Emerging Role Of Private Label Brands In Pakistan

Published Date: 02 Nov 2017

TABLE OF CONTENT

PAGE NO.

ACKNOWLEDGEMENT

3

ABSTRACT

4

INTRODUCTION

5

THEORETICAL FRAMEWORK

6

RESEARCH TOPIC

7

OBSERVATION

7

PROBLEM STATEMENT

7

LISTING OF VARIABLES

7

PRIORITIZATION OF VARIABLES

8

CLASSIFICATION OF VARIABLES

9

LITERATURE REVIEW

10

RESEARCH METHADOLOGY

30

THEMATIC DIAGRAM

31

NATURE OF RESEARCH

32

DATA ANALYSIS

33

T-TEST

34

ONE SAMPLE TEST

35

CORRELATIONS

36

COEFFICIENTS

37

ANOVA

38

MODEL SUMMARY

39

GRAPHS

40

LIMITATIONS

48

CONCLUSION

49

REFERENCES

50

APPENDIX

51

QUESTIONNAIRE

52

ACKNOWLEDGEMENT

First of all we would like to praise and thanks to ALLAH ALMIGHTY who gave us strength and capability to complete this project and also given ability to choose the right path for our career. After that our parents who support us morally and financially and their prayers have enlighten our path towards success. We also thankful to our instructor Sir Shazif Iqbal whose endless support and efforts throughout the project has enable us to complete this project. And the team members have equally contributed in the success of the project.

ABSTRACT

We are focusing on the emerging role of private label brands in Pakistan. And we have targeted the market of Lahore for conducting this research. And by also filtering it we have chosen the Metro Cash & Carry for this. The reason being for this is, Metro Cash & Carry have launched the private label brands for competing the national brands and other retailing giants like Hyperstar, CSD, HKB, Al-Fatah etc. Our base article for this research is STORE TRUST BUILDING: THE EMERGING ROLE OF PRIVATE LABEL By: SANDRA CASTALDO.

We have decided to conduct this research on the variables of the base article and other related articles which is in the same context but we have conducted this in our market. As the customers are moving towards the private label brands and what factors are influencing. And also variations in the customers trust on the private label brands.

And after conducting this research we come to know that the variables which we have chosen have impact on the customers trust on the private label brands. Like the pricing difference influence the people to purchase the private label brand. Different shelf spaces are provided for the convenience of the customers to recognize it. Product quality and variety have a strong impact on the customers trust. Promotional supports are there to attract the customers and change their behaviors to purchase the private label brands instead of national brands. Above all they are getting value for the price they are paying for it and this is the major factor that consider in the Pakistani context.

introduction

Retail market of Pakistan have experienced a sudden growth in recent years and by having a clutter of options available to the consumer, end user is more confused because of number of choices available in the market ,that’s why competition is there in market. In the current scenario, end user is more concerned about the product quality, variety, brand loyalty, brand image, and performance of a brand among competitor brands. Private label brands are a new tactic used by the retail players to capture the largest share of market, and to achieve a better position in consumer’s perception towards a retailer’s brand.

Brand recognition is another important aspect that has been discussed in this research as the consumers purchase different products from their retailer but did not know for the years that whether they are using a private label brand or a national brand, thus they could form a wrong perception about retailer.

Customer’s trust is the only precious driver that can decide whether a retailer is a winner or a loser, which is our main focus throughout the research that how a customer builds trust towards a brand and what are the factors or variables which determine a customer loyalty towards the brand. And the research also identify the aspects that when a customer chooses to shop at a particular retailer, are there any products offered by retailer is the concern of customer or are there any other reasons that built the trust in consumer’s mind.

We also come to know that there are many reasons for launching the private label brands. Some of them are:

Low dependency on national brands and promote the private label brands

Prices are also another factor which is being considered by the customers

A retailer is recognized by the own brand

Domestic market will grow

Availability of the product to the end consumer

less influence of the giant national brands and their wholesalers

So by keeping in mind the retailers are trying to launch the private label brands.

For these steps we have conducted the research to identify the market response, retailer’s intents, consumer’s perceptions and market directions towards influencing role of private label brands. So we have seen that different variables are impacting customer’s trust directly or in-directly.

THEORETICAL FRAMEWORK

Research Topic

The emerging role of private labels

Observation

There is an exceptional increase in customer’s trust on the private label brands of Lahore retail market.

Problem Statement

Why there is a variation in the customer’s trust on the private label brands?

Listing of variables

Trust

Salespeople

Store environment

Communication& sales promotion

Customer satisfaction

Store loyalty

Assortment

Perceived value

Quality

Price

Risk

Brand image

Packaging

Inter-category differences

Demand

Visibility

Brand awareness

Advertisement

Market space

Shelf space allowances

Variety

In-stock availability

Brand preference

Sales growth

Price difference bettheyen national brand and private label

Labor availability

Infrastructure

FDI (foreign direct investment)

