Why private label grocery brands have not succeeded in Asia

Rujirutana Mandhachitara, Randall M. Shannon, Costas Hadjicharalambous

Research output: Contribution to journalArticlepeer-review

26 Scopus citations

Abstract

Lower disposable income among Asian grocery shoppers, heavily discounted private label grocery brands, relative to national brands, and a favorable retail distribution structure would seem to predispose the former to success. But this has not been the case. To learn why private label grocery brands have not succeeded in Asia, two identical shopper surveys were conducted in Wichita, Kansas (United States) and Prakanong-Bangna, Bangkok (Thailand) to examine possible factors relating to retail grocery shopping differences. The authors found that poor market knowledge, and the tendency of Thai consumers to infer product quality by using extrinsic cues such as high price were salient. Additionally, Thai choices were influenced more by social factors than Americans, making them less prone to bargain hunting. The paper concludes with the discussion of managerial implications and offers recommendations to retail chain owners operating in the region. doi:10.1300/J042v20n02_07

Original languageEnglish (US)
Pages (from-to)71-87
Number of pages17
JournalJournal of Global Marketing
Volume20
Issue number2-3
DOIs
StatePublished - Jun 26 2007

All Science Journal Classification (ASJC) codes

  • Business and International Management
  • Marketing

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