Investigation of Purchase Habits Related to Food Private Labels

Abstract

Private labels are gaining ground in almost all product categories today, especially in the food trade. In the case of food, the share and penetration of private labels has been a success story for food retailers worldwide, and in Europe their market share has been steadily increasing in recent years. Although they were initially seen as a low-cost alternative for consumers, many retailers have now recognised their potential to differentiate themselves from their competitors and increase profits. With private labels, businesses can differentiate themselves more easily from their competitors and increase their profits due to their high margin content.

The present paper focuses on presenting some partial results of a broader research, with the primary aim of highlighting the role and place of private brands in consumer decisions. We conducted primary, quantitative research using survey methods. We investigated the attitudes, attitudes, and knowledge of the respondents towards private brands in comparison to manufacturer brands. We investigated the circumstances of purchase and the factors influencing the purchase decision-making process among groups with different socio-demographic characteristics.

Our research results are mostly in harmony with the literature and secondary research, with no significant differences. Overall, it can be concluded that Hungarian consumers are willing to buy private brands and are familiar with them when purchasing food.