Impact of Private Labeling on Customer Purchasing Intention of Modern Trade in Sri Lanka

Abstract

The private labelled products provide an alternative selection for consumers during purchasing in modern trade outlets. The researchers found very limited studies regarding private labels in Sri Lanka. Therefore, this article aims to analyze the impact of private labelling, especially private label product price, store familiarity, store image perception, and attitude towards private label and how those ultimately influence customer purchasing intention. Research data were obtained from 368 respondents who visit modern trade outlets in Sri Lanka. All responses were collected using a questionnaire through an online survey. A simple random sampling method was used to collect data and were analyzed to obtain descriptive statistics. The finding demonstrates a positive, significant impact on the price of the product, store familiarity, store image perception, and attitude towards private labels on the purchase intention. This study adds new knowledge regarding the purchasing behaviour of private label products. Therefore, the retailers are anticipated to better understand the factors influencing the purchase and re-purchase intention of private labels which could better improve the standard of private labels in the modern retail market in Sri Lanka.