Purchasing pattern

Market share

Prioritization of variables

Trust

Quality

Price differences between national brand and private label

Shelf space

Promotional support

Brand awareness

Variety/assortment

Customer satisfaction

Classification of variables

LITERATURE REVIEW

LITERATURE REVIEW

SUMMARIES OF ARTICLES

STORE TRUST BUILDING: THE EMERGING ROLE OF PRIVATE LABEL

BY: SANDRA CASTALDO

This study focused on relationships between customers and store in a retail context. They develop and test a comprehensive model of the trust, the trust's role in building relations with retail customers. Study provides appropriate help to address the challenges identified and understood how the variables control and affect the outcome of the important relationship marketing outcomes (hengnigetulao, Gewinner and Gremler 2002). In order to improve priority setting, store managers should conduct in-depth investigations of the relative importance of trust drivers, as consumer views on the performance of each driver of retailers. Results showed that customer satisfaction is the most important driver of overall retail trust, followed by private labels. The focus of this study is, taking into account customer characteristics with different buying habits of private label products, these two changes in the structure of: relatively low customer satisfaction with high PL buyer’s increase and prevalent PL evaluation of contribution. Retailers’ strategic focus in the development of own-brand should pay attention to investments and promotional activities may be leading to a higher perceived value. Therefore, relevant store environment and sales personnel, the best choice is very important, because their grocery outlets affect customer satisfaction. Another important aspect to be considered is the retailer's perceived value, which would affect customer satisfaction and confidence in the retailer. Perceived value, according to the survey, in the context of the supermarket, was mainly variety and promotions. Sculptures of even higher importance, taking into account the low private label buyers. To ensure customer satisfaction, win the trust of customers, the retailers will benefit from bond, in conditions of customer relations in the future, intent and impact. In many ways, the survey can improve. However, since the study is a cross-sectional, causal relationship should be interpreted with caution. Longitudinal study is a welcome (Gomes, 2004 Mr McLaughlin and Wittink), although the practice is very difficult. Future research can use a wide range of conceptual structures and more comprehensive measure (for example, customer trust). Additional drivers of trust can be brought forth. Potential moderators may also be included. Although limited, this provides a comprehensive trust model: an empirical test of retail supermarket Manager on a number of opinions, lever action, lasting, positive relationships with the customers, possibility of improving. Research in food retailing, by taking into account other formats in a completely different context, and cross-cultural comparison of replication may be a better step in understanding of this phenomenon.

Building Store Loyalty through Store Brands

By: Marcel Corstjens;Rajiv Lal

This central theme is the role of a retailer in store-brand strategy. They have shown that the quality of brand stores the third reason for how to improve the retailer's profitability. In addition to higher profit margins and improve the bargaining position vis-à-vis brand remanufacturer’s parameter. They believe that the store brands can play a role in increasing storage switching costs. These additional store conversion costs have the same effect as larger stores and retailers higher margins of the differentiation. The research results depend on two factors: an acceptable quality of store brands and the existence of a considerable portion of the consumers continue to purchase the national brand. Not every store brand is the same. The difference between acceptable quality and high/low quality store brand is that it’s very important to understand the strategic contributions of these to retailers. This is high quality/qualifying store brands, opening up a possibility of differentiation, store loyalty and profitability. By contrast, prices of low-quality store brand paves the way for war, stress and intensifying the price-sensitivity of consumers. Continue to buy national brands, a considerable segment of consumers, is equally important to achieve quality store brand and the retailer's profit potential. These national brands consumer, and store brands’ ability to distinguish between different retailers, allows retailers to increase their prices, in the second period in such a way, that lower prices in the first time results are being compensated. The model clearly demonstrates that "the national brand plays the anchor's role in quality of store brand. If you do not have a considerable part of the consumers who buy the national brand, stores brand is logically untenable." Quality store brands likelihood to contribute to profitability of store makes the store to assess their true profitability by differentiation of the store. The quality store brands are similar to the role of the manufacturer's marketing investment to building brand and product differentiation. Therefore, the traditional measures, such as direct product profitability (DPP), used by many retailers, is just a measure, i.e. a retailer store brands real return on investment. Therefore, they believe that these measures should not be used as the sole criterion, in the resource allocation decisions of quality store brands. Referring to another important result in the papers; "sustainability quality and store-brand differentiation strategy", most retailers’ differentiation strategy, (for example, opening hours, increasing services, lowers prices and varieties) cancelled as competitive retailers match its own strategy. In this article, they have shown that the quality of the store's brand strategy, on the contrary, is the most effective when competition follows this policy. In this sense, the quality store brands are an implicit coordination mechanism to regulate competition among retailers. Research directions for the future; they believe, an important step is to extend the analysis to more than one category, to establish the guess, sum of store brands will be greater than the impact of any individual category. They also believe that can enhance the contribution of the papers, to improve them understanding of the issues involved in the implementing. The store brand strategy, this is of particular relevance to the environment where store brand have a history of being "cheap and dirty". In other words, they need to understand the introduction of high quality store brands, this knowledge of the consumer, store brands, as well as the competitive effects of reaction. This may be particularly important, since all retailers may not have the same access to quality store brands. Finally, the shop's brand strategy has seriously affected the consequences of national brand manufacturers, because it increases the power of retailers. Therefore, it may be worth investigating, "manufacturers can limit the potential impact the profitability of this strategy. In view of this situation, it may be necessary to resize the line and below the line expenditures, Quelch and Harding (1996) recommended that between the interests of the debate.

