Factors Influencing Consumers’ Purchase Decision of Private Label Brand Products

Abstract

Private label brand products have increasingly becoming popular since consumers’ loyalty toward store is higher than their loyalty to brands. Consumers also perceived private label brand products as value purchase and the quality level of these products have improved. Hence, this study investigates the factors influencing the purchase of store brand products in Malaysia. The factors include; perceived quality, perceived price, brand image, and promotion. All four factors have shown positive relationship with purchase decision among the respondents. Brand image is found to have the strongest correlation while promotion depicted weakest link with purchase decision. Socio-economic variables are also included in this study. In the findings, household income shows significant differences in the price perception towards TESCO store brand products. In addition, level of education is significantly difference towards the perceived quality of store brand products. Several implications could be derived from the study. TESCO should improve the quality of its store brand products and reposition itself as a retailer that also promotes quality products. The store could improve the perceived price of its private brands by increasing the benefits of the products to enhance consumers’ value.