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ISSN : 1738-3110
Characteristics of Private Label Users of Low Involvement Products: Scanner Data Analysis
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Abstract
Purpose - The purpose of the research is to identify the demographic characteristics of the customers with high private label purchase intention. According to the previous research demographics such as gender, age, income, and residence type affect private label purchase intention indirectly through psychographics rather than directly. For instance, higher income group is time pressured, price-insensitive, quality-sensitive, less likely to enjoy shopping utilitarian products, and less likely to be variety-seeking. The main contribution of this research is to verify the results found in the previous empirical foreign research using scanner data and to investigate the differences of the characteristics of private label users between Korea and the foreign countries. Research design, data, and methodology - In order to empirically test the proposed hypotheses, scanner data of a Korean major super center was analyzed. Results - Empirical results show that private labels are more favored by old people over 50s, dwellers in individual house, lower income group, and frequent store visitors. Age of 30s, dwellers in the apartment of 30 pyung, higher income group, and consumers who purchased a large amount are less likely to purchase private labels. Gender turned out not to affect private label purchase. It should be noted that there is a significant multicollinearity among independent variables. Conclusions - The research findings provide managerial implication for retailers' private label strategy. In general, retailers heavily send private label coupons to the customers with high purchase volume. According to the research, however, store visit frequency is much more positively associated with private label purchase than purchase amount. The study has some limitations. The samples are only consumers with private label purchase experience. The data were drawn from one store and only 8 commodity products were used for the analysis. Also, if more demographics were available, a more complete description on the private brand users' profile could have been derived. We propose the following future research. Research using the data including consumers without private label experience, research investigating direction of causality between private label loyalty and store loyalty, and research using hedonic private label products such as TV and PC could be promising.
- keywords
- Private Label, Demographic Variables, Pychographic Variables, Store Loyalty, Scanner Data
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