Exploring the Perceptions of Grocery Retail Managers on Private Label Brands in South Africa

Abstract

The phenomenon of private label brands has been widely studied from various contexts, with South Africa as no exception. The pervading economic climate across the globe, as a consequence of the Covid 19 pandemic, has brought the study of private label brands to the fore. Private label brands (PLBs) are considered a cheaper alternative with comparable levels of quality to manufacturer products, which creates a value proposition for consumers (Cuneo et al., 2019). Notwithstanding the plethora of research in this field, these studies are pointed towards customer perceptions and purchase behaviours for private label brand products rather than the perceptions of grocery store retailers. This paper explored the perceptions of grocery retail managers concerning private label brands (PLBs) by delving into the views of these managers concerning the reasoning behind consumer purchase behaviour when it comes to these private label products. The study’s main finding was that grocery retail managers believe that customers primarily purchase private label brands due to the trust that they display towards a grocery retailer rather than the emphasis placed on the pricing or quality of these products. Moreover, the confidence exhibited by customers extends towards repeat purchases of private label brands as the products match or exceed expectations, which further encourages the faith they have in these brands. These findings indicate that grocery retailers opine that customers’ view private label brands positively. We recommend that grocery retailers invest more in the awareness of private label brands (PLBs), thereby creating more knowledge of private label products. Customers are more educated in this respect and can draw better conclusions between the cost/quality dichotomy that has always plagued the adoption rate of these products within a South African and African context.

Received: 5 August 2022 / Accepted: 11 December 2022 / Published: 5 January 2023