A Study on Consumers’ Attitude towards Private Labels

A Special Focus in Baroda & Rajkot by: Dr Amit R Pandaya, Reader, Department of Commerce & Business Administration, M S University of Baroda Monarch A Joshi*, Assistant Professor, Indu Management Institute

In this study, they examined how customers in selected cities of Gujarat consider that the three product categories of private label brands comparing to national brand in 5 properties/attributes. Although inter class difference has been identified as the most important source of variation in cross-market shares of private label brands, retailer and category (DHAR and Hoch,1996), in the consumption level of the research has been done so far to explain these significant changes. An important factor in perceived quality, about private label brand use is considered that all brands share a similar quality, and often see increased use of private label brand (such as Richardson al.1994). But in this study and other global research proved that, under its own brand of a constant research has found that quality is more important than price to shoppers (Hawke and Sudeep Banerjee in 1993, Sethuraman1992 years). Research results clearly signify pricing in the acceptance and the importance of own-brand. This is because today's customers are smart enough, to understand that, because they do not buy branded products, so that they do not have to pay a premium. Ailawadi and others (2001) Support this conviction challenge, however, Burton and others (1998) noted that the risks for individual retailers in using low price relative to competition is, some consumers may be using price as a proxy for quality. Richardson et al (1994) found that private label is considered to be inferior by shoppers then national brand in quality.

This study provides an in-depth understanding of customer "attitude, in three product categories under its own brand. In trying to explain cross-class customer "attitude on the effects of own-brand, age, marital status, and changes in the industry have been taken into account.

Retailers should promote PL; it reduces the level of perceived risk of increased perception of PL/store/retail image. Discovery of all categories, perceived risk attitude and image Narasimhan and Wilcox (1998) finds that consumers buying own brand groceries, if the level of perceived risk is high in that category are underpowered. Results of the study may be useful for retailers to develop strategies, products other than national brands, one the market can accept, that will contribute to the development of more powerful storage/private label retailers in the customers and improve their presence and acceptance.

Factors Involved in Retailer’s Decision to Allocate Shelf Space to Private and National Brand and its Impact on Sales

Hashim Zameer

Institute of Management Sciences, Bahauddin Zakariya University, Multan

Abdul Waheed

Institute of Management Sciences, Bahauddin Zakariya University, Multan

Syeda Shawana Mahasin

Institute of Management Sciences, Bahauddin Zakariya University, Multan

Shelf space is an important resource for retailers. Retailers have to efficiently allocate their shelf space. Retailers will both types of brands on the shelf, for example, private and public. Retailer shelf space allocation is a very important task. Retailers have to increase private label shelves for increased profits. National brands are intended to enhance the brand image of the PL, and storage. Local retailers place PL near the national brands, customers perceives it in high quality. More shelf space is allocated for private label by retailers as compared to national brands. Research results show that about 20% shelves allocate more of its own brand, in comparison to national brands. It enhances performance and the total retail sales. NB manufacturers increase ready the shelf space thorough allowances. PL’s are placed not in proportion of their sales. If assortment and promotion of NB’s is greater than the PL, then NBs are allocated more space. Image building, private label shelf space and shelf space decisions are influencing factors in bargaining. PL is the alternative to national brands, and provides more revenue to retailers. Most customers prefer national brands. Market trends show that domestic brands will be extended in the future.

THE CONTRIBUTION OF PRIVATE LABELS ON RETAIL TRUST

Supervisor: Prof. Richard Jones

Master thesis of: Carola FIORENTINI

It is an integrated model on Level of trust in the development and testing to compare the relationship between trust, private label and services provided by retailers. There have been important contributions. In addition, according to this study has three objectives, they now summarize the main results to provide answers to initial research questions.

First of all, their goal is discovering own brand and service contributions to retail trust building. On one hand, empirical studies have demonstrated that, in own-brand models in retail companies, trust is of two physical interfaces, namely private brands and stores. In addition, the satisfaction of private label has no direct impact on confidence in the retailer. On the other side, retailers’ services mark contribution trust in different ways in the retail enterprise. In fact, satisfaction with the service can have a positive impact, to trust in the services, and retail businesses on both sides of the trust.

The recognition of different levels of satisfaction and trust in the relationship changes/varies; we can say that, tangible and intangible nature of the goods taken into account. In the case of private labels, in fact, tangible private label from the assumptions helps in the development of a sense of trust is directly on the products themselves and the store, and as a consequence only, these two levels of trust influences the third issue, trust in retail enterprises. In the case of services, their intangible nature makes it more complex for customers from differentiating service and service delivery companies. It is unfortunate that it is not possible to allow for a comparison of the weight of the two because two different coefficient of the regression has been applied to discover relationship dependency. Referring to these links, the related analysis helps us: satisfaction is slightly more co related with service trust than retail trust.

Secondly, they researched in order to identify if there is a difference between private brands and expanding retail services trust. Interesting results support their hypothesis. In addition to the trust from the store, they’d included in the private label analysis, for which may be any comparison is not possible, the other two levels presents contrary relationship of dependence.

Third, they focus on the consequences of behaviors. Concerning loyalty intentions, they looked that the retail company's trust does not play a significant role on previously owned brand loyalty intentions and store loyalty intention, which comes from its trust on own brand, and from the store trust.

