Factors Influencing Customer’s Perception toward Private Label Brand: Case of Griya Supermarket Bandung, 2014

Abstract

Private label brand is a relatively new concept in retail industry. Traditional retailers are usually only taking control the supply chain from distributors or producers to the customers. When they are getting bigger, they start thinking to take more profit by having their own products. In western countries, where private label were started, the market share of private label products is nearly one-third of total products sold, even in Switzerland, it can reach up to almost a half of total products sold. While in Asia countries, private label brand’s growth is very slow, which only less than 5% and even worse, in Indonesia are only less than 1%. A survey was conducted in three Griya supermarket outlets in Bandung to find out the factors that influence consumer perception toward private label. As every area in Indonesia has different culture and interest, the survey is held only in a specific retailer and specific area, which is Griya Supermarket in Bandung, West Java. Thus, we can get a more concrete result. The result can help retailers to adjust their private label strategies in order to increase the market share. According to the result of the survey, there are two factors that influence customer’s attitude toward private label; they are products attributes, which include quality and packaging, and retailer’s image, which include services provided by retailer.