Consumers’ purchase intention of private labels: The case of e‐retailers

Abstract

AbstractIn economically vulnerable situations such as the pandemic, private‐label products generate bigger appeal. The behavior of online private‐label consumers has remained understudied thus far, despite several studies suggesting that different channels lead to different consumer behaviors. This study aims to develop and test a theoretical model that elucidates the factors influencing the online purchase intention of private‐label products in a post‐pandemic scenario. We assess the role of attitude in the relationship between value consciousness, convenience, perceived quality, awareness, price consciousness, private‐label image, retailer reputation, and functional risk, in relation to purchase intention. The study is based on a sample of 318 respondents and employs variance‐based partial least squares structural equation modeling (PLS‐SEM) for data analysis using Smart PLS 3. This study is one of the first to delve into post‐pandemic research on online private‐label products during an economic downturn. This study explores the purchase intention toward online private‐label products by drawing on the theory of planned behavior, attribution theory, and cue utilization theory. Our results reveal that retailer reputation influences private‐label image, which affects purchase intention. Additionally, perceived quality, private‐label image, and attitude positively influence the purchase intention of private‐label products. Retailer reputation also affects private‐label image and value consciousness. Furthermore, convenience has a positive effect on attitudes toward the online purchase of private labels. Interestingly, price consciousness did not affect the purchase intention of online private labels. These findings have significant implications for private‐label online retailers and policymakers. This article extends the current private‐label theory and holds promise for future application in an omnichannel private‐label context.