The Effect of Perceived Product Characteristics of Private Label Brand Purchases with Reference to Food and Grocery Items

Abstract

Purpose: The purpose of this paper is to investigate the effect of perceived characteristics (familiarity, product type and purchase intention) and consumer price consciousness towards private brand purchase intent. Design/Methodology/ Approach: Consumers who are private brand buyers was surveyed to measure product characteristics perception for seven product categories and to evaluate private brand purchase intent. Factor Analysis was done for hypothesis testing. Findings: Support existed on significant effect of all three product characteristics on their intention to purchase private label brand. Practical Implications: It is critical that retailers identify appropriate product category as they develop private brands. Private brand marketing strategies should be designed to improve level of product familiarity and to increase consumer perception of product characteristics. Value/ Originality: This study aims to test the effect of product characteristics extensively and to provide relative marketing implications.