Understanding the Role of Consumer Factors and Store Factors in Private Label Purchase

Abstract

Purpose: Indian retail sector is witnessing a steady growth of private labels or store brands in food category. The study primarily looks into understanding the consumer preference for private labels or store brands in food category and the role of consumer and store factors in store brand purchase in this category. Consumer responses are collected from the city of Trivandrum (India) using structured questionnaire. Five point Likert scale is used to measure the factors. Responses are collected from consumers at organized retail outlets and households. Structural equation model is used to understand the role of consumer and store factors in private label purchase. Factors like perceived quality, product familiarity, shelf space allocation and private label quality belief are found to have a significant role in determining the private label purchase in food category.