Are consumers more rational and informed purchasers during recession periods? The role of Private Labels and retailing strategies

Abstract

This paper aims to investigate how economic crisis changes consumer behaviour and mass retailers’ strategies, the interrelationship of these changes, and how Private Labels (PLs) can influence and be used in this process. The authors analysed data collected from 535 consumers and carried out statistical processing (ANOVA, cluster, etc.) to detect changes in the selection of the retailer, potential variations in the selected brand for various categories of food and non-food products, changes in preparation activities and behaviours prior to and during the purchase (leaflets, internet, promotions, coupons, etc.). Results indicate that consumers have noticeably moved to discount and ELP-based retailers, to PL products, increased the use of Internet to prepare and make purchases and, furthermore, they feel good with the decisions they’ve taken even after the recession, and want to continue doing so. The rising sales of discounters and PLs confirm that economic crisis boosts changes both in consumer behaviour and the retailing sector. Findings highlight the importance of some retailers’ strategies to face adverse economic situations and how PLs can be used as game-breakers, as they are preferred by consumers in these situations.