A study of low-income consumer acceptance of selected private branded food products

The research reported in this thesis tested the hypothesis that low-income families purchase private brands of selected food products because they represent acceptable quality at lower prices. The six food products selected were coffee, flour, peanut butter, bread, pork and beans, and margarine. The data collected in field interviews and subsequent statistical analyses consistently refuted the hypothesis. This finding is true for the low-income consumer segment and its sub-categories, white and Negro. The low-income consumers do not purchase private brands heavily, but test data indicate that this market segment buys more private brands than does the C > $7000 consumer group. There is evidence of substantial differences in the buying habits of low-income Negro and white consumers. While neither market segment purchases more private brands than national labels, the N < $3000 consumer tends to buy more private brands than does the W < $3000 consumer. Contrary to the hypothesis the indication is that the C > $7000 consumer knows price better than does the low-income consumer. Also, greater importance is attached to price by the C > $7000 group than by the low-income segment. This is not true of the Negro consumer. As stated above, the N < $3000 consumer buys more private brands than does the W < $3000 consumer. This tendency exists for price knowledge and the importance attached to price. The Negro consumer tends to know prices better, and he attaches more importance to price than does any of the other income segments tested. Regarding private-brand awareness, none of the market segments tested was well informed about private-brand market offerings. However, low-income consumers were able to name more private brands than were the C > $7000 consumers. Negro consumers were able to name more private labels than the W < $3000 group. The field data and test results all indicate that the Negro consumer tends to spend his money on the selected products more knowledgeably than the lower income white consumer. The Negro is better informed as to price and the private-brand offering.

Name thesis:degree_name

M.S.

Level thesis:degree_level

masters

Discipline thesis:degree_discipline

Business Administration

Department dc:contributor.department

Business Administration

Grantor dc:publisher

Virginia Polytechnic Institute

Year dc:date.issued

1968

Author dc:creator

• DeManche, Earl Robert

Statement dc:rights

• In Copyright

Licence dc:rights.uri

• http://rightsstatements.org/vocab/InC/1.0/

Language dc:language.iso

en

Handle dc:identifier.uri

http://hdl.handle.net/10919/104510

OAI identifier oai:identifier

oai:vtechworks.lib.vt.edu:10919/104510