Organic private label products on the shelves The impact of the organic shelf space decisions on the purchase intention of organic private label products
The organic market is rapidly expanding and both retailers and national brands are reacting by offering organic products. However, there is limited shelf space and retailers have to make decisions about the degree of availability and the position of organic and non-organic products on the shelves. In addition, there is little research on the effect of the degree of availability and positioning of organic private label products on the purchase intention of organic private label products. Through the use of an online questionnaire with experimental design, respondents were separated into four experimental groups and given comparable shelves that varied in the degree of availability of an organic private label product and its position on the shelf. Results show that the shelf space decisions of organic private labels on the shelf do not have a direct effect on the purchase intention of organic private label products. It is surprising to conclude that the shelf space positions of organic private label products are negligible. Based on these findings, it appears that organic private label products are comparable to premium private label tiers. The moderator brand authenticity appears to have a direct effect on the purchase intention of organic private label products instead of a moderating effect. Interestingly, this differs per product category.
Faculteit der Managementwetenschappen