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Private label brands have achieved double-digit growth in the Thai market. To expand market share, private label brands need to identify clearly what triggers consumer purchases. The purpose of this paper is to investigate the relationship between consumer decision-making styles and actual purchases of private label products in a Thai market context, using price consciousness, quality consciousness, brand consciousness, value consciousness, and risk perception as factors for investigation.

Responses from a total of 240 respondents from four product categories were collected through mall intercepts in five hypermarkets and supermarkets in Bangkok, and a regression-based model was employed to identify the associations.

The results indicate a significant relationship between price-conscious and brand-conscious consumers, and private label purchases and show that the relationship between quality-conscious, value-conscious, and risk-adverse consumers and private label purchases is insignificant. It concludes that price-conscious consumers are the ones most likely to purchase private label products in low-differentiation categories. An opposite relationship prevails for consumers who are brand conscious in low-differentiation, high-risk, and low-risk categories.

The outcomes of this research suggest that private label brands should maintain a low-price strategy while striving for continuous improvement in quality to capture additional quality- and value-conscious consumers. It also suggests that national brands invest in brand-building strategies rather than competing on price.

This study enhances an understanding of consumer decision-making characteristics for actual private label purchases rather than the intention to purchase and is useful in suggesting an alternative to socio-economic factors as a method of identifying private label purchasers.

The purpose of this paper is to examine the dimensions of perceived risk, which influence consumers’ purchase intention toward the retailers’ private labels. Based upon the previous literature, majorly four dimensions of the perceived risk have been considered for the study. These include – perceived functional risk, perceived financial risk, perceived physical risk and perceived psychological risk.

Data have been collected by proceeding with mall intercept method and approached shoppers with the questionnaire at the outlets of large Indian retailers – Reliance retail, Aditya Birla’s More, Big Bazaar and Spencer’s. A total of 352 valid questionnaires were obtained, wherein responses were recorded on Likert-type scale anchoring five-points where 1 indicates strongly disagree and 5 indicates strongly agree. Then, the analysis was carried out by using Exploratory Factor Analysis and Multiple Regression Analysis.

Findings of this study revealed that perceived functional risk, perceived financial risk, perceived physical risk and perceived psychological risk have the direct negative and significant effects on consumers’ intention to purchase retailers’ private labels. Thus, all the hypotheses were accepted and all the findings of this study were in line with previous studies.

A limited set of product categories and brands were analyzed.

This study is of great interest for large retailers who wish to increase their private labels’ value proposition, with an in-depth understanding of these risks it could alter their value proposition accordingly and create more successful private labels in the market place.

This study is one among the very few studies which addressed the research on purchase intention toward private labels in Indian context.

Private label growth in Australia has not kept pace with the growth in private labels elsewhere. This research paper establishes that the odds of a consumer being highly pleased with a store label product when they are supportive of the quality of private labels, is more than the odds of the consumer being highly satisfied when purchasing private label products simply because they are priced significantly lower than manufacturer brands. It would therefore be useful for Australian retailers to increase investment in private label programs including changing their customers’ attitudes to the quality of private labels if they are to stay competitive.

The purpose of this paper is to propose and empirically test a research model encompassing marketing mix activities as antecedents of non-private label consumers’ switching intention, particularly from an emerging market perspective. The study also aims to test the moderating role of general neophobia and gender.

Focusing on non-private label consumers, the study analyzed a total of 211 questionnaire responses. Partial least squares structural equation modeling was used to test the research model.

The results suggested that marketing mix activities, particularly advertising, in-store communication, and monetary promotion positively influenced private label brand attitude. Attitude positively influenced switching intention. The proposed moderating effects of general neophobia and gender in the relationship between private label brand attitude and switching intention were supported.

This study provides empirical evidence to the effects of marketing practices on private label brand attitude from an emerging market perspective, complementing previous research which largely focused on developed market. The findings offer managerial ideas in targeting non-private label consumers. The test of moderating variables expands the understanding on attitude-intention link.

The purpose of this study is to examine the entry probability and performance of private labels at an organic food retailer. For a growing sector with unique market structure and category characteristics, it examines how competitive factors affect the attractiveness of a product category for private label entry by an organic food retailer and how the manufacturer brand assortment that the retailer stocks affects private label share.

This study analyses store level cross‐category data from an independent organic retailer and field data on retail competition.

The findings show that organic private label stock‐keeping units are more likely to be present in categories with supermarket competition. They also show that concentration of shares amongst manufacturer brands (as measured by the Herfindahl index) negatively affect the probability that the retailer will enter a category with a private label stock‐keeping unit (SKU) but positively affects the share of that private label SKU.

Although the results arise from a fairly small sample of around 30 categories, the focal retailer offers a unique opportunity to examine several private label decisions at the store level. Future work could examine in greater depth the competitive interaction between supermarkets and organic retailers and the effects of such competition on their assortment decisions.

By extending private label research beyond the conventional supermarket industry, this study conducts a pioneering test of the effects of competition between retail formats on the likelihood of private label entry.

This study analyses direct effects of risk-related factors on perceived quality for private labels.

A total of 159 usable data was collected through survey, using mall intercept method in one regional retail chain in Bosnia and Herzegovina.

The results confirm that the perceived risk has a significant and negative impact on consumers’ perceptions of the quality of private labels, and that the financial risk, performance risk, and physical risk are significant determinants of overall perceived risk, thus indirectly influencing the perception of the quality of these brands.

