The private label grocery choice: consumer drivers to purchase

Abstract

Private label products have increased in quality and range in recent years and now make up 17% of grocery sales in New Zealand. These changes mean that private label goods are no longer seen as a ‘budget’ alternative to branded goods, but a legitimate choice for consumers in the supermarket environment. Consumer motivations for private label grocery purchases are examined in this article, with findings suggesting that product category is the most important factor in determining choice between a private label and a branded good, with different levels of purchase risk attributed to different categories of product. The study documents a two-level decision process for consumers of grocery products – pre-purchase and in-store, finding that rational drivers tend to promote pre-purchase preferences and emotional drivers are more active in the store environment.

Keywords:

• private label
• grocery
• supermarkets
• consumer decision making
• brand choice