Factors affecting consumer purchase intention towards private label brands in supermarkets in Vietnam

Abstract

This research paper aims to investigate how consumers’ perception of store image, promotion & visibility of PLBs, perceptual factors (quality, risk, and price consciousness), mediating by customers’ attitude influence their intention to purchase Private Label Brands (PLBs) in supermarkets in Vietnamese context and explore their relationship with each other. The study is based on a quantitative research approach, using a sample of about 300 Vietnamese respondents above 18 years old who are supermarket shoppers at Co.opMart and LotteMart. The data was gathered through a self-administered questionnaire over the month of April to May in 2023 and analyzed using Structural Equation Modelling method with AMOS statistical software, which experimentally tested the hypothesized relationships defined in the study conceptual framework. The findings reveal that customers' perceived quality, price consciousness, promotion & visibility of PLBs and store image directly or indirectly affect their purchase intention towards PLBs. In contrast, perceived risk has an insignificant influence on the intention to purchase PLBs of Vietnamese customers. These results suggest that retailers should focus on enhancing promotion & visibility of PLBs, as well as building a positive store image, in order to exploit consumers’ perceptions regarding PLBs quality and risk to attract customers and promote their purchase intention towards these products. Retailers can also use effective strategies to communicate the benefits and advantages of PLBs to customers and differentiate them from National Brands