Profiling consumers of private label brands in virtual retail environment - a cluster analytic approach

Abstract

Private label brands (PLB) unlike generic offerings of the past are now viewed as brands in their own right. Mounting evidences suggest the growing acceptance of PLB among the aspiring consumers in the current milieu. The diminishing gap between national brands vis-à-vis their PLB counterparts call for new imperatives for retailers to sharpen the focus on store brands and garner loyalty both on offline and on online mode. However, PLB in the virtual retail environment is a novel concept entailing new insights on unexplored dimensions of markets and consumer behaviour. The present study attempts to develop a profile of consumers of PLB in the virtual retail environment, especially the emerging markets like India. Using an extended understanding of socio-demographic and psychographic factors constituting consumer shopping behaviour, a cluster analysis on a national sample of Indian online shoppers was performed. Three distinct market segment possessing unique socio-demographics and psychographic characteristics emerged viz. classical, economical and innovative consumers. The size and structure of each identified segment have significant implications for marketing theory and making strategic choices for marketers.