In fact, the actual height of the brand extension evaluations and the trust does not mean that the customer will accept additional brand extension based on, they have already experienced. Their trust in the company, its expertise and capacity, its fame, in the absence of opportunistic behavior expectations, it allows customers to believe in his future activities, especially when they are very different from the core business.

Private Label Strategy

How to Meet the Store Brand Challenge

AUTHORS: Nirmalya Kumar Jan-Benedict E. M. Steenkamp

The 20th century was the manufacturers’ brands century. Consumers from the no name products in the 19th century by local factories moved to branded products leading global manufacturers like Coca Cola, Disney, Scotch whisky, Johnson's baby powder, Kraft's Jell-O jelly, Levis jeans), Procter (Procter& ivory SOAP Procter, Nestlé infant formula milk powder, Unilever's sunlight SOAP. Those manufacturers brand using new media first newspaper, billboards, radio, and later television and the Internet to market their information effectively. The brand's consumer information message of the smart shopping brands is one that they are trust worthy, high quality, and provide consistency and innovation at a fair price. Initially, consumers purchased manufacturers recognized brand as a symbol of quality, trust and affluence. Those brands were the symbols of images and life style.

Manufacturer brands reach consumers through distributors and retailers. For most of the 20th century, retailers are relatively small in relation to big suppliers. This enables brands, riding a wave of high-quality products, innovation and mass advertising to build their power upon distribution channels. Manufacturers use this authority to retail employees retraining scheme, a brand of bulldozers, forcing retailers to accept their products with the relevant price and promotion policies. A retailer does usually have a classic "take it or leave it" option.

Brands give meaning to consumers. Consumers want brands on quality assurance and emotions relief they provide. Any product which isn’t a brand has necessarily limited market appeal. However, brand does not have to be manufacturer brand. They can also be store brands. This is what has happened in the past ten years, as retailers become larger and more complex; their own brand becomes more ubiquitous, providing successful investments in brand promotion activities with the necessary quality. Retailers are now having their own brands, brands in their own right. Their stores are more and more filled with brands with emotion and imagery, instead of only a generation ago dominated by the functional logic of private label.

PRIVATE LABEL USE AND STORE LOYALTY

AUTHORS: Kusum L. Ailawadi, Koen Pautheyls, & Jan-Benedict E.M. Steenkamp

This article discusses the relationship between building econometric models, share of customer and store loyalty towards private label (PL). The model includes main driving force and control in the relationship between them. The model is estimated with a unique set of data, combined with the complete purchase history of a customer group in Netherlands which includes family, demographic and psychological data. Authors estimate a model of two chain retailers in the Netherlands which is leading service chain and leading value chains and also its differentiation of a high as well as low share of PL.

They found that PL share significantly affected all three measures of behavioral loyalty research: wallet share, share purchase, share shopping and travel. In addition, loyalty has an effective share of private label. For service chain, the authors found, these two effects are equally related. From leading value chain, the effect was positive, linear, but they do not show non-monotonicity, because PL share has not yet reached a high enough level. To manage the impact of this research on PL is very important.

Retailers can benefit from a virtuous circle; PL share and larger purchases, wallet share, PL share. However, this virtuous circle can run only at one point, because the PL buyers tend to be loyal to the price savings and partial least squares (PLS) in general, there is no PL in particular chains. Although the results of the study indicate that limitation of PL chain loyalty, this does not mean that retailers will or should stop promoting its products through promotion.

In fact, the trade-off also needs further research to check how retailers face their PL goals and how PL becomes more profitable in higher leverage negotiations with NB manufacturers and then consumers shop loyalty will be higher. Evidence of this trade-off is an important contribution. In short, increasing loyalty is an important goal in today's competitive market, retailers and PL has long been regarded as a promising means of branding. This study reveals the limits of private label approach.

UNDERSTANDING RETAIL BRANDING: CONCEPTUAL INSIGHTS AND RESEARCH PRIORITIES

AUTHOR: Kusum L. Ailawadi

The view is that branding and brand management principles should be applied to retail brands. Even without a major retail brand of academic research, a lot of work has been done for retailers and consumers to directly relate the brand image. There are five main areas of academic study of stores i.e. image-access, in-store atmosphere, price and promotion across varieties, varieties-integrated lessons in branding are the main findings of the study. Concept of this type of image size can help the development of a strong and unique brand of retail associations in the minds of consumers. They also influence the utilitarian and pleasure benefits that customers feel they gain from retailer liking and ultimately the price premium consumers will pay the extra effort they will be willing to expend in order to shop the retailer, and the share of trips, share of requirement, and loyalty that the retailer enjoys. In these areas, by influencing consumer’s preferences and shopping behavior, images of their retail outlets are important base of brand equity. Different image sizes and relative importance of utility and pleasure are different, different retail formats, different consumer groups, or even to buy the same amount by consumer on the different occasions provides plenty of opportunity for retail brands, to distinguish them from each other. Perhaps due to a lack of clear focus, a number of important issues of retail brands and the problem have not been resolved. They have three main areas -traditional principles of branding, the role of private labels in building retailer brand equity, and the measurement of retailer brand equity, as recommendations for retailers of brand equity measurement applications. It is hoped that the discussions will stimulate retail brands in these and other areas of progress.

