The potential of private labels in agricultural markets: An exploratory study

Abstract

Purpose — Private brands have not yet been studied in the agricultural products market. The aim of this exploratory study is to assess the potential of private brands in the agricultural market by examining agricultural consumers’ attitudes towards private brands and factors that influence their buying decisions.Design/methodology — Data were collected through a quantitative survey with two independent samples — one sample of 150 farmers and one of 288 household consumers. Fifty members of each group also participated in an in-depth qualitative interview.Findings — The quantitative results show that agriculture consumers are more attuned to intrinsic factors (quality and price), while household consumers are more attuned to extrinsic factors (package, shelf space, brand name) when deciding which brand to buy. Cluster analysis found two groups of agricultural consumers, differing in the importance they ascribe to extrinsic factors in their buying decisions. The qualitative findings show that among agricultural consumers, the decision to purchase private brands is heavily influenced by recommendations from salespeople.Originality/value — This research offers marketers insights into the potential of private labels among agricultural consumers.Practical implications — The results show that private brands in agriculture have the potential to acquire a considerable market share. It is suggested that retailers and manufacturers stress the quality and attractive prices of private brands. In addition, it is suggested that marketing strategies focus on salespeople as useful mediators between producers and farmers.