Consumers’ Preferences for Various Private Label and National Brand Food Products at Different Retailers in Potchefstroom, South Africa

Abstract

Theoretically, private labels should benefit lower income consumers by saving them money. South Africa is an emerging country with high unemployment rates where consumers could benefit from purchasing value for money private labels. Although the market share of private labels has risen in this country, it has not achieved the success of global counterparts. This study investigated the relationship between demographic variables and consumers' brand preferences for selected food products in retailer outlets with differing target markets in a South African context. A mall intercept, interviewer-administered questionnaire was used to collect data (n = 620) in an urban area at prominent supermarkets selling both private labels and national brands. Education level and home language were the most significant demographic characteristics associated with brand preference. In product categories where the product is not visually recognizable when served, private labels seem to be more acceptable. Consumers, who have to purchase private label products due to financial constraints, are more prone to prefer a product where they are able to identify the contents. Brand preference seems to be product, region and retailer specific and related to specific demographic variables.