Determinants of private label purchases
Given the high penetration of private labels in Europe, one would expect similar successes to be found in Latin America; however, this is not the case. An accurate profile of private label customers may assist retailers in improving the position of private labels in the market and offer insights into why private labels have fared relatively poorly in Latin America. The main objective of this article is to examine how eleven psychographic variables determine private label purchases. Using discriminant analysis, the relative importance of each psychographic variable in explaining private label purchase was assessed. The results show that price consciousness, social risk perceived in the private labels and time pressure are the variables that better determine private label purchases.