Study On Consumers' Perceived Risk And Purchase Intention Of Private Label

With the fast development and increasingly fierce competition of the retail industry, the merchants are facing the common problems: how to seek for the new profit growth and develop core competitiveness. These phenomenances are particularly outstanding in the supermarket. It is a effective way to solve these problems to implement private label strategy .For retailers, it not only enhance the ability of bargain with manufacturers, also improve customer loyalty. According to Global Services Executive News Report: the Power of Private Label 2005 released in September 2005 by ACNielsen, based on ACNielsen data collected from 80 categories in 38 countries,private label goods comprise 17 percent of total value sales(23 percent in Europe) ,up from 5 percent .Private labelis a significant business of retail industry.Purchasing decision making is usually based on comparative advantage. Consumers who chose private label will face more uncertainly factors and will undertake more risks compared with someone chose manufacture brands.perceived risk arise from the serious consequences of making a mistake in a purchase and the probability of consequences.consumer's purchase behavior are always perceptual.the perceived risk in purchase decision making will straight influent their purchase intention.consumers are more prone to buying when the purchase intention degree is higher.so,this research mainly analyze the influences on consumer perceived risks and purchase intention.Previous research investigating perceived risk has demonstrated the perceived risk will be influenced by such factors as product category, demographic variable, culture etc.. So, this research will probe into product category characteristics, demographic variable and culture direct influence on perceived risk. Because of the relationship between perceived risk and purchase intention, we will also explore whether demographic variables and culture have an impact on purchase intention.In order to proceed the analysis, through qualitative and quantitative empirical research. We investigated the customers who had gone to the supermarket within last 3 months and collected 329 effective questionnaire samples, via simply sampling. And then, the hypotheses were tested via the SPSS and SEM, basing on this datum.The main conclusions are as follows: 1. Consumers perceived risk has significant effect on private label purchase intention. In the four aspects of perceived risk, safety risk is the most influential factor to purchase intention.2. The product category characteristics have significant effect on perceived risk; Classification complexity low, classification quality difference little, interval between twice deal long, price lower , products'perceive risk to be low.3. Culture has significant effect on perceived risk too. Consumers'higher degree of uncertainty avoidance and collectivism intention is, the higher perceived risk will be.4. Income, education degree also have significant influence on perceived risk, meanwhile, the education degree is still directly influenced to purchase intention.Through this research, we verified the relation of perceived risk and purchase intention on the private label, and clear the four aspects of perceived risks'influence weight to purchase intention, clarify the influence of products category characteristics, demographic variable, culture and perceived risk. So, it has positive meanings that this research expanded the depth of study with the relation of perceived risk and purchase intention. It could also direct the retailers scientifically choose private label category based on perceived risk, raised private label purchase intention.