Proposal GSB

CONSUMERS BUYING ATTITUDE TOWARD PRIVATE LABEL BRAND
PREPARED BY:
NOOR FADZLIN BINTI ABU BAKAR
ZP02537
MASTER OF MARKETING (UKM-GSB)
Introduction
The Private Label market in Malaysia worth RM240 million as at September 2008,
translating to over 30% year on year growth. In Peninsular Malaysia prices of some
grocery segments have jumped as much as 20% year to date, with food items
rising by an average of 15%. Inflation pressures are forcing cost conscious
consumer in Malaysia to adapt their shopping habits and switch to cheaper
alternatives, that is Private Label. Price difference is the strongest proposition for
Private Label, with an average price gap of about 30% between the tops 10
penetrated Private Labels and branded products in Malaysia, in line with global
trends.
Sales of Private Labels grew 32% from February to September 2007 far ahead of
the 15% growth in branded goods compared with the previous corresponding
period.
Problem Statement
With an increased set of brands to choose from, consumers are deciding the
purchase of a brand by weighing various factors like price, quality, packaging etc.
Both the manufacturers brands are fighting to attract the consumers on these
factors. In the past, lower priced private label brands were equated with lower
quality when they were first introduced.
However in recent time, major retailers have increased the quality level of their
private brand even better than the national brand leaders. There is evidence shows
that quality private label brands can help differentiates a retail store and create
store loyalty (Constjens and Lal ,2000)
This study is to know which factors can influence the customers attitude toward
private label brands and subsequently influence their decision to purchase these
brands.
Research Objective
1.1
To determine factors perceived to be important in purchasing private label
1.2
brand
To compare perception of extrinsic factors, intrinsic factors and consumer
attitudes among consumer
Significant of Study
This study can be a guideline to retailers in developing attitude toward private label
brands in Malaysia. It also helps the retailers to focus on the prices of private label
brands in improving their reputation. Furthermore, the retailer gain the competitive
advantages by giving the customer lower prices and good quality of product.
Literature Review
The transformation of private local brands products has not gone unnoticed by
consumers. The improvement in private local brands has made these products an
acceptable purchase alternative for large groups of consumers. That two out of
three consumers around the world believe that supermarkets own brands are a
good alternative to manufacturer brands, but does this apply to the Malaysian
market scenario when it comes to the quality of in house food products? How do
consumers perceive the price of these products and how loyal are the consumers
to private local brands products. (Nielsen,2005)
Another important trend relates to the emphasis on quality of private local brands.
For private local brand retailers of products to be successful on the market they
must develop high quality private local brands, not just low priced brands and this
is the line which Woolworths Food is pursuing with its premium products
(Stambaugh,1993). Without a combination of low price and high quality, private
local brands cannot be successful. Private local brand marketing landscape is
changing as more retailers are indicating a growing enthusiasm for premium, high
quality store brands intended to compete directly with leading manufacturer brands
on quality and image, not just on price (Hoeffler & Keller, 2003), but then the
question in this case is how do consumers perceive the quality of such products.
These efforts seem to have had an impact on consumers perceptions of private
local brands.
Theoretical Framework
Intrinsic
Private Label
Brand
Entrinsic
Consumers
Attitude
Conceptual framework adopted from Chaniotakis et al.(2010); Liljander et al.

(2009); Beneke,(2008); Munusamy and Wong, (2008)
Methodology
This survey method of obtaining information is based on the questioning of
respondents. Data will be collected by intercepting shoppers in shopping malls and
requesting them to complete a self administered questionnaire. The questionnaire
contained a number of items that were used to estimate the constructs of interest.
Specifically, the various constructs were measured using Likert five point scales.
REFERENCES
ACNielsen Grocery Report
Asian Journal of Business and Management Sciences,2 (8), 73-90
Batra,R.Sinh, I. (2000). Consumer-Level Factors Moderating the Success of Private Label
Brands, Journal of Retailing, 76 (2), 175-191
Beneke.J. (2008) Consumer perceptions of private label brands within the retail grocery
sector of South Africa. Journal of Business Management.,4 (2), 203-220
Chaniotakis, I.E., Lymperopoulos,C., and Soureli,M.,(2010). Consumers intentions of
buying own label premium food products. Journal of product and brand management, 19
(5), 327-334
Corstjens, Marcel and Rajiv Lal (2003), Building Store Loyalty through Store Brands,
Journal of Marketing Research, 37 (August), 281-292

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CONSUMERS BUYING ATTITUDE TOWARD PRIVATE LABEL BRAND

To determine factors perceived to be important in purchasing private label

Conceptual framework adopted from Chaniotakis et al.(2010); Liljander et al.

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