The Perceptions Of Customers Towards Private Label Brands In The Grocery Retail Sector: A Case Of Ethekwini Municipality

Abstract

The introduction of private label brands in the grocery retail industry has created various opportunities for grocery retailers. It has also afforded them the opportunity to increase their sales and improve profitability margins, while cutting on the cost of production for private label brands. Interestingly, while grocery retailers seize the opportunities brought by their investment on private label brands, they are however faced with perceptions that arise from customers. The main objective of this research was to uncover the perceptions of customers toward private label brands, using eThekwini Municipality as the case study. This present study employed a quantitative research approach, where 389 participants were systematically sampled to participate. Quantitative and qualitative data was analysed using SPSS version 25 and the content analysis respectively. The significant finding of the analysed data shows that customers in the eThekwini Municipality were still skeptical of private label brands. Furthermore, the study found that demographic factors of age and salary of customers have effect on their perceptions toward private label brands. This paper contributes to the scarce literature on private label brands, in the South African context. Further equipping grocery retailers with the understanding of customers’ perception concerning their private label brands.

Keywords

• private label brands
• customers
• grocery retailers
• perceptions
• manufacturer brands