Factors Influencing Private Label Preference in an Emerging Market

Authors

  • Mónica Gómez S. Universidad Autónoma de Madrid
  • Galo Paiva Universidad de la Frontera
  • Berta Schnettler M. Universidad de la Frontera

Abstract

The purpose of this study was to contribute knowledge concerning private label products in Chile, to determine if there exist differences in purchasing perception between buyers and nonbuyers, to identify the factors affecting the intention of buying private label products, and whether these factors differ with those obtained in studies on market trends in Europe and in the United States. A multistage random sampling survey was conducted on households in Temuco, Chile, and the results showed that 20% of respondents were frequent buyers of private label products. The purchase level did not differ by social class. Using one-way ANOVA was determined that purchasers of private label products, in an effort to save more on shopping than non-users, have higher perceived quality and greater knowledge than non-users of these private label products. Linear regression analysis showed that the main factors determining purchase intent were shopping frequency and attitude towards private labels. The main variable affecting the attitude was the perceived quality of private label products. These outcomes present similar results obtained during studies conducted in European countries and/or in the United States.

Keywords:

Private label, store brand, brand choice, Chile