Theory Building on Private Label Brands: A Literature Review

Retail stores get higher margin from private label brands. Many organized retail stores in India have private label branded products on their shelves along with the established national brands. But not all the product categories are patronized in a similar way by the consumers. The purchase of private label brands varies with the categories of products. Sometimes the mean quality of the product category affects the sales of private label brands. Some studies have shown that the economic conditions have an effect on the private label purchase. The sales of private label brands are also influenced by the price consciousness of the consumers and risk perception of the product category. The perceived risk is the expected negative utility that is associated with the product and is represented by inherent risk and handled risk dimensions. Sales of private label brands are also affected by the promotional strategy of national brands.