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Abstract

Many food retailers offer private-label products because of the strategic benefits they provide. Growing private-label sales could be advantageous for both retailers and private-label manufacturers. Conventional wisdom leads us to believe it would be ineffective to use traditional market segmentation and targeting to grow private-label sales because socio-demographics are not strongly linked with private-label attitudes or purchases. However, many studies found that perceived risks are associated with private-label attitudes and purchases. This study uses a survey to identify individuals who perceive there to be significant risks with private-label purchases or use. The profile of these private-label avoiders could provide retailers and private-label manufacturers with segmentation and targeting information and help them grow their businesses.

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