Factors Affecting Attitude Towards Private Label Grocery Purchases by Indian Consumers

The world is seeing the rise of private label brands. The strategic importance of private labels has made it imperative for retailers to understand factors that affect consumer attitude towards private labels. Understanding these factors will enable retailers to formulate the right strategies for private label marketing. From the review of existing literature factors affecting private label attitude were identified. A mall-intercept survey was conducted to collect data in an Indian context. Multiple regression analysis was performed to identify statistically significant factors in attitude formation towards private label grocery and food products. The analysis indicated that the private label attitude is significantly related to the price consciousness, private label quality perception, extrinsic quality cues, intrinsic quality cues, retailer's reputation, and consumer's attachment to the national brand. Value-consciousness, manufacturer's reputation, and the presence of positive word of mouth, on the other hand, were found to be insignificant predictors of private label attitude.