This chapter shows that the perceived quality of private labels is significantly determined by the perceived risk to which consumers are exposed. The findings of this research can help retailers in terms of adequately defining marketing policies aimed at reducing the perceived risk that consumers are exposed to when purchasing their own brands.

The subject area is marketing strategy.

The case is well suited for MBA and executive MBA class on retailing management, strategic management, marketing strategy and brand management.

Retailers see private label as a strategic weapon against brand manufacturer to increase store profitability, but looking at the private label from brand manufacturer’s perspective, determinants and strategic choices are even more complex than that of a retailer. The case is about MegaTex Ltd.’s strategic call for private label production opportunity by Maximus Fashion and Retail Limited. The case discusses the dilemma of MegaTex for manufacturing private label in spite of having their own brand in competition. The case compels to drive strategic questions such as in what circumstances brand manufacturers should concentrate on manufacturing their own brand or should they concentrate on both private label and their brand? Or, as an alternative, should they purely dedicate themselves in manufacturing private label and stop manufacturing their own brand?

Participants will be able to understand the concept and economics of private label. Participants will be able to understand the determinants and strategic choices for private label from retailer’s and manufacturer’s perspective. Participants will be able to understand the rationale for which brand manufacturer opts for manufacturing private label in spite of having its own brand in competition. Participants will be able to identify the situations under which a brand manufacturer should concentrate on manufacturing his/her own brand or both private label and his/her brand.

Teaching notes are available for educators only. Please contact your library to gain login details or e-mail support@emeraldinsight.com to request teaching notes.

CSS 11: Strategy.

Eliminating overpackaging is a central question in sustainable development, and poses a dilemma for retailers. Since packaging is a differentiation tool for private labels, eliminating it could limit the capacity to give those labels an equivalent image to national brands just as much as it could be a sustainable development opportunity and a positioning instrument. Drawing on the attribution theory framework, the purpose of this paper is to examine how eliminating overpackaging influences consumers’ perception of products sold under generic and mimic private labels, and their purchase intention.

This research uses a 2 (overpackaging: present vs absent)×2 (brand concept: generic vs mimic private label) between-subjects experiment on a convenience sample of 217 French consumers. The conceptual framework was tested using ANCOVA and mediation analyses.

The experiment shows that eliminating overpackaging does have an influence on mimic private labels’ image, particularly on perceived quality, convenience and environmental friendliness. The authors also find that this influence negatively transfers to purchase intention for mimic private labels through lower perceived quality and convenience. No such effect appears for generic private labels’ image.

This study addresses an issue as yet unexplored in marketing – the effect of overpackaging on private label products – and proposes areas for managerial and societal reflection relevant to retail chains interested in eliminating overpackaging.

This paper aims to investigate the national brand manufacturer's ability from corporate social responsibility (CSR) innovation as a counterstrategy against the private label by a retailer. By constructing a model of manufacturer–retailer interaction, the paper attempts to analyze that the national brand manufacturer’s decision on the CSR innovation and the effect of such innovation on the retailer’s motivation of launching the private label. The results of the theoretical model in this paper could be applied by the actors in supply chains in making decision on CSR innovation and the launch of a new brand.

The theoretical model in the paper describes a manufacturer–retailer interaction with the presence of the private label and CSR innovation on the national brand. Specifically, the manufacturer has option of innovating its products and makes them to be more socially responsible; in the meanwhile, the retailer has option of launching its private label. Moreover, there are heterogeneous consumers with respect to their preferences on the CSR feature. The altruistic consumers prefer the socially responsible product while the normal consumers are indifferent between the socially responsible and basic products. By predicting the expected profit, the two firms make decision over the supply chain.

The authors find that the CSR innovation can indeed restrict the retailer’s incentive to launch the private label. Because of the presence of the altruistic consumers, the CSR innovation can help the national brand product to expand its market relative to the situation without the innovation. They demonstrate that the national brand manufacturer wishes to invest more in CSR innovation under non-linear pricing contract and the retailer is more likely to launch the private label. This is because that the non-linear pricing contract makes the two firms to concern more about their joint profit, causing the competition is less fierce.

This paper explains that the CSR innovation in the national brand product can be an effective counterstrategy by the manufacturer to deter the launch of the private label, which has not been considered by the existing studies about national brand-private label competition. Moreover, this paper also shows that the CSR innovation may benefit both the national brand manufacturer and the retailer under some conditions. In addition, the results of the paper provide some insights to the national brand manufacturer when making decision on the CSR innovation and to the retailer when reacting the manufacturer’s CSR innovation.

This study aims to examine the moderating effects of two important consumer characteristics (product familiarity and risk aversion) on the relationships between two intransient cues (store image and product signatureness) and consumer quality perception of private label, as well as the interaction between the cues themselves.

This paper employs survey research to test three main hypotheses. The authors collected data from parents in an elementary school in a southern state.

The study yields some counterintuitive results. The paper finds that the combination of two diagnostic cues does not necessarily enhance the positive evaluation of private labels. Instead, store image reduces the effect of product signatureness. Further, product familiarity induces a positive moderating effect on product signatureness, whereas risk aversion exerts a negative moderating effect on store image.

Prior literature neglects the interactions between cues and consumer characteristics and the interaction between cues themselves in consumer quality evaluation of private labels. This research addresses these gaps and offers useful insights about private label strategies.