Consumers' perceptions of a South African premium private label retailer's innovativeness within a selected foods category

Abstract

Purpose – The purpose of this research study was two-fold; firstly, to investigate consumers’ overall perceptions of a specific South African premium private label food retailer’s (PPLFR) innovativeness within the selected department; this included investigating the consumers’ perceptions of innovativeness about a product and promotional positioning and in-store experience. Secondly, it is to determine and correlate the association between consumers’ perceptions of the PPLFR’s innovativeness and its organisational performance, excluding financial performance, thereby including consumer purchasing behaviour linked to perceptions such as purchase intent, satisfaction, and loyalty. Design/methodology/approach – This research was empirical and followed an exploratory, descriptive approach. It made use of primary data, collected electronically through a structured self-administered questionnaire, from 628 respondents. The study was quantitative, correlational, and cross-sectional and reflected on perceptions at the specific time of the study, within a particular context. Findings – The study concluded that consumers' perceived the premium private label retailer as innovative concerning product and promotional positioning as well as in-store experience for sweet baked items sold at the retailer. The relationship between the positive perceptions and the subjective performance outcomes and consumer purchasing behaviour could be correlated and was positive. Originality/value – For academic scholars, retailer innovativeness and essential retail innovations are crucial topics that should be explored. Investigating consumer perceptions of premium private label retailer innovativeness in an emerging market is critical to understand how retailer investment in innovations contributes to their capability. Put into practice, these results may be useful to retailers, to adopt a more consumer-centric innovation strategy especially in an era of increase competition where innovation is seen as such a critical instrument for differentiation.