Generic Products: Who Buys Them and How Are They Perceived?

Recent times have seen the emergence of unbranded or “generic” products. These products, which are usually sold at a price which is lower than their branded equivalents, are most often found in the area of low-involvement grocery items. Previous research on generic products appears not only to be incomplete and inconclusive, but has been conducted in relatively mature markets. This paper examines in more detail the current consumer perceptions of generic products in the relatively young New Zealand market. Results of a consumer survey suggest that generics are generally accepted by a broad spectrum of society and are not necessarily perceived as being more appropriate for certain groups, although usage tends to be significantly higher amongst older age groups and lower household income groups. Generics are seen as being a sensible buy which have a lower price than their branded equivalents but not necessarily seen as being lower quality products or the type of products which people are embarrassed to buy or consume publicly. Not all products, however, lend themselves easily to the generic concept. This is especially so for those products which have less predictable or less consistent quality.