Kelana Jaya community purchase intention towards private label products

Private label brand has achieved a significance influence in Southeast Asia market especially in Malaysia. Retailers with private label products face strong rival from national brands. Retailers are looking for factors that influence consumer purchase intention towards private label brands to create and expand their market share. The purposes of this paper is to identify the relationship between consumer behavior towards purchase intention of private label products in Malaysia, focusing in urban area of Kelana Jaya, by using the attributes of consumer price consciousness, value consciousness and risk perception as studied factor. Responses from a total of 163 respondents were collected through mall intercepts in two locals hypermarket in Kelana Jaya, and a regression-based model was used to identify the correlation between factors and the influence on consumer purchase intention. The results indicate a strong, positive relationship between price consciousness, value consciousness and risk perception towards the consumer purchase intention of private label brand products. It concludes that consumer in Kelana Jaya strongly emphasis their purchasing behaviour with products price, value and perception of risk. Private label products also have positive perception among Kelana Jaya consumer. The outcomes of this research suggest that private label brands should employed a three tiers pricing mechanism. Meanwhile, the national brand is suggested not to get into price war with private label brand instead revamp their products with innovation and creating stronger brand goodwill. Furthermore, private label brand should figure out best measure to distribute their product to consumer lives far from exclusive retailers’ chains. This study improve the understanding of consumer decision making for private label purchases from the perspective of Malaysian context focused on Kelana Jaya community. There are some disparities between the results from previous researches which explained within this study in term of cultural and demographic factors.