Private label, Perceived risk, Purchase intention, Demographic, ANOVA, PLS


Private label brands are undoubtedly risingly in prominence and becoming serious competitors to national brands in the retail sector. This study examiners the effect of key demographics (namely age, gender, income and racial group) on the relationship between perceived risk and purchase intention of consumers to buy these brands. As sample of 325 consumers was generated and the dataset analysed using Analysis of Variance and Partial Least Squares modeling. The findings suggest subtle differences across the demographic groupings. The two most prominent forms of perceived risk – functional and time risk – were magnified in the 26 to 45 age group, suggesting that additional efforts need to be placed to reassure working-age consumers of the authenticity of these brands. Additionally, although social risk was not identified as a specific threat, this form of risk was most likely to surface in the 26 to 35 age group. As this cohort yields the most spending power, brand managers would be advised to use appropriate marketing channels (e.g. social media) to allay these fears and punt the quality and appeal of such merchandise.

Full Text : PDF

  1. Anchor, J.R. and Kourilova, T. (2009). Consumer perceptions of own brands: international differences. Journal of Consumer Marketing, 26(6), 437-499.
  2. Baltas, G and Argouslidis, P.C. (2007). Consumer characteristics and demand for store brands. International Journal of Retail & Distribution Management, 35(5), 328-341.
  3. Batra, R. and Sinha, I. (2000).Consumer-level factors moderating the success of private label brands. Journal of Retailing, 76(2), 175-91.
  4. Beckett, M. (2009). Retailer Private Label Brands. Group Product Manager, ACNielson. Available from: URL<> [03 March 2010].   
  5. Beneke, J., Greene, A., Lok, I. and Mallett, K. (2012). The influence of perceived risk on purchase intent – the case of premium grocery private label brands in South Africa. Journal of Product & Brand Management, 21(1), 4-14.
  6. Berges-Sennou, F., Bontems, P. and Requillart, V. (2004). Economies of private labels: a survey of literature. Journal of Agriculture & Food Industrial Organization, 2(3),1-23.
  7. Chen, R. and He, F. (2003). Examination of brand knowledge, perceived risk and consumers’ intention to adopt an online retailer.TQM & Business Excellence, 14(6), 677-693. 
  8. De Wulf, K., Odekerken-Schroder, G., Goedertier F., and Van Ossel, G. (2005).Consumer perceptions of store brands versus national brands. Journal of Consumer Marketing, 22(4), 223–232.
  9. Dunn, M., Murphy, P. and Skelly, G. (1986).The influence of perceived risk on brand preference for supermarket products. Journal of Retailing, 62(2), 204-16.
  10. Glynn, M.S. and Chen, S. (2009). Consumer-factors moderating private label brand success: further empirical results. International Journal of Retail & Distribution Management, 37(11), 896-914.
  11. Herstein, R. and Jaffe, E.D. (2007). Launching store brands in emerging markets: resistance crumbles. Journal of Business Strategy, 28(5), 13-19.
  12. Huang, Y. and Huddleston, P. (2009). Retailer premium own-brands: creating customer loyalty through own-brand products advantage. International Journal of Retail & Distribution Management, 37(11), 975-992. 
  13. Jacoby, J., and Kaplan, L.B. (1972). The Components of Perceived Risk, in proceedings of the Third Annual Conference of the Association for Consumer Research. Association for Cosumer Research, 382-393.
  14. Laforet, S. (2007).British grocers’ brand extension in financial services. Journal of Product and Brand Management, 16(2), 82-97.
  15. Liljander, V., Polsa, P. and van Riel, A. (2009). Modelling consumer responses to an apparel store brand: Store image as a risk reducer. Journal of Retailing and Consumer Services, 16(2), 281-290.
  16. Mieres, C.G., Martin, A.M.D. and Gutierrez, J.A.T. (2006). Influence of store brand perceived risk on store brand proneness. International Journal of Retail and Distribution Management, 34(10), 761-772.
  17. Mieres, C.G., Martin, A.M.D and Gutierrez, J.A.T. (2005). Antecedents of the difference in perceived risk between store brands and national brands. European Journal of Marketing, 40(1/2), 61-82. 
  18. Mitchell, V.W. (1998). A role for consumer risk perceptions in grocery retailing. British Food Journal, 100(4), 171-183.
  19. Mitra, K., Michelle, C. and Capella, L. (1999). An examination of perceived risk, information search and behavioral intentions in search, experience and credence services. Journal of Services Marketing, 13 (3).
  20. Peter, J.P. and Tarpey, L.X. (1975).A Comparative Analysis of Three Consumer Decision Strategies. Journal of Consumer Research, 2 (June), 29-45.
  21. Rubio, N. and Yague, M. J. (2009). Alternative panel models to evaluate the store brand market share. European Journal of Marketing, 43(1/2), 110-138. 
  22. Schiffman, L.G., and Kanuk, L.L. (2004).Consumer Behaviour.New Jersey: Pearson Prentice Hall.
  23. Semeijn, J., van Riel, A.C.R., Ambrosini, A.B. (2004). Consumer evaluations of store brands: effects of store image and product attributes. Journal of Retail and Consumer Services, 11, 247-258.
  24. Sethuraman, R., Cole, C. (1999). Factors influencing the price premiums that consumers pay for national brands over store brands. Journal of Product and Brand Management, 8(4), 340-351.
  25. Shimp, T.A. and Bearden, W.O. (1982).Warranty and Other Extrinsic Cue Effects on Conusmer’s Risk Perceptions. Journal of Consumer Research, 9 (June), 38-46.
  26. Ueltschy, L.C., Krampf, R.F., and Yannopoulos, P. (2004). A Cross National Study of Perceived Consumer Risk Towards online (Internet) Purchasing. The Multinational Business Review, 23(2), 59-82.
  27. Zielke, S. and Dobbelstein, T. (2007). Customers’ willingness to purchase new store brands. Journal of Product & Brand Management, 16(2), 112-121.