The Study Focus On How The Perceived Risk Affect The Consumers’ Purchase Intention To Private Brand

With the increasing consumers’spending and global economic growth, the competitive environment among the retailers is more and more fierce. Because of the intense competition, retailers are developing Private Brands to promote the marketing products. In fact, Private Brand is developing fast in foreign countries, especially in the market of Europe, Private Brand accounts for more than40%.Compared with the development of Private Brand in foreign countries, PB is still in its infancy in China. In China, most of the domestic retail enterprises are still selling manufacturer brands, Private Brand products in the proportion of all the products is very small, Private Brand is developing relatively slowly. In fact, domestic consumers are not known for Private Brand, if buying Private Brand products can take risk of the uncertainty, it will have an impact on the consumers’willingness to buy the Private Brand products. Perceived risk is the uncertainty for the consumers’ purchasing results, buying own private products must bear the cost of the spirit; it will directly affect the consumers’ purchase intention. As.a result, if the retailers want to improve competitiveness via the development of PB strategy, reducing consumers’ perceived risk is an important prerequisite. From the comparison of development for domestic and foreign Private Brand, in addition to domestic consumers’ unknown for Private Brand, its inherent cultural values also may have some impact on consumers’ behavior. Previous research can be seen, perceived risk is an important factor to influence consumers’ purchase tendency. As a result, different cultural values may cause different purchasing behavior; the retallers must pay attention to the consumers’ cultural values. But how the perceived risk exactly affect the consumers’ propensity to buy Private Brand products? How the cultural values affect the relationship in the process of it?To answer these questions, this paper constructs the research model for cultural values.perceived risk and consumers’ propensity to buy private label products, and then I create a series of research hypotheses based on the model, later I analyzed the collected data via research methods, then analyzed how the perceived risk affect the propensity to buy Private Brand products, and verify the regulation of cultural values between them.The main conclusions are as follows:(1) Perceived risk will have a significant negative impact on propensity to buy Private Brand products. Specifically, the perceived functional risk, perceived financial risk and perceived social-psychological risk have a significant negative impact on the propensity to buy Private Brand products, the impact between the perceived risk of time and the propensity to buy private label products is not significant. First of all, the social-psychological risk and functional risk have a greater impact on the propensity to buy Private Brand products.This suggests that retailers must focus on the design and the shape of the packaging in order to reduce consumers’"cheap and inferior" impression for the products, thereby increasing their purchase intention. Secondly, the retailers must focus on the development of low-cost high-quality products, enhancing the consumers’"affordable" impression for the products.(2) Collectivism and uncertainty avoidance will affect the relationship between the perceived risk and propensity to buy Private Brand products, the impact of Power distance between the perceived risk and propensity to buy Private Brand products is not significant. Specifically, collectivism will have a significant negative impact between the perceived risk and propensity to buy Private Brand products. This indicates that the design of products must meet the needs of the consumers and have weaker creativity. On the other hand, the retailers should use appropriate methods such as on sale or the prizes and other means to encourage people to follow the trend of buying. While uncertainty avoidance will have a significant positive impact between the perceived risk and propensity to buy Private Brand products. This indicates that retailers should improve the products’ packaging and try to eliminate the asymmetry of information. At the time of sale of new product promotion, the retailers should encourage the customers to enjoy the products face to face and reduce the risk weights.The innovation lies in this article:Most previous studies regard perceived risk as a whole, but this paper explore the perceived risk dimensions (including functional risk, financial risk, social-psychological risk, time risk) to discuss its relationship with its propensity to buy Private Brand products, it provides effective supplement for the research of perceived risk. On the other hand, this paper discuss the regulation of cultural values between the perceived risk and the propensity to buy Private Brand products, it will have some reference for domestic retailers.