A STUDY OF PRIVATE LABELS OF ORGANIZED RETAIL STORES IN SOUTH RAJASTHAN

AUTHOR: Dr. Shubham Goswami

Private labels are offered by a specific store so making the best marketing mix is a challenge. Increased brand's market share has been attributed to the growth in organized retail. This study consists of variables, such as quality, category number, store name as the name of the private label, innovative private label promotions and gap associated with the price gap between NB and PL. discussion analyses the contribution of private labels in terms of total sales and the growth rate in prominent sectors.

Own brand is slowly becoming India’s main character in retail growth story. Clues come from the west, India's retailers also has introduced a new way to increase their profit margins. As increasing number of Indians are accepting their own brands, they will soon become India’s main contributors to profits for retailers. Own brands future depends on whether the retailer has the ability to overcome major challenges facing, such as the Adaptive supply chain practices, quality of infrastructure, cooperation, hybrid marketing channels, professionals, in new categories, to accelerate growth, blurring the line between private label and national brands and manufacturing know-how.

The Impact of Brands on Consumer Purchase Intentions

AUTHORS: Syed Saad Hussain Shah, Jabran Aziz, Ahsan raza Jaffari, Sidra Waris, Wasiq Ejaz, Maira Fatima and Syed Kamran Sherazi

Iqra University, Islamabad Campus, Pakistan

The purpose of this study is to explore the core of brand image, brand attitude and brand attachment and environmental consequences of testifying on the impact of consumers' willingness to buy. Environmental effects have a role, while formatted purchase intention of customer or people do not think about it. Whether customers should pay attention to their own brand, they also consider corporate social responsibility index. Results show that the core brand image and brand attitude has a positive impact and environmental consequences of buying customers have a negative impact (smokers).

Collected data includes a generalized result of non-random data limitations. Most of the results were significant and related to documentation with a bit exception. Variables of the model are also a good choice. From these results it can be concluded, for smokers in nearby Rawalpindi, purchase intentions affected brand image and their attitude towards the PTC brand. And when people do not smoke, taking into account the environmental consequences of it, a lot of people use it in Pakistan as a source of pleasure and PTC products are well-known compared to its competitors, but since someone is not happy, they can also use other brands if the PTC brand is unavailable. This is a threat to PTC and shall take the necessary measures, to increase consumer brand attachment.

The Nature and Benefits of National Brand/ Private Label Competition

AUTHOR: Robert L. Steiner

The article examines the national brands (NBS) private labels (PLS), and identifies key relationships between their historical and contemporary actions as to encourage large retailers to develop strong PL program. The article is referenced to the Economist and marketing scholars who described the relationship appeared for the first time, the study on this topic provides important follow-up. It can be seen, most of these relationships and evidence for them, appears in Neil Borden, advertising (1942) the economic effects, is, unfortunately, most of the times are not familiar with the work of economists. It also describes the competitive private label and leading brands using arms against each other, including asymmetric effects, national brands tend to tilt the battle's favor. Private labels’ most potent weapon is to improve the quality of product and provide favorable shelf space. The article also gives many examples of NB/PL competition for the past 50 years, and illustrates how national brands have succeeded in reducing the typical high-profit competition, thereby reducing the average class in consumer prices. It also covers a dynamic mix of programs, and summarizes the author's "informal" two-phase model "(see Steiner, 1993) which identifies the critical consumer brand and store-switching behavior that mostly determines the amount of margins at both stages and the level of consumer prices in a product category. The article also provides a mechanism that explains why mixed structure is possible to maximize the benefits of the program. The last part of the article raised antitrust issues arising out of the NB/PL competition and warns that the rise of classification provides a framework for management and penetration, including fixed-price sometimes replaces the price competition.

Exploring the relationships bettheyen retail brands and consumer store loyalty

AUTHORS: Anne-Sophie Binninger

LEM Laboratory, Department of Marketing, REIMS Management School, University of Lille, Lille, France

