Effect of Demographic Factors on the Purchase of Private Label Brands of Food Products from Organized Retail Stores in Chandigarh

Abstract

Organized retail industry in its present form is not very old and has a very small share in the overall retail market in India. Consequently the industry of private label branded products is evolving. Majority of the organized retail firms are still offering products under national and local brands. However, many of them of are also offering a large range of products under their own private label brands. Most Indian customers in urban areas, however, exhibit intentions to buy products under national or local brands, irrespective of whether purchase is being made from an organized outlet or a stand-alone store. This behaviour can be attributed to various reasons such as customer's familiarity with national brands, lack of faith in private label brands, product availability, promotion of national brands, etc. Nevertheless, many existing stand-alone retail outlets have been selling many product categories under private label brands. The present study examines the effect of demographic factors of age and monthly household income on the proneness to buy private label brands of instant noodles and milk and milk products from the organized retail stores amongst customers in Chandigarh. It is an exploratory study based on data gathered using questionnaire. It has been concluded that the demographic factor of income does not create any positive impact on the proneness to buy private label brands of instant noodles and milk and milk products sold by the organized retail outlets. Age has been identified as the factor that positively influences the proneness to buy private label brands of milk and milk products but not those of instant noodles.