Customers' perceptions of private label products at Cash Crusaders, Western Cape.
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Date
2014
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Abstract
Private label products have a high market penetration level globally yet in South
Africa they have lower penetration levels than in many other countries. Private
label products were introduced by Cash Crusaders to offer a budget alternative of
value to customers. Cash Crusaders devotes considerable resources to procure
quality goods for their private labels. In spite of this, the turnover of the private
label range is in decline. The private label electronic products retailed by Cash
Crusaders, are reporting lower sales than in previous years in both units and
profits. Research identified customer perceptions concerning the private label
product range. The results have been channelled into better marketing to the
target market to grow market share for Cash Crusaders. The objectives of the
study were to establish the demographic profile of Cash Crusaders’ customers in
the Western Cape, to identify whether customers are aware of the private label
brands sold by Cash Crusaders, to ascertain how many customers perceive
quality in the private label ranges, to determine if customers consider the private
label brands to be value for money and to determine whether Cash Crusaders’
customers are aware of Cash Crusaders advertising. A quantitative study was
conducted to obtain responses from customers who have purchased the private
label range in the last 12 months. This was to determine their perceptions of
quality and value for money; the demographic profile that purchases these
products and whether customers observe sufficient marketing from Cash
Crusaders. The study also obtained responses, from both customers and non-customers,
on whether they were aware of the private label range. The study
revealed that many customers agree that the products are of good quality and
offer value for money. The study revealed that purchasers of the private label
products tend to be coloured males aged between 26 and 30 years and customers
do take note of the marketing initiatives. Recommendations have been made
concerning ways for shoppers to perceive better value for money in the private
label range and to have sales staff to be given product knowledge. The
recommendations also include an integrated marketing campaign to ensure that
the messages are not mixed, but instead are clear and concise. A limitation of the
study was that the data was cross sectional and only represented a single period.
Description
Master of Business Administration. University of KwaZulu-Natal, Durban 2014.
Keywords
House brands--South Africa., Consumer behavior--South Africa., Brand name products--South Africa., Brand choice--South Africa., Generic products--South Africa., Theses--Business administration., Cash Crusaders.