While the RB has been of more and more attention for researchers, particularly with regard to prerequisites for their performance, there is insufficient awareness of the satisfaction and loyalty, they establish with consumers. The main purpose of this article is to verify the existence of these links, and provide a deeper understanding of their nature. The article Confirm that the brand loyalty enhances consumer satisfaction with a number of specific effects of RB’s. Therefore, many stores need to improve actual and perceived quality of their own brands. This will undoubtedly provide more encouragement to these two measures in the context of a specific, RB’s. These results confirm that from different studies, as they demonstrate that consumer loyalty and satisfaction are related with loyalty of their shops/stores. RB is an inevitable step to increase loyalty, which will enable it to establish its direct impact on store loyalty. Enhancing satisfaction/loyalty links as an important process on which store managers need to focus. These findings also focus more on main shop and its products; regulation of RB is an important component of the relationship with the customer. Consumers who have good disposition of RB’s will be more loyal to their primary store, if they are satisfied with them. This RB clearly identified as store brands. This confirmed in a number of previous studies, they demonstrate the loyalty of consumers, store image of the importance of the relationship between the RB’s (Baltas, 2003 years of Wolf and others, 2005). They have become the focus of people's attention, that to build the loyalty of consumers, shops need to clearly recognize as their own brand strategies. In addition, they opened new ground in the future study more diverse consumer groups showed that RB can help stores captured the different strategic objectives. Such a method must consider consumers that accept the classic "better value for money" These make their popular brands and classic RB and could be easily equated with consumers (Baltas, 1997 year plus Resin., 2002). Effects may be delineated on a number of managerial implications. In order to build consumer satisfaction and loyalty of the RB, stores need to continue to reflect on the perceived value of own brand. On the whole, this reflects that consideration should be given to the national brand strategy, other RB’s and the profile of retail stores customers. It is clear that a favorable attitude to own brand is partly based on economic aspects, such as sensitivity to price, value or self-cognition of the smart shopper "(Burton et al, 1998; Garretson and others, 2002). Therefore, it seems necessary to narrow RB satisfaction on the basis of; determining how deep qualitative improvement be it should not lower the quality/price ratio, which is still the main characteristic of assets (Baltas, 2003). Based on these findings, RB's can be said to be able to carry a brand name, along the nearest national brands, provided stores, RB target the two different consumer groups. In RB’s loyalty building, capacity, which is of key importance in order to consolidate, some marketing thinking, is required to design loyalty programs. These involve a more appropriate alternative, as the Prime slot on the shelf, use of relationship marketing tools, and the store brand positioning and differentiated communication related to corporate company. Stress is one of the means used in this study of consumer groups, in favor of the RB’s to build greater loyalty shop RB’s, from interaction with special emphasis on images. Several aspects are possible, including use of promotional pitches enabling better exposure to Retail Brands, their origin, means of production and benefits to customers (Garretson and others, 2002). Generalized product testing and simplified location of the departments proved to be just as critical in assuring consumers to promote their purchase (sprout and Shimp description, 2004). More directly involvement in national brand strategy should also be taken into account.

A COMPARATIVE STUDY ON CONSUMERS’ ATTITUDE TOWARDS PRIVATE LABELS: A SPECIAL FOCUS IN SURAT

DR. AMIT R. PANDYA

READER

FACULTY OF COMMERCE INCLUDING BUSINESS ADMINISTRATION

THE MAHARAJA SAYAJIRAO UNIVERSITY OF BARODA

MONARCH A. JOSHI

ASST. PROFESSOR

INDU MANAGEMENT INSTITUTE

VADODARA

Retail, India's upcoming industry, has become one of the most dynamic and fast paced industry in the last few years to enter the market with certain players. Success in the retail business is routed by focusing on their brand/ stores brands /PL’s; the enterprise's financial situation is very sensitive for a retail brand and their sales profit margins on their own brands. In addition, Private Labels also provide retailers more control upon the supply chain, negotiating margins with National Brand (NBs) manufacturers or firms; opportunity to launch tailored products; opportunity to launch new products, so building a platform for store loyalty and increase customer flow. For management Private Labels is a key feature, so they need professional management. This article focuses to determine customer attitudes NB’s and PL’s with respect to different properties. In addition, respondents also discussed the impact of demographic characteristics of preference model under its own brand in the different categories of products.

In this study, they examined how customers in selected cities of Gujarat consider that the three product categories of private label brands comparing to national brand in 5 properties/attributes. Although inter class difference has been identified as the most important source of variation in cross-market shares of private label brands, retailer and category (DHAR and Hoch,1996), in the consumption level of the research has been done so far to explain these significant changes. An important factor in perceived quality, about private label brand use is considered that all brands share a similar quality, and often see increased use of private label brand (such as Richardson al.1994). But in this study and other global research proved that, under its own brand of a constant research has found that quality is more important than price to shoppers (Hawke and Sudeep Banerjee in 1993, Sethuraman1992 years). Research results clearly signify pricing in the acceptance and the importance of own-brand. This is because today's customers are smart enough, to understand that, because they do not buy branded products, so that they do not have to pay a premium. Ailawadi and others (2001) Support this conviction challenge, however, Burton and others (1998) noted that the risks for individual retailers in using low price relative to competition is, some consumers may be using price as a proxy for quality. Richardson et al (1994) found that private label is considered to be inferior by shoppers’ then national brand in quality.

This study provides an in-depth understanding of customer "attitude, in three product categories under its own brand. In trying to explain cross-class customer "attitude on the effects of own-brand, age, marital status, and changes in the industry have been taken into account.

Retailers should promote PL; it reduces the level of perceived risk of increased perception of PL/store/retail image. Discovery of all categories, perceived risk attitude and image Narasimhan and Wilcox (1998) finds that consumers buying own brand groceries, if the level of perceived risk is high in that category are underpowered. Results of the study may be useful for retailers to develop strategies, products other than national brands, one the market can accept, that will contribute to the development of more powerful storage/private label retailers in the customers and improve their presence and acceptance.

RESEARCH METHADOLOGY

Thematic diagram

NATURE OF RESEARCH:

Nature of our research is exploratory not conclusive because, the primary purpose is to identify objectives and needs of the problem that "Why there is a variation in the customer’s trust on the private label brands"? And this research is for preliminary investigation, the research depends upon both secondary and primary data, and because the role of secondary data is dominant in this research, which shows that the nature of research is exploratory.

SECONDARY DATA SOURCES:

Secondary data sources that have been used for this research are Articles, Journals of marketing and consumer behavior and Discussion blogs on internet about the problem.

PRIMARY DATA SOURCES:

Collection of primary source includes the quota approach. Our quota was METRO Cash n carry.

