A study on Consumer Trust and Buying Behavior towards private label food products in Organized Retailing: An Empirical Study of Bengaluru
DOI: https://doi.org/10.5281/zenodo.22981273
Prof. Arul Jyothi M, Dr. Rizwana M, Dr. Kiran . G
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Keywords:
Consumer Trust, Buying Behavior, Private Label Food Products, Organized Retailing.
Abstract:
The private label food products have become a growing phenomenon in organized retail outlets, their influence on consumer trust and its effect on consumer buying behavior has been under-researched in an Indian context. The purpose of this study is to explore how perceived quality, price perception and product availability affects consumers' trust in the product and how their trust in the product affects their buying behavior with regards to private label food products in the organized retailing channel in Bengaluru, India. The study was designed as a quantitative research study and primary data were collected through a structured questionnaire from 310 consumers of private label food products from the organized retail food outlets in Bengaluru. The results of descriptive statistics were used to analyze the consumer perceptions, satisfaction and factors affecting private labels preferences, and regression analysis was used to test the proposed hypotheses. The results revealed that product quality (29%), followed by price (27%) and product availability (24%) were the most important factors that influenced consumers' desire for private-label food products. The regression results showed that the perceived quality had a significant positive influence on consumer trust (β = 0.521, p < 0.001), followed by “perceived price” (β = 0.437, p < 0.001) and “product availability” (β = 0.396, p < 0.001). The results showed that consumer trust had the highest positive influence on buying behavior (β = 0.684; p < 0.001) and all four hypotheses were supported. The result confirms that trust is an important factor in the consumer's purchase decision and that controllable factors of the retailer like product quality, pricing and availability have the potential to influence consumer trust. The study offers some valuable implications for organized retailers who wish to enhance their private-label food products in terms of consistency, competitiveness, assurance of availability, and positioning on trust.