also provides operationalization of integrated model in current Indian retail scenario and concludes with explaining the limitations.