RESEARCH APPROACH:

Research survey and contact method was personally administered questionnaire, that was been done with the respondent.

SAMPLING PLAN:

Our sampling method is non probability sampling.

SAMPLE SIZE:

Sample size includes 189 respondents from different age groups both male and female

RESEARCH INSTRUMENT:

Survey is conducted through questionnaire which is a research instrument.

DATA ANALYSIS

DATA ANALYSIS

t-TEST

ONE SAMPLE STATISTICS

One-Sample Statistics

N

Mean

Std. Deviation

Std. Error Mean

ProductQuality

189

4.1058

.79186

.05760

SignificantDifference

189

3.8836

.88558

.06442

BrandRecognition

189

3.9577

.88625

.06446

ShelfSpace

189

3.9418

.90613

.06591

ProductVariety

189

3.9788

.85650

.06230

PromotionalSupport

189

3.9841

.80210

.05834

Advertising

189

3.6402

1.13815

.08279

ValueGetting

189

4.1005

.73329

.05334

VarietyImpact

189

3.9206

.93913

.06831

PriceDifference

189

4.0794

.96704

.07034

MetroWholeselling

189

3.9947

.73294

.05331

CustomerAwareness

189

3.9206

1.03093

.07499

DifferentShelfSpace

189

3.9101

.78371

.05701

TrustImpact

189

3.7354

1.16868

.08501

One sample statistics shows the standard deviation and mean of the variables which is used in the questionnaire.

ONE SAMPLE TEST

One-Sample Test

Test Value = 0

t

df

Sig. (2-tailed)

Mean Difference

95% Confidence Interval of the Difference

Lower

Upper

ProductQuality

71.283

188

.000

4.10582

3.9922

4.2194

SignificantDifference

60.289

188

.000

3.88360

3.7565

4.0107

BrandRecognition

61.393

188

.000

3.95767

3.8305

4.0848

ShelfSpace

59.805

188

.000

3.94180

3.8118

4.0718

ProductVariety

63.865

188

.000

3.97884

3.8559

4.1017

PromotionalSupport

68.287

188

.000

3.98413

3.8690

4.0992

Advertising

43.970

188

.000

3.64021

3.4769

3.8035

ValueGetting

76.877

188

.000

4.10053

3.9953

4.2057

VarietyImpact

57.393

188

.000

3.92063

3.7859

4.0554

PriceDifference

57.994

188

.000

4.07937

3.9406

4.2181

MetroWholeselling

74.928

188

.000

3.99471

3.8895

4.0999

CustomerAwareness

52.283

188

.000

3.92063

3.7727

4.0686

DifferentShelfSpace

68.589

188

.000

3.91005

3.7976

4.0225

TrustImpact

43.942

188

.000

3.73545

3.5678

3.9031

One sample test shows the correlation between dependent variable and independent variable and the result shows that is perfectly correlated.

CORRELATIONS

In this model of Coefficient the Pearson value =1 which shows that every variable has a perfect relation with itself.

"Product Quality" has a relationship with promotional support, variety impact and other variables which is shown in the above table and has a significant value.

"Promotional Support" has a relationship with product quality, variety impact and other variables which is shown in the table and has a significant value.

"Variety Impact" has a relationship with product quality, promotional support and other variables which is shown in the table and has a significant value.

"Value Getting" has a relationship with product quality, promotional support and other variables which is shown in the table and has a significant value.

"Price Difference" has a relationship with other variables which is shown in the table and has a significant value.

"Different Shelf Space" has a relationship with other variables which is shown in the table and has a significant value.

"Trust Impact" it’s an independent variable and has a relationship with the other dependent variables and has a significant value.

COEFFICIENTS

Coefficientsa

Model

Unstandardized Coefficients

Standardized Coefficients

t

Sig.

B

Std. Error

Beta

1

(Constant)

-1.539

.327

-4.709

.000

ProductQuality

.117

.118

.079

.994

.321

SignificantDifference

.152

.092

.115

1.645

.102

DifferentShelfSpace

.243

.117

.163

2.077

.039

ValueGetting

.146

.137

.092

1.067

.288

PriceDifference

.285

.091

.235

3.119

.002

VarietyImpact

.140

.078

.112

1.788

.076

PromotionalSupport

.237

.096

.163

2.456

.015

a. Dependent Variable: TrustImpact

This is individual parameter testing:

1st Beta testing is significant and it’s a constant and independent variable.

2nd Beta testing "Product Quality" has insignificant value which shows that it has a less impact on the independent variable and we can’t reject completely.

3rd Beta testing "Significant Difference" has insignificant value which shows that it has a less impact on the independent variable and we can’t reject completely.

4th Beta testing "Different Shelf Space" has significant value and has an impact on the independent variable.

5th Beta testing "Value Getting" has insignificant value which shows that it has a less impact on the independent variable and we can’t reject completely.

6th Beta testing "Price Difference" has a significant value and has an impact on the independent variable.

7th Beta testing "Variety Impact" has an insignificant value and has less impact on the independent variable and we can’t reject completely.

8th Beta testing "Promotional Support" has a significant value and has an impact on the independent variable.

ANNOVA

ANOVAa

Model

Sum of Squares

df

Mean Square

F

Sig.

