Determinants of Purchase Intention of Private Brands in India: A Study Conducted on Hypermarkets of Delhi

The present study proposes to study the impact of factors that affects the purchase intention of customers toward private brands with the broad objective to assist managers and marketers to gain good insight about the behavior of Indian buyers so that they can formulate effective strategies to improve the overall performance of private brands in terms of customer acceptability in hypermarkets. Based on extensive review of literature seven independent variables namely perceived price, perceived quality, perceived risk, perceived value, store image, store brand familiarity, shelf space allocation are identified to analyze the purchase intention towards private brands as dependent variable. The study was conducted Sep to Dec, 2017. For this research Delhi city is the main focus of this study as there are many hyper markets operate in this city. As well Delhi is full of multi-social class of people. Therefore, this research is to study Indian consumer attitude towards private brands. The research design used is causal research design. Data was collected from the customers through primary sources using questionnaire as instrument. A survey questionnaire was prepared using five point Likert scale to measure the response on continuous scale. Sample frame constitutes the customers of two hyper retail stores (Big Bazaar and Easy Day) who purchased the private brand in their purchase. Sampling techniques was judgemental and the effective sample size was 369. Descriptive and inferential statistics was used as data analysis tool. The taken model explains 76.2% variably of purchase intention of private brands by identified seven variables. Six independent variables viz., Perceived price, Perceived quality, Perceived risk, Perceived value, Store image and Store brand familiarity have significant impact on purchase intention towards private brands while one independent variables viz., Shelf space allocation have no significant impact on purchase intention towards private brands. Perceived risk & Perceived price is negatively related with purchase intention towards private brands. Store image has highest impact followed by Store brand familiarity and Perceived value. On the basis of the results of this research, it can be recommended the hypermarket retailers should try to enhance the image of their store and their private brands. They should also create the brand value which means that the benefits sought must overweigh its cost. As price and perceived risk are negatively related so the retailers should be vigilant about the price and perceived risks by the customers of private brand customers.

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