Perceived Risks Associated with Premium Private Label Brands

This study used a survey of 325 consumers to investigate the effect of perceived risks on the intention to buy premium grocery private label brands in South Africa. Based on the literature, a model was developed and tested using Partial Least Squares analysis. The results indicate that functional and time risk both negatively influence consumers' purchase intention of such products. We found no such effect pertaining to financial, physical, psychological and social risks. This study sheds further light on private label brands in an emerging market context by providing guidance to academics and practitioners as to the manner in which consumers respond to different categories of risk.

Justin Beneke is a Senior Lecturer & research supervisor in the School of Management Studies, University of Cape Town. His interests lie in the fields of Retailing Management, E-Marketing and Customer Relationship Management. Inge Lok, Kate Mallett and Anne Greene are postgraduate students in the department who collaborated on this project.