This chapter aims at demonstrating the relationship between perceived risk for private label products and consumer's personality traits. Because of that reason, the data was collected from 462 respondents who bought and used a private label food product at least one time in Bilecik between 15 March and 01 April 2019. This data was collected via convenience sampling methods. According to the findings, perceived risk for private label products and consumer's personality traits are statistically significant. There is a statistically significant relationship between perceived risk for private label products and consumer's personality traits.
TopIntroduction
Private labels market which is also called store brands have grown day by day. The private label products in both developed and developing countries have rapidly increased around the world. One of the most important reason is undoubtedly that the growing power of retailers in consumer markets and the other important reason is providing high profitability. The share of private label products in the turnover of the total supermarket market is between 18% and 42% in Europe with an average of 31.5%. In Turkey, it reaches 19.9% (Nielsen Retail Panel, 2018).
In Turkey, consumers prefer private labels because of their price-quality performance. According to last three years of data (respectively 49%, 62% and 66%), consumers prefer private labels because they are cheaper than normal brands (Nielsen Shopper Trends, 2018).
According to Nielsen Retail Panel (2018), private labels are categorized into four parts. One of them is called “strong” private labels for example; softeners, frozen foods, house cleaners, bleaches, white cheese. - This category grows more rapidly than normal brands and has more private label average than the general average.
The second of the private label category is called “opportunity” private labels -for example; baby foods, dishwashes detergents, ice-creams, shampoos, deodorants and soap and shower gels. These have more growth than normal brands but their private label average is below than general average. The third one is called “under threat” private labels -for example; oil, packaged breads, canned foods, dried nuts and butter. This category has less growth than normal brands but their private label average is more than the general average, and the last category is called “weakness” private labels -for example; sanitary pads, hair dyes, processed meats, chocolates, nuts and teas-. This category both has less growth than normal brands and their private label average is below than the general average. In other words, it is a SWOT analysis for private label products in Turkey.
According to Mitchell (1998), effecting factors of perceived risk are related with personal factors (gender, age, psychological traits, socio-economic class, inter-country differences), retailing factors (distribution channels, generic branding products, product usage time, product/service mix, country of origin) and statuational factors (group discussion, consumer involvement). In this study, the effects of the perceived risk on personality traits were emphasized.
The aim of this paper is to demonstrate the relationship between perceived risks for private labels and consumer’s personality traits. Therefore, the factor analysis was conducted on both big five personality inventory and perceived risk for private labels. Later, canonical correlation analysis has been conducted in order to indicate the relationship between consumers’ personality traits and perceived risk for private labels.