A study of buyer behaviour and attitudes towards national brands and store brands in the food industry

Abstract

Purpose: The purpose of this study is to investigate how the attitudes which consumers have towards national brands and store brands in the food industry and how this influences their purchasing behaviour. Methodology: Data collection includes three phases. The first phase is a quantitative approach consisting of a questionnaire distributed to 100 consumers. Phase two of the data collection included a focus group with eight consumers and the final phase consisted of one semi structured in depth interview with a grocery store brand manager. Findings: The findings from this study indicate that consumers do compare national and store brands whilst grocery shopping. The overall preference is for national branded products however the brand preference is dependent on the product category for example there is a high preference for national branded teas and coffees. Overall the consensus is that national brands benefit from brand equity and brand image. Their high levels of advertising, quality controls and good reputation allows for the high price that they charge but the overall consensus is that they are still overpriced and a lot of national brands and store brands are similar in quality except store brands charge a lower price. Price and promotions are a huge influencer when it comes to brand purchase decision other factors include packaging, the store, ingredients and brand loyalty. Findings also show that many consumers make purchases out of habit and that they have loyalty towards specific brands and stores. Research limitations: This research is limited to a sampling frame of 18 – 40 year olds. Therefore the findings and analysis from this study are limited to this age category.