Determinants of Private Brand Purchase in the Central Klang Valley Area
Private brands play a critical role in retail strategy. This concept will help retailers to outshine other retailers as well as compete effectively with manufacturers. Yet, we hardly find research being conducted on Malaysians interests in buying private brands. However, we have come across a num...
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| Format: | Thesis |
| Language: | English English |
| Published: |
2000
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| Subjects: | |
| Online Access: | http://psasir.upm.edu.my/id/eprint/7939/1/GSM_2000_1_A.pdf |
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| Summary: | Private brands play a critical role in retail strategy. This concept will help
retailers to outshine other retailers as well as compete effectively with
manufacturers. Yet, we hardly find research being conducted on Malaysians interests
in buying private brands. However, we have come across a number of studies
concerning private brand proneness in other countries. Lately many research
regarding the relationship between private brand proneness and behavioural aspects
of consumers were carried out. The most recent research on this subject is conducted
by Richardson et al., (1996a). This current research is done replicating their
conceptual framework.
Our study augments prior research by building an integrated framework
within which to view private brand proneness in the context of Malaysia, namely in
the Central Klang Valley area. This study was conducted by using non-probability
sampling method. Reliability test was used to purify the data and to ensure internal
reliability of the data from 200 respondents before factor analysis is used to reduce the data. The correlation among factors was tested by using Pearson correlation
analysis. From the findings we found that most of the consumers (78.6%) in the
Central Klang Valley area have bought private brands before but out of these only
11 % can be considered as "frequent" private brand buyers. One positive sign here is
that we have about 46.7% consumers who have claimed to buy private brands once
in a while (sometimes). This group of consumers can be considered as "potential
private brand buyers". Retailers can focus on this group of people as a new segment.
These consumers need to be fed with more information about private brands in order
to remove their doubts on private brands. We also found that most of the private
brand consumers are aged between 31-40 and in the range of monthly household
income ofRM3,OOOto RM7,000.
Perceptual factors are found to be influencing private brand proneness. These
factors include, familiarity with private brands, the extent to which consumers rely
on external cues, perceived quality variation between national and private brands,
perceived risk, perceived value for money, brand consciousness and finally the
extent of consumer's intention in purchasing a private brand. GeneraJly speaking,
most of the consumers in the Central Klang Valley area are still doubtful about
private brands due to the limited information given to them in their decision-making
process. Marketers should create market awareness and provide more information
about private brands through the implementation of various promotional activities.
Marketing implications for retail strategies pertaining to private brand management
are also discussed |
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