Factors influencing purchase intention of private label products: The case of smartphones

Abstract

A growth of the market share of private label brands has been observed in developed countries. This growth was initially confirmed for food and drugstore categories, but it quickly expanded to new product categories, particularly technology products. This study focus on a specific technology segment - the private label brands in smartphones, due to the growth observed in its demand, in recent years. In this context, we analyzed and studied the smartphone market and consumer, and examine the factors influencing purchase intention of private label smartphones. The literature review on private label technological products proved to be scarce, which raised a challenge in exploring the main differences among factors influencing purchase intention for this specific product category. In this study, through the development and application of an analytical model, we test a set of variables that resulted from the literature review, which could potentially influence the purchase intention of smartphones. We applied a questionnaire to a study population, and recorded 339 valid answers. The results were estimated in accordance with the Structural Equation Model. Our analysis highlights the importance given to technology by consumers, as well as price and quality. This study also revealed the importance of private label brands in a market which has as yet been underexplored. © 2013 Springer-Verlag.