The impact of private label products on consumer perception and pricing biases: A study of Kanguro-Pam

This study examines the role of private label products and assortment changes in shaping consumer perceptions and behavioral biases, using the collaboration between Kanguro supermarkets and Pam as a case study. By analyzing data collected from over 300 consumer surveys, the research highlights the strong correlation between the perceived quality-price ratio of Pam-branded products and the awareness of price reductions on branded goods in Kanguro stores. Consumers who positively evaluate Pam's private label products are more likely to notice price decreases, suggesting a confirmation bias that associates the introduction of Pam products with overall improvements in the shopping experience. This correlation is further supported by findings related to the perceived enrichment of Kanguro's assortment and the proportion of Pam-branded products purchased, which similarly align with increased awareness of price reductions. These findings underline the pivotal role of private labels in shaping consumer decision-making and illustrate how confirmation bias influences the perception of value and pricing. The study delves deeper into the dynamics driving private label products and examines the behavioral mechanisms, such as confirmation bias, that impact purchasing decisions, providing valuable insights into the psychological underpinnings of modern retail strategies.