“…However, such stands to erode customers' loyalty towards PLBs in the long run. Hence, retailers should continually strive to enhance their promotional strategies to be value creating rather than enhancing short-term sales (Odongo & Motari, 2020). By doing so, customers will be willing to purchase private label brands at even higher prices; in turn, repeatedly purchasing private label brands and completely switching from manufacturer brands.…”
The upsurge of private label brands has allowed retailers to expand their product offerings. However, these brands have been met with varying perceptions among consumers across the world. Therefore, this study investigated the role that marketing might have on the purchase intentions of customers opting to/not to purchase private label brands. The marketing instruments in question for this study were advertising, pricing, and price promotion, and their effect on customers’ purchase intention for private label brands. An integrative systematic review methodology in searching, screening, selecting, including, and excluding research articles; search strings were also formulated in searching for articles was followed. In this paper, a synthesis of the literature was undertaken, and future research direction was provided, giving future research and retailers three propositions to understand the effect of pricing, price promotions, and advertising in the purchase of private label brands.
“…However, such stands to erode customers' loyalty towards PLBs in the long run. Hence, retailers should continually strive to enhance their promotional strategies to be value creating rather than enhancing short-term sales (Odongo & Motari, 2020). By doing so, customers will be willing to purchase private label brands at even higher prices; in turn, repeatedly purchasing private label brands and completely switching from manufacturer brands.…”
The upsurge of private label brands has allowed retailers to expand their product offerings. However, these brands have been met with varying perceptions among consumers across the world. Therefore, this study investigated the role that marketing might have on the purchase intentions of customers opting to/not to purchase private label brands. The marketing instruments in question for this study were advertising, pricing, and price promotion, and their effect on customers’ purchase intention for private label brands. An integrative systematic review methodology in searching, screening, selecting, including, and excluding research articles; search strings were also formulated in searching for articles was followed. In this paper, a synthesis of the literature was undertaken, and future research direction was provided, giving future research and retailers three propositions to understand the effect of pricing, price promotions, and advertising in the purchase of private label brands.
“…The opposite is true regarding when PLBs are low priced -customers associate private label products with low quality. Therefore, Odongo and Motari (2020) insisted that grocery retailers shall continuously provide good quality private label products, accompanied by reasonable pricing, as price is a critical tool in the success of private labels, often used as a perceptual quality indicator (Abril & Rodriguez-Cánovas, 2016). Customers also use pricing as a comparison factor between private label brands and national brands.…”
Section: Private Label Brands Are Affordablementioning
The phenomenon of private label brands has been widely studied from various contexts, with South Africa as no exception. The pervading economic climate across the globe, as a consequence of the Covid 19 pandemic, has brought the study of private label brands to the fore. Private label brands (PLBs) are considered a cheaper alternative with comparable levels of quality to manufacturer products, which creates a value proposition for consumers (Cuneo et al., 2019). Notwithstanding the plethora of research in this field, these studies are pointed towards customer perceptions and purchase behaviours for private label brand products rather than the perceptions of grocery store retailers. This paper explored the perceptions of grocery retail managers concerning private label brands (PLBs) by delving into the views of these managers concerning the reasoning behind consumer purchase behaviour when it comes to these private label products. The study’s main finding was that grocery retail managers believe that customers primarily purchase private label brands due to the trust that they display towards a grocery retailer rather than the emphasis placed on the pricing or quality of these products. Moreover, the confidence exhibited by customers extends towards repeat purchases of private label brands as the products match or exceed expectations, which further encourages the faith they have in these brands. These findings indicate that grocery retailers opine that customers’ view private label brands positively. We recommend that grocery retailers invest more in the awareness of private label brands (PLBs), thereby creating more knowledge of private label products. Customers are more educated in this respect and can draw better conclusions between the cost/quality dichotomy that has always plagued the adoption rate of these products within a South African and African context.
Received: 5 August 2022 / Accepted: 11 December 2022 / Published: 5 January 2023
scite is a Brooklyn-based organization that helps researchers better discover and understand research articles through Smart Citations–citations that display the context of the citation and describe whether the article provides supporting or contrasting evidence. scite is used by students and researchers from around the world and is funded in part by the National Science Foundation and the National Institute on Drug Abuse of the National Institutes of Health.