The consumer behavior of Slovak millennials in the segment of milk and dairy products within private labels

Ingrida Košičiarová,Zdenka Kádeková,Ľubica Kubicová,Jana Rybanská

doi:10.5219/1404

Ingrida Košičiarová, Zdenka Kádeková + Show 2 more

Open Access

https://doi.org/10.5219/1404

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Abstract

Despite the fact that the dairy industry has an important position in the food industry (with an 18% share in its total production and sales), dairy businesses are currently struggling with low consumption of milk and dairy products. According to most researchers, the low consumption of milk and dairy products is mainly due to poor eating habits and, last but not least, insufficient promotion of these products. There is also an opportunity for private labels, which are recently on the rise, for which milk and dairy products are the most commonly purchased category of food. This paper aimed to find out how Slovak millennials perceive private labels, in which categories they buy them, what motivates them and on the contrary, discourages them from the purchase, etc. As the main research method, there was chosen the method of anonymous questionnaire survey involving 549 respondents from all over Slovakia; which was subsequently supplemented with a blind test. The submitted results of research declared that our goals were fulfilled and the following conclusions can be stated: Slovak millennials buy private labels in particular in the category of milk and dairy products, perceive private labels as an adequate alternative to their purchase and when purchasing milk and dairy products, they are mostly influenced by recommendations of family and friends and the tasting.

Highlights

The dairy industry has an important position in the food industry of the Slovak Republic, as it accounts for 18% of its total production and sales
The submitted paper focused on the issue of private labels in the segment of milk and dairy products in a selected segment of customers called millennials, because according to several researches (Polakevičová and Uhríková, 2015; Šedík et al, 2018a; Šedík et al, 2018b), they represent potential customers, with a high potential to become loyal customers
Submitted paper aimed was to find out how Slovak millennials perceive private labels, in which categories they buy them, what motivates them and on the contrary discourages them from the purchase, while we focused primarily on the segment of milk and dairy products regarding the fact, that many different studies proved that private labels are mainly purchased in the categories of milk and dairy products (e.g. research by Košičiarová et al (2014), Retailmagazin.sk (2018), GFK (2018), Košičiarová et al (2018) etc.) and the questions focused on the mentioned issue was formulated in the questionnaire survey

Summary

Introduction

The dairy industry has an important position in the food industry of the Slovak Republic, as it accounts for 18% of its total production and sales. Sales are mostly influenced by the evolution of raw cow's milk prices on both, European and world markets. Prices had a significant impact on the industry in 2009 – 2010, as there were observed sharp fluctuations – while 2009 brought to the dairy sector a profit of 2.8 million €; in 2010, it showed a loss of 7.3 mil. The average purchase price of raw cow's milk was the lowest in 2009 when it was around 20.82 €/100 kg. While the development of average purchase prices of raw cow's milk excluding VAT is in the graphical form shown, Figure 2 shows the production of milk and dairy products in the Slovak Republic While the development of average purchase prices of raw cow's milk excluding VAT is in the graphical form shown in Figure 1, Figure 2 shows the production of milk and dairy products in the Slovak Republic

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