Private label, Perceived risk, Purchase intention, Demographic, ANOVA, PLS


Private label brands are undoubtedly risingly in prominence and becoming serious competitors to national brands in the retail sector. This study examiners the effect of key demographics (namely age, gender, income and racial group) on the relationship between perceived risk and purchase intention of consumers to buy these brands. As sample of 325 consumers was generated and the dataset analysed using Analysis of Variance and Partial Least Squares modeling. The findings suggest subtle differences across the demographic groupings. The two most prominent forms of perceived risk – functional and time risk – were magnified in the 26 to 45 age group, suggesting that additional efforts need to be placed to reassure working-age consumers of the authenticity of these brands. Additionally, although social risk was not identified as a specific threat, this form of risk was most likely to surface in the 26 to 35 age group. As this cohort yields the most spending power, brand managers would be advised to use appropriate marketing channels (e.g. social media) to allay these fears and punt the quality and appeal of such merchandise.

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