Segmenting Private Label Shoppers: An Empirical Study

Abstract

Private brands were once a small part of retailers merchandise, however today they are becoming a significant factor for most retail operations. It has also been found that major studies in private labels emphasize on the grocery sector. Apparel sector is on the edge of growth in domestic and global markets due to liberalization. Very few studies have been conducted using multivariate analysis (cluster analysis) for studying the segments of shoppers for an apparel retail store, and so the present study is undertaken to better understand the consumer perceptions. The study indicates the segments of private label shoppers and its association with frequency of usage and the store from which they are purchased. Data are collected using a self-administered questionnaire. The sample size for the study is 608 respondents. Analysis has been done by using multivariate techniques (cluster analysis) followed by Chi Square. Four segments of private label shoppers were brought out from the study, which included Quality Conscious Shoppers, High Expectation Seekers, Apathetic Shoppers, and Impression Oriented Shoppers. Additionally, it was inferred from the study that there exists some association between the segments and frequency of purchase and the store selected. A key limitation of this study is the sampling frame. Future studies should replicate this study in different context.

Keywords: Retail, Private Labels, Segmentation

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