Customers' perceptions of private label products at Cash Crusaders, Western Cape.

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.