CONSUMER BUYING BEHAVIOUR TOWARDS PRIVATE LABEL BRANDS IN ORGANIZED RETAIL MARKETS

Abstract

Private label brands (PLBs) — retailer-owned products sold under store brands — have gained traction globally and in India as consumers seek value and retailers chase higher margins. This study examines consumer buying behaviour toward private label brands within organized retail markets of Karnataka. Using a mixed-methods approach, a structured survey (n = 400) across five cities (Bengaluru, Mysuru, Mangaluru, Hubli-Dharwad, Belagavi) was complemented by 12 in-depth interviews with store managers and shoppers. The research investigates awareness, perceived quality, price-sensitivity, trust, and repeat purchase intention for PLBs across FMCG categories. Results show high awareness (78%) and trial rates (62%), with perceived value-for-money and promotional visibility as the strongest predictors of repeat purchase. Demographic factors — income and education — moderate the relationship between price sensitivity and PLB adoption. The paper situates findings within India’s retail expansion and recent private-label growth trends, and discusses policy and managerial implications for retailers operating in Karnataka. Key contributions include (1) city-level evidence on PLB acceptance within a South Indian state context, (2) a behavioural model linking marketing mix elements to purchase intention for PLBs, and (3) actionable recommendations for retailers to increase PLB uptake without eroding national brand equity. The study adds to commerce literature by focusing on organized retail micro-environments in Karnataka and providing a replicable survey instrument for further comparative studies.