The Effect of Consumers' Individual Factors and Perceptions on Private Label Purchase Behavior

The Effect of Consumers' Individual Factors and Perceptions on Private Label Purchase Behavior

Şeniz Özhan (Tekirdag Namik Kemal University, Turkey), Duygu Talih Akkaya (Yalova University, Turkey) and Ozge Habiboglu (Tekirdag Namik Kemal University, Turkey)
Copyright: © 2020 |Pages: 29
DOI: 10.4018/978-1-7998-0257-0.ch013
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The aim of this chapter was to examine the effect of individual factors (price consciousness, quality consciousness, value consciousness, frugality, and risk aversion) and consumer perceptions regarding store characteristics on the attitude and purchase intention towards private label products. The data acquired from consumers shopping from two supermarkets providing private label products in the province of Yalova in Turkey via face-to-face questionnaire method were tested by way of structural equation modeling. It was observed as a result of the analysis that quality consciousness, value consciousness, price image, and product variety image have an effect on the attitude towards private label products. It was also determined that the attitude towards private label products has an effect on purchase intention and that the private label product purchase intention is effective on actual purchasing. Based on the aforementioned findings, strategies were taken into consideration that should be adopted by private label product retailers in their stores.
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Theoretical Framework And The Hypotheses

Following the increase in competition in the retail sector starting with the 2000’s, it is observed that retail businesses started marketing their own private label products in order to differentiate from their competitors and to establish customer loyalty towards their stores and hence their private labels (Yeniceri, 2004). Own label, market brand, distributor brand and store brand are also frequently used in place of private label (Fernie & Pierrel, 1996). Private label products are defined as consumer goods manufactured by retailers or third party manufacturers under the name of the retail stores which are sold at their own stores with their own names or their own commercial brands (Baltas, 1997).

Recently, there has been a significant increase in the market share of private label products that emerged as a result not only of the search for a cheaper product but also the ability of the sellers to implement national brand strategies. Private label products have important contributions to rebalancing of the retailer image, differentiation, increasing competitive edge and strengthening customer loyalty (Valaskova et al., 2018).

At the end of the 1970s, the product range of the leading manufacturers consisted of three tier structures - high quality and high price alternative (premium), medium quality and medium price alternative (standard products), and generic, offering low price and acceptable quality. These three alternatives were in line with the basic market segmentation principles according to consumers who purchased products at the top, middle and low prices in the market (Burt, 2000). Generic products are those that the retailer store positions at a lower quality and price with a different brand. Standard products are those with qualities that are similar to the products of leading manufacturers but positioned at a lower price for which retailers generally use their own labels. Whereas premium products are those that are those with superior quality which are sometimes positioned at higher prices than the products of leading brands (Rubio et al., 2015).

Key Terms in this Chapter

Value Consciousness: Consumers based on their purchase decisions to product characteristics, quality and perceived value.

Risk Aversion: No activity that may carry risks.

Private Label Product: Products manufactured or manufactured by retailers and sold at the retailer's point of sale under their own name or brand.

Price Consciousness: It is the level of consumers having information about the prices of the products they will purchase and the prices of substitution products and focusing on the best price for the products they will buy.

Quality Consciousness: Consumers put emphasis on and have information about the quality of the products they will buy.

Store Image: This is the sum of the perceptions of the shoppers about the different features of the store during shopping time.

Frugality: Using resources such as money, products and services in the most efficiently.

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