Profiling prospective private-label buyers

ABSTRACT

Food retailers have had difficulties increasing their private-label sales during non-recessionary periods. Conventional research leads us to believe it would be ineffective to use traditional segmentation to target prospective private-label buyers because sociodemographics and most psychographics are not strongly linked to private-label attitudes, purchases, or willingness-to-pay. Many studies have concluded that perceived risks are associated with private-label attitudes and are limiting private-label sales. This study explores a new approach to identify potential private-label buyers. The results from an internet panel survey of 605 adults were analyzed with binary logistic regressions. Several scales, which have rarely been employed in grocery shopper studies, were used to profile those individuals who perceive more risks from buying or using private labels. The characteristics of these individuals can help retailers and private-label marketers develop appealing product offerings and target prospective private-label buyers using various marketing tactics to grow their private-label businesses.