Journal of Contemporary Issues in Business and Government

Abstract

The research is needed more across “consumer” correlates than the
“manufacturer” and “retailer” based correlates as these constitute the most significant
aspects that could probably shape the market shares and success of branding across multitier
private labels being promoted by organized food retailers. Store based offering of
diverse food product categories (spices, grains, flours, ingredients, pulses, refined oils and
cooking medium, tea and beverages, commodiments) seem to have brought the retailer in
direct competition with manufacturer brand. In this regard the research leverages the
structural equation modeling approach to ascertain the differences in propensity to adopt
private labels on account of changes in grocery nature (pulses, spices, dairy, snack, oil,
grain). The research study relied on Likert scale based pre validated scales to
operationalize the factors. The sample size of 600 was undertaken with a valid sample size
of 438. Across grocery segments, contrasting observations were reported. The impact of
product attributes, consumer psychographics, store efforts and restraining forces was
evident in varying proportions.Contribution: The research findings promote the earlier
studies under the umbrella of „cue utilization‟ theory, „planned behavioral‟ prospects,
„expected utility‟ prospects and „self-perception‟ theory. In terms of knowledge creation,
the outcomes extend the resource-based theory and behavioral basis of marketing in
retailing arena. In terms of theoretical consequences, the research outcomes reflect the
incidence of impact of positional strategies as key to competitiveness on day to day basis.