Effect of private label brands (PLBs) exposure on consumers behavior

Abstract

Nepal is one of the fastest urbanizing country in the world. In last decade, there is significant rise in establishent of retail chains in the country. This phenomenon also synchronizc with the cemergence of private labcl brands (PLBs) in Nepali retail landscape, mostly in grocery segment. However, consumers are getting different level of PLB exposure across these grocery retail chains. This study assessed the effect of PLB exposure to Nepali consumer's purchase behavior, by analyzing the effect on different variables contributing to PLB 'purchase intention' and their relationships. This study was conducted with 200 retail consumers at Kathmandu valley who were experimentally exposed to PLBs at stores; 100 with high exposure, and 100 with low exposure. Natural experimental method and post-test only control group design was used. Primary data were collected via structured questionnaire immediately after exposure. For analysis, ANOVA and multiple linear regression method was adopted. From this study, it was found that high PLB exposure had significant effect on PLB awareness', 'Percejved risk' and 'Attitude towards PLBs. "PLB awareness', 'In- store extrinsic cues' and 'Perceived Risk' significantly affected 'Attitude towards PLBs. Furthermore, 'Attitude towards PLBs' had significant effect on 'Purchase Intention'. This study added value in knowledge continuum in PLB research, as well as PLB research void in Nepal. It shall contribute academicians and retailers to better understand and explain the PLB purchase phenomenon in Nepal, ultimately supporting PLB adoption process. Key Words: private label brands (PLBs), Nepali retail, PLB exposure, experimental method, attitude, purchase intention