Rational and irrational behavior of Slovak consumers in the private label market
Keywords:private label, traditional brand, marketing, marketing communication, packaging, consumer, blind test
Rational and irrational consumer behavior has already been the subject of several studies. Although their attention was mostly focused on traditional brands, these studies and their conclusions may also serve as a model for private label research, which is now increasingly coming to the forefront. Private labels are gradually becoming an adequate purchase alternative to traditional brands. The aim of the paper was to find out the influence of packaging and chosen marketing communication tools, on consumer purchasing decisions in the dairy segment. An anonymous questionnaire survey was chosen as the main research method, where participated 1,116 respondents from all over Slovakia; which was subsequently supplemented by the blind test involving 20 respondents under the age of up to 25 years. Seven chocolate-flavored yogurt samples were examined in the blind test; while the samples were such traditional brands by traditional producers as well as private labels. Interestingly, identical products were investigated - products from the traditional producer, both under its brand and under the retailer's private label. The results of our research proved some interesting findings - more than 28% of respondents buy private label products regularly and more than 53% buy them sporadically; whereas respondents do not buy private labels, mainly because of their lack of interest to try something new, assuming poor product quality and inadequate price; they buy them mainly because of lower prices compared to traditional product brands, comparable quality to traditional brands and good experience; respondents perceive private labels as good products of adequate quality and private labels evoke that products are adequate quality at a reasonable price. Although most respondents have no opinion on the packaging of private label products, more than 31% of them consider their packaging as unattractive and almost 36% think that their packaging does not affect them, but the results of the blind test partially refused this opinion.
Augustín, M. 2005. Privátne značky obsadzujú trh. (Private brands occupy the market). Available at: http://www.24hod.sk/privatne-znacky-obsadzuju-trh-cl4990.html (In Slovak)
Burt, S. 2000. The strategic role of retail brands in British grocery retailing. European Journal of Marketing, vol. 34, no. 8, p. 875-890. https://doi.org/10.1108/03090560010331351 DOI: https://doi.org/10.1108/03090560010331351
Čanigová, M., Kaločaiová, V., Remeňová, Z., Ducková, V., Kročko, M., Nagyová, Ľ. 2018. Changes in chosen properties of soft cheeses with chilli pepper during storage. Potravinarstvo Slovak Journal of Food Sciences, vol. 12, no. 1, p. 628-633. https://doi.org/10.5219/971 DOI: https://doi.org/10.5219/971
Cotterill, R. W., Putsis, W. P., Dhar, R. 2000. Assessing the Competitive Interaction between Private Labels and National Brands. The Journal of Business, vol. 73, no. 1, p. 109-137. https://doi.org/10.1086/209634 DOI: https://doi.org/10.1086/209634
De Wulf, K., Odekerken-Schröder, G., Goedertier, F., Van Ossel, G. 2005. Consumer perceptions of store brands versus national brands. Journal of Consumer Marketing, vol. 22, no. 4, p. 223-232. https://doi.org/10.1108/07363760510605335 DOI: https://doi.org/10.1108/07363760510605335
Dean, D., Croft, R. 2009. Reason and Choice: A Conceptual Study of Consumer Decision Making and Electoral Behavior. Journal of Political Marketing, vol. 8, no. 2, p. 130-146. https://doi.org/10.1080/15377850902813386 DOI: https://doi.org/10.1080/15377850902813386
Dulíková, J. 2012. Privátne značky musia odrážať všeobecné trendy (Private labels must reflect general trends). (In Slovak)
Džupina, M., Hodinková, D., Kiková, H. 2016. Spoločensky zodpovedné podnikanie ako zdroj hodnôt značky (Corporate social responsibility as a source of brand values). , Slovak republic UKF, 84 p. ISBN 978-80-558-0991-5. (In Slovak)
Guziy, S., Šedík, P., Horská, E. 2017. Comparative Study of Honey Consumption in Slovakia and Russia. Potravinarstvo Slovak Journal of Food Sciences, vol. 11, no. 1, p. 472-479. https://doi.org/10.5219/784 DOI: https://doi.org/10.5219/784
Hantula, D. A. 2012. Consumers are Foragers, Not Rational Actors: Towards a Behavioral Ecology of Consumer Choice. In Wells, V., Foxall, G. Handbook of Developments in Consumer Behaviour. Cheltenham, UK : Edward Elgar Publishing Limited, 624 p. https://doi.org/10.4337/9781781005125.00024 DOI: https://doi.org/10.4337/9781781005125.00024
Heijn, A. 2012. Reshaping retail. Annual report 2012.