1

Regression

160.302

7

22.900

42.966

.000b

Residual

96.470

181

.533

Total

256.772

188

a. Dependent Variable: TrustImpact

b. Predictors: (Constant), PromotionalSupport, VarietyImpact, SignificantDifference, DifferentShelfSpace, ProductQuality, PriceDifference, ValueGetting

This table explains the impact of explained variables which is in Regression and unexplained variables which is in Residual. This table shows the impact due to explained variables and un- explained variables.

MODEL SUMMARY

Model Summary

Model

R

R Square

Adjusted R Square

Std. Error of the Estimate

1

.790a

.624

.610

.73006

a. Predictors: (Constant), PromotionalSupport, VarietyImpact, SignificantDifference, DifferentShelfSpace, ProductQuality, PriceDifference, ValueGetting

Model Summary shows that the overall impact due to the variables used in the research which is 62.4%. This clearly demonstrates that the variables have a significant impact on the independent variable (Customer Trust).

GRAPHS

PRODUCT QUALITY

This graph shows that more than 80% people are satisfied to the product quality which is being provided by the Metro Cash & Carry.

REGULAR CUSTOMER

This pie chart shows that our questionnaire is filled by the regular customers of the Metro Cash & Carry and that customers are right respondents.

SIGNIFICANT DIFFERENCE

More respondents are strongly agreed on the statement which is about the significant difference between the national brands and private label brands of the Metro Cash & Carry.

PROMOTIONAL SUPPORT

Many respondents are agreed that Metro Cash & Carry promotional support is more focused towards trade customers (retailers, dealers etc) rather than household consumers.

VARIETY IMPACT

A large number of respondents are agreed with the statement that variety influences the quality of the products.

BRAND RECOGNITION

This pie chart shows that most of the respondents are aware of the own brands available at Metro Cash & Carry.

TRUST IMPACT

This pie chart shows that the private label brands and their promotions have strong impact on the customer’s trust.

ADVERTISING

This pie chart explains that Metro is doing sufficient advertising to promote their own brand and many people agreed with this factor.

VALUE GETTING

Many people are agreed that they are getting value against the price they are paying for it.

PRICE DIFFERENCE

This pie shows that there is significant difference between private label brands and national brands which is noticed by the customers and the prices are lower than the national brands.

CUSTOMER AWARENESS

This pie chart shows that the customers are familiar with the private label brands offered by the Metro.

METRO WHOLESELLING

Many respondents are agreed that Metro is a good wholesaler not a retailer because they provide the products in bulks and recently they focused on retailing to capture the household consumers.

DIFFERENT SHELF SPACE

This pie chart shows that they have a different shelf space of their brands for the convenience of the customers.

LIMITATIONS AND CONCLUSION

LIMITATIONS

RESEARCHER LIMITATIONS:

The researcher had a time constraint in meeting the objectives which were been set for the research, resources which were needed like funding to get more in depth knowledge were not received. These aspects makes a researcher a bit of restricted in carrying out the desired results in accordance to the observation been carried out. Taken in view the researcher are experienced people with lifetime experience spent in the required field so that also played a role to some extent that the quality which international researchers meet were not been achieved. These all aspect makes the researchers limited in its domain to carry out the required results needed indeed.

RESPONDENT LIMITATIONS:

As when shoppers are moving around in a shopping mall they are least bothered about anything else. When we interacted with people who were the consumers they were less interested in giving their responses. Some of those people were been personally administered and given assistance so they can understand the question and reply with their response. Most people gave biased responses due to the hectic routine which they are facing all the week.

RESEARCH LIMITATION:

The research is always carried out to know something better about the required place or anything of interest; it gives a vision to other people to think about the aspects which might be ignored by them. When research is carried out the limitation lies with the irrelevant answer, and there is a probability that data is limited and is not easily accessible.

CONCLUSION

After getting the feedback from the right respondent and by evaluating the results we have concluded that the variables which we have prioritized in our research have direct impact on the customer’s trust. The customer satisfaction is not the only factor that affects customer’s brand loyalty. Our results shows that 62.4% impacts have been by the dependent variables on the independent variable. And this shows that independent variable is influences by the dependent variables.

Product quality, variety/assortment has a clear positive impact on the customer’s trust also it drives the intention of the customers from national brand to private label. Because the national label brands are already providing best quality and variety/assortment of the products, so these variables will play a vital role in switching the customers trust.

Price differences have seen a major role in switching and increasing the customer’s trust on private label brands and it shows customers want a quality product in relative decent pricing. Another important factor is brand recognition; they are doing sufficient advertising for their brands and to create the awareness of the private label brands among the customers. Results have shown that they have different shelf spaces for the private label brands which also come in the awareness and convenience factor. We have seen that they are giving promotional support but for the retailers so they should do it for the household consumers. People also agreed that they are more towards wholesaling so they develop strategy to capture the household segment.

The results have shown customers are getting value for the price they are paying for it so it will be the customer loyalty in the future for the Metro Cash & Carry.

We have seen that retailing trend is going to change because emerging of the private label brands in Pakistan. Every variable has direct or indirect impact on the customer’s trust so we can’t ignore even a single one for the evaluation. And retailers have to consider each variable which give the strength to the private label brands.