Private Label Case Study

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Objective of Study Studying the factors which influence the purchase decision for private labels H0: The factors which affect the purchase of national brands and private are same i.e. equal H1: The factors which affect the purchase of national brands are more than private labels Consumer attitude and perception of a brand is one of the most important criteria to determine the positioning, placement and pricing of a brand. Consumer behavior is majorly dependent on gender, age, profession, education, marital status etc. The major factors influencing this attitude are social consciousness, store image, promotions, packaging, advertising, shelf placement, utility and type of product being purchased. Besides this, the variety seeking behavior and…show more content…
There are many customers who are store loyal rather than brand loyal, especially for low involvement products. If a brand is available every time in shelf, there is a high probability that customer might go for repeat purchase and develop brand loyalty. In addition to all these facts stated, it is generally seen that consumers prefer national brands for durable products like electronic, luxury and clothing items whereas private label is preferred in food and other perishable items Research Methodology Here we will try to find out the factors which influence the purchase decisions of customers while going for national or private label brands. Design: Since the factors need to be found out the research design for this study would be descriptive. Place of Research: Local Stores of Jamshedpur- Citi Style, Bazaar Kolkata, Reliance Trends Approach: Focused group discussions, in depth interviews and surveys (both online and offline) Sampling: Convenience sampling Size of the sample: 70 Here we have assumed that the 70 people who have been surveyed are a true representative of the entire population.…show more content…
Conclusion What retailers should do to promote private labels? In this era of intense cut throat competition, retailers cannot just thrive by stocking private labels. In order to grow they need to develop their private label base. The major findings of research conducted are as follows- 1) Customers give huge importance to credibility and quality of the product. Word of mouth and social media recommendations can become the major drivers towards the purchase of private label brands. Therefore retail store image and promotions of private labels at timely intervals would play a huge role in influencing the customers. 2) The parameters for purchase in different industries are different. For example- in the apparel sector design, variety and collection is more important whereas in electronics value for money and specific quality feature are more important. This has to be taken care of especially by private labels so that they create the required differentiation in the minds of the customers. 3) Store atmosphere, salesman interaction and after sales service are considered more seriously by customers than price of brand which means that if retailers can provide a value for money product with excellent service and other store facilities then chances of switching of customers from national brands to private label is quite

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