Herstein, R., Gamliel, E. 2004. An Investigation of Private bBanding as a Global Phenomenon. Journal of Euromarketing, vol. 13, no. 4, p. 59-77 https://doi.org/10.1300/J037v13n04_04 DOI: https://doi.org/10.1300/J037v13n04_04
Hoch, S. J., Banerji, S. 1993. When Do Private Labels Succeed? Sloan Management Review, vol. 34, no. 4, 57 p. Available at: https://sloanreview.mit.edu/article/when-do-private-labels-succeed/
Horáček, F. 2019. Čechy pŕitahují značky obchodních řetězců. Nejvíc jogurty a mléko (Czechs are attracted by brands of retail chains. Most yoghurt and milk). Available at: https://www.idnes.cz/ekonomika/domaci/privatni-znacky-obchodni-retezce-rust-gfk.A190419_180421_ekonomika_fih (In Czech)
Horská, E., Nagyová, Ľ., Rybanská, J., Kačániová, M. 2018. External features of milk produkt packages as visual indicators of product quality, tradition and impulse to buy: traditions versus creativity. Journal of Pharmaceutical Sciences & Emerging Drugs, vol. 6, p. 42.
Košičiarová, I., Holotová, M., Nagyová, Ľ. 2014. Knowledge and preference of private label products by slovak consumer. Improving performance of agriculture and the economy: challenges for management and policy. International Scientific Days. Nitra : SUA, p. 336-347. ISBN 978-80-552-1186-2.
Košičiarová, I., Nagyová, Ľ. 2015. Private label: the chance how to increase the consumer´s interest in a proper retail chain. ICABR 2014. Brno : Mendel University, 2015, p. 452-467. ISBN 978-80-7509-223-6. Available at: http://www.icabr.com/fullpapers/icabr2014.pdf
Košičiarová, I., Nagyová, Ľ., Holienčinová, M., Kádeková, Z., Rybanská, J. 2018. Preference and Perception of Private Label Products and Yoghurts – A Case Study of Slovak Consumers with the Age up to 30 years. International scientific days 2018: Towards productive, sustainable and resilient global agriculture and food systems. Praha, Czech republic : Wolters Kluwer ČR, p. 372-390. ISBN 978-80-7598-180-6. https://doi.org/10.15414/isd2018.s2-1.08 DOI: https://doi.org/10.15414/isd2018.s2-1.08
Košičiarová, I., Nagyová, Ľ., Holienčinová, M., Rybanská, J. 2017. Preference and perception of products and yoghurts labelled by the private label from the side of young Slovak consumers. Managerial trends in the development of enterprises in globalization ERA. Nitra, Slovak republic : Slovenská poľnohospodárska univerzita, 2017, p. 797-806, ISBN 978-80-552-1739-0.
Kumar, N., Steenkamp, J. B. 2007. Private Label Strategy : How to Meet the Store Brand Challenge. 1st edition. Canada : Harvard Business Review Press. 288 p. ISBN-10: 1422101673.
Ližbetinová, L., Štarchoň, P., Lorincová, S., Weberová, D., Průša, P. 2019. Application of Cluster Analysis in Marketing Communications in Small and Medium-Sized Enterprises: An Empirical Study in the Slovak Republic. Sustainability, vol. 11, no. 8, 18 p. https://doi.org/10.3390/su11082302 DOI: https://doi.org/10.3390/su11082302
Lorincová, S., Hitka, M., Štarchoň, P., Stachová, K. 2018. Strategic Instrument for Sustainability of Human Resource Management in Small and Medium-Sized Enterprises Using Management Data. Sustainability, vol. 10, no. 10, 25 p. https://doi.org/10.3390/su10103687 DOI: https://doi.org/10.3390/su10103687
Mach, J., Dvořák, M., Hošková, P. 2018. EU Milk and Dairy Market Changes and Impact of Globalisation Trends. I 18th International Scientific Conference. Globalization and its socio-economic consequences (Part III.- Economic Progress in Post-Soviet Countries), Rajecke Teplice, Slovak Republic, Zilina, Slovakia, ZU-University of Zilina, p. 1204 – 1212. Available at: https://globalization.uniza.sk/wp-content/uploads/2018/12/proceedings_globalization_2018_part_3.pdf
Marsden, D., Littler, D. 1998. Positioning Alternative Perspectives of Consumer Behaviour. Journal of Marketing Management, vol. 14, no. 1-3, p. 3-28. https://doi.org/10.1362/026725798784959381 DOI: https://doi.org/10.1362/026725798784959381
Nagyová, Ľ., Košičiarová, I. 2014. Privátne značky: fenomén označovania výrobkov 21. storočia na európskom trhu (Private labels: the 21st century product labeling phenomenon on the European market). Nitra, Slovak republic : Slovenská poľnohospodárska univerzita. 168 p. (In Slovak) ISBN 978-80-552-1172-5.
