Increasing Consumer Purchase Intention Through Private Label of Grocery: Empirical Evidence of Indonesian Consumers

Abstract

The use of brands in products today is dominated by manufacturing brands compared to private label products, however the use of private labels is becoming a trend among retailers in Indonesia, especially private label on grocery products for daily needs. This use for retailers has a double meaning that is one side as a way to win competition for retailers, one side is the use of private label as an attraction for consumers. The purpose of this study was to determine the increased interest in purchasing grocery's private label products through perceived quality, perceived risk, packaging, store image and familiarity. The total sample consisted of 200 respondents who bought private label brands. Hypotheses are tested using multiple linear regression analysis modelling. The results of the regression show that perceived quality, perceived risk, store image and familiarity can increase purchase intentions on grocery's private label products. This paper first explicitly examines the impact of the use of private label for the purchase of Indonesian consumers, especially grocery products.