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Customer Perception of Private Labels in Russian Food Retail

Student: Spasskikh Elvira

Supervisor: Maxim Demin

Faculty: St.Petersburg School of Economics and Management

Educational Programme: Management (Bachelor)

Year of Graduation: 2019

In the contemporary Russian food retail market retailers attempts to introduce private labeled goods in order to be different from other food chains and increase customer loyalty to their brand because it increases their profit. Nonetheless, 60% of Russian buyers view private labels as low-quality goods for people with low income that prevents them from buying these products. Thus, the aim of the research is to determine and analyse the factors affecting customers decision to buy private labels or not. The survey based on the questionnaire and cluster analysis in IBM SPSS Statistics will be used as the main research methods. In addition to main methods, analysis of secondary data provided by “Perekrestok” will be applied. The paper will provide an empirical study of customers perception of private labels on the example of the part of the largest Russian retailer ‘X5 Retail Group’ in order to develop further the recommendations for activities targeted on successful production and promotion of private labeled goods. The factors influencing buyers willingness to purchase private labels will be analyzed. Keywords: private labels, food retail, customer loyalty, customer perception

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