Consumers’ Perceptions Towards Private Label Brands: A Case of Private Label Brands, Produced by Kenyan Supermarkets in Nairobi County

Abstract

Globally, leading retailers are increasingly venturing into private label that account for more than 20 per cent of their retail sales as value-seeking consumers increasingly continue to cast their brand preference nets wider. Locally, there is a substantial growth in the private labels as retailers are concerned about their store and day by day curiosity among consumers is increasing leading to demand of private label brands in different product categories. The study therefore sought out to explore consumer’s perceptions, and the expected outcomes of private label branding among Kenyan supermarket. The objectives of the study were: determine final consumer’s perceptions towards private label branding by Kenyan supermarket retailers; and to determine the buying process of private label brands used in Kenyan supermarket retailers. The study therefore focused on the leading five (5) supermarkets in Nairobi County. Convenience sampling technique was used to sample subjects, and location. The study adopted a descriptive research design with a target population of 135 customers and a sample of 72 respondents was selected based on the inclusion criteria. Questionnaires were the main data collection instruments). The main method to present data was frequency tables and tables. Data was analyzed to obtain descriptive statistics more especially central tendencies; mean and standard deviation. The study showed that the most important attribute in consumers’ perceptions on purchasing of private label brand was ‘perceived value’, followed by price, packaging, advertisement, and perceived quality. The study also found differentiation as the expected outcome of private label branding. The study conclude that the name of the supermarket persuade customers to develop preference to private label brand, as is product information on the package and similar products on the shelves being important determinants for customer purchase decision. This study recommend that supermarkets should consider expanding the product categories of private label products and utilize them as a means of differentiation against the competition by investing in consumer drivers of quality, price, display and actual product contents.

Keywords: Private label brand, Consumer perceptions, Traditional/National brands.

DOI: 10.7176/EJBM/11-20-08

Publication date:July 31^st 2019