Nagyová, Ľ., Rybanská, J., Košičiarová, I., Horská, E., Kačániová, M. 2018. Packaging as a visual indicator of quality, tradition and culture of traditional products from sheep milk. Kňazovická, V., Tokárová, K, Hollý, D., Kolesárová, A. Biotechnology and quality of raw materials and foodstuffs. 1st ed. Nitra, Slovak Republic : SUA, 66 p. ISBN 978-80-552-1874-8.
Narasimhan, C., Wilcox, R. T. 1998. Private Labels and the Channel Relationship: A Cross-Category Analysis. The Journal of Business, vol. 71, no. 4, p. 573-600. https://doi.org/10.1086/209757 DOI: https://doi.org/10.1086/209757
Polakevičová, I. 2015. Application of transactional analysis in marketing research - models of the hierarchy of effects of marketing communication and structural analysis. Prohuman. Available at: https://prohuman.sk/print/psychologia/application-transactional-analysis-marketing?page=6&prof=3&loc=21
Rybanská, J., Košičiarová, I., Nagyová, Ľ. 2019. Reklama a jej vplyv na vedomé a podvedomé spotrebiteľské správanie na trhu potravín (Advertising and its impact on conscious and subconscious consumer behavior in the food market). Ostrava, Czech Republic : Key Publishing. 139 p. (In Slovak) ISBN 978-80-7418-328-7.
Rybanská, J., Nagyová, Ľ., Košičiarová, I. 2015. Personality of consumer as a predictor of irrational consumer behaviour under the influence of sensorial stimuli. In Proceedings of ICABR 2015. X. International Conference on Applied Business Research. p. 888-896. ISBN 978-80-7509-379-0. Available at: http://www.icabr.com/fullpapers/icabr2015.pdf
Šedík, P., Horská, E., Ivanišová, E., Kačániová, M., Krasnodębski, A. 2019. Consumer behaviour of young generation in slovakia towards cocoa-enriched honey. Potravinarstvo Slovak Journal of Food Sciences, vol. 13, no. 1, p. 18-24. https://doi.org/10.5219/1013 DOI: https://doi.org/10.5219/1013
Smith, R. K., Bashaw, E. R. 2009. Using Information Processing To Build A Private Label Brand In Big Emerging Markets. International Business & Economics Research Journal, vol. 8, no. 4, p. 27-42. https://doi.org/10.19030/iber.v8i4.3123 DOI: https://doi.org/10.19030/iber.v8i4.3123
Smutka, L., Svatoš, M., Tomšík, K., Sergienko, O. I. 2016. Foreign trade in agricultural products in the Czech Republic. Agricultural Economics (AGRICECON), vol. 62, p. 9-25. https://doi.org/10.17221/18/2015-AGRICECON DOI: https://doi.org/10.17221/18/2015-AGRICECON
Steenkamp, J. B., Van Heerde, H. J., Geyskens, I. 2010. What Makes Consumers Willing to Pay a Price Premium for National Brnads over Private Labels? Journal of Marketing Research, vol. 47, no. 6, p. 1011-1024. https://doi.org/10.1509/jmkr.47.6.1011 DOI: https://doi.org/10.1509/jmkr.47.6.1011
TASR. 2010. PRIESKUM : Predaj značkových tovarov si udržal postavenie aj v čase krízy (RESEARCH: The sale of branded goods has maintained its position in times of crisis). (In Slovak) Available at: http://www.edb.sk/sk/spravy/prieskum-predaj-znackovych-tovarov-si-udrzal-postavenie-aj-v-case-krizy-a2398.html
TNS. 2015. Obľúbenosť privátnych značiek na Slovensku rastie (The popularity of private labels in Slovakia is growing). (In Slovak)
How to Cite
LicenseAuthors who publish with this journal agree to the following terms:
- Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal.
- Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal.
- Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See The Effect of Open Access).