Research Journal of Business and Management, vol.4, no.3, pp.28-33, 2017 (Refereed Journals of Other Institutions)
Private labels in the consumer packaged goods have experienced a worldwide growth in availability and market share in recent years. Retailers offer private labels in many different product categories to attract new consumers and gain sustainable consumption. The growing penetration of private labels in a markets and acceptance by the consumer provides sales and profits for retailers. The changes in consumers’ life styles, purchasing behaviours and expectations led changes in consumption patterns. For the consumers, private labels represent the choice and opportunity to purchase many variety of products at savings compared to other brands, without waiting for promotional pricing. The private label products are going a long way toward answering the need for affordable packaged goods for consumers. This research aims to investigate the dimensions that are important to consumers during their purchase of private labels.
Methodology- In this study it is aimed to examine consumer attitudes related to private labels. The variables which have effect on the attitudes that consumers develop towards the private label products were examined. Convenience sampling method is used in face to face survey and data collected from 447 consumers who buy private labels. The hypotheses of this study are developed through mentioned purposes and t-tests, correlation and regression analysis were conducted.
Findings- Price conciousness, value conciousness and consumer innovativeness variables have an influence on consumers’ attitude towards private labels. Price conciousness variable has the greatest effect on private label attitude.
Conclusion- Price and value conciousness are the major determinants of consumers’ purchase decision of private labels. Price consciousness is the most important factor on the consumers’ attitude towards private labels and purchase behavior. Consumers who are more sensitive to price and value, prefer private label products while shopping. According to their experiences these consumers believe that private labels are reliable and can be used instead